Starting a business in the UK and setting yourself up for success requires access to the very best talent. When the UK was a member of the European Union, the hiring possibilities for start-ups were very broad but, since Brexit, this has become more restrictive. It means that, if you live in another country and want to come to the UK to establish a business, or if you intend to employ workers from overseas to join your start-up, you will need to understand the details of UK visas. This includes the types of visas that are available, the eligibility requirements that new hires must meet to secure a visa, and your own responsibilities as an employer of overseas workers.

It is also important to stay up-to-date. The UK previously offered a Start-up visa that was designed to enable people to come to the country and set up a business. However, this is no longer available to new applicants.

Here is an overview of the visa options that might benefit start-up founders in the UK, and give them access to the widest possible talent pool:

Innovator Founder Visa

If you are an experienced entrepreneur who is looking to establish and run an innovative business in the UK, the Innovator Founder visa may be the best option for you. You must be able to demonstrate that you have a new, innovative and viable business idea that has the potential to grow and contribute to the UK economy. This cannot be a continuation of an existing business.

An approved endorsing body will assess the viability and novelty of your idea and, if you receive an endorsement, you will be able to apply for an Innovator Founder visa. There are several eligibility requirements to meet. While you do not need to provide a specific level of financial investment, you must have sufficient funds to support yourself and your business. You will also need to demonstrate your knowledge of the English language, usually by taking a Secure English Language Test.

Once granted, the Innovator Founder visa will last for three years, and holders can apply either for permanent residence or for an extension for another three years. It is possible to bring family members (such as a spouse or civil partner and any children) with you.

This visa is relatively inflexible, which means that, while it can be ideal for some start-up founders, it will not be suitable for every situation. Visa holders must maintain regular contact with their endorsing body and report on the progress of their business, and they can only work on developing their endorsed business. To achieve permanent residence, you must meet at least 2 of the following “milestones” in your business:

• at least £50,000 has been invested into the business and actively spent furthering the business; or
• the number of the business’s customers has at least doubled within the most recent 3 years and is currently higher than the mean number of customers for other UK businesses offering comparable main products or services; or
• the business has engaged in significant research and development activity and has applied for intellectual property protection in the UK; or
• the business has generated a minimum annual gross revenue of £1million in the last full year covered by its accounts; or
• the business is generating a minimum annual gross revenue of £500,000 in the last full year covered by its accounts, with at least £100,000 from exporting overseas; or
• the business has created the equivalent of at least 10 full-time jobs for settled workers; or
• the business has created the equivalent of at least 5 full-time jobs for settled workers, each of which has a mean salary of at least £25,000 a year (gross pay, excluding any allowances).

Without the freedom to switch to another business, this visa may not be suitable for entrepreneurs who want to start multiple businesses or take a hands-off approach to their start-up’s growth.

Skilled Worker Sponsor Licence

A sponsor licence is an official authorisation granted by the Home Office that allows businesses to employ skilled workers from outside the UK. Obtaining a sponsor licence can be a crucial step for start-ups, as it helps them to access a global talent pool. Note however that the new Labour government has indicated it will tighten licence rules to  make it harder for a business to rely solely on overseas talent.

 There are significant responsibilities that a business must fulfil in order to secure and maintain a sponsor licence, and not every organisation will be able to meet these requirements.

Before applying for a licence, a business must assign responsibility for managing the Home Office’s sponsor management system, which includes filling three key roles:

• at least one Level 1 user, who will manage the day-to-day use of the system. This includes issuing certificates of sponsorship, recording information about candidates’ attendance and other administrative duties.
• a key contact who will handle all communications with the Home Office.
• an authorising officer who will oversee the process and grant other users access to the system.

From there, the business can apply for the licence. It will need to meet a number of key obligations on an ongoing basis, and the Home Office may conduct audits to monitor compliance with all sponsor duties.

Once you have a licence, you can issue certificates of sponsorship. Having such a certificate is one of the requirements for workers to secure a Skilled Worker visa, Temporary Worker visa and others. All of these can potentially be used by start-ups to bring overseas employees to the UK.

Expansion Worker Sponsor Licence

This route was created for senior people – including business owners - in an overseas company who are coming to the UK to manage their expansion here. The route consists of several stages:

 1.         First, you must secure an Expansion Worker sponsor licence for the UK company, which must be a wholly owned branch or subsidiary of the overseas concern. The company must be operating in the same sector as its parent. It is essential that the UK company only has what the Home Office term a “UK footprint” – so no active trading is permitted pre-visa. Buying premises and (for example) starting a fit-out are fine. Key personnel must be nominated for the sponsor licence; for an Expansion Worker application, you can nominate an overseas resident who must intend to work full-time in the business. Note the overseas company must have been trading for at least 3 years and the sponsored individual must have worked in that business for at least 12 months unless classed a “high earner” (£74K +).

2.         Once granted a sponsor licence, the company can sponsor a relocation to the UK as an Expansion Worker, whose initial entry of 1 year can be extended by a further year.

3.         Following relocation to the UK, and once the UK business has commenced trading, you can add the Skilled Worker tier to the sponsor licence. Unlike the Expansion Worker route, the Skilled Worker route leads to settlement after 5 years residence in the UK.

To establish which route is most suitable for business needs, get in touch with an expert lawyer at Latitude Law for a free consultation. Our specialist UK immigration solicitors will be able to discuss your specific requirements, whether for you or the workers you want to hire and support you through the application process and give you the best chance of success in securing a visa.