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Innovator Founder Visa: Revised Category Offering Entrepreneurs a Pathway to Settling in the UK

October 25, 2023

Innovation

Country / Territory

  • United KingdomUnited Kingdom

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Olga Nechita Porthole

Olga Nechita

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Olga Nechita Porthole

Olga Nechita

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London, United Kingdom

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T:+44 (0) 20 3540 3249

Lara Hannaway - web porthole

Lara Hannaway

Associate

London, United Kingdom

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T:+44 (0) 20 7090 9288

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Olga Nechita Porthole

Olga Nechita

Practice Leader

London, United Kingdom

Email

[email protected]

T:+44 (0) 20 3540 3249

Lara Hannaway - web porthole

Lara Hannaway

Associate

London, United Kingdom

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T:+44 (0) 20 7090 9288

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By: Olga Nechita, Lara Hannaway

The Innovator Founder visa is a relatively new but important category launched by the UK government in early 2023. It provides overseas entrepreneurs the opportunity to come to the UK to establish an innovative, viable and scalable business.

In reality, this is a refined replacement to the previous and now closed categories of the Innovator and Start-Up visas, with the Innovator Founder visa now serving as the primary visa category for entrepreneurs in the UK.  

A report by Entrepreneurs Network, Job Creators, stated that in 2019, 39% of the fastest-growing businesses in the UK had at least one foreign-born founder, showcasing the necessity for a visa pathway that allows prospective founders to thrive in the UK and provide new and innovative businesses to help the economy prosper.

Many of the requirements will be familiar to those who previously obtained or researched the Innovator and Start-Up categories, but there are some clear advantages to making an application under the new Innovator Founder category in the UK.

Key Changes

  • The previous minimum investment of £50,000 required for the Innovator visa has been removed. Applicants now must demonstrate a genuine business proposal for an innovative, viable and scalable business and show sufficient funds to deliver this plan.
  • Applicants do not need to be the sole founder of the business and can be a member of an entrepreneurial group sharing the same business idea and plan as another Innovator Founder applicant, provided they have all significantly contributed. Each requires a separate application.
  • The new category also allows the principal applicant to hold secondary employment alongside the operation of their business, provided that this work is skilled employment. The previous Innovator category placed a restriction on migrants from engaging in employment outside of their business.
  • There is a reduction in the number of ‘check-ins’ with the relevant endorsement bodies.

Making an application and key requirements

The visa application process is split into two stages. The first stage of the process is to obtain endorsement from an authorised body, as recognised by the Home Office. There are currently only four endorsing bodies:

  • Envestors Limited;
  • UK Endorsing Services;
  • Innovator International; and 
  • Global Entrepreneurs Programme

The endorsing bodies assess whether the business idea meets the requirements: being innovative, viable and scalable. They also look at the applicant’s history and potential for success in the UK.

Each endorsing body will approach applications for endorsement slightly differently but using the same starting criteria, which is that an application must be for a new and original business idea, one that is innovative and different from any other business in the market. Applicants must also demonstrate that the business is viable and set out the potential for growth and development in the market. Finally, the business must be scalable, which could include the potential to create new jobs, a customer base increase or entering new and larger markets.

It is important to note that this visa category is not appropriate for those businesses that are already operating in the UK, as a business that is already trading is unable to apply, with the exclusion of those who have previously been granted a visa based on their business (such as the Innovator or Start-Up visas).

Business plans

The applicant must have a business plan and have generated or made a significant contribution to the ideas in that plan as well as demonstrating that they will have a day-to-day role in carrying out the operations of the business.

They must be either the sole founder or an instrumental member of the founding team. It is possible for an individual to join a business after it is registered, provided the business has not already commenced trading.

Any applicant must demonstrate they made a significant contribution to the business plan and have not been added to an existing business plan primarily for the purpose of facilitating investment. Any applicant who is only investing in a company does not meet these requirements and will not be eligible for the visa.

