The Tier 1 (Entrepreneur) category is for non-European migrants who want to invest in the UK by setting up or taking over, and being actively involved in the running of, a business or businesses in the UK.  

In order to apply as a Tier 1 (Entrepreneur) you must have at least £200,000 to invest in the UK.  

You are also able to apply if you have access to a minimum of £50,000 from:

• 1 or more registered venture capital firms regulated by the Financial Services Authority;

• 1 or more UK entrepreneurial seed funding competitions listed as endorsed on the UK Trade and Investment website, or

• 1 or more UK government departments or devolved government departments in Scotland, Wales or Northern Ireland, which have made the funds available for the specific purpose of establishing or expanding a UK business, or,

• If you have been granted leave to remain in one of the categories specified by the UK Border Agency.

You will also need to satisfy the English language requirement and demonstrate that you have the sufficient funds in your account to satisfy the maintenance requirements.  

In the past year, the government has made some major changes to UK immigration, concentrating on attracting the brightest and best into the UK.  The Tier 1 (Investor) and (Entrepreneur) migrants are routes that were given additional benefits, such as an earlier route to settlement, depending on the amount invested.

Changes

The UKBA have set out changes to the Tier 1 (Entrepreneur) route which came into force on 31st January 2013.  These changes are following the UK Border Agency tightening other immigration routes, and finding that the Entrepreneur route is now being targeted by applicants seeking to abuse the immigration rules.

The changes set out the following additional requirements:

• An introduction of a genuine entrepreneur test which will give UK Border Agency caseworkers the ability to test the credibility of suspicious applicants; and

• A change that requires the necessary minimum funds to be held, or invested in the business, on an ongoing basis rather than solely at the time of making the application.

Immigration Minister Mark Harper has stated:

“We have acted quickly to stamp out abuse by those looking to play the system.  The UK remains open to the brightest and best.  Genuine entrepreneurs with the idea and motivations to drive economic growth will always be welcome in the UK.”

Prior to these rules coming into force, the requirement of holding the necessary funds was only relevant at the initial stage of application, and evidence of the funds being invested into the business was required when making the extension application.  

In future, the UK Border Agency will be more vigilant and will be taking action to tackle any evidence of abuse.

This article is written by Sana Hussain. Sana is a solicitor with Lester Dominic Solicitors and specialises exclusively in Immigration and nationality law.