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main difference bewteen L1 and H1B

Karu Raj
Ranch Hand

Joined: Aug 31, 2005
Posts: 479
hi all

what is the main difference bewteen L1 and H1B? which is advantage ?

as the H1B is closed for this yearr... i cannot wait till next year oct for H1B .

so do let me know what should i do
Kj Reddy
Ranch Hand

Joined: Sep 20, 2003
Posts: 1704
Originally posted by Karthik Rajashekaran:
hi all

what is the main difference bewteen L1 and H1B? which is advantage ?

as the H1B is closed for this yearr... i cannot wait till next year oct for H1B .

so do let me know what should i do


Advantage of L1: you do not need to wait till next year oct if you want to work in US

On H1B you can change the companies, you can transfer your H1B to other company and that is not possible with L1. You need to work only for the company which sponsors L1.
Sumit Chopra
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Joined: May 26, 2006
Posts: 176
I don't know exactly but I think there is a minimum wage criteria for H1 but not for L1.
Karu Raj
Ranch Hand

Joined: Aug 31, 2005
Posts: 479
bewteen H1b and L1 who earns good package .

say Person A is having H1B and Person B is having L1 ...having same experience .....whos is better earner and saver of money ...
Mav Ricky
Ranch Hand

Joined: May 19, 2004
Posts: 76
hi

there are many diffrences between H1b and L1.L1 is a long term visa
and H1B is of 3 years extended to 6 years.L1 primarily is of 7 extendable of course.
in L1 your wife can work in H1B your wife cannot work.
for more issues go to www.immihelp.com
L1 guys definitely have work rights in US than any other and more salary.
Karu Raj
Ranch Hand

Joined: Aug 31, 2005
Posts: 479
can i apply for both L1 and H1B???/

why many are taking H1B than L1 though L1 is better than H1B
Luke Kolin
Ranch Hand

Joined: Sep 04, 2002
Posts: 336
Originally posted by KJ Reddy:
Advantage of L1: you do not need to wait till next year oct if you want to work in US


No, but you do need to be employed by the company for a year (within the last three) outside the US before you can enter on an L1, so the practical effect is about the same.

Cheers!

Luke
Anand Prabhu
Ranch Hand

Joined: Dec 19, 2003
Posts: 299
Originally posted by Ankur Srivastava:
hi


L1 guys definitely have work rights in US than any other and more salary.


L1 is an IntraCompany transfer visa whereas H1 is a temporary work visa sponsored by a US company. So, I do not believe that L1 visa holders are subject to the salary scutiny by the labor department. As such, they are expected to be given a minimum allowance to meet their needs while in US and at the same time given a salary in the base country. So, he may not necessarily get more salary. From my interactions, they get far less. The only relief is that the base salary gets deposited in their country which of course is a direct savings.
Luke Kolin
Ranch Hand

Joined: Sep 04, 2002
Posts: 336
Originally posted by Anand Prabhu:
As such, they are expected to be given a minimum allowance to meet their needs while in US and at the same time given a salary in the base country. So, he may not necessarily get more salary. From my interactions, they get far less. The only relief is that the base salary gets deposited in their country which of course is a direct savings.


There's no requirement or expectation that L1 holders be paid in their own country (that may be how Indian firms do it) and even if they did those earnings would be subject to US taxation.

Cheers!

Luke
Jignesh Patel
Ranch Hand

Joined: Nov 03, 2001
Posts: 626

Yes thats true L1 visa is not supposed to pay in their own country.

So L1 is no way good, as you are relying on the company which sponsers you and you have to work them only.

You can file H1 through other company but wait till next year.
Rambo Prasad
Ranch Hand

Joined: Feb 23, 2006
Posts: 628
Advantage of H-1 over L-1:

You can jump company once you are in US...I know a guy who jumped from Infy to Microsoft in US ...Such thing is not possible in L-1..I think get L-1 visa is easier than getting H-1?

