The Tier 1 Entrepreneur visa, once a sought-after route for foreign nationals to establish and manage businesses in the UK, was closed to new applicants on March 29, 2019. However, its legacy remains significant in the context of UK immigration and entrepreneurship. For many years, this visa provided opportunities for business-minded individuals to invest in the UK economy while opening doors to settlement and citizenship. While no longer available, understanding its requirements and the alternatives available is essential for those still navigating UK immigration law today.
The Basics of the Tier 1 Entrepreneur Visa
The Tier 1 Entrepreneur visa was part of the UK’s points-based immigration system, designed to attract foreign entrepreneurs who could contribute to the UK economy. To qualify, applicants needed to either set up or take over a business and be actively involved in its management. A critical component of the visa was access to investment funds, which could be either £50,000 or £200,000, depending on the applicant’s circumstances.
For those who held this visa, the route to Indefinite Leave to Remain (ILR) typically required a residence period of five years. However, the scheme also offered an accelerated settlement option. Entrepreneurs who created at least ten full-time jobs or generated business income exceeding £5 million within three years could apply for ILR sooner, showcasing the government’s emphasis on high-impact business ventures.
While the Tier 1 Entrepreneur visa is now closed, entrepreneurs who were already in the UK on this route can still apply for extensions or leave to remain, provided they meet specific criteria.
Tier 1 Entrepreneur Visa Requirements: A Detailed Look
The Tier 1 Entrepreneur visa had strict eligibility criteria designed to ensure that only genuine entrepreneurs with the necessary resources could apply. Here is a breakdown of the key requirements:
- Access to Investment Funds
This was the cornerstone of the Tier 1 Entrepreneur visa. Applicants needed to have access to one of the following amounts:
- £50,000: This could come from specific sources such as a venture capital firm registered with the Financial Conduct Authority (FCA), a seed fund endorsed by the Department for International Trade (DIT), or a UK government department. Additionally, applicants who had already invested £50,000 in a UK business within the last 12 months were eligible.
- £200,000: This amount could either be the applicant’s own money, funds from a spouse or partner (who was not also applying for the visa), or funds from a third-party investor.
Applicants also had to demonstrate that their funds were held in a regulated financial institution and were disposable in the UK for investment purposes. Meeting these requirements secured a significant 75 points under the points-based system.
- English Language Requirement
Applicants were required to meet the B1 level on the Common European Framework of Reference for Languages (CEFR). They could prove their English proficiency by passing an approved test or holding a degree taught in English. Nationals of English-speaking countries, such as the USA, Canada, and Australia, were exempt from this requirement.
- Maintenance Funds
Applicants needed to prove they had sufficient personal funds to support themselves without accessing public funds. For those applying for entry clearance, this meant holding at least £3,310 in savings for 90 consecutive days. Applicants applying for leave to remain from within the UK needed at least £945 in personal savings, also held for 90 days.
The Genuine Entrepreneur Test
One of the critical hurdles for Tier 1 applicants was the Genuine Entrepreneur Test, a discretionary assessment used by UK Visas and Immigration (UKVI) to determine whether applicants had a genuine intention to start and run a business. Applicants could be called for an interview and asked to submit additional documents to prove the viability of their business plan.
The business plan itself was subject to rigorous scrutiny. Many Tier 1 applicants found that a well-crafted, comprehensive business plan was vital to the success of their application. The plan needed to outline the proposed business activities, the market in which the business would operate, and how it would generate a profit. UKVI sought to ensure that the business plan demonstrated both ambition and feasibility.
Transitioning to New Entrepreneur Visa Routes
With the closure of the Tier 1 Entrepreneur visa, the Innovator and Start-up visas were introduced to replace it. These new routes focus on innovation and scalability and require endorsement from an approved UK body. The financial requirements are also different. For instance, the Innovator visa only requires £50,000 of investment funds, a significant reduction from the Tier 1 visa’s £200,000 threshold.
Under the Innovator and Start-up visa routes, business ideas must be both innovative and viable. The focus has shifted from merely accessing funds to creating new businesses that can contribute meaningfully to the UK’s economy and generate significant employment opportunities. For entrepreneurs still on the Tier 1 visa and looking to extend their stay, transitioning to one of these newer routes may be an option.
Key Documents for Tier 1 Entrepreneur Applications
To apply for the Tier 1 Entrepreneur visa, applicants needed to submit several key documents, including:
- A current passport or travel document
- Evidence of investment funds (such as bank statements or letters from financial institutions)
- Maintenance funds evidence
- A detailed business plan
- English language test results, if required
- Tuberculosis test results (for applicants from certain countries)
- A criminal record certificate for any country where the applicant had lived for more than 12 months in the past decade
Additionally, all documents not in English or Welsh had to be accompanied by a certified translation.
A Look Ahead
Although the Tier 1 Entrepreneur visa is no longer open for new applications, its closure marks a shift in how the UK government views entrepreneurship and immigration. The move toward the Innovator and Start-up visas indicates a stronger emphasis on creativity, business potential, and scalability rather than just financial investment. Entrepreneurs seeking to make their mark in the UK should now consider these new routes, ensuring they meet the endorsement and business innovation requirements.
For those who are still on the Tier 1 Entrepreneur visa or are seeking an extension, it is vital to stay informed of the evolving immigration rules and business requirements in the UK. Working closely with an immigration advisor can ensure that you meet the necessary criteria and secure a future for your business and residence in the UK.
Final thoughts
The Tier 1 Entrepreneur visa once provided a golden opportunity for international entrepreneurs to start and grow businesses in the UK. While this visa category has now closed, its replacement routes – the Innovator and Start-up visas – present new opportunities for business pioneers who can contribute to the UK’s economic future. Ensuring compliance with UKVI’s stringent requirements, including the Genuine Entrepreneur Test and securing appropriate funding, will be crucial for the next generation of entrepreneurs.
For personalised guidance or legal advice on navigating the UK’s current entrepreneur visa routes, consult with an immigration solicitor to explore your options and secure the right visa for your business journey.
Get in touch: For a comprehensive understanding of your options or queries on UK immigration matters, contact GigaLegal Solicitors at 02074067654 or click here to book a no-obligation consultation with an immigration expert.