Start your business in the UK with the Tier 1 (Entrepreneur) Visa
A Tier 1 Entrepreneur visa was for people who wished to come to the UK to start a new business or take over and run a business. This category is now closed to new applications but current holders of Tier 1 (Entrepreneur) Visa can still apply for extension and Indefinite Leave to Remain (settlement) under this category.
The UK government’s changes to some aspect of the Immigration Rules announced on 7 March 2019 came into force on 29 March 2019.
The end of the Tier 1 (Entrepreneur) Visa and Tier 1 (Graduate Entrepreneur) Visa categories were replaced by two new categories:
- Start-Up Migrant Visa
- Innovator Visa
However, current holders of Tier 1 (Entrepreneur) Visa can still apply for extension and Indefinite Leave to Remain (settlement) under this category.
To apply for an extension of your Tier 1 (Entrepreneur) Visa, you will need to show that you:
- Have invested in UK business.
- Are registered as a director or as self-employed.
- Are engaged in business activity.
- Have created new jobs.
- Have enough funds to support yourself in the United Kingdom.
- Meet the English language requirement.
You can apply for Indefinite Leave to Remain in the United Kingdom after completion of the relevant continuous residence period and once you meet all the necessary requirements.
Key Reminders and Clarifications
The Tier 1 Entrepreneur visa category may have closed to new applicants on March 29th, 2019, but you have vital options if you hold this visa. Applications to extend your Tier 1 Entrepreneur visa will be accepted until April 5th, 2023.
You can apply for settlement (Indefinite Leave to Remain) until April 5th, 2025. If your goal is to continue building a business in the UK, exploring alternative visa categories is essential.
The Innovator visa is a key option for entrepreneurs, and our immigration specialists at Barar Associates can help you understand your eligibility and guide you through the application process.
Current Eligibility for Extensions & ILR
As a holder of a Tier 1 Entrepreneur visa, you’ve invested your resources and energy in establishing a business in the UK. Now, with the closure of this program, it’s time to carefully consider your options for extending your stay or pursuing permanent residency.
The Home Office will carefully assess your business activities to ensure continued compliance with the initial requirements of the Tier 1 Entrepreneur program. Let’s explore the key factors that impact your eligibility for an extension or settlement (ILR):
Demonstrating Genuine Entrepreneurship
When applying for either an extension of your Tier 1 Entrepreneur visa or settlement (ILR), the Home Office will closely evaluate your business activities. They want to be certain your enterprise is genuine and not simply a means to gain residency.
Key documents like your business plan, financial records, and evidence of market outreach are essential in showing you are a committed, active entrepreneur. Our team can analyse your unique situation and help you present the strongest possible case.
Job Creation and Documentation
Creating at least two new full-time jobs for settled workers is a fundamental requirement for extending your Tier 1 Entrepreneur visa. To demonstrate this job creation, you’ll need thorough documentation, including payroll records, tax filings, employment contracts, and National Insurance records for these employees.
The 180-Day Absence Rule
Generally, exceeding 180 days of absence from the UK in a single year can put your eligibility at risk. However, there are exceptions for compelling reasons like serious illness, family emergencies, or essential business travel directly related to your UK enterprise.
Strict documentation standards apply, so consulting with an immigration expert is paramount if you anticipate surpassing this absence limit.
Options for Tier 1 Entrepreneur Visa Holders
As a Tier 1 Entrepreneur visa holder, you face important decisions regarding your future in the UK. Let’s explore your key options:
Extension of Your Visa
If you want to continue developing your business, extending your visa provides additional time. Consider factors like your investment funds, current job creation, and your business’s growth trajectory. Our team can assist you in evaluating if an extension aligns with your entrepreneurial and residency goals.
Settlement (ILR)
After several years on a Tier 1 Entrepreneur visa, applying for indefinite leave to remain (ILR) may be possible. This grants you permanent residency in the UK.
Strict requirements regarding investment, genuine business activity, job creation, and the length of your stay must be met. We can provide personalized guidance on the ILR application process.
Switching to Another Visa
The Innovator visa is designed for experienced entrepreneurs with innovative business ideas. Depending on your circumstances, other visa categories might also be suitable. Our immigration specialists will carefully review your background and goals to recommend the most appropriate pathways for you.
Minimum Investment Requirements for the Tier 1 Entrepreneur Visa
The Tier 1 Entrepreneur visa required you to demonstrate access to investment funds of either £50,000 or £200,000. These funds must have been held in a regulated financial institution and been free to use for your UK business venture.
In most cases, applicants needed to meet the £200,000 requirement. However, the lower £50,000 threshold could apply if you met specific criteria:
- Endorsement: Having funding from a registered UK venture capital firm, a UK entrepreneurial seed funding competition, or a UK government department.
- Entrepreneurial Teams: Applying as part of an entrepreneurial team, where each team member had access to £50,000 of investment funds (for a total of £100,000).
Proving Your Investment Funds
The Home Office required clear evidence that you had the necessary investment capital. Acceptable documentation included:
- Bank Statements: Personal or business bank statements demonstrating the availability of the required funds.
- Letters from Financial Institutions: Official letters from regulated financial institutions (banks, venture capital firms, etc.), confirming the funds and specifying they were accessible for investment in your UK business.
- Proof of Funding Awards: For those qualifying for the lower £50,000 investment, documentation showing awards from seed funding competitions or government programs was needed.
Frequently Asked Questions
I was planning to apply for a Tier 1 Entrepreneur visa. What can I do now?
Unfortunately, the Tier 1 Entrepreneur visa category is no longer open to new applicants. The UK government has replaced it with the Innovator visa. We highly recommend exploring the Innovator visa requirements to see if you qualify.
If you have further questions, our immigration experts can assess your situation and offer tailored advice on alternative visa options.
Can I still extend my Tier 1 Entrepreneur visa?
Yes, but you must act before the deadline of April 5th, 2023. To extend your visa, you’ll need to demonstrate that you’ve met the initial program requirements such as investment, job creation, and genuine business activity. Our team can assist with every step of your extension application.
When can I apply for settlement (ILR) as a Tier 1 Entrepreneur visa holder?
You are typically eligible to apply for settlement after five years on a Tier 1 Entrepreneur visa, as long as the other requirements are met. The final deadline for ILR applications under this category is April 5th, 2025. There are also accelerated pathways to ILR if you’ve achieved exceptional business success.
I’ve exceeded the 180-day absence limit, does this affect my eligibility?
It potentially could. However, there may be valid reasons for extended absences, such as family emergencies or vital business travel. If this applies to you, it’s crucial to consult an immigration expert. Strong documentation is essential if you wish to argue for an exception.
Could I create jobs for family members to satisfy the Tier 1 Entrepreneur visa requirements?
No. A key requirement was the creation of at least two new full-time jobs within the UK for “settled workers.” This includes:
- British citizens
- Individuals with Indefinite Leave to Remain (ILR) in the UK.
- EEA/EU citizens and their dependents exercising treaty rights in the UK.
Jobs created for family members who did not fit the “settled worker” definition would not count towards fulfilling the Tier 1 Entrepreneur visa requirements.