Any idea whether the type of visa has a bearing on Green card processing..??


Helping hands are much better than the praying lips
Anand Prabhu
Ranch Hand

Joined: Dec 19, 2003
Posts: 299
Originally posted by Luke Kolin:


There's no requirement or expectation that L1 holders be paid in their own country (that may be how Indian firms do it) and even if they did those earnings would be subject to US taxation.

Cheers!

Luke

I am not sure about the taxation part. Maybe for citizens of Canada and Mexico, rules may be in place to avoid double taxation as they are part of NAFTA. But for an Indian citizen, his salary in Indian currency is subject to Indian tax and if he gets taxed again by US, it will be a whammy. But again, I do not know if any bilateral agreements are in place between India and US.
Vijay Dinanath Chauhan
Ranch Hand

Joined: Jun 02, 2006
Posts: 34
hi

there are many diffrences between H1b and L1.L1 is a long term visa
and H1B is of 3 years extended to 6 years.L1 primarily is of 7 extendable of course.
in L1 your wife can work in H1B your wife cannot work.
for more issues go to www.immihelp.com
L1 guys definitely have work rights in US than any other and more salary.


Politically correct statement would be to say that your spouse can work.

Just saying that your "wife" can work , assumes that "fairer sex" doesn't usually work and hang around with husband.

Just my $0.002
JothiKumar Ekanath
Ranch Hand

Joined: Dec 21, 2003
Posts: 30
Originally posted by Karthik Rajashekaran:
bewteen H1b and L1 who earns good package .

say Person A is having H1B and Person B is having L1 ...having same experience .....whos is better earner and saver of money ...


Hi Karthik,
From your previous post, i understood that you are working for Satyam.

Here are my comments on H1 and L1

1.Usually services companies Like satyam,TCS,Infy,Cognizant will apply for the USA visa after a employee completed 1 year service, I guess this is a rule for L1 visa's. For H1 this is not the case.
2. If we are not from computer science background, then usually these companies will apply for H1. That entirely depends upon the Immigration HR present in the companies. I guess the employee cannot prefer a Visa type (not sure)
3.Mostly all these companies has reduced their H1 visa's
4. In L1 there are 3 different types of Visa's
a.L1 Blanket - No need to get approval from INS(USA) directly go for stamping. Very fast and the criteria is the candidate should have computer science background
b.L1 Individual - Need to be approved from INS will take minimum 6 months to get papers from USA and then stamping 3 or 4 months depending upon where we are getting stamped.
c.L1 Premium - Need to be approved from INS, 1000$ extra charge, but we can know the result within 15 days. It will take the same amount of time as individual L1.
Mostly all these companies go for L1 blanket for all the computer science students.
5. So at a minimum when the company starts processing a Visa (L1/H1) except L1 Blanket it will take minimum 6 months for the papers to get approved from INS and to arrive India. After that, Visa stamping will take another 4 or 5 months. So at a minimum it will take 10 to 12 months.

6. As said earlier in H1 we can change Jobs, but in L1 we cannot

7. Irrespective of the visa types these companies will pay more or less the same money when we are at onsite. So saving depends upon person to person. At a minimum one can easily save 80k to 1.3L on a average per month. This doesn't depends upon the visa type.

So all the best



Regards
Jothikumar
[ August 03, 2006: Message edited by: JothiKumar Ekanath ]
Luke Kolin
Ranch Hand

Joined: Sep 04, 2002
Posts: 336
Originally posted by Anand Prabhu:

I am not sure about the taxation part. Maybe for citizens of Canada and Mexico, rules may be in place to avoid double taxation as they are part of NAFTA. But for an Indian citizen, his salary in Indian currency is subject to Indian tax and if he gets taxed again by US, it will be a whammy. But again, I do not know if any bilateral agreements are in place between India and US.


It's not a NAFTA or a tax treaty question - if you meet Substantial Presence Test (>183 days in the US) you become a US tax resident and your entire income is subject to US taxation, no matter what your home country does.

