Tier 1 UK Entrepreneur Visa

What was the Entrepreneur Visa?

The Tier 1 Entrepreneur Visa allows individuals to establish or join and operate a business in the UK. Applicants needed to show access to at least £200,000 to invest in their business. The visa closed to new applicants on 29 March 2019, though existing holders can still apply for extensions.

The visa could be applied for individually or as a team of up to two entrepreneurs. If two applicants are applying as a team, they can share the same investment funds as long as they mention each other in their applications and business plans. Each applicant had to meet the visa requirements independently but could rely on the same pooled investment of £200,000. A team could not share funds with anyone outside their partnership.

Today, entrepreneurs looking to set up a business in the UK can explore the Innovator Founder Visa, aimed at more experienced founders with scalable companies.

The Start-up Visa, which has now closed to new applicants, was previously an option for early-stage entrepreneurs with high-growth potential ideas.

Visa Pathway

Entrepreneur visa holders could apply for Indefinite Leave to Remain (ILR) after spending a continuous period lawfully in the UK. The standard route to ILR took 5 years. However, there was an accelerated route for entrepreneurs who created significant growth, allowing them to obtain ILR after 3 years.

Standard 5-Year ILR Route

Most applicants qualified for ILR after 5 years on the Tier 1 (Entrepreneur) visa in the UK.

They had to demonstrate:

• The required funds had been invested in their business.
• They had created at least two full-time jobs for settled workers, each lasting a minimum of 12 months.

Accelerated 3-Year ILR Route

Entrepreneurs could apply for ILR after only 3 years if they met one of the following criteria:

• Job Creation: Created at least 10 new full-time jobs for settled workers.
• Business Growth: Generated an income of at least £5 million from business activities over 3 years. This could be through establishing a new business or significantly increasing the income of an existing business they took over or invested in.

Continuous Period Requirement

For both the 3-year and 5-year ILR routes:

• The continuous period had to be spent on the Tier 1 (Entrepreneur) visa.
• Applicants could not have spent more than 180 days outside the UK in 12 months.

British citizenship

After obtaining ILR, Tier 1 Entrepreneur visa holders could usually apply for British citizenship after holding ILR for at least 12 months, provided they met the residency and other eligibility requirements.

Dependents

Entrepreneur visa holders could bring certain family members to the UK as dependents. This included their spouse or partner, whether a husband, wife, civil partner or unmarried partner, provided they had lived together in a relationship akin to marriage for at least two years. They could also bring dependent children under the age of 18.

Applicants had to show they had sufficient funds to support their dependents without accessing public funds. The required maintenance amounts varied depending on the number of dependents included in the application.

Eligibility Criteria

To qualify for the Tier 1 Entrepreneur visa, applicants needed to meet eligibility criteria which included:

• Investment Funds: A minimum of £200,000 must be available in investment funds. This capital should be held in a regulated financial institution and freely transferable to the UK.
• Alternative Route: A reduced threshold of £50,000 is applied if the funds come from an approved source, such as a UK venture capital firm, seed funding competition, or a UK government department. This also included the Graduate Entrepreneur route, which has now been closed.
• English Language Proficiency: Applicants need to prove their English language ability, either through an approved English test, holding a relevant academic qualification, or being a national of a majority English-speaking country.
• Maintenance Funds: Separate from the investment funds, applicants had to show they could support themselves financially upon arrival in the UK.
• Genuine Entrepreneur Test: Applicants had to demonstrate a credible and viable business plan, relevant skills, and a genuine intention to establish, join, or take over a UK business.

The Genuine Entrepreneur Test

Applicants must pass the Genuine Entrepreneur Test as part of the Entrepreneur visa application process. This assessment ensured that only credible individuals with viable business plans were granted entry under the route.

The Genuine Entrepreneur Test was introduced to combat abuse of the Tier 1 (Entrepreneur) route. It aimed to prevent applications based on fabricated business ideas or funds from being used solely as a means to gain residency.

