Navigating the financial land related to a UK Entrepreneur Visa application can be challenging to deal with alone. As such, any applicant—an established businessperson or a first-timer—must understand the financial aspects of setting up such business ventures. The UK Entrepreneur Visa, or a UK Sponsorship Visa, was devised to help overseas nationals enter the UK to establish new businesses or expand on existing ones. The article covers the critical financial requirements of this kind of visa and provides overall guidance regarding how not to stumble upon a single obstacle during the process.
UK Entrepreneur Visa: An Overview
This scheme allows non-EEA nationals to set up or run a business in the UK. The Innovator Founder visa has replaced the UK Entrepreneur Visa, but some principles and requirements might still apply for similar visa routes. Applicants must meet relevant and necessary financial requirements to qualify, so understanding such requirements is crucial.
Financial Requirements
The most crucial financial requirement for the UK Entrepreneur Visa is that the applicant must have investment funds. These funds need to be available for investment in a business in the UK and held in one or more regulated financial institutions. In addition, the applicant needs to show that these funds are freely disposable.
Investment Funds
The applicant must have access to at least £50,000 for a UK Entrepreneur visa while applying for an Innovator Founder visa. These funds will have to be provided by one or more sources of the following:
- Venture capital firm registered with the FCA in the UK.
- A UK seed funding body endorsed by the UK Department for International Trade.
A UK government department is making funds available to establish or expand UK businesses. Applicants should take note that the investment requirement under the Tier 1 (Entrepreneur) category is discontinued. It tends to grant easy access to innovative entrepreneurs with credible business ideas from entering the UK.
Proof of Funds
Applicants must be able to provide full evidence that the money is available. This includes:
- Bank statement with fund details of at least 90 days.
- Letter from a financial institution confirming the funds’ authenticity and availability. The documentation must clearly state that the funds are under the institution’s control and, accordingly, available in the UK.
Maintenance Funds
In addition to having the investment money, the applicant must show sufficient personal savings for their maintenance and that of any dependent while in the UK, thus proving one will not become a burden on public funds. The maintenance fund for this is £1,270 for a principal applicant, plus £285 if a partner, £315 if the first child, and £200 for every additional child.
Genuine Entrepreneur Test
One integral part of the application process is passing the Genuine Entrepreneur Test. The test shows the viability of the applicant’s business plan and the credibility of their intention to establish a viable business in the UK. The applicant has to submit a detailed business plan and, if necessary, attend the interview to discuss the business idea.
Additional Factors for Consideration
- Applicants should consider the following other financial considerations for opening a business in the UK:
- Initial Set-up Costs include the business’s registration costs, legal fees, and initial operational costs.
- Consider ongoing operational costs like rent, salaries, utilities, and other daily expenses.
- Keep contingency funds aside, like a portion of the budget, to sustain the business during unexpected expenditures or when revenue generation slumps.
Self-Sponsorship: Another Avenue
Even though it is not a visa category, the self-sponsorship category provides a pathway to enter the country to establish your business. It provides another means for entrepreneurs to relocate to the UK to open a new business or expand one without needing a traditional sponsor. It is particularly friendly to such individuals whose descriptions do not fall within the specific requirements of the Innovator Founder visa but wish to invest in and create business opportunities within the UK.
Financial Requirements for Self-Sponsorship
The financial requirements that can support self-sponsorship are similar to those of the UK Entrepreneur Visa. Applicants should prove they have sufficient investment funds. That is, a minimum of £50,000 for investment and the ability to meet all the additional maintenance fund requirements.
Advantages of Self-Sponsorship
More control over the business without depending on a third-party sponsor;
Flexibility to run and work on business ideas and strategies independently.
This route paves the way to permanent residence in the UK after fulfilling certain criteria.
Immigration Application Process for Self-Sponsorship Route
- Business Plan: Create a viable business plan that outlines business activities, market analysis, and financial forecasts.
- Funding: Secure funds required for investment and obtain proof of funds.
- Visa Application: You must lodge the visa application with all necessary documents, such as the business plan, proof of funds, and maintenance funds.
- Interview: The interviewer may require that you attend an interview, during which you will discuss your business plan and demonstrate your competitiveness in developing a feasible business in the UK.
Why Do You Need Legal Counsel?
Navigating the financial requirements for the UK Entrepreneur Visa and effectively guiding one through the application process may be a challenge. Legal counsel shall help ensure the financial documentation is accurate and up to the required standard. Professional guidance is essential for developing a robust business plan.
A Y & J Solicitors is a specialist UK immigration law firm with expertise in successful applications for entrepreneur visa applicants. We will help you at every stage of the application process, including:
- Advise you on the most appropriate route to a visa based on your circumstances
- Assist you with financial documentation and its compilation and submission.
- Help prepare you for the Genuine Entrepreneur Test and assist you in writing your business plan.
- We ensure compliance with every UK immigration requirement.
Professional expert consultants can immensely enhance the chances of success in each application and thus help a person set up a flourishing business venture in the United Kingdom.
Conclusion
All applicants must meet the financial requirements to start or expand a business in the UK, whether they apply for the UK Entrepreneur Visa or Innovator Founder Visa. Completing the investment and maintenance fund requirements involves setting up a compelling business plan and self-sponsorship. Sponsorship visa UK offers an alternative to those whose application does not meet the requirements under the visa categories but still want to invest in the UK.
Considering the complexities involved, seeking the services of a legal practitioner is advisable. A Y & J Solicitors shall assist the business owner by providing expertise and services to follow the process of setting up a business in the UK and offering you the opportunity to turn their business dreams into reality.
