Conditions for Obtaining UK Entrepreneur Visa
The UK Entrepreneur Visa can be obtained under certain conditions, such as a willingness to relocate a business to the UK and the capability to invest in this country.
There are various types of UK Entrepreneur Visas, including entrepreneurship through public partnership, entrepreneurship through the registration of various types of companies, entrepreneurship through personal trade, and so on. The UK Entrepreneur Visa can be obtained in two forms: Startup Visa and Innovator Visa.
For more information and precise details regarding the UK Entrepreneur Visa and immigration to the UK, it is advisable to use the free consultations of Malekpour Institute to create a better future for yourself and your loved ones. You can also post your questions in the comments section and receive responses shortly.
Necessary Conditions for Obtaining Entrepreneur Residency in the UK
After receiving the UK Entrepreneur Visa, individuals can apply for entrepreneur residency in the UK by complying with the related prerequisites. We will provide the necessary explanations regarding this in the following sections.
UK Entrepreneur Visa holders can extend their visa if they meet the conditions, including registering as self-employed or a manager within 6 months and proving they’ve held such roles for at least 3 months. They must also create two full-time jobs lasting at least 12 months. UK applicants can apply by mail and submit biometric data at select post offices for a £19.20 fee. Those outside the UK must apply for a new Tier 1 (Entrepreneur) Visa.
Visa extensions for entrepreneurship are for two years, and thereafter obtaining residency in the UK depends on fulfilling the following conditions:
- The Entrepreneur Visa holder must invest £200,000 in a company or business and must have registered a company in the UK within 6 months from the date the Entrepreneur Visa was granted.
- They must create and define at least two job positions for locally permanent residents in the UK. For a new business, this means that the total of the two positions, whether full-time or equivalent, must be created and must each last for at least one year.
Steps to Obtain a UK Entrepreneur Visa
Business Plan
One of the crucial stages in the process of obtaining the UK Entrepreneur Visa is to present a strong and credible business plan. This is an essential component of the application. There must be a valid business plan, and information and documentation must be provided to show that the applicant has the necessary skills and experience to run a business.
The applicant must be able to explain where the investment funds originated. A professional business plan significantly increases the likelihood of the UK Entrepreneur Visa being approved.
English Language Proficiency
The applicant must successfully pass an English language test at the B1 level or above and provide an acceptable language certificate. The UK Entrepreneur Visa applicant must have achieved a satisfactory level in all four components: reading, writing, speaking, and listening.
Criminal Record Certificate
A criminal record certificate must be provided for every country where the applicant has lived for at least twelve months during the past ten years. This is required for the spouse or partner and any dependents over eighteen. Certificates should be issued within six months before applying for the UK visa.
Financial Capability
Tier 1 Entrepreneur Visa applicants must have sufficient funds to cover their expenses during their stay in the UK, and they must provide documentation to this effect. The required amount of funds depends on whether the applicant is submitting a first-time visa application or applies for a visa extension. Initial applicants must have at least £3,310 in funds, while applicants for an extension must have at least £945. All applicants must have maintained this amount continuously for ninety days or more.
Indefinite Leave to Remain
This is also known as settled status and is a type of “permanent residency.” Generally, you can apply for this within twenty-eight days before the end of five years of residency in the UK with the Entrepreneur Visa, as long as you have not spent more than 180 days per year outside the UK during this time. There are exceptions to the residency duration in limited conditions.
Required Documents for a UK Entrepreneur Visa
Tier 1 Entrepreneur Visa applicants must submit various documents along with their application, including:
- Current passport or other travel documents
- Separate passport photograph
- Proof that they have access to funds between £50,000 and £200,000 for investment.
- Business plan
- Documentation showing that the applicant can financially support themselves during their stay, such as bank statements.
- Evidence of English language proficiency at level 2
- Health test result letter
- Criminal record certificate from each country where they have lived for more than one year in the last ten years
- If proof of existing funds for entrepreneurship is available, documents to verify the source of funds are required.
How to Present a Business Plan for Entrepreneurship in the UK
A strong business plan is crucial for a UK Entrepreneur Visa, as one-third of refusals are due to poor plans. The Home Office requires a plan that proves your business will succeed and benefit the UK economy. You must fully understand and explain your plan during the visa interview, including projections, staffing, and roles.
Your Tier 1 Entrepreneur business plan should be prepared with the advice of experts, but you should know all its details before the interview. You can consult with the specialized lawyers of Malekpour Institute regarding the best options for writing your business plan, and we will help you prepare for your meeting with the ministry.
