UK Visa Options for Start-Ups and Those Entering The UK in The Tech Sector (Part Two)

Welcome to the second installment of our mini-series where we’re taking a look at UK visa options for start-ups and those wanting to come to the UK to work in the tech sector.

After covering the Skilled Worker, Intra Company Transfer and Global Talent routes last week (blog can be found here), part two will focus on the Innovator and Start-up categories, along with the Representative of an Overseas Business and Graduate visa routes. We will also take a look at the new visa options set to be launched in the spring of 2022.

 

Innovator and Start-up

Innovator and Start-up replaced the Tier 1 Entrepreneur and Graduate Entrepreneur routes. Entry to either scheme rests on the applicant obtaining endorsement from a UKVI authorised endorsing non-governmental body—typically UK universities, accelerators and investors.

• • • Innovator: Established for entrepreneurs. The applicant must be prepared to invest in a new, innovative and scalable business in the UK and must have significant capital to invest into that business. Their endorsement must be maintained for the duration of the visa. The applicant must also spend their entire working time in the UK developing their business venture. Settlement is available after a minimum of three years of residence, provided the applicant has invested at least GBP 50,000 into their business and satisfied at least one further benchmark relating to the performance of their business (which can relate to customer growth, significant R&D supported by application for IP protection in the UK, revenue, full-time job growth for resident workers, and the growth of jobs earning above a certain annual salary). We expect significant changes to this route in Autumn 2022.
      • • Advantages:
          • No sponsorship required—no cost to the employer and no Immigration Skills Charge (ISC)
          • Leads to settlement in the UK after three years
        • Disadvantages:
          • Endorsement process is complicated, challenging and costly—in return for endorsement, endorsing bodies want a fee to mentor applicants or want a stake in their business

 

• • • Start-up: Established for individuals with little to no business experience who want to set up a new, innovative business in the UK. The Start-up applicant doesn’t need to evidence available investment funds. The visa, however, doesn’t lead to settlement, and after two years, you must either switch to the Innovator visa or another immigration category, or leave the UK.
      • • Advantages:
          • No sponsorship required—no cost to the employer and no ISC
          • No investment funds required
        • Disadvantages:
          • Like the Innovator visa, the endorsement process is complicated, challenging and costly
          • Does not directly lead to settlement in the UK

 

Representative of an Overseas Business

Senior employees of an overseas business may come to the UK to establish a branch or subsidiary in the UK. The overseas parent company must have no other trading/employing branch, wholly-owned trading/employing subsidiary or other representative in the UK. The overseas parent company must have its headquarters and principal place of business outside the UK. Applicants may not have a majority stake in the overseas business and must have authority to make operational decisions for the UK branch. The route can lead to settlement after five years. This route may be closed and replaced by the UK Expansion Worker category of Appendix Global Business Mobility in Spring 2022.

 

Graduate visa

A Graduate visa gives applicants permission to stay and work in the UK for at least two years after successfully completing a course—including a UK bachelor’s degree, postgraduate degree or other eligible course on a Student visa or Tier 4 (General) student visa in the UK. The applicant must be in the UK when they apply.

 

New visa routes launching in spring 2022 (Scale-up visa, High Potential Individual visa and Global Business Mobility visa)

Full details of these routes have not yet been announced, however, all three should be here in Spring 2022, and are likely to be relevant to those working in tech.

• • • Scale-up visa: A fast-track visa route for those with a “high skill” job offer from an eligible UK employer and a salary of at least £33,000. Employers will need to demonstrate they are a “scale-up” by showing an annual average revenue or employment growth rate over a three-year period greater than 20%, and a minimum of 10 employees at the start of the three-year period. It is likely that the route will lead to settlement after five years, and time in Skilled Worker, Global Talent, Innovator, Representative of an Overseas Business or Tier 1 can be amalgamated towards the five years.
    • High Potential Individual visa: This route will allow high potential individuals to come to the UK without needing a job offer. Aimed at attracting top international talent to the UK, the route will be open to those who have “graduated from a top global university” within the past five years. The route should also be appealing to employers because they will not have to cover costs of sponsorship under Skilled Worker category. We understand this route will not directly lead to settlement.
    • Global Business Mobility visa: Following recommendations from the Migration Advisory Committee, the Global Business Mobility visa will enable an overseas business to temporarily send employees to the UK for a specific corporate purpose that could not be done by a resident worker. The route will have five pathways for overseas firms to establish a UK presence or transfer staff to the UK. The applicant will require sponsorship under this route. On first look, it appears the new route will consolidate aspects of the ICT, ICT Graduate Trainee and Representative of an Overseas Business categories. 

 

 

Need to Know More?

Fragomen is the world’s leading immigration firm and we are well-versed in all visa categories covered in this two-part mini-series. If you would like to discuss a visa category in more detail, or if you have any questions,  please contact John Kiely at [email protected].

This blog was published on 3 March 2022, and due to the circumstances, there are frequent changes. To keep up to date with all the latest updates on global immigration, please visit our dedicated COVID-19 site, subscribe to our alerts and follow us on LinkedIn, Twitter, Facebook and Instagram.