UK Innovator Visa
The UK Innovator visa has been replaced with the Innovator Founder visa.
We can advise on visa options to start up your business in the UK.
UK Innovator Visa Replaced with Innovator Founder Visa
The UK Innovator Founder visa has now replaced the Innovator visa as the immigration route to start up a business in the UK.
If you’re an entrepreneur with plans to set up in the UK, speak to our business immigration specialists for advice on UK visa eligibility and application processing.
This guide was written before the new Innovator Founder route was opened.
UK Innovator Visa
The UK Innovator visa is aimed at experienced business people with a viable UK business idea.
Replacing the previous Tier 1 Entrepreneur visa, the UK innovator route requires a lower capital investment than its predecessor, but endorsement must be secured by applicants from an approved entity before the Home Office visa application can be made.
DavidsonMorris’ specialist UK business immigration experts are on hand to support you through this new visa route.
What is the UK Innovator Visa?
The UK Innovator visa has been developed to attract a broad spectrum of entrepreneurs looking to set up business in Britain. The route however is only open to those who have secured appropriate endorsement from an appointed professional body.
Expert guidance will be critical to ensure you follow the new rules for making a successful application.
With so much at stake, it’s important to ensure the innovator route is the most suitable for your needs, and that each stage of the process is managed effectively to avoid issues, delays or even refusal of your application.
How much will I need to invest to be eligible under the Innovator route?
You will need a minimum of £50,000 to invest in your business. This is significantly lower than the £200,000 minimum requirement under the previous Entrepreneur visa.
The smaller capital requirement opens up the route to a wider pool of candidates and shifts the focus of the application to the merit and potential of the business idea as opposed to focusing on an arbitrary investment level.
The funding requirement is waived for those switching from the Start-up scheme, who have made significant achievements against their business plans.
Applicants should also note that across the board, the Home Office is heavily scrutinising supporting documentation in respect of business visa applications.
Evidencing the source and ownership of funds will be critical to your application.
What is the Innovator visa application process?
The Innovator visa application process is in two stages.
The first stage requires applicants to secure endorsement from a relevant endorsing body following an assessment of your business idea against certain criteria. You will be expected to present a comprehensive business plan detailing all aspects of your business idea, including projections for growth, profit, cashflow and job creation, to demonstrate the business meets the endorsement criteria.
If you are successful in being endorsed, you can then proceed to apply to the Home Office for the Innovator visa.
What are the innovator visa endorsement criteria?
Before applying to the Home Office for the visa, applicants must first secure endorsement from a business sponsor in support of the applicant’s relevant experience in business.
Endorsement has to come from an authorised body. The Home Office maintains a list of approved bodies for the innovator visa.
Which endorsing body you choose to apply for will depend on your specific needs, including the industry in which your firm will operate, the time of your application, the location of your intended business base, and what kind, if any, of assistance your company needs.
There are differences in how endorsing bodies approach their role within the innovator visa application process, largely due to considerable discretion in the Home Office guidelines for endorsing bodies.
This is resulting in variations in application processes, documentation, Ts & Cs etc. One of the critical points of difference is whether bodies are accepting innovator visa applications from independent applicants or whether there must be an existing relationship with the business. Take advice to ensure you have considered all suitable options for endorsing bodies to apply to, based on your circumstances.
The endorsing bodies have been charged with assessing applicants’ business ideas against specific criteria of innovation, viability and scalability.
Different eligibility criteria apply, depending on whether the business you are relying on for your innovator visa application is classed as a ‘new business’ or a ‘same business’.
Innovator new business requirements
If you are applying to come to the UK for the first time to set up your business, you will be deemed to have a ‘new business’ and will need to meet the specific new business requirements.
As a new business, you will need to produce a business plan that evidences the following criteria are met:
Innovation
Your business plan should demonstrate the product, service and/or its promotion is genuinely innovative, inventive and original and that it serves new or existing market needs and/or creates a competitive advantage.
Originality will be the critical factor. The business plan should demonstrate the product, service and/or its promotion is genuinely innovative, inventive and original and that it new or existing market needs and/or creates a competitive advantage.
Viability
You will need to show the business is more than an idea and that it can be made a success. Further, the business itself must be able to show it can maintain cash flow until profitability.