Cheers!

Luke
Anand Prabhu
Ranch Hand

Joined: Dec 19, 2003
Posts: 299
Originally posted by Luke Kolin:


It's not a NAFTA or a tax treaty question - if you meet Substantial Presence Test (>183 days in the US) you become a US tax resident and your entire income is subject to US taxation, no matter what your home country does.

Cheers!

Luke

You are right. It's been a while since I browsed through the IRS catalogues and I am pretty surprised to read about the taxation laws for legal residents with foreign income. I guess because of the foreign earned income exclusion (pages 11 & 12,http://www.irs.gov/pub/irs-pdf/p54.pdf) limit of $80,000 , I never bothered to read more and went by assumptions.
Karu Raj
Ranch Hand

Joined: Aug 31, 2005
Posts: 479
Thanks a lot Jothikumar and all other ranchers ....

I decided to apply for H1B , but only for next year as this year is it closed
Anand Prabhu
Ranch Hand

Joined: Dec 19, 2003
Posts: 299
Originally posted by JothiKumar Ekanath:


a.L1 Blanket - No need to get approval from INS(USA) directly go for stamping. Very fast and the criteria is the candidate should have computer science background


I am pretty sure you are missing something here. It can't be that easy. Just a Computer Science background? And the INS (BCIS now) doesn't have to approve? In these days of heightened security, I find it tough to believe.
JothiKumar Ekanath
Ranch Hand

Joined: Dec 21, 2003
Posts: 30
Hi,
For L1 blanket visa's i guess the papers are not sent to USA. The company gives the visa and directly book the appointment for stamping. During visa interview in the embasy they will ask lot of questions and it purely depends upon the person who is interviewing to give the visa.

Once the person clears the interview he gets the visa. I am not saying its is very easy but it is fast as compared to other visa types.

Please correct me if i am wrong.
Devesh H Rao
Ranch Hand

Joined: Feb 09, 2002
Posts: 687

Originally posted by JothiKumar Ekanath:
Hi,
For L1 blanket visa's i guess the papers are not sent to USA. The company gives the visa and directly book the appointment for stamping. During visa interview in the embasy they will ask lot of questions and it purely depends upon the person who is interviewing to give the visa.

Once the person clears the interview he gets the visa. I am not saying its is very easy but it is fast as compared to other visa types.

Please correct me if i am wrong.



Blanket L1 is given to a company and not an individual. The company should have very good credentials and should be able to prove that they are not indulging anything which will can be constructed as breaking of any US laws.


The company gives the visa and directly book the appointment for stamping.


That would make L1 the easiest of visas, don�t you think? It quite does not work that way.

L type of visas is for strictly inter-company transfers, a person traveling on an L type of visa should be on the employee rolls of the company which is filing the visa for him, and this makes it mandatory that the company filing the visa to have a registered office in US as a software concern. At the same time an L type of visa cannot be transferred.


H (Temporary Worker) Visa -

H-1B: Persons in a specialty occupation
H-2B: Seasonal nonagricultural workers
H-3: Trainees other than medical/academic; also training of handicaps
H-4: Dependants of H visa holders


L Visa (Intracompany Transferees)-

L-1A Executive, managerial
L-1B Specialized knowledge
L-2 Spouse or child of L-1
JothiKumar Ekanath
Ranch Hand

Joined: Dec 21, 2003
Posts: 30
Hi Devesh,
Lots of Info, Thanks very much. By the way i got a question my company processed L1 Blanket visa to one of my friend and upon submitting the papers, my company blocked the stamping date for him immedieately.

But for me its H1 B and it took 6 months to get the papers approved and after that my company blocked for a stamping date.

So my friend got visa stamped 4 months earlier than me even though we started the processing at the same time. This is what i wanted to convey on the differences of L1 and H1

Anyway if we get the exact info that is good for all the ranchers.

Thanks
Jothikumar
 
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