The test could involve an interview with a Home Office caseworker. During the interview, applicants were questioned about their business plan, market research, financial forecasts, and day-to-day involvement in the business.

Test Criteria:

• Viability of the Business Plan: Applicants had to present a clear, credible, and scalable business plan. The Home Office assessed whether the proposed business was genuine, sustainable, and likely to benefit the UK economy.
• Credibility of the Applicant: Decision-makers evaluated the applicant's background, qualifications, and business experience. They considered whether the individual had the necessary skills and knowledge to run a business in the UK.
• Intention to Engage in Business Activity: The applicant had to show a genuine intention to run the business actively, not merely act as a passive investor.
• Source and Availability of Funds: Applicants needed to demonstrate that their investment funds were genuinely available and had been obtained lawfully. They were also assessed to determine whether the funds would remain available for the intended business.

Business Plans

A detailed and credible business plan was necessary as part of the application to demonstrate how the entrepreneur would execute their proposed business activities and achieve commercial success.

The business plan was submitted with the initial visa application as part of the Genuine Entrepreneur Test. Applicants may be interviewed to verify their understanding and involvement in the plan.

Content & Expectations:

• Clear Business Concept: The plan had to outline the nature of the business, its products or services, and the target market. It had to demonstrate a clear understanding of the industry and competition.
• Market Research: Applicants were expected to show evidence of market demand, customer demographics, and an understanding of competitors in the UK market.
• Financial Forecasts: The plan would typically include realistic financial projections—covering startup costs, revenue forecasts, cash flow, and profitability over a 3 to 5-year period.
• Job Creation: The business plan had to explain how the business would create at least two full-time jobs for settled workers, which was a key requirement for visa extension and settlement.
• Applicant’s Role: The applicant’s role in the day-to-day running of the business needs to be clearly stated, and the applicant must demonstrate that they have the skills, qualifications, and experience to deliver the plan.
• Scalability and Sustainability: The plan had to show potential for growth and long-term sustainability, contributing positively to the UK economy.

Visa Conditions & Benefits

The Tier 1 Entrepreneur visa was issued for an initial period of 3 years and 4 months. It allowed visa holders to live and work in the UK by establishing or taking over a business. They could also bring family members, including a partner and children under 18, as dependents.

Additional benefits included the potential to extend the visa and apply for Indefinite Leave to Remain (ILR), which could lead to permanent residency and, eventually, British citizenship.

Entrepreneur Visa Extension

Existing Tier 1 Entrepreneur visa holders can apply to extend their visa for two additional years, provided they meet the specific requirements.

If you previously held a Tier 1 Graduate Entrepreneur visa before switching to the Tier 1 Entrepreneur route, you can still apply for an extension. For those who only had the Tier 1 Entrepreneur visa, extension applications closed on 6 April 2023.

Eligible applicants must apply by 6 July 2025, provided they meet all necessary requirements, including scoring 75 points on the Home Office’s settlement application points table.

To qualify, you must demonstrate that you are actively running a UK business, have invested the required funds (£200,000 or £50,000), and created at least two full-time jobs for settled workers, each lasting a minimum of 12 months. You must have registered as a director or self-employed within six months of receiving your initial visa and remain registered throughout. You must also pass the Genuine Entrepreneur Test, which shows that your business is viable and desirable in the UK.

In addition, you must meet the English language requirement (CEFR Level B1 or higher) and demonstrate that you have sufficient funds to support yourself without relying on public funds.

The extension application fee is £1,486, and you must complete biometric enrolment as part of the process.

Tier 1 UK Entrepreneur Visa Alternatives

The Start-up Visa was previously an alternative for first-time entrepreneurs with innovative business ideas. It did not require a minimum investment, making it more accessible. However, this route has now closed.

Entrepreneurs seeking to move to the UK to start and run a business can explore other visa options, depending on their circumstances, long-term plans, and whether they intend to settle in the UK. The primary alternative now is the Innovator Founder Visa, aimed at more experienced entrepreneurs with scalable, innovative businesses. This route offers a clear path to permanent settlement.

