UK Immigration: A Guide to the Tier 1 Entrepreneur Visa - Investing in Britain

From an immigration point of view, it’s undeniable that it makes perfect sense for a foreign investor to enter the UK under the newly revised Tier 1 Entrepreneur category rather than the Tier 1 Investor due to the lower level of funds required to qualify. This article will discuss in details the changes made to this visa category by the UK Border Agency to encourage high net migrants and in particular entrepreneurs to establish their business in the UK. It also explains how to avoid the most common mistakes which might lead to the visa being denied.

On 6 April 2011, the Statement of Changes (863) significantly amended the requirements listed under paragraph 245(DB) of the Immigration Rules. In brief, to qualify under the Tier 1 Entrepreneur Scheme, the prospective applicant will need to claim 75 points under Appendix A as well as satisfy the English language and the maintenance requirements.

Once successful, an entry clearance is granted for 3 years and four months and the applicant will be able to be joined by his/her dependants as well as extend his leave in country for further two years. However, there are certain restrictions, most significantly no employment other than working for the business the applicant has established, joined or taken over in the UK.

We have assisted many applicants and in our experience, we have noted some common misunderstandings and mistakes which might sadly lead to a refusal, but can as easily avoided when the mandatory documents are properly put together.

As mentioned, an applicant must have a minimum of 75 points under paragraph 35-53 of Appendix A. In terms of investment, 25 points can be claimed by either showing that the applicant has access to no less than £200,000, or the applicant has access to no less than £50K from a registered ventured capitalist firms regulated by the Financial Services Authority (FSA), a UK Entrepreneurial seed funding competition which is endorsed on the UK Trade and Investment website or one or more UK Government Departments dealing with new business ventures.

The remaining 50 points can be claimed by providing the necessary evidence to show that the money is held in one or regulated financial institutions (25 points) and that the funds are freely disposable in the UK (25 points).

In some cases, an applicant might have already legally established a business in the UK and as such made an investment in the company. It is therefore important to have a full understanding of the applicant’s immigration history and financial records as the UK Border Agency will accept, if adequately documented, an investment made within the 12 calendar months before the date of application. Again, one has to be very accurate as to what the UK Border Agency understands as to the “date of application”. For out of country cases, this is when the entry clearance fees are paid, however for in country applications, is in fact the date of posting.

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UK Immigration: A Guide to the Tier 1 Entrepreneur Visa - Investing in Britain

Finally, the investment must be made within 6 months from the date of entry in the UK. However, there also specific requirements as to the type of investment which will be accepted by the UK Border Agency. For instance, the investment should not be in



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However, the director of the UK Border Agency, James Sharp, said that this change does not mean that they are going soft on entry requirements. He said that they are only adapting the process in recognition of the low migration risk posed by Taiwanese.



Last updated at 8:05 AM on 17th June 2011
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Science and engineering sector concerned about UK immigration | Y ...

According to an article in Engineering and Technology Magazine (E&T), the science and engineering industry in the UK is concerned that the recent tightening of British immigration laws will make it more difficult for the sector to recruit skilled workers.

The UK recently imposed a number of new restrictions on skilled immigration, including the scrapping of the Tier 1 (General) Visa. The new Tier 1 “Exceptional Talent” visa which is the only independent skilled immigration visa left is almost impossible to obtain. On top of all this the UK has had a cap on skilled immigration for about the last twelve months.

While the Exceptional Talent visa allows scientists and engineers and certain others to come to the UK without a job offer, it only applies to people who are recognized as being top in their field and the visa is limited to only 1,000 visas per year. This means that most highly skilled migrants need to apply for entry to the UK through the Tier 2 visa for skilled workers, which requires sponsorship from a UK employer.

“I think we will make matters worse if we make it harder for employers to recruit from universities around the world,” said David Brown, chief executive of the Institution of Chemical Engineers (IChemE). He did however acknowledge that the Government did make some concessions to UK business interests, including exempting Tier 2 Intra-company transfers from the immigration cap.

Brown told E&T that he would like to see extra points awarded for occupations at Chartered Engineer level and for all engineering occupations to be placed on the UK’s shortage occupation list.

E&T also spoke with Dr. Tony Whitehead, director of policy and governance at the Institution of Engineering and Technology (IET). Dr. Whitehead said that the immigration changes would not help the science and engineering sector fully recover from the global financial crisis of a few years ago.

“Employers are clearly saying that they need more professional engineers and engineering technicians to fill their skills gaps,” he said. “Our own research shows that a third of employers find it hard to recruit suitable senior engineers while one in five face difficulties in recruiting suitable graduate engineers.

Stricter student visa requirements could also affect the ability of the UK’s science and engineering sector to grow. Many international students choose the UK for its top universities — Onerous visa requirements put off international students from coming to the UK. This directly affects the ability of UK businesses to recruit the talent they need.


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