Read the press release version here.
THE HOME OFFICE CALL FOR INNOVATORS
Immigration has always played an important part in the UK’s economic health. No rich western democracy can ignore the benefits of attracting dynamic, successful (and financially secure!) businesspeople if it wants to maintain its place in the world. A stable political system, low tax rate, good schools & universities, not to mention the attractions of investing in the London property market, mean that wealthy and influential people are always going to be drawn to settling in the UK.
Along with halting recreational travel, the COVID-19 pandemic froze business immigration instantly. Now, with the lockdown incrementally easing, immigration is back to the forefront of the national discussion, with the resumption of parliamentary debate on the type of immigration system the UK will have post-Brexit.
In March 2019, the Home Office launched the Innovator Visa for “more experienced businesspeople seeking to establish a business in the UK” who have “an innovative, viable and scalable business idea which is supported by an endorsing body”. At face value, this novel scheme introduces a unique approach to immigration. However, as with many immigration processes, there are more hoops to jump through than initially meets the eye.
What is the Innovator Visa?
The Innovator visa was designed to replace the now-closed Tier 1 (Entrepreneur) scheme. It is now the main route for non-EU citizens to establish and develop a business in the UK. The aim is to attract skilled businesspeople to share their business acumen and grow a successful business, with the eventual goal of these new businesses creating jobs and opportunities for resident workers and local organisations.
The three cornerstones of the innovator visa are:
1. Innovation – that the applicant has a genuine, original business plan that meets new or existing market needs and/or creates a competitive advantage;
2. Viability – that the applicant has the necessary skills, knowledge, experience, and market awareness to successfully run the business; and
3. Scalability – that there is evidence of structured planning and of potential for job creation and growth into national and international markets. In order to set up their innovative, viable, and scalable business, the applicant must have investment funds of at least £50,000, which can come from personal savings, investment from a seed fund, or anything in between. Compared to the alternative, the Tier 1 (Investor) scheme – which requires £2m in investment funds, the Innovator visa is definitely an attractive means of entry to experienced businesspeople who wish to branch out to the UK and continue to grow their business interests internationally.
Perhaps, most crucially, the business idea must be endorsed by a government-approved Endorsing Body, who review the business proposal and decide whether the idea is innovative, viable, and scalable. If so, an endorsement letter detailing the applicant and their business idea will be provided as evidence for the Home Office. An applicant can also form a team with other Innovator applicants, sharing one business proposal and endorsement, so long as each has their own investment funds.
The Benefits of Being an Innovator Why become an Innovator?
A successful Innovator applicant will be granted three years’ leave to work on their own business plan in the UK, rather than just investing their money in the UK or working for an employer. Additionally, applicants are welcome to apply with their dependant family members (i.e. spouse and minor children). After this initial three-year period, Innovators will be able to either extend their visa another three years, providing that they have continued endorsement, or, if certain criteria of a successful business are met, apply for Indefinite Leave to Remain after just three years in the UK, as opposed to the usual five-year route.
Case Study
An enterprising businessman outside the EEA with experience in his home country would like to take his experience abroad and grow a new business in the UK. He develops an original business plan, after finding a gap in the market that will allow his business to flourish. Armed with his skills and knowledge, he approaches an Endorsing Body for endorsement. The Endorsing Body deems the business idea innovative, viable, and scalable, and with £50,000 and endorsement letter in hand, the businessman is successfully able to come into the UK on an Innovator visa to work on developing his business for the next three years. As an added advantage, he is able to bring along his wife and two children, who will be able to receive a British education.
Indefinite Leave to Remain
Over three years, the business has flourished, and the family has settled in the UK. Having grown the business to a point where it fulfils the criteria of a successful business, the businessman will be able to apply for ILR for himself and his family. However, if the business has not quite reached this point yet, so long as the business plan is still being endorsed, the Innovator Visa can be extended for another three years, with no limit on the number of extensions, until the business is ready for the family to settle indefinitely.
How Berkeley Rowe can assist
Berkeley Rowe can assist with advice on tech start-ups, seed investments, or even help with early business set-up. We can also provide support to businesses looking to leverage tax schemes, including the Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS), as well as ensure you and your business meet the stringent regulatory requirements in the UK.
Berkeley Rowe can support help you through the entire Innovator visa process, from business set-up and development to contacting Endorsing Bodies and preparing your visa application for submission. Our dynamic team uses a holistic approach across all practice areas, which has helped build a diverse client base and broad experience spanning many industries. This approach enables Berkeley Rowe to assist individuals and corporates in identifying problems, propose the best cost-effective solutions, and build a strong and lasting working relationship that endures.