Are you starting a business in the UK? Currently, the United Kingdom suffers from employee shortages across almost all industries. On the other hand, the number of visa applications is said to be ever-increasing in all areas. It is no surprise. The UK is one of the highest-profiled countries with a great history, and one of the leading countries of the world when it comes to the economy. In terms of vaccine rollout during the pandemic, the UK was the first one in the world and one of the fastest to protect its nation. No wonder many foreigners are hoping to obtain a visa to the UK. But how feasible to start a good, innovative business model that nobody else has heard of? Does it have to be completely new? No, it doesn't necessarily have to be. But you need to know a few basics.
Please note that this guide only gives you some ideas, it is NOT a professional advice. The immigration laws change from time to time, therefore I would strongly recommend you to check further on the UK government's work visa guidance once you decide to apply.
UK Work Visa Tier System
If you’re looking to work in the UK, the government assesses your application through a point system. Which type of visa you want to apply for depends on:-
- What kind of skills or talent you can contribute to the country
- The fluency of your English
- Your age
- For how long you wish to stay in the UK; whether you wish to obtain a UK settlement status in the future or not.
There have been 5 x tiers in the system in the past. High-value migrants, skilled workers, unskilled/low-skilled workers, adult students, and temporary workers. Now, if you are looking to reside in the UK as a professional, you should either look into;
Tier 1: Entrepreneur (“High-Value Migrants”)
Either of the following.
- You have exceptional talent in art, science, etc.
- You are setting up a business in the UK, or setting up a UK company of a business you are already running outside the UK.
- You have completed higher education and been recognised for your entrepreneurial skills.
- You have a significantly large sum of money to invest in the UK (i.e. millions).
Skilled Workers
The skilled Workers category was formerly known as Tier 2. But this is where you work as an employee or a contractor. It’s not for you to apply but for your employer or sponsor to apply for you.
Others
Others include unskilled/low-skilled workers (formerly Tier 3) and temporary workers (formerly Tier 5). But again, these visas should be applied by your employer, and the visa will be on a temporary basis. So if you’re looking to obtain an ILR (indefinite leave to remain) status, these are not the types of visa you should be looking for.
For your information, “Tier 4” was applicable to students aged 16 or over, thus this is not what you’re looking for.
Entrepreneur Visas
You are looking to set up a business in the UK, therefore as you can see from the above, what you’re looking for is the Tier 1, the Entrepreneur visa category. There are further two types of visas; One is Start-up Visa and the other one is Innovator visa. The first thing you can do is to compare the two and decide which one is more suitable to apply.
Let's see what's similar and what's different about the various aspects.
Common Eligibility
Both Start-up visa and Innovator visa require you the following;
- Your business idea is authentic. The idea should be new, innovative (different from anything else on the market) and it has a potential for growth. Needless to say, you cannot join in a business that’s already running.
- You must be 18 or over.
- You must prove that you can understand English (read, write and speak) to a level B2 of CEFR scale.
- Your application must be endorsed by an authorised body, i.e. UK higher education body or a well-established business organisation in the UK.
- You must have had at least £1,270 in your bank account for the past 28 consecutive days.
Financial Eligibility
Whether you can apply for an innovator visa or start-up visa may largely depend on the extra funds you have in your bank account (on top of the £1,270 mentioned above).
- Start-up Visa - You’ll need to prove that you have ‘enough funds’ to support yourself for a while. The amount of requirement is not specified by the immigration office, but it must be sufficient.
- Innovator Visa - You must have at least £50,000 to invest in your business. You can apply as a team of innovators, in which case, it must be £50k for each team member. If you are applying for an innovator visa as a business team of 3 members, your bank account balance should show at least £150k.
Your Spouse/Partner and Children
The good thing about both the visas is, you can include your living partner and children in your application, providing they’re eligible, and you can prove that you have sufficient funds to support them financially.
Main Difference
The main difference between the two visas is the fundamental resident status;
- Innovator Visa - 3 years. You are allowed to extend it so long as you apply it before the renewal date. You can extend it every 3 years (as many times as you wish). But after living in the UK for 3 years, you’ll be eligible to apply for ILR (indefinite leave to remain, i.e. permanent residence).
- Start-up Visa - 2 years maximum. Not extendable.
It means that Start-up visa will always be a temporary one. While you have that visa, you are allowed to trade business and work for someone else as an employee. But you cannot apply for public funds or state pension.
Work Outside Your Business
You may also wish to note that while Start-up visa allows you to work for someone else, Innovator visa prohibits you to work outside your business.
Switching Visa
Not being able to extend is the main reason that Start-up visa holder is allowed to apply to switch to Innovator visa. Hoever, as explained above, Innovator visa requires you to have a substantial savings of £50,000 or more, and also to prove that your startup business is prospective.
No “Professional Sportsperson”
The United Kingdom has a billion-buck football industry, but the government immigration prohibits anyone from outside the UK to coach football without obtaining a proper, relevant visa. Start-up visa and Innovator visa are no exceptions. Both the visas prohibit you to work as a professional sportsperson, even for part-time, paid or unpaid.
What Kind Of Businesses Are Eligible?
Your new business must be unique, and can potentially bring a new idea to the country. It doesn’t necessarily mean that your business sells a product or service that no one’s ever heard of. But it can utilise innovative marketing methods, technology, or something advantageous for the business to be operated within the UK.
The measurement is subjective, and it is up to the immigration to decide whether the idea is innovative or not. So needless to say, it is important for you to be able to explain in detail how your ideas stand out from other existing businesses.
Indefinite Leave To Remain to Nationality
To be granted an ILR status, you’ll have to prove that you’ve contributed benefits to the country and paid taxes accordingly. Your business must have good prospects for a continuous period of three years in order to qualify for settlement. This guide is intended to give you the outline. UK work visa application process can be complicated and time-consuming. You wouldn’t want to apply without professional help only to have it refused. It will be in your best interest to consult with an experienced immigration lawyer so that you can ensure your application is processed smoothly.
For more information, check the UK government pages; Innovator Visa, and Start-up Visa, respectively.