Applicants will also need to show they bring more than a great idea to the table. They must themselves possess and evidence the necessary skills, knowledge, experience and market awareness to successfully run the business.
Scalability
A key determinant will be potential contribution to the UK economy in the form of job creation and planning for growth into national and international markets.
This is likely to be more challenging for start ups, where projections will need to be relied on.
Commitment
You will also need to show that you will be fully committed to the business and your time in the UK under the visa will be spent wholly in the developing this specific business venture.
This means the endorsing organisation must be reasonably satisfied that the applicant will spend their entire working time in the UK on developing the business venture and the innovator may not work for another business.
Innovator same business requirements
Innovator visa holders applying to extend their leave by relying on the same business as referred to in their original visa endorsement letter, the ‘same business’ requirements will apply.
You do not need any investment funds if your business is already established and has been endorsed for an earlier visa.
If you are applying to switch from either the Tier 1 (Graduate Entrepreneur) category or Start up route and your application is based on the same business as the previous leave, you will be able to choose to apply under either the new or same business category.
For a ‘same business’, the endorsing body will need to confirm that the applicant has shown significant achievements, judged against the business plan assessed in their previous endorsement; the applicant’s business is registered with Companies House and the applicant is listed as a director or member of that business; the business is active and trading; the business appears to be sustainable for at least the following 12 months, based on its assets and expected income, weighed against its current and planned expenses; and the applicant has demonstrated an active key role in the day-to-day management and development of the business.
It is possible to make a same business application from overseas if the applicant has previously held leave as an innovator or as a start-up migrant.
Innovator visa conditions of stay
Where endorsement is granted, and the visa ultimately approved, visa holders will be required to maintain contact with their endorsing body at the 6, 12 and 24 month marks to confirm continued compliance with the route conditions. The implication here is that endorsing bodies may be permitted to withdraw their endorsement, impacting status under the route and eventual ILR eligibility.
Innovator visa holders are also restricted to being employed only by the business or businesses the applicant has established, joined or taken over. endorsed business. Any arrangement for employment with a different business would be in breach of the visa terms.
Innovator visa requirements
In addition to evidencing the eligibility of your business proposal and your professional capabilities and experience, you will also be assessed by the Home Office during the visa application stage in respect of general areas.
Age
You must be at least 18 years old.
General grounds
All innovator visa applications will be assessed against the general grounds for refusal under the Immigration Rules. Factors such as previous immigration history and criminal records will be assessed.
Maintenance funds
A financial requirement applies to applicants applying from outside the UK or who have been in the UK for under 12 months at the time of making their application. This is to show that the applicant is able to financially support themselves, and any dependants. The required funds are as follows:
- £1270 Innovator visa applicant
- £285 Dependant partner
- £315 For first dependant child
- £200 For each subsequent dependant child
You cannot rely on money from your investment funds or money earned while working in the UK illegally for this requirement.
Applicants who have already been living in the UK for 12 months or more when making their application will automatically meet the financial requirement.
English language
You either have a UK bachelor’s degree, master’s degree or PhD taught in English or have passed an approved English language test with at least CEFR level B2 in reading, writing, speaking and listening. This requirement is waived if you have already proved it to be level B2 or above in an earlier successful application or if you are a national of one of a number of exempt nations such as the USA, Canada or Australia.
Credibility
You genuinely intend to undertake, and are capable of undertaking, the work/business activity referred to in their application (the Home Office will consider factors such as their work, education and immigration history and any declarations made to other government departments (for example, HMRC) regarding the applicant’s previous employment and other activity in the UK). You do not intend to work in breach of immigration law (if the application is successful, the applicant will only have permission to work as outlined in their business plan). Any money you claim is available is genuinely available as described and intended to be used for the purposes described in the application.
Your immigration history will be vetted to check for any breaches of the UK immigration rules, for example if you have overstayed a previous period of leave.
Applying for your Innovator visa
With endorsement, you can proceed to make your application to the Home Office for the innovator visa.
Where successful, the body will produce an endorsement letter containing specific information relating to the applicant and their business. The letter is valid for three months. It should be submitted to the Home Office by the applicant within three months of the date of the letter, along with the immigration application.
This will require you to show you:
- Are endorsed by a ‘trusted’ organisation in the UK.
