Doing Business in the UK – Visa Routes

Many foreign nationals identify the UK as a lucrative place to do business; whether that is setting up a new business from scratch, expanding an overseas business in to the UK, investing in an existing UK business, or merging with or acquiring a UK business.

If you would like to live and work in the UK, you will require a visa. The visas available for each scenario outlined below are very different.

Setting up a business

There are two visa categories to consider if you would like to start a business in the UK: the Start-up visa, which is for people seeking to establish a business in the UK for the first time; and the Innovator visa, which is for more experienced business people.

Under both categories you must pass an approved English language test including reading, writing, speaking, and listening at level B2, unless you are a national of a majority English speaking country or have a degree taught in English. You will also need to show that you have access to at least £1,270 to demonstrate that you can maintain and accommodate yourself adequately in the UK without recourse to public funds.

Both the Start-up and Innovator visa require an innovative, viable and scalable business idea which is supported by a Home Office endorsing body. The scope of these endorsing bodies is very limited – most being accelerator or incubator programmes for tech start ups. Many require a share in the business. Very few have a bespoke process for endorsing foreign nationals, instead requiring applicants to compete with UK based entrepreneurs for a place in once of their programmes. The endorsing body will monitor progress of your business throughout the duration of your visa.

The Start-up visa is valid for two years and cannot be extended. Within two years an applicant is expected to make an application under the Innovator route. The Innovator visa is valid for three years and generally requires an investment of at least £50,000 in to the business in addition to the requirements outlined above. If the business is successful, it is possible to apply to stay in the UK permanently after three years.

If the criteria for remaining in the UK permanently cannot be met, for instance because your business is not as successful as anticipated and you decide to start a new business, you can apply for a further three year visa (providing the new business plan has been endorsed by an endorsing body).

Expanding an overseas business in to the UK

If you work for a business outside the UK, and wish to set up a UK branch or subsidiary, you may wish to consider making an application for a visa as the sole representative of an overseas business. You must be a senior employee of the overseas business, with full authority to take operational decisions, however you must not be a majority shareholder in the overseas business. The business must not have any active branch or subsidiary in the UK already. You must pass an approved English language test including speaking and listening at level A1, unless you are a national of a majority English speaking country or have a degree taught in English. This type of visa is granted for a period of three years. It can be extended for a further two years, providing you continue to be employed as the sole representative of an overseas business. After five years you can apply to stay in the UK permanently.

Investing in an existing UK business

Up until 30 March 2019 it was possible to obtain an Entrepreneur visa in order to join or take over an existing UK business. However the Entrepreneur visa has now been replaced with the Innovator visa, which is aimed at those seeking to establish a new business in the UK. It is likely to be difficult to obtain endorsement for a business plan which primarily concerns acquisition of an existing UK company.

The only visa based exclusively on investment in a UK company is the Tier 1 (Investor) visa. Applicants must show that they have funds amounting to at least £2 million, held in a regulated financial institution, and available to invest in the UK.

Cross border merger or acquisition

In the context of a cross border merger or acquisition (where a company overseas acquires or merges with a UK company) an Intra Company Transfer application provides an effective way of transferring overseas staff to the UK. The purpose of this route is to enable multinational employers to transfer their existing employees to their UK branch.

The UK branch would need a sponsor licence, the staff member(s) coming to the UK must have been employed by the company overseas for at least 12 months (unless they earn over £73,900), and a salary of at least £41,500 must be paid. The visa is valid for the duration of the overseas posting. The maximum period a person can spend in the UK with this type of visa is five years (unless they earn over £73,900 per annum in which case the maximum period is nine years). It is not possible to remain in the UK permanently with this type of visa.

If you would like to discuss your visa options, please contact Grace McGill or our specialist Immigration team.

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