Innovator Founder Visa

The Innovator Founder Visa, often called the Innovator Visa, is designed for entrepreneurs looking to establish an innovative, viable, and scalable business in the UK. Applicants must secure a letter of endorsement from a recognised UK endorsing body, confirming the quality and potential of their business idea.

A comprehensive business plan is required, demonstrating market understanding, growth potential, and a unique value proposition. While this visa typically supports new businesses, applicants can also use a business previously endorsed under the Start-up or Innovator routes.

Unlike the former Tier 1 Entrepreneur Visa, the Innovator Visa has no minimum investment requirement. However, if your business requires significant capital, you must demonstrate access to sufficient funds to the endorsing body. Innovator Visa holders can also take up secondary employment if they remain actively involved in developing their endorsed business.

This route is ideal for entrepreneurs with credible, well-defined business ideas and a clear plan for sustainable growth.

Self Sponsorship via Skilled Worker Visa

The Self-Sponsorship visa route is not an official UK visa category but a strategic approach allowing entrepreneurs to establish a UK company and sponsor themselves for a Skilled Worker Visa. This option allows business owners to live and work in the UK while running their own business without relying on an external employer.

To use the self-sponsorship route, you must first set up a UK company, including registering the business, securing premises, and opening a UK business bank account. Once the business is established, you must apply for a sponsor licence, which allows your company to issue you a Certificate of Sponsorship.

You can apply for a Skilled Worker Visa with the Certificate of Sponsorship. This visa allows you to work for your own company in the UK. You can also sponsor family members as dependents to join you.

While self-sponsorship requires careful planning and compliance with the sponsor licence duties set by the Home Office, it offers a viable route for entrepreneurs seeking control over their business and employment in the UK.

UK Expansion Worker Visa

The UK Expansion Worker Visa is for senior employees of an overseas business that wants to establish a UK-based business for the first time. It allows key staff to relocate to the UK to set up and manage the new branch or subsidiary.

This visa is part of the Global Business Mobility routes and is specifically for overseas businesses that do not yet have a trading presence in the UK. This route is not applicable if the overseas business already has an active UK-based business.

To utilise this process, the overseas business must first apply for a UK sponsor licence, which enables it to assign a Certificate of Sponsorship to the expansion worker. The employee must be in a senior management or specialist role, usually having worked for the overseas business for at least 12 months, and meet the required salary threshold.

The UK Expansion Worker Visa typically allows an initial stay of 12 months, extendable to a maximum of 2 years. Still, it does not lead directly to settlement (Indefinite Leave to Remain) in the UK.

This route is ideal for overseas businesses seeking to expand operations by establishing a UK-based company with experienced staff.

Global Talent Visa

The Global Talent Visa is designed for highly skilled leaders or potential leaders in fields such as academia, research, arts and culture, or digital technology. It offers a flexible route for talented professionals to live and work in the UK without requiring a UK sponsor licence or a job offer from a UK-based business.

Applicants must first secure an endorsement from an approved endorsing body confirming their exceptional talent or promise in their field. Once endorsed, they can apply for a visa, which allows them to work in the UK for up to five years. Depending on their circumstances, they can extend or apply for Indefinite Leave to Remain (ILR) after three or five years.

Unlike many other work visa routes, the Global Talent Visa gives holders the freedom to work for any employer, be self-employed, or establish their own UK-based business. An overseas business or employer is not required to sponsor them.

This visa is ideal for individuals with a proven track record of achievement or those showing significant potential in their sector. It offers a fast track to permanent residency and eventual British citizenship.

Get Expert Assistance With UK Visa Applications

The UK visa application process can be complex and demanding. At QC Immigration, we have many years of experience handling Tier 1 Entrepreneur Visa applications, including extensions, and can provide expert advice on the most suitable visa route based on your circumstances.

Our team of dedicated immigration specialists has in-depth knowledge of UK immigration rules. Many have personal experience of the immigration journey, and some have even worked within the Home Office. We offer a highly personalised, client-focused service designed to maximise your chances of a successful application the first time around.