There are strict rules governing what international students can and cannot do during their period of leave in the UK, including rules on working. But is it possible for student visa holders to start a business in the UK?
While the UK generally encourages business growth, starting a company as a student on a visa isn’t as straightforward as it sounds. Strict immigration rules mean that most international students cannot engage in self-employment or business activities while on a Student visa. Employment must be under a contract with an employer, meaning activities such as sole trading consulting, or launching a company are not permitted. This means international students cannot be self-employed, take on freelance work or run a business while in the UK under a Student visa.
However, there are legal pathways that allow students to transition from study to visa routes that permit entrepreneurship – but this requires planning.
Can international students start a business in the UK?
Student visa holders are not allowed to start a business, undertake business-related activity or be self-employed.
You will be considered to be engaging in business activity where you are working for a business in which you have a financial or other significant beneficial interest in a capacity other than as an employee, for example, setting up a business as a sole trader or under a partnership arrangement and that business is either trading or establishing a trading presence.
You are, however, allowed to develop your business idea alongside your studies and in the UK under your student visa and await the decision on your application.
If you do have plans to start a business after you have completed your studies, you will need to consider your visa options to remain in the UK. The primary route for individuals setting up a business in the UK is the Innovator Founder route.
If you have made an application for leave to remain under the Start-up route, you will be allowed to develop the idea while in the UK under your student visa and await the decision on your application.
Importantly, you will not be able to start trading while you are in the UK with a student visa. You must first await the decision on your Start Up visa application.
UK student visa work rules
The Tier 4 student visa has been replaced by the Student visa route. The rules on working while under a Student or Tier 4 visa are the same. Student visa holders are restricted in the type and amount of work they can carry out.
The main purpose of the student route is for students to come to the UK to undertake a course of study. Where you are permitted to work, the intention is that this should be to supplement your income through employment whilst studying.
As such, there are limits on the number of hours you can work, depending for example on the type of course you are participating in.
You may be permitted to work either 10 hours per week, where you are studying on a full-time course below degree level sponsored by a UK recognised body or a body in receipt of public funding as a Higher Education Institution (HEI), or 20 hours per week where you are studying a course above degree level at a similar UK recognised body or HEI.
Permissible remote work performed for a non-UK employer while you are in the UK as an international student would be counted towards your weekly 10 or 20 hour maximum.
Time spent working can be in addition to any time spent on a permitted work placement.
Once your course has ended, you may work full-time, provided your conditions of stay permit work and you have leave to stay in the UK lawfully under your visa. This is because period at the end of the course of study is classed as vacation time.
If, having fully completed the course for which your CAS was assigned, you make an application for new leave under a different visa classification before your existing leave expires, you will be permitted to work full-time, within the limits described above, until your application is decided.
If, on the other hand, you stop studying before completing your course, you will no longer be entitled to work and will be in breach of your conditions of leave if employed.
In certain circumstances, you may also be permitted as a international student to undertake a work placement as part of your course, providing it is an integral and assessed part of the course of study.
However, in most cases, even where you are permitted to have a work placement as part of your course, the time you spend on it must not exceed 33% of the total length of your course undertaken in the UK.
Prohibited work for international students
In circumstances where you are permitted to work under your student visa, there are still certain jobs that you are not authorised to undertake. These include the following:
- Be employed as a doctor in training, save except on a recognised foundation programme
- Be employed as a professional sportsperson, including a sports coach
- Be employed as an entertainer
- Fill a full-time, permanent vacancy, save except on a recognised foundation programme or where you are filling a post as a Student Union Sabbatical Officer
- Be self-employed, or engage in business activity
Examples of prohibited business-related activities
The Home Office caseworker guidance on the student visa provides a non-exhaustive list of business-related activities that are prohibited under the route.
These include:
- “setting up a business as a sole trader or under a partnership arrangement and that business is either trading or establishing a trading presence
- being employed by a company in which they hold shares of 10% or more (including where the shares are held in a trust for them)
- working for a company where they also hold a statutory role, such as a director.”
In practice, this would mean that work such as running an online business, writing and producing content for profit, passive income generation and affiliate marketing income generation are likely to be considered business-related activity and as such prohibited for international students.
