How an entrepreneur can prove that their UK business is genuine

Unfortunately for many, Tier 1 Entrepreneur visa was closed in March 2019. However, you are among the lucky ones who had managed to get it before that, you have two possible scenarios once it expires.

The best-case scenario is when your business achieves a turnover of over £5 million or employs at least 10 full-time workers who are British citizens or settled in the United Kingdom. Provided you can show enough evidence, you and your family will not need to extend visas after 3 years and four months but apply for settlement straight away.

Those whose business has not been so successful can extend their leave for another two years. To do it, you must score a certain number of points, the same as when you applied for initial visa.

How to score points for Entrepreneur visa extension

To extend an entrepreneur visa, you must demonstrate that you have genuine intentions of growing your business and that it was opened to operate and generate profit and not just for immigration purposes. Here are 7 key criteria that the Home Office will be assessing your application against.

Directorship

You have become director of at least one UK registered company that is active and trading and you are actively involved in the day-to-day business.

Investment

You have invested no less than £200,000 into one or several UK businesses.

UK company

You have incorporated a UK company. If it is part of international business with overseas branches, UK office must be head office.

Bank account

You have opened a bank account in a UK bank.

Tax residency

Your company is taxed in the UK.

Focus on your business

You do not plan to work for anyone else directing all your efforts at developing your own business.

Business continuity

You intend to continue running your business.

Criteria 1 and 2 will give you 40 points. Another 35 points to make up the required 75 will be given if you can show that:

- you were director of your company at least 3 months before extending your visa (you could also be self-employed or partner in a partnership);

- you have created a minimum of 2 full-time jobs for British nationals or UK permanent residents and they have existed for at least 12 months.

Genuine entrepreneur test

You and your business must pass these checks when a Home Office caseworker can ask you to send them additional documents in relation to the business.

For example, your business is legally obliged to obtain permits, licences, certain type of insurance or register with a regulator – a caseworker has the right to check they are in place.

You personally will be checked for any immigration records and previous activities in the UK.

Therefore, a lot of online materials on long-term business visas encourage entrepreneurs to discuss their situation with a qualified immigration lawyer and not try to apply for and extend a visa yourself. It will save you time and money, especially if you are aware of some non-compliance and potential issues.

All the rest, if you believe you can do it, prepare everything correctly, prove you are a genuine businessman and good luck with extending your Tier 1 Entrepreneur visa.