- Are in regular contact with the endorsing body, at 6, 12 and 24 month intervals.
- Satisfy the English Language Requirement, Level B2.
You also have to satisfy the English language requirement to Level B2.
The application fee for the new route has been set at the same rate as the entrepreneur visa.
Who are the endorsing bodies?
The government operates a list of authorised bodies and organisations permitted to endorse Innovator visa applications. Contact us for advice on making your application to the relevant endorsing body.
Endorsement letter
The endorsement letter should include all of the following details:
- Endorsing body name
- Endorsement reference number
- Date of issue
- Visa applicant’s name, date of birth, nationality and passport number
- Brief overview of the business venture, including description fo the services or foods it will offer
- Confirmation that the endorsing body’s assessement of the applicant and their business meet either the ‘same business’ or ‘new business’ requirements
- Name, email address, contact telephone number and workplace address of the representative at the endorsing body that can verify the endorsement letter to the Home Office
What does the Innovator visa allow me to do?
You are only permitted to work on the business venture in question during your leave in the UK under the innovator route. This means you are not allowed to work for another business or company during your visa stay.
The regulations stipulate that visa holders are to maintain regular contact with your endorser to provide ongoing confirmation of their business activity.
How long does the Innovator visa last?
Leave under the innovator route will be granted for three years at a time, with no maximum time limit placed on visa holders under this category.
Individuals will however have to reconfirm endorsement should they wish to extend their leave at the three year stage or apply for settlement.
Can I switch to the Innovator route?
It may be possible to switch to the innovator route if you are already in the UK lawfully. You cannot however switch into the Innovator if your last grant of leave was as a Visitor, Short-term Student, Parent of a Child Student, Seasonal Worker, Domestic Worker in a Private Household or outside the Immigration Rules.
Applying as a team
The Innovator route allows applications from teams from the same business. However, each team member has to secure endorsement individually and each member must have at least £50,000 investment funds.
The investment funds being relied on to satisfy the visa requirements cannot be shared – each individual must separately meet the £50,000 minimum threshold.
Can I apply to settle under the Innovator route?
It may be possible to apply for settlement after three years of continuous residence in the UK if you meet at least two of the following conditions:
- At least £50,000 has been invested and spent in the business
- The business has created at least 10 full time jobs for resident workers
- The business has created the equivalent of at least 5 full time jobs for resident workers paying at least £25,000
- The business has generated gross revenue of at least £1 million
- The number of the business’ customers has at least doubled in the 3 years and is higher than the mean number of customers for other UK businesses offering comparable main products or services
- The business has engaged in significant research and development activity and has applied for intellectual property protection in the UK
- The business is generating at least £500,000 in revenue with at least £100,000 from exporting overseas
Can family members join me?
Dependant family members – spouses, partners and children under 18 – can apply to join you in the UK as Dependant Migrants.
What if your Innovator application is refused?
If your application is denied, either at the endorsement or Home Office stage, take advice on your options.
How do I know if the Start up visa or Innovator visa is right for me?
Choosing the appropriate category will depend on your present situation and long-term objectives in the UK. The Innovator approach provides a shorter path to settlement but requires at least £50,000 in first finance. The Start-up path has a lower entrance bar but offers greater flexibility because those who fall under this category are allowed to hold down additional jobs while their firm grows.
Do you need a Start up visa before you can apply for the Innovator visa?
If you have at least £50,000 available to invest in your UK company and you have business expertise, you can be eligible for an Innovator visa without first needing to apply for a Start-up visa.
Extend your Tier 1 Entrepreneur visa or apply for the Innovator route?
Many entrepreneurs are now asking if they should proceed with an extension application under the existing route, or apply under the new route.
Your options will depend on your circumstances. Extension applications for Tier 1 (Entrepreneur) migrants will remain open until 5 April 2023, and settlement applications until 5 April 2025.
Taking advice on your circumstances will help you understand which course of action best meets your needs and improves your prospects of making a successful application.
Applicants should also note that across the board, the Home Office is heavily scrutinising supporting documentation in respect of business visa applications.
Evidencing source and ownership of funds will be critical.
Innovator visa & Tier 1 Entrepreneur differences
The Innovator scheme was desgined to address concerns previously that entrepreneur visa application processing is too subjective and dependant on the assessment of the Home Office caseworker, as raised by the MAC in its review of the Tier 1 route.
