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What visa options are available for overseas entrepreneurs willing to set up a business in UK?

Friday 5th July 2019

As you know, new Innovator and Start-up visas have replaced Tier 1 (Entrepreneur) from 29 March 2019. The crucial problem that occurred with the new Innovator and Start-up visa scheme is getting an endorsement letter which is quite a challenging task for now. The closure of the entrepreneur route has meant that many individuals who were hoping to apply under it have had to significantly re-think their plans. Here are some of the most popular options that entrepreneurs can choose as an alternative to the Innovator or Start-Up route.

WHAT OTHER OPTIONS ARE AVAILABLE FOR ENTREPRENEURS?

Representative of an Overseas Business visa

One of the most popular and the less risky alternative is the Representative of an Overseas Business visa route, also known as the "Sole Rep visa". This route is aimed to enable overseas businesses to send a senior representative to the UK to establish a registered branch or wholly owned subsidiary in the UK for an overseas parent company.

The main requirements are the following:

• the business must have it's headquarters and principal place of business outside the UK;
• it must be the company's first commercial presence in the UK;
• the UK operation must perform the same type of business activity as the overseas business.

The requirements for the sole representative role are the following:

• be recruited and employed outside the UK;
• have sufficient authority, relevant experience and knowledge to establish the UK operation;
• not be a major shareholder;
• not fall foul of the general grounds for refusal;
• meet the English language requirement (Level A1 unless applicants are from a majority English speaking country or have an academic qualification that meets the requirements);
• be able to maintain and accommodate themselves and any family members without recourse to public funds.

Those granted a permit to enter the UK under this route can only work in their capacity as the representative of the overseas company. Successful applicants will receive an initial visa of three years and the possibility to extend their stay for another 2 years in case of a successful business operation in the UK. This route leads to ILR after 5 years stay in the UK plus family members can accompany or join the main applicant.

This visa route can be used in many ways, for example it's a perfect option for couples where one is a majority shareholder and the other is also working for the company. The non-majority shareholding partner can apply for the visa with the majority shareholding partner applying as a dependant.
 
Tier 1 (Exceptional Talent)

The UK's Tier 1 (Exceptional Talent) visa is also starting to receive attention from those who might otherwise have applied under the old entrepreneur route. This category is designed for talented and prominent individuals in the qualifying fields:

• science
• engineering
• humanities
• medicine
• digital technology
• the arts
• fashion
• architecture
• film and television

The application process consists of two stages.

1. Apply to the Home Office for endorsement as a leader or an emerging leader in your particular field:

• Arts Council England - for the arts and culture
• British Academy - for humanities and social sciences
• Royal Academy of Engineering - for engineering
• Royal Society - for natural sciences and medical science research
• Tech Nation- for applicants in digital technology

2. Apply for the visa

Successful applicants are able to work on an employed or a self-employed basis which includes being able to set up a business in the UK. Visa holders can stay in the UK for up to 5 years and 4 months if you apply outside the UK or 5 years if you apply inside the UK and it's possible to extend the visa for an additional 5 years. It is up to the applicant to choose how long to apply for. The same as for Representative of an Overseas Business visa this route leads to ILR and family members can accompany or join the main applicant.

Tier 2 (Sponsorship)

Maybe you would find it surprising but Tier 2 sponsorship is not just for employees. It can be also an option for owners, shareholders, contractors and consultants, in certain situations. The entrepreneur has to arrange for the UK business to be formed in order to be eligible to apply for a sponsor licence. In very basic terms, once the company has a sponsor licence the entrepreneur will be able to be sponsored providing:

the total remuneration package for their UK role will be:

• at least £159,600 if they will own more than 10% of the shares in the UK entity; or
• at least £30,000 (or the minimum amount on the relevant SOC code) if they will own less than 10%. In the case of the lower package, the role may need to be advertised first of all.

In both scenarios, it is a mandatory condition to be graded at least as level 6 on the Regulated
Qualifications Framework (roughly degree level — which would be the case for management/director roles).

Tier 1 (Investor)

The Tier 1 (Investor) route is an option for really wealthy entrepreneurs as its basic requirement is at least £2,000,000 at applicant's or his/her partner's disposal. An additional condition is to provide proof of owning this amount for two years or otherwise to demonstrate the source of the funds. Moreover, the funds must be able to be transferred to the UK.
 
First of all, before making the visa application, the investor must have been able to open a UK bank account. And the crucial step to maintain the visa is to invest the money in active and trading UK companies.
 
Successful applicants are able to work on an employed or a self-employed basis which includes being able to set up a business in the UK.
 
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