The new startup visa signals a more pragmatic approach to immigration policy by the government, allowing the UK to benefit from the valuable contribution of foreign start-up through job creation and tax revenues.
The new visa will replace Graduate Entrepreneur exclusively for UK graduates to a greater pool of talent that is presently eligible and should address concerns about arbitrary eligibility criteria and how the applications should be assessed.
Improving the current Graduate Entrepreneur visa
Currently, foreign nationals looking to start a business in the UK apply under Tier 1 (Entrepreneur) Visa category or Tier 1 Graduate Entrepreneur Visa if they hold a university degree.
In 2015, the Migration Advisory Committee (MAC) carried out a review of the Tier 1 Entrepreneur visa, concluding, amongst other things, that the decision-making process should be reformed
Following a review, a statement of changes HC1919 was laid before parliament on 7th March 2019 to introduce the changes recommend by MAC.
Start-up visa category
The Start-up category is an expanded version of Tier 1 (Graduate Entrepreneur) category. It is for those starting a new business in the UK. Applicants do not need to meet the requirement of having a graduate degree and to secure initial funding. Successful applicants will be granted 2 years’ leave (previously one year) and will be able to progress into the Innovator category to continue developing their businesses in the UK after that time
| Category the applicant is applying in | Eligible switching categories |
| Start-up |
|
| Innovator |
|
A strict criterion of the Home Office
The initial applications must be endorsed by a relevant body (not yet defined in the statement of changes). An endorsement will confirm that the business ideas are innovative, viable and scalable.
Disclaimer:
The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Connaught Law and authors accept no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please don’t hesitate to contact Connaught Law. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Connaught Law.
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