The old Tier 1 Entrepreneur visa was a popular route for visa nationals looking to establish or take over an existing business in the UK. There was a huge influx of budding investors moving to the UK for the purposes of running their own commercial ventures. A key requirement of the visa was to show evidence of having access to the sum of £200,000. Providing this sum was invested in the said business, the route permitted applicants and their dependants the chance to apply for settlement (Indefinite Leave to Remain) in the UK was after completing 5 years. Since its closure in March 2019, a suitable replacement was not put forward by the government. As a result, we saw a considerable drop in applicants moving to the UK for the purposes of investment via the business model. However, there is now a pathway available for investors who wish to move to the UK to establish or run a business. As with the old Tier 1 Entrepreneur visa, the pathway permits investors the chance to apply for settled status in five years.
The Self Sponsorship pathway is designed to allow investors the chance to establish or to run an existing business in the UK. A change in the immigration rules post Brexit means Skilled Workers can now hold significant shareholding in the business they are recruited for. Previously this was capped at 10% shareholding. The company needs a local director who is either settled or British. A Sponsor Licence must be in place before the company can formally recruit the applicant. If successful, a skilled worker visa will be granted, allowing the applicant to work and invest in their own business. This pathway is not for everyone, and it is crucial to ensure that as an applicant, you have the means and experience to run a business in the UK. Capital needs to be readily available, although you do not have to demonstrate a certain level like the £200,000 with the Tier 1 Entrepreneur.
The Self Sponsorship pathway certainly offers more flexibility if compared with the Tier 1 Entrepreneur. However, the prospective applicant must carry out the same if not greater research into the new venture. A detailed business plan and a clear road map must be in place prior to applying. Our specialist business immigration team can guide you further on the requirements and whether this pathway could be a possibility for you.
Authored by Adeeb Chowdhry, who serves as the Director and Head of the Business Immigration Department at Farani Taylor Solicitors. You can contact him at adeeb@faranitaylor.com or by phone at +44 207 242 1666.