Jobs in the so-called ‘gig economy’, such as Uber taxi driving and Deliveroo delivering, are permissible only where you are engaged as an employee, and not on a self-employed basis. You will need to clarify this formally with the employer.
You can only buy and sell unwanted items on online marketplaces such as Ebay occasionally and where you don’t plan to make a profit. Anything more than this, where you are selling online to make profit, would be classed as a ‘trading’ and you would be considered self-employed, which is prohibited under the student visa rules.
Can international students do freelance work in the UK?
International students in the UK holding a Student visa are not permitted to engage in self-employment or freelance work. This restriction encompasses activities such as freelance writing, private tutoring, consulting or any work where the individual is not on an employer’s payroll. Engaging in such activities is considered self-employment and is prohibited under the terms of a Student visa.
Planning to stay in the UK to set up a business after a student visa
International students in the UK who wish to remain and set up their own business after completing their studies have three main visa options: the Graduate visa, the Innovator Founder visa or a Family visa.
Graduate visa to start a business
The UK’s graduate route allows student visa holders to remain in the UK to work for up to two years after they graduate, or three years if they have a PhD. Under the route, graduates can work in any kind of role without having to be sponsored. This means there are no restrictions on skill level, working hours or salary level.
It also means Graduate visa holders can be self-employed and start their own business. Alternatively, you could use your time on the Graduate route to research and build your business idea, while earning in any kind of job, in preparation for making your Innovator Founder endorsement and visa application.
The Graduate route is, however, temporary and not a route to settlement. To stay in the UK after your period of leave as a graduate, you would need to apply to switch into a different visa category before your leave expires.
Students planning to use this route should begin preparations before their course ends. This includes researching business structures, understanding tax and legal requirements, and securing initial funding. Registering as a sole trader or forming a limited company with Companies House is necessary for legal operation. Opening a UK business bank account and setting up financial records will also be key steps in making the business compliant.
While the Graduate visa provides flexibility, it is a temporary solution. Before the visa expires, entrepreneurs must transition to a longer-term route, such as the Innovator Founder visa, if they wish to continue running their business in the UK.
Innovator Founder visa to start a business
The Innovator Founder visa allows foreign nationals to set up and run their own business in the UK. Unlike the previous Innovator visa, applicants are no longer required to invest a specific amount of money, but they must secure an endorsement from an approved endorsing body. Applications will see applicants and their business ideas vetted against set criteria, looking at viability, scalability and innovation. You will need to submit a business case to secure endorsement.
Endorsement must be secured before the visa application can be made to the Home Office.
Under new rules introduced in July 2023, student visa holders, or those whose last grant of leave was as a student, are only allowed to switch into the Innovator Founder route if one of the following conditions apply on the date of making their application:
- they have completed their course of study for which the Confirmation of Acceptance for Studies was assigned, or
- the course is full-time and degree-level or above with an education provider with a track record of immigration compliance, and the job will not start before the course completion date, or
- the applicant is a PhD student studying with an education provider with a track record of immigration compliance, and the job will not start any earlier than 24 months after their course started.
If your application is successful, you can stay in the UK for up to three years, and you may then become eligible for settlement.
Family routes to start a business
International students who meet and marry a British citizen or become the partner of someone already settled in the UK may be eligible to stay under a Family visa instead of switching to a business-focused immigration route. This visa category allows individuals to live and work in the UK without the restrictions placed on Student or Graduate visas, meaning they can legally set up and run a business.
The Spouse or Partner visa is available to those who are married to, in a civil partnership with, or in a long-term relationship with a British citizen or a person with Indefinite Leave to Remain (ILR), Settled Status or Refugee Status. Applicants must prove their relationship is genuine, meet financial requirements and demonstrate English language proficiency.
The visa is initially granted for 2.5 years, after which it can be extended. After five years, holders may apply for ILR to settle in the UK permanently.
Those in a relationship with someone holding a Skilled Worker, Global Talent or other long-term visa may apply as a dependant under the main visa holder’s status. Dependants of visa holders have no work restrictions, allowing them to start and run a business in the UK.
