What is a UK Start-up Visa?
A UK Start-up visa was introduced recently to replace a UK Tier 1 Graduate Entrepreneur visa. It is designed for foreign entrepreneurs who are starting and who want to enter the British market. The Home Office hopes that the immigration route will attract ambitious businesspeople from all over the world.
There are no investment requirements for start-up entrepreneurs, but they must speak English well and their business must benefit the economy. They can manage a business alone or set up a partnership.
A UK Start-up visa does not lead to an Indefinite Leave to Remain (ILR) or British citizenship. However, it has several other benefits.
Advantages of UK Start-up Visa
A UK Start-up visa offers an opportunity for foreign entrepreneurs to set up and develop a business in the UK and on the international market. It gives access to a thriving business environment, government support and transparent legislation, especially when it comes to taxation. All these will help you grow your professional expertise and develop skills necessary for career and business enhancement. Start-ups are favoured by banks and HMRC. Here are some key advantages of this immigration route:
- To get a UK Start-up visa, you do not have to invest in a business. You just need a promising business idea. The application costs of a UK Start-up visa are significantly lower than those of a UK Innovator visa or UK Tier 1 Investor visa.
- You can apply as a sole entrepreneur or set up a partnership, but in the latter case, all partners must get endorsement letters from relevant bodies.
- A UK Start-up visa allows you to switch to a UK Innovator visa if your business develops by the business plan. It is beneficial to run a business in the UK since the country offers stable economic conditions and high demand due to the market size.
- You can add your family members to your UK Start-up visa application: spouses, minor children, and adult children if they are dependent on you.
- Compared to the UK Innovator visa, the UK Start-up visa does not stop you from being employed until your business starts to generate any significant income.
What Are the Restrictions of a UK Start-up visa?
- A UK Start-up visa does not lead to an Indefinite Leave to Remain (ILR) since it cannot be extended. If you plan to stay in the UK longer, you must switch to a UK Innovator visa.
- With a UK Start-up visa, you cannot do jobs without a separate visa route. For example, you will not be able to do professional sports.
- Start-up entrepreneurs cannot apply for government support, including tax relief and benefits.
- Zero investment
- Run a business with a partner
- Beneficial taxation regime
- Bring family with you
Requirements for UK Start-up Visa
To apply for a UK Start-up visa, you must be at least 18 years old and have your business idea endorsed by a relevant body. The latter must issue an endorsement letter confirming that your business idea is new, innovative, and viable. Here is the list of all endorsing bodies and guidance on working with them.
Apart from obtaining an endorsement letter, you must also meet the following requirements:
- You must have enough money to support yourself and your dependents. For 28 days before applying for the visa, you must have at least £1,270 in your bank account, increasing with each added dependant.
- It would help if you had at least a B2 level of English. You can pass a special test or get a diploma from a British university. Citizens from several English-speaking countries and the Commonwealth do not have to confirm their knowledge of English.
- Negative tuberculosis test (for citizens of some countries).
- Clean criminal record.
All documents must be in English. All translations must be notarized.
Why Must I Obtain an Endorsement for My Business Idea?
The UK is interested in attracting new businesses and seeing new, unique goods and services on its market. To control start-ups more efficiently, the Home Office has appointed endorsing bodies. They include respected colleges and universities, investment funds, professional associations, and a few other companies that the Home Office has entrusted to assess the quality of new business projects.
An endorsement letter confirms by an approved body that your business idea meets all the required criteria of innovativeness, viability, and scalability. The letter is your main document for a UK Start-up visa application. When you apply for endorsement, you should provide all the information to help your endorsing body assess and approve your business. A business plan may come in handy here.
Here are the main evaluation criteria for endorsement:
- Innovativeness
The British market is saturated with different goods and services. To be successful, your business idea must be original to find its customers in the local and international markets and generate profit. To understand how innovative your product is you must perform preliminary research on similar products already sold in the UK. - Viability
There are no investment requirements for a UK Start-up visa, but you must prove that you can manage your future business successfully. You must show that you have all the tools and means to make it resilient to changes in the market. - Scalability
You are expected to develop and expand your business in a highly competitive environment. You must show what economic goals you set, how many jobs you can create, and what goods and services will be exported abroad.
To cut a long story short, when applying for a UK Start-up visa, you need to do the following:
- Prepare a solid business plan where you will prove that your business meets three key endorsing criteria: innovativeness, viability, and scalability.
- Please find the most suitable endorsing body, contact it, provide it with all the necessary information about your project, and get an endorsement letter.
Your endorsement letter must date no longer than three months before the application for a UK Start-up visa.
Imperial & Legal advisors will help you draft a business plan, choose an appropriate endorsing body and get an endorsement letter on time.
Follow-up evaluations
Six or 12 months later, the start-up entrepreneur will have to go through endorsement again. An endorsing body must ensure that you manage your business properly and achieve the set goals. In case any violations are detected, an endorsement letter can be revoked, and you will have to find a new endorser or leave the country.
How do you apply for a UK start-up visa?
Three months after getting your endorsement letter, you have to either apply for a UK start-up visa or switch to another visa category in the UK.
If you are outside the country, you must visit a visa center to submit biometrics and have your photo taken.
How Much Does It Cost to Obtain a UK Start-up Visa?
You must pay an application fee when you apply for a UK Start-up visa. Its amount depends on the number of your dependants and your current location:
- If you apply for the visa outside the UK, the main applicant and each dependant will cost £378;
- If you apply for the visa inside the UK (while switching to another immigration category), the main applicant and each dependant will cost £508.
Since it is a long-term visa, a health surcharge must also be paid; it depends on the number of applicants and the duration of your stay in the country. Each applicant must pay £624 a year.
You will not get your application fee back if your application is refused. To submit a new application, you will have to pay again. The health surcharge, however, will be refunded.
Imperial & Legal experienced advisors will analyze your case in detail, help you prepare all the documents, and fill in the application correctly to avoid any delays and additional costs.
How Long Does It Take to Obtain a UK Start-up Visa?
If you apply for a UK Start-up visa outside the UK, it normally takes up to three weeks for the application to be processed. If you apply from inside the UK, it will take more time, up to eight weeks.
To comply with all deadlines and avoid additional requests from the Home Office, you must prepare all the documents and fill in the application properly. If you are in a hurry, you can pay for an accelerated procedure.
How do you switch from a UK Start-up Visa to a UK Innovator Visa?
A UK Start-up visa is issued for two years and cannot be extended, so it does not lead to an Indefinite Leave to Remain or citizenship. However, if you meet all the requirements, you can switch to a UK Innovator visa.
To get a UK Innovator visa, you must meet the following requirements:
- Your business is assessed and approved by an endorsing body
- Your company is trading; it is innovative, viable, and scalable
- You manage your company on a day-to-day basis.
Imperial & Legal advisors suggest you start an application to switch to a new visa category 8-10 weeks before your UK Start-up visa expiration date.
Obtaining a UK Start-up Visa with Imperial & Legal
Imperial & Legal immigration advisors can help you obtain a UK Start-up visa and relocate to the UK. Our experts practice an individual approach to save the client’s time, stress, and money. With Imperial & Legal, you are only four steps away from your UK Start-up visa.