What are differences between Tier 1 (Graduate Entrepreneur), Tier 1 (Entrepreneur) and Prospective Entrepreneur visas?
The Tier 1 (Graduate Entrepreneur) visa is for those who are graduates of the UK higher education system (at Bachelors level or above) and have been officially endorsed as having a genuine and credible business idea either by their current UK University or by UK Trade and Investment (UKTI). In practice it is very difficult to get this endorsement, as the business plan must be exceptional.
The Tier 1 (Entrepreneur) visa is for business people who are ready to use funds from their current or future business activities in the UK.
The Prospective Entrepreneur visa is designed for those who are coming to UK in order to secure funding to start, takeover or join and run their business in the UK.
The Tier 1 (Graduate Entrepreneur) and the Prospective Entrepreneur visas are aimed to help applicants to change their immigration status into that of the Tier 1 (Entrepreneur) visa.
What are the requirements for a Tier 1 (Entrepreneur) visa?
In order to be eligible for the Tier 1 (Entrepreneur) visa, applicants must have access to £50,000 or £200,000 investment funds and be ready to invest this money in a business in the UK.
Applicant must need show that they meets the English language requirement and is able to support themselves, their family and/or their dependents for the duration of their stay in the UK.
Applicants need to prove their knowledge of the English language. This can be proved in the following ways:
- By passing an approved English language test such as IELTS (level 4 or above), TOEFL, etc.; or
- By holding an academic qualification that was taught in English and is recognised by UK NARIC as being equivalent to a UK Bachelors degree level; or
- By being a national of an English speaking countries such as Australia, Canada, New Zealand, USA, etc.
If the application is made outside of the UK then the applicant must demonstrate an account with £3310 in it during the last three months. This figure is £945 for applications from within the UK. For each dependent, an amount of £1890 (outside) or £945 (inside) must be shown.
Who can apply using £50,000 funds?
Applicants can apply if they have £50,000 and meet the following requirements:
- They hold a Tier 1 (Graduate Entrepreneur) visa; or
- They hold a Tier 1 (Post study worker) visa; or
- They hold a certificate of approval for £50,000 borrowing from either a venture capital firm registered with the Financial Conduct Authority (FCA) or a UK entrepreneurial seed funding competition endorsed by UKTI, or if a UK government department is making funds available for the purpose of setting up or expanding a UK business – this kind of certificate can be issued for an extraordinary Facebook or Google type business, usually in return for giving the government 40-50% of the company’s interest.
In practice this route is often more difficult than the £200,000 route.
Who can apply using £200,000 funds?
Applicants can apply for a Tier 1 (Entrepreneur) visa if they hold £200,000 and their intention is to use this money in the UK towards their business interests.
This money can be the applicant’s, or made available by a third party such as a husband, parents, a business partner, an investor, etc.
Funds that the applicant has already invested in the UK not more than 12 months before the Tier 1 (Entrepreneur) application can also be used.
What is an entrepreneur team?
The £200,000 can be shared between two applicants who both wish to apply for a Tier 1 (Entrepreneur) and intend to conduct the same business. In this situation, both applicants need to demonstrate access to at least £100,000.
On what basis do the Home Office usually reject Tier 1 (Entrepreneur) visa applications?
Tier 1 (Entrepreneur) visa applications have been refused on the following bases:
A poor business plan;
Failing the interviews conducted by Immigration Officers;
Not passing the genuine entrepreneur test;
Insufficient bank letter;
Failure to meet the maintenance requirement;
Occupational level below NQF4 (for £50,000 option);
Adverse immigration history; and
Source of money.
What about validity of the visa?
If the application is successful then a Tier 1 (Entrepreneur) visa will be granted for a maximum of 3 years and 4 months. This visa can be extended for another 2 years.
I would also like to know main requirements for Tier 1 extension.
Once a Tier 1 (Entrepreneur) visa and entry into the UK have been obtained then applicants should being to prepare for an extension application. Applicants must register as a director or as self-employed with Her Majesty’s Revenue and Customs (HMRC) no more than six months after entry, and must show that they have created at least two full time jobs and invested either £50,000 or £200,000 into their business.
Can I change my immigration status in the UK?
Holders of the following visas can apply for the Tier 1 (Entrepreneur) visa:
- Tier 1 (General)
- Tier 1 (Investor)
- Tier 1 (Post-study work)
- Tier 1 (Graduate entrepreneur)
- Business person
- Highly Skilled Migrant Programme
- Work permit holder
- Self-employed lawyer
- Writer, composer or artist
- Tier 2
- Prospective entrepreneur
- Tier 4
Applicants may bring their spouse and children (under 18 years old) as dependents.
Can my spouse work in the UK in a dependent visa?
Yes, applicants’ spouses can work and study in the UK as dependents.
Can my children study in the UK?
Yes, children can study in the UK.
Is there any restriction on the type of business that Tier 1 (Entrepreneur) visa holders can do?
Successful applicants must continue to work within their business as an employee, but can set up several businesses. They are not permitted to be involved in any business related to residential property, such as property development or management, in the UK.
Indefinite leave to remain/permanent residence
Applicants can apply for indefinite leave to remain through the Tier 1 (Entrepreneur) route if they meet one of the below requirements:
- They have invested £50,000 or £200,000, established, taken over or invested in an existing UK business, employ at least 2 full time staff, have lived and worked under a Tier 1 (Entrepreneur) visa in the UK for 5 years and have spent a continuous period lawfully in the UK, with absences of no more than 180 days in any 12 calendar months during that period.
- hey have invested £50,000 or £200,000, established, taken over or invested in an existing UK business which resulted in a net increase income from business activity to that business of £5 million during a 3 year period or employ at least 10 full time staff and live. They have worked under the Tier 1 (Entrepreneur) visa in the UK for 3 years and have spent a continuous period lawfully in the UK, with absences of no more than 180 days in any 12 calendar months during that period.
Applicants will be able to apply for British citizenship once they have completed their 5 year residence and hold indefinite leave to remain for at least 12 months.
Source : Frequently Asked Questions (FAQ) on a Tier 1 Entrepreneur visa