The advantage of switching to a Family visa is that it provides stability and flexibility, removing the need for business endorsement or sponsorship. However, applicants must ensure they meet all Home Office requirements, including relationship, financial and accommodation conditions.
It also important to remember that your permission to remain in the UK is based on your relationship; should your relationship come to an end, it will impact your visa and you will need to take action to regularise your status, or you may need to leave the country.
For those considering this route, seeking immigration advice can help clarify eligibility and the best approach for securing long-term status in the UK while pursuing entrepreneurial ambitions.
Need assistance?
If you have a viable business idea that you want to pursue in the UK, there are strict rules you will need to follow to avoid falling foul of Home Office regulations and quashing your dreams before they have got off the ground.
Given what’s at stake, international students looking to start a business in the UK should take advice on their immigration options well in advance of their student leave expiry to understand their options and how to proceed with any Home Office application.
DavidsonMorris’ team of business immigration legal advisers can support with all UK visa applications. For advice on your circumstances, contact us.
Student visa work rules FAQs
Can international students start a business while on a Student visa?
No, the Student visa prohibits self-employment, freelancing, and running a business. Students can only work in roles where they are employed under a contract.
What happens if a student starts a business without permission?
Engaging in self-employment while on a Student visa is a breach of immigration rules. This can lead to visa cancellation, difficulties with future visa applications, and possible removal from the UK.
Are there any visa routes that allow students to start a business?
Student visa holders may apply to remain in the UK after they graduate under the Graduate route, which permits self-employment. The Innovator Founder visa allows foreign nationals to set up businesses in the UK. These require endorsement from an approved organisation and a business idea that is viable, scalable, and innovative.
Can students start a business after completing their studies?
The Graduate visa allows degree holders to stay in the UK for two years (three years for PhD graduates) with no work restrictions. This means they can start a business during this time.
How can a student prepare for entrepreneurship while studying?
Students can develop their business ideas by joining university enterprise programmes, seeking mentorship, and researching visa options that allow entrepreneurship after graduation.
Glossary
Term | Definition |
---|---|
Student Visa | A visa allowing international students to study in the UK, with restrictions on self-employment and business activities. |
Self-Employment | Running a business or working freelance, which is not permitted under a Student visa. |
Innovator Founder Visa | A visa for entrepreneurs looking to establish an innovative business in the UK, replacing the previous Innovator visa. |
Graduate Visa | A post-study visa allowing graduates to stay and work in the UK for up to two years (three years for PhD graduates). |
Endorsement | Approval from a recognised endorsing body, required for certain business visas like the Start-up or Innovator Founder visa. |
Visa Breach | A violation of visa conditions, such as engaging in self-employment on a Student visa, which can lead to cancellation or refusal of future visas. |
Business Incubation | Support provided by universities or organisations to help new businesses grow, often including mentoring, funding, and networking. |
Sole Trader | A self-employed individual running their business as an individual rather than through a company. |
Limited Company | A registered business structure in the UK where the company operates as a separate legal entity from its owners. |
Sponsorship Licence | A licence required for UK employers to legally sponsor overseas workers under work visa routes. |
Right to Work | The legal permission to work in the UK, which varies depending on visa type and conditions. |
Business Plan | A formal document outlining the goals, structure, financials, and growth potential of a proposed business. |
UKVI (UK Visas and Immigration) | The UK government department responsible for processing visa applications and enforcing immigration rules. |
Author
Founder and Managing Director Anne Morris is a fully qualified solicitor and trusted adviser to large corporates through to SMEs, providing strategic immigration and global mobility advice to support employers with UK operations to meet their workforce needs through corporate immigration.
She is a recognised by Legal 500 and Chambers as a legal expert and delivers Board-level advice on business migration and compliance risk management as well as overseeing the firm’s development of new client propositions and delivery of cost and time efficient processing of applications.
Anne is an active public speaker, immigration commentator, and immigration policy contributor and regularly hosts training sessions for employers and HR professionals
- Anne Morrishttps://www.davidsonmorris.com/author/anne/
- Anne Morrishttps://www.davidsonmorris.com/author/anne/
- Anne Morrishttps://www.davidsonmorris.com/author/anne/
- Anne Morrishttps://www.davidsonmorris.com/author/anne/