Tier 1 Entrepreneur Visa
Tier 1 Entrepreneur Visa
This category was closed to new entrants on 29 March 2019 and replaced with the Innovator and Start-up routes. Both these routes require endorsement from third-party endorsement bodies.
Individuals who had leave in the last 12 months in Tier 1 (Graduate Entrepreneur) category are the only ones who can now enter this category. They can make applications for entry clearance or leave to remain until 5 July 2021.
Those individuals who already held the visa in this category can continue to do so and will be able to apply for an extension until 5 April 2023 and settlement applications until 5 April 2025. Individuals who have switched from the Tier 1 (Graduate Entrepreneur) category have until 5 July 2025 to make an extension application and 5 July 2027 to make indefinite leave to remain application.
- Applicants must have access to 50,000.
- The investment money cannot be provided by another Tier 1 (Entrepreneur) migrant or that person’s business or close family member.
- They must have leave to remain in the UK as a Tier 1 (Graduate Entrepreneur). If applying for entry clearance, then must have leave in the 12 months before the application. The application must be made by 5 July 2021.
- The investment funds may be; held in the account of a third party and available to the applicant, already invested in the applicant’s business or held in the applicant’s account by the time the application is made.
- There is an English language requirement at level B1.
- There is also a provision for ‘entrepreneur teams’ to share the same investment and business activity. They should both have equal control over the funds.
Under Business Immigration, The application process for the sponsor licence is similar to the one for the general sponsor licence. The real difference is in the supporting documents required to submit with the sponsor licence application, no requirement of resident labour test and non-application of Skilled worker surcharge, which makes the sponsor licence application relatively cheaper.
Extension of applications
The deadline for extension applications is 5 July 2025 for those switching to Tier 1 (Entrepreneur) migrants from the Tier 1 (Graduate Entrepreneur) and start-up categories.
Leave is granted for three years, and to extend their stay, the person must;
- Ensure that funds always remain available to them until it is spent in the running of the business.
- Invest and spend the total relevant amount in cash into one or more businesses in the UK.
- Ensure the business creates at least two new full-time jobs for settled persons for at least 12 months each by the date of the extension application.
- Register with HMRC as self-employed within six months and register as a new or existing company or partnership director.
- Spend and invest the total relevant amount (£200,000 or £500,000) into one or more businesses in the UK. This investment is to be reflected in the business’ accounts, but other evidence must be supplied depending on the investment method.
- Applicants will need to demonstrate that they are genuine entrepreneurs.
A person will have to undertake the relevant registration within six months of the grant of their leave, and failure to do this could lead to their leave being curtailed at any time.
Spending funds on anything outside the purpose of growing their business or no longer having the relevant funds could also get the leave cancelled.
Indefinite leave to remain
The applications for ILR remain open until 5 April 2025 and 5 July 2027 for Tier 1 (Entrepreneur) migrants and those switching from Tier 1 (Graduate Entrepreneur) or Start-up categories, respectively.
An applicant will be eligible to apply for ILR after five years in the category provided that:
- They have not been absent from the UK for more than 180 days in any 12 calendar months during the period.
- They meet the knowledge of language and life requirements in the UK.
- Must have registered with HMRC as self-employed or registered with Companies House as a director of a new or existing company within three months of the date of the application.
- Their business created the equivalent of at least two new full-time jobs for settled persons for at least 12 months each.
- Demonstrate that they are genuine entrepreneurs.
A person can also obtain ILR after three years according to provisions in the Immigration Rules where the business established has:
- Had a gross income or increase in gross income for an existing business of at least £5m during the three-year qualifying period compared with the three years immediately before the applicant became involved in the business.
- They have created ten new jobs or equivalent for settled persons, which have existed for 12 months over the most recent grant of leave.
- they will need to shoe they registered with HMRC as self-employed, or with Companies House as a director of a new or existing company or partnership, within six months of initially entering the UK on this entry clearance,
While every effort has been made to ensure the accuracy of the information provided in this article, it does not constitute legal advice and cannot be relied upon as such. Each legal case and issue may have unique facts and circumstances, as a result legallex does not accept any responsibility for liabilities arising as a result of reliance upon the information provided. For further help and guidance, you can always rely on and seek advice from our experienced lawyers.