The Tier 1 Entrepreneur Visa and Tier 1 (Graduate) Entrepreneur Visa are being replaced by the new Start-Up and Innovator visa routes. These changes were announced in a Statement of Change to the Immigration Rules, published on 7 March 2019, and most of the changes took effect on 29 March 2019 or 6 April 2019.
If you’re interested in applying for a Tier 1 Entrepreneur Visa before these changes take place, it’s important to act quickly. Law and Visas can help you submit your application before the deadline.
What Are the New Start-Up and Innovator Visa Routes?
The Start-Up and Innovator visas will replace the current Tier 1 (Graduate Entrepreneur) and Tier 1 (Entrepreneur) visa categories. These new routes are designed to bring entrepreneurial talent to the UK but with stricter requirements to ensure only high-quality businesses are approved.
According to Immigration Minister Caroline Nokes, the changes aim to bring in more experienced entrepreneurs and support innovative business ideas with a better endorsement system. Experts, including business accelerators and universities, will assess the applicant’s business idea to ensure it is viable and scalable.
Start-Up Visa – For First-Time Entrepreneurs
The Start-Up Visa replaces the Tier 1 Graduate Entrepreneur Visa and is designed for people starting their first business in the UK. The main requirements are:
- Endorsement: You must be endorsed by an approved organization, such as a business accelerator or university.
- Business Plan: You need to have a credible, innovative business plan.
- Financial Requirement: You must have at least £945 in your bank account for 90 days before applying.
- English Language: You must meet the B2 level of English proficiency (upgraded from B1).
The Start-Up Visa will be valid for 2 years (up from 1 year) and can be extended to the Innovator Visa if your business continues to grow.
Innovator Visa – For Experienced Entrepreneurs
The Innovator Visa replaces the Tier 1 Entrepreneur Visa and is aimed at more experienced business owners who want to set up or run a business in the UK. The requirements include:
- Endorsement: You must be endorsed by an approved organization.
- Investment Funds: You need at least £50,000 to invest in your business (this is reduced from the £200,000 requirement for the old Tier 1 Entrepreneur route).
- Business Skills: You must show that you have the necessary skills, experience, and ability to scale your business, especially on an international level.
The Innovator Visa allows you to apply for Indefinite Leave to Remain (ILR) after 3 years, provided your business meets certain growth and investment criteria.
Can I Apply for Settlement (ILR) under the New Routes?
- If you are on a Start-Up Visa, you cannot apply for ILR directly. You must first switch to the Innovator Visa to be eligible for ILR.
- If you are on an Innovator Visa, you can apply for ILR after 3 years if your business meets certain growth targets, such as revenue, job creation, and investment.
Can I Still Extend My Tier 1 Entrepreneur Visa?
Yes, Tier 1 Entrepreneur Visa holders can still apply for an extension until 5 April 2023. However, the route for ILR under this visa will remain open only until 5 April 2025.
What Should You Do Now?
If you are currently on a Tier 1 Entrepreneur Visa or planning to apply, it’s crucial to act quickly before the changes take effect. Law and Visas can guide you through the application process and help you meet all the new requirements for the Start-Up or Innovator Visa routes.
Make sure to contact us as soon as possible to ensure your application is submitted before the deadline and you don’t miss out on the opportunity to settle in the UK as an entrepreneur.
