The new innovator and start-up visas went live in March 2019. They replace the Tier 1 (Entrepreneur) route which is now closed to new applicants and the Tier 1 (Graduate Entrepreneur) route which closes from 6 July 2019.

The start-up category is for early-stage but high potential entrepreneurs who are starting a business in the UK for the first time. It’s quite attractive as applicants do not need to invest any funds in their business at this stage, but they will need to have an “innovative, viable and scalable” business idea which is supported by an endorsing body.

Innovation Viability Scalability
The applicant has a genuine, original business plan that meets new or existing market needs and/or creates a competitive advantage. The applicant has or is actively developing, the necessary skills, knowledge, experience and market awareness to successfully run the business. There is evidence of structured planning and of potential for job creation and growth into national markets.

Start-up visas are only granted for two years. Leave previously held in the legacy Tier 1 (Graduate Entrepreneur) route counts towards the two-year limit.

This visa doesn’t lead to a settlement, but the idea is that an applicant will progress to the innovator category, which does lead to a settlement.

Applications for a start-up visa can be made from within the UK, but the applicant must be switching from one of the following visa categories:

  • Tier 1 (Graduate Entrepreneur)
  • Tier 2
  • Tier 4 (General) – this is subject to restrictions
  • A visitor who has been undertaking permitted activities as a prospective entrepreneur, as set out in Appendix V

An applicant who later switches to the innovator route can avoid the requirement to evidence investment funds of at least £50,000.

All applicants must be endorsed by an endorsing body There are specific requirements for this endorsement letter laid out in Appendix W. For example, it must confirm that the applicant has not previously established a business in the UK and give a short description of the business venture.

“Entrepreneurial teams”, where multiple applicants share the same idea and plan, are permitted. Each start-up team member will need their own individual endorsement and meet all the other requirements in their own right for a successful grant of leave.

The start-up visa can include a credibility assessment. This is a “balance of probability” test that should only be carried out by the decision-maker if they have a reason to believe there are specific grounds to doubt a migrant’s credibility. Normally there shouldn’t be any, because the endorsing body will have already assessed the applicant’s business plan. The credibility assessment is described in official guidance as providing the Home Office with a “power” to use information that wouldn’t have been available to the endorsing body.