By requiring applicants to secure endorsement prior to making their application to the Home Office, it is hoped the new visa will offer a more objective evaluation of the viability of the business idea.
In a further reform, the investment amount has been significantly reduced, rom £200,000 under the old entrepreneur visa route to £50,000 under the new innovation route. A smaller capital requirement should open up the route to a wider pool of candidates and shift the focus of the application on the merit and potential for the business idea to be successful.
Interestingly, the funding requirement will be waived for those switching from the new Start-up scheme, who have made significant achievements against their business plans.
Extend your Tier 1 Entrepreneur visa or apply for the Innovator route?
Many entrepreneurs are now asking if they should proceed with an extension application under the existing route, or apply under the new route.
Your options will depend on your circumstances. Extension applications for Tier 1 (Entrepreneur) migrants will remain open until 5 April 2023, and settlement applications until 5 April 2025.
Taking advice on your circumstances will help you understand which course of action best meets your needs and improves your prospects of making a successful application.
Applicants should also note that across the board, the Home Office is heavily scrutinising supporting documentation in respect of business visa applications. Evidencing source and ownership of funds will be critical.
Can Innovator applicants join an established UK business?
Applicants have to submit a brand-new business idea for the Innovator route. While the business may already exist, it should not have started fully trading.
Are there are restrictions on the type of business you can open?
There are no limits or rules on the sector or line of business you can open; the criteria relate to the business idea being innovative, viable and scalable.
Can you settle in the UK under the Innovator route?
The category may also lead to settlement after 3 years’ continuous UK residence, provided a minimum of two of the following conditions are met:
- At least £50,000 has been invested and spent in the business
- The business has created at least 10 full time jobs for resident workers
- The business has created the equivalent of at least 5 full time jobs for resident workers paying at least £25,000
- The business has generated gross revenue of at least £1 million
- The number of the business’ customers has at least doubled in the 3 years and is higher than the mean number of customers for other UK businesses offering comparable main products or services
- The business has engaged in significant research and development activity and has applied for intellectual property protection in the UK
- The business is generating at least £500,000 in revenue with at least £100,000 from exporting overseas
Time spent in the UK prior to leave as an Innovator does not count towards continuous residence period for settlement.
Making an Innovator Visa application
At DavidsonMorris we help individuals meet their UK immigration needs, including innovator visa applicants.
We specialise in business visa applications. We work with applicants from across the world seeking to enter or remain in the UK by establishing, investing in or taking over a business here.
As a team of immigration lawyers and former Home Office employees, we have an established reputation for effective and efficient management and processing of visa applications, and for providing expert visa-related advice.
We are extremely passionate about the contribution of foreign talent in shaping and growing the UK economy. We work with ambitious and aspiring entrepreneurs every day, providing advice and support throughout the endorsement and visa application process.
We are on hand to guide you through your application, helping you to build a comprehensive submission and making the process as smooth as possible.
We provide advice from the initial stages of the Home Office application process, advising on eligibility and suitability of the relevant route and visa options for any dependants, through to detailed support with compiling your supporting evidence and business plan, completing the application form and guidance on visa interviews.
If you are considering your visa options to set up a new business venture in the UK, we can help with all aspects of the innovator visa, including advice on meeting the requirements at the endorsement and visa stages, and developing a comprehensive business plan and supporting documentation.
Contact us for guidance on making an application for the Innovator visa.
UK Innovator visa FAQs
What is innovator visa?
The Innovator Visa allows experienced business people to set up business in the UK, provided they have secured endorsement.
How long does it take to get UK innovator visa?
Innovator visa application processing can take around 3 weeks for applications made outside the UK, or 8 weeks if switching from inside the UK. Endorsement application timescales will depend on the endorsing body you are applying to.
How do I get a UK innovator visa endorsement?
Endorsement can only be secured by applying to a Home Office approved endorsing body and following their application process and meeting their eligibility requirements.
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Why DavidsonMorris?
We are a team of immigration lawyers and former Home Office employees, with an established reputation for supporting employers and HR professionals on all aspects of immigration including immigration audit and compliance.
We are highly experienced in all the document and evidentiary requirements vital to a prompt and stress-free immigration audit.
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