The business plan requires careful and considered preparation, and conducting thorough research and consulting with appropriate professionals is recommended. The business plan will be used for both stages one and two of the visa application and is reviewed by both the endorsing body and the Home Office respectively to assess the applicant’s involvement and development of the business idea.

The business plan should include an introduction and overview of the business, including the organisational structure, an outline of the operations, market research and analysis and financial projections.

After approval

The relevant endorsing body will undertake monitoring, and on behalf of the Home Office, conduct checkpoints throughout a three-year period, generally at 12 months and 24 months after the visa was granted.

On-site visits can also be expected to observe the growth of the business. The endorsing body will be assessing whether the endorsed applicant is making progress on their business plan considering sales growth, job creation and investments. It is possible for endorsement to be withdrawn if adequate progress is not being made.

Professional insights

Entrepreneurial visas are a popular choice internationally, providing entrepreneurs with an opportunity to move country without being restricted to sponsored employment. These categories are not straightforward, however, with many roadblocks and consistent ‘check-ins’ with the relevant authorities who are seeking continuous development and growth of a business.

In many countries, these categories can be seen as a “last resort,” so it is reassuring to see the UK include several aspects to the category to encourage new applicants, such as an accelerated pathway to settlement after three years of continuous residence in the UK, provided they have continued to be directly involved in the company and met the eligibility requirements linked to the growth of their business in the country.

It remains to be seen whether this will be a popular or successful category long-term, as the latest data from the Home Office, which incorporates both the closed Innovator and the Innovator Founder routes, indicates there were only 500 visas granted in the last business year.

This may be because the requirement for a business to be ‘scalable’ appears to be difficult to measure, and we do not yet know how this will be assessed by the Home Office. Many applicants appear put off by this requirement, so if the UK government wants to continue to encourage new and exciting talent to relocate to the UK, further work needs to be done to clarify the requirements and educate potential applicants to prevent them from choosing to settle in a different, more straightforward, jurisdiction.

Nonetheless, we believe there remains enormous potential for interested individuals and the endorsing bodies each offer valuable support and guidance to those seeking to apply. 

Need to know more?

Due to the complexity and ongoing requirements of the category, professional assistance when making an application is recommended. Fragomen is available to assist businesses and individuals with their full range of immigration needs. Our highly experienced team can support you as you navigate UK immigration requirements, including those related to the Innovator Founder visa.

If you have questions or need assistance with an Innovator Founder visa, please contact Director Olga Nechita at [email protected] or Associate Lara Hannaway at [email protected].

This blog was published on 25 October 2023, and due to the circumstances, there are frequent changes. To keep up to date with all the latest updates on global immigration, please subscribe to our alerts and follow us on LinkedIn, X, Facebook and Instagram.

Country / Territory

  • United KingdomUnited Kingdom

Related contacts

Olga Nechita Porthole

Olga Nechita

Practice Leader

London, United Kingdom

Email

[email protected]

T:+44 (0) 20 3540 3249

Lara Hannaway - web porthole

Lara Hannaway

Associate

London, United Kingdom

Email

[email protected]

T:+44 (0) 20 7090 9288

Related offices

  • London

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related contacts

Olga Nechita Porthole

Olga Nechita

Practice Leader

London, United Kingdom

Email

[email protected]

T:+44 (0) 20 3540 3249

Lara Hannaway - web porthole

Lara Hannaway

Associate

London, United Kingdom

Email

[email protected]

T:+44 (0) 20 7090 9288

Related offices

  • London

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related contacts

Olga Nechita Porthole

Olga Nechita

Practice Leader

London, United Kingdom

Email

[email protected]

T:+44 (0) 20 3540 3249

Lara Hannaway - web porthole

Lara Hannaway

Associate

London, United Kingdom

Email

[email protected]

T:+44 (0) 20 7090 9288

Related offices

  • London

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

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