Government Support for the UK Entrepreneur Visa
The UK government aims to nurture ideas, guide and transfer experiences, boost businesses, and support individual growth by providing assistance in various sectors and fields concerning the UK Entrepreneur Visa.
- Financial support and capital enhancement
- Introduction of suitable areas for activity and business based on the local needs of the UK
- Analysis of business plans by registered organizations
- Assistance in business development and individual growth
Corporate Tax Rate in the UK
In general, tax is considered a source of income for every country. The corporate tax rate in the UK has increased in recent years but remains lower compared to other European countries.
The tax rate in the UK is determined based on personal and corporate income and assets, and strict laws are in place for the precise and accurate calculation of tax. Tax payments in the UK include various sections.
The corporate tax rate in the UK is calculated based on capital gains tax and income tax. Individual income, which consists of the following, will be subject to tax.
- Monthly salary and wages
- Income from self-employment
- Profits from investments
- Pensions and retirement payments
- Profits from deposits
- Share dividends
- Rental income
Note that individuals entering the country under the UK Entrepreneur Visa and earning income through the mentioned sources are subject to tax. The income level of these individuals will determine the amount of tax payable.
Advantages of Entrepreneurship in the UK
With the UK Entrepreneur Visa, you are allowed to:
- Bring your spouse and children under 18 with you as “dependents.”
- Study and work in the UK without any restrictions.
- Manage your own business and be employed in it.
Successful Entrepreneurship Ideas in the UK
To succeed in the context of the UK Entrepreneur Visa, it is best to consider three key and essential factors.
First Stage
In the first stage, ensure that you have sufficient funding and financial backing to start the business and estimate its costs. Managing your business during this period can ultimately lead to profitability.
Second Stage
In the second stage, possess the knowledge, skills, and traits necessary for your business.
Third Stage
Third, and perhaps most importantly, is having a good business plan. Good ideas do not need to be unique. In fact, many profitable businesses simply offer a better version of products or services that are already available, whether they are of better quality, easier, cheaper, or more appealing.
Cost of the UK Entrepreneur Visa
The cost of the UK Entrepreneur Visa is well illustrated in the table below.
| Expense Item | Cost (in GBP) |
|---|---|
| Insurance | £630 |
| Visa | £380 to £1,290 |
| Employee Wages | £100 to £200 per day |
| Advertising Costs | £60 to £250 |
| Business Name Registration | £170 |
| Office Rent | £66 to £120 |
| Business Registration | £12 to £40 |
Extension of the UK Entrepreneur Visa
If you are seeking to extend your UK Entrepreneur Visa, you must meet several initial conditions. To extend the UK Entrepreneur Visa, you must have undertaken at least two full-time jobs for one year prior to applying for your visa extension. The conditions for extending the UK Entrepreneur Visa require you to have invested between £200,000 and £500,000 in your business.
After verifying the above documents and submitting your biometric information with a payment of around £20, you will receive a response to your application from the UK Immigration Department within a maximum of 8 months. However, this time frame pertains to standard cases. If your case requires an interview or your documents need verification, it may take longer than 8 months.
Obtaining Permanent Residency and Citizenship in the UK through the Entrepreneur Visa
The initial residency duration through the UK Entrepreneur Visa is a maximum of 3 years and 4 months and can be extended for a total of up to 6 years and 4 months. After this period, the applicant must remain as a permanent resident in the UK for an additional 2 years to apply for UK citizenship. The rules concerning the maximum number of days absent from the country when applying for citizenship total 450 days in 5 years.
Frequently Asked Questions About Entrepreneurship in the UK
- Is an English language certificate required for the UK Entrepreneur Visa?
Yes, a valid certificate must be provided.
- Does the business plan have a significant impact on obtaining the UK Entrepreneur Visa?
Yes, it can be said that alongside capital, a professional and well-planned business plan is one of the essential documents.
- What is the minimum investment amount?
£50,000
- Is there a requirement to hire staff?
Yes, at least 2 full-time staff for a duration of one year.
Conclusion:
Many successful businesses start as simple solutions to common problems, often inspired by other sectors. The UK offers strong support for entrepreneurs through the UK Entrepreneur Visa (Tier 1), providing financial and legal advantages. If you’re considering entrepreneurship in the UK, contact Malekpour Institute for free expert advice and register for a free consultation by filling out the contact form.
