The UK remains one of the world’s top destinations for entrepreneurs looking to start a business. As an expat, however, setting up shop in the UK comes with a series of visa requirements and legal considerations. Whether you’re opening a small business, expanding an existing venture, or launching a startup, understanding the right visa for your situation is crucial. In this guide, we’ll help you navigate the different business visa options available in the UK, giving you the tools you need to start your entrepreneurial journey without getting lost in the legal details.
Why the UK is Ideal for Business Startups
The UK offers several advantages to expat entrepreneurs, such as:
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Global Market Access: The UK provides easy access to the European and global markets, with a robust infrastructure for international trade and business.
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Strong Business Ecosystem: From a skilled labor force to innovative financial services, the UK is home to one of the most dynamic business environments in the world.
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Entrepreneurial Support: The UK government offers various grants, loans, and initiatives to support entrepreneurs. The growing startup ecosystem in cities like London, Manchester, and Edinburgh provides valuable networking opportunities.
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Favorable Tax Regime: The UK offers relatively low corporate tax rates and a favorable tax regime for small businesses and startups.
The UK’s Business Visa Landscape
To run a business in the UK as an expat, you must first ensure that you have the correct visa. The type of visa you need will depend on factors like your nationality, the type of business you plan to start, and whether you’re bringing any employees with you. Below, we’ll go over the most common business visa options for expats.
1. Start-Up Visa
The Start-Up Visa is designed for new entrepreneurs who want to launch an innovative business in the UK. Unlike the Innovator Visa, which requires a significant investment, the Start-Up Visa does not require any initial capital, making it an excellent option for early-stage entrepreneurs.
Eligibility:
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You must have an innovative, viable, and scalable business idea that has been endorsed by an approved UK higher education institution or business organization.
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The business idea must be new and not be something that is already established in the UK market.
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You must meet the English language proficiency requirements.
Key Features:
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No minimum investment required.
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You can stay for up to 2 years.
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You cannot access public funds or work outside of your business.
How to Apply:
You must first obtain an endorsement from an approved body in the UK, such as a university or a business incubator. Once endorsed, you can apply for the visa, which is valid for 2 years, during which you can work solely on your startup.
2. Innovator Visa
The Innovator Visa is aimed at experienced entrepreneurs who want to establish a business in the UK. It requires you to have an innovative business idea and meet certain investment criteria. This visa is ideal for individuals with more experience in entrepreneurship or for those looking to scale their businesses significantly.
Eligibility:
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You must have a minimum of £50,000 to invest in your business.
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You must have an endorsed business idea from an approved UK organization (e.g., business accelerator or incubator).
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Your business idea must be innovative, viable, and scalable.
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The business idea must not be a mere extension of an existing idea already available in the UK market.
Key Features:
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Allows you to stay for 3 years, with the possibility of extending for another 3 years.
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After 3 years, you may apply for Indefinite Leave to Remain (ILR) if you meet certain conditions.
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You must show that your business is making progress and creating jobs.
How to Apply:
You must secure endorsement from an approved body and demonstrate that you have the required investment funds. The application process includes submitting a business plan and meeting certain financial requirements.
3. Tier 1 (Entrepreneur) Visa (Closed to New Applicants)
The Tier 1 (Entrepreneur) Visa was previously a popular route for expat entrepreneurs, but it has now been closed to new applicants. However, it remains relevant for individuals who hold this visa and wish to continue their business in the UK.
Eligibility (For Existing Holders):
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If you currently hold a Tier 1 Entrepreneur Visa, you can continue with your business, renew your visa, and eventually apply for ILR.
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The visa required a minimum investment of £200,000 or £50,000 (if you had received funding from a UK government-backed venture capitalist or seed fund).
Key Features:
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The visa allowed entrepreneurs to set up or run a business in the UK and invest in it.
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You could bring dependents, such as spouses and children, to the UK under this visa.
How to Apply (For Existing Holders):
If you are an existing holder of a Tier 1 Entrepreneur visa, you can apply to extend your stay or apply for permanent residence, provided you meet the requirements for business success and job creation.
4. Sole Representative Visa
The Sole Representative Visa is for non‑EU nationals who are employed by a company outside the UK and are sent to the UK to establish a branch or subsidiary of that company.
Eligibility:
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You must be employed by an overseas company and be recruited and employed outside the UK.
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The company must be genuinely operating overseas and have a trading presence.
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You must not have any control over the company, such as owning more than 50% of the shares or being the director.
Key Features:
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The visa allows you to work solely for the overseas company’s UK branch.
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You may stay for up to 3 years, with the option of extending for another 2 years.
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The Sole Representative Visa can also be used for bringing dependents to the UK.
How to Apply:
You must show that your company has a legitimate business that intends to expand into the UK. You’ll also need to provide evidence of your role in the company and your intention to establish a UK branch.
5. Tier 2 (General) Visa
The Tier 2 (General) Visa is for individuals who have been offered a job in the UK by a licensed sponsor. This visa is suitable for expats who want to work for a UK employer and is ideal for those planning to hire foreign employees.
Eligibility:
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You must have a job offer from a UK employer that holds a valid Tier 2 sponsor licence.
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Your job must meet the skill level and salary threshold requirements.
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The employer must demonstrate that no suitable UK worker is available for the role.
Key Features:
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The visa allows you to stay in the UK for up to 5 years, with the option to apply for ILR afterward.
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You can bring dependents with you.
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The employer must pay the Immigration Skills Charge, which is a fee to sponsor a foreign worker.
How to Apply:
You can apply for the Tier 2 visa once you have a valid job offer from a sponsor. The application requires evidence of your qualifications, job offer, and salary.
How to Choose the Right Business Visa for Your Situation
Choosing the right business visa for your needs depends on factors such as your business’s stage, the level of investment, and your long-term goals in the UK. Here’s a quick checklist to guide you:
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Start-up Business: If you’re launching an innovative and low-capital business, the Start-up Visa may be your best option.
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Experienced Entrepreneur: If you have a significant investment and a solid business idea, the Innovator Visa might be the right choice.
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International Expansion: For those looking to expand an existing business into the UK, the Sole Representative Visa works well.
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Employment-Linked Business: If you have a job offer or want to hire employees, the Tier 2 Visa could be the best fit.
Conclusion
The UK is a great place for expat entrepreneurs to start a business, but it’s essential to choose the right visa that aligns with your business goals. Whether you’re launching a new venture, expanding an existing business, or relocating to manage a company, the right business visa will provide you with the legal foundation to succeed in the UK. Be sure to carefully review the options available, seek professional advice if necessary, and follow the application process for a smooth start to your entrepreneurial journey.
FAQ
1. Can I start a business in the UK as a non‑EU expat?
Yes, non‑EU expats can start a business in the UK by applying for the relevant visa, such as the Start-up Visa or Innovator Visa.
2. What’s the minimum investment required for the Innovator Visa?
You need a minimum of £50,000 to invest in your business when applying for the Innovator Visa.
3. How long can I stay in the UK with a business visa?
The duration of stay depends on the type of visa. The Start-up Visa is valid for 2 years, while the Innovator Visa lasts for 3 years.
4. Can I bring my family with me if I apply for a business visa?
Yes, many business visas allow you to bring dependents (such as a spouse or children), but you must meet specific requirements.
5. How can I get started with the visa application?
Start by researching the visa types available to you, gathering the required documentation, and seeking professional advice or legal assistance if necessary.
