The Tier 1 Entrepreneur Visa is a popular route for individuals wanting to start or run a business in the UK. However, in recent years, the UKVI (UK Visas and Immigration) has introduced stricter requirements to ensure only genuine entrepreneurs enter the country. One of these requirements is the Genuine Entrepreneur Test, which aims to ensure applicants have the financial resources, skills, and market knowledge to run a successful business in the UK.
If you’re planning to apply for this visa or extend it, here’s what you need to know:
What is the Genuine Entrepreneur Test?
The Genuine Entrepreneur Test checks that you are a legitimate entrepreneur with a clear and viable business plan. The Home Office uses this test to assess if you are likely to succeed with your business in the UK. The test is part of the overall criteria for obtaining a Tier 1 Entrepreneur Visa, but it’s also required for those applying for extensions or Indefinite Leave to Remain (ILR) after a few years in the UK.
What You Need to Prove
To pass the Genuine Entrepreneur Test, you must meet several key requirements, including proving your financial resources and your ability to run a successful business.
1. Financial Resources
You must show you have the following funds available:
- £200,000 if your funds are held outside the UK, or
- £50,000 if your funds are already in the UK (this can be from an approved investor like DIT, a venture capital firm, or a UK Government department).
The money must either be in your name or in a joint account with a business partner (who is not applying for the visa). This shows that the funds are under your control and available for investment.
2. Legitimacy of the Business Plan
You must submit a genuine business plan that shows:
- The plan is original (not copied from the internet).
- You have industry experience or knowledge in the sector where you are investing.
- Your business is likely to create jobs and contribute to the UK economy.
3. Financial Support for Yourself
In addition to the investment funds, you must prove you can support yourself and your dependents while in the UK. This requirement is separate from your investment funds, and the money must be readily available for living expenses.
Why the Genuineness Test Matters
The Genuineness Test is one of the most critical parts of the Tier 1 Entrepreneur Visa application process. UKVI has strict criteria, and there’s a high refusal rate for this visa category, with approximately 50% of applications being rejected. The Home Office wants to ensure that only genuine entrepreneurs are allowed to invest in the UK economy. If you don’t provide clear evidence of your plans, your application will likely be refused.
What to Expect in a UKVI Interview
If you pass the initial application stage, UKVI may invite you to an interview. During this interview, they will ask questions to verify your business plans and investment strategy. It’s important to be well-prepared and have clear, well-researched answers about:
- Your market knowledge.
- The specifics of your business plan.
- How you intend to make the business grow and create jobs.
Should You Hire an Immigration Lawyer?
Given the high refusal rate and the complexity of the Genuine Entrepreneur Test, it’s highly advisable to work with a professional immigration lawyer. An experienced lawyer can:
- Help you prepare for the UKVI interview by running mock sessions.
- Advise you on how to create a compelling business plan that meets UKVI’s requirements.
- Ensure all documents are correctly presented and properly backed up by evidence.
Pros of Hiring an Immigration Lawyer:
- They can guide you through the process and help prevent mistakes.
- They have expertise in what UKVI is looking for and can help you make a stronger case.
- They can help you prepare for difficult questions and scenarios that might come up during the application or interview.
Cons:
- Legal fees can be expensive.
- You may need to trust the lawyer to manage a significant portion of your application.
How to Create a Strong Business Plan
Your business plan is one of the most important aspects of your application. The key to a successful Tier 1 Entrepreneur Visa application is presenting a realistic, well-thought-out business plan that reflects your expertise and understanding of the UK market. Some tips include:
- Do not buy a template: UKVI can easily spot generic or copied business plans, which can lead to an automatic rejection.
- Focus on the market need and why your business will succeed in the UK.
- Include details about how you’ll create jobs for local residents (a mandatory requirement).
What UKVI Looks for in a Business Plan:
- Viability: The business plan must show that your business can be successful in the UK.
- Market Knowledge: Demonstrating that you understand the industry and the UK market is crucial.
- Job Creation: You need to prove that your business will create new jobs for settled workers in the UK.
The Tier 1 Entrepreneur Visa offers great opportunities, but the Genuine Entrepreneur Test is a critical hurdle to clear. Preparation is key—ensure your business plan is strong, your finances are in order, and you have the market knowledge to back up your claims. With the right approach and professional advice, you can improve your chances of success in the application process.
If you’re planning to apply for a Tier 1 Entrepreneur Visa or need help with an extension or ILR application, Law and Visas can assist you with every step. Contact us today for expert advice and guidance tailored to your business plans.
