Tier 1 Entrepreneurs

Who can apply?

• Applicants who want to invest in the UK by setting up or running a business here may be able to qualify under the “Entrepreneur” immigration route (Paragraphs 245D to 245DF of the Immigration Rules).
• It is possible to visit the UK as a “Prospective Entrepreneur” before making the full entrepreneur application. This type of leave is as a “special visitor” and can be for a maximum of six months. The applicant must show that they are in discussions with specified types of funding institutions, and must present an original letter from the relevant organisation to support their “prospective entrepreneur” application. It is possible to “switch” in to the entrepreneur category from prospective entrepreneur “in-country” if all the conditions for the category are met.
• Applicants in the Tier 1 Post-Study Work/Graduate Entrepreneur or Tier 2 skilled workers can also “switch” into the entrepreneur category from inside the UK. Tier 4 (student) applicants need to meet additional conditions and have particular sources of funding before they will be allowed to switch to the entrepreneur category “in-country”.

What are the requirements?

• Applicants under the Tier 1 Entrepreneur category must be able to score 95 points under the Points Based System to be successful. This includes 10 points for English Language and 10 points for Maintenance.
• Entrepreneurs cannot take employment other than in the business they intend to run whilst in the UK, and need to make sure they can support themselves whilst they are here.

How much money does the entrepreneur need to invest?

• Depending on the current type of leave held by the applicant and the source(s) of the funding, it is possible either to apply on the basis of £200,000 of funding, or in some circumstances, £50,000.
• There are strict rules about the source of the funds, and if the money is not currently in the UK it must be “freely transferable” to the UK and convertible to £ sterling. There are strict documentary requirements re proving the amount of funds available. If these requirements are not fully met, the application will be refused.

Extension Applications

• It is possible to apply for an extension of leave as an entrepreneur, providing the conditions are met. You need to be able to score 75 points to be successful in an extension application.
• 20 points are available for proving that the money was invested (either the 200K or the 50K, depending on the relevant level of funding category).
• A further 20 points are available for either registering with HMRC as self-employed, registering a new business of which you are a director, or becoming registered as the director of an existing business. In most cases, the entrepreneur must have registered within six months of becoming an entrepreneur.
• An additional 20 points must be scored by the entrepreneur proving that they are engaged in business activity at the time they apply for an extension of leave to remain, and that they can prove that in the three months before they apply for the extension, they had been registered as self-employed, or as a director.
• Finally, it is possible to score 20 points for proving that the business has created the equivalent of at least 2 new full time jobs for settled workers in the UK. These jobs must have lasted for at least twelve months.

It should be noted that the documents applicants must submit to support their application must meet strict requirements and that the Home Office will refuse any applications where these requirements are not met.

Entrepreneur applications are complex and we recommend that you seek advice before applying. We can offer reasonable fixed rates and an initial free telephone consultation to assist you.

Please contact us on 0207-625-5590 or by e-mail to mleate@jdspicer.co.uk and we shall be pleased to help you.