How other business visa routes and Self-Sponsorship Visas Compare for Small Business Owners

For startups who are looking to, expand their business or establish their existing business in the UK, selecting the right visa is a crucial decision. The UK has many visa options for small business owners namely; Innovator founder visa, Startup Visa UK, and Global Business Mobility. These are often known as traditional business visa routes. And one of the most preferable options for those entrepreneurs nowadays is the UK Self-Sponsorship Visa. In this article, we are going to determine how other business visa routes and the UK Self-Sponsorship Visa route compare on the basis of their requirements, benefits, challenges, and viability.

The traditional visa routes.

A. Innovator founder visa.

The innovator, founder visa aims to help experienced business owners who want to create an innovative business in the UK.

Key features for this visa route are:

1. The application applicants must have something innovative, which is also a scalable business idea approved by an authorised endorsing body in the UK.

2. The business must not be currently available in the UK and must be unique as the visa name suggests.

3. You need a minimum investment of 50,000 pounds, which is mandatory.

4. The applicants must get an endorsement from an approved and authorized body in the UK, which will examine and verify the business idea based on its innovation and viability.

5. The visa is given for only three years with the possibility of having indefinite leave to remain called as ILR only After you complete certain goals set by the UK Government.

How is this useful for start-ups?

It is a direct pathway to settlement. It supports all the innovative business ideas. Which makes it suitable for unique business to establish their roots in the UK. For businesses that have a unique value proposition, the endorsement bodies can often provide you with mentorship and support.

Cons for start-ups

Due to its high entry barriers, it is not preferred by many start-ups because they are at their initial stage.

This also needs a significant and staple amount of investment which cannot be lowered and this could prove as a challenge for start-ups that do not have any funding or resources. This route has limited flexibility for businesses that are outside the permit of high-growth sectors like technology.

B. Start-up visa

A start-up visa usually aims at growing entrepreneurs who have high-potential ideas in the business. However, it is very different from the innovator founder visa as this does not have any investment capital required.

Following are the eligibility requirements.

1. The idea of the business must be unique, innovative, scalable, and viable with an authorised endorsement body in the UK.

2. The applicant will be required to get a letter of endorsement that validates the business is unique and feasible.

3. The visa is only valid for two years and it does not result finally in permanent settlement, in the UK. But you can do a transition to the innovator founder visa if there is a possibility of growth in the business.

Pros for smaller Start-up owners.

1. there is a lower financial requirement as compared to an innovator visa.

2. This visa promotes new entrepreneurial talent and it also includes individuals who are graduates or doing entrepreneurship for the first.

3. It allows some more time to start and test any concept of a new business in the market of UK.

Cons for Start-up owners.

1. The duration is very short and it also doesn't lead to permanent settlement in the U.K.

2. This route requires further transition into another visa route, for example, the innovator founder visa in order to be able to stay in the UK for the long term.

3. The process of getting the endorsement can be challenging because there is only a limited amount of endorsements available annually in the UK.

C. Tier 1 entrepreneur visa.

Earlier, the tier 1 entrepreneur visa was a really popular option amongst business owners.

But it was replaced. By other visas due to its misuse, and it is no longer available in the UK.

Some common challenges with the traditional rules.

1. the endorsement needs are very complex and are also very uncertain.

2. small businesses or start-ups in the traditional or common service sectors face a struggle because they can not meet the innovation criteria.

3. There is much dependence on external bodies for approving the application. So, this increases the waiting time for the applicants.

The UK Self-Sponsorship Visa Route:

As the name suggests, the self-sponsorship visa route is an amalgamation of skilled worker visa and a sponsor license. Under this route, the entrepreneurs can set up a business in the UK and then they can sponsor themselves through their own skilled worker visa via the business they are running.

The UK self-sponsorship visa rule is a less known option and the reason people are attracted to it is that it allows you the autonomy to run your business as well as manage your immigration status.

Have a look at the video shared below.

How the self-sponsorship visa route works

1. The business owners establishes a company in the UK and registers itself with the authorities in the UK.

2. The same company then- applies for a sponsor license in a way to sponsor the skilled worker visas.

3. Once the license is acquired, the business owners then apply for a skilled worker visa as a sponsored employee of the same business.

Why is this visa preferred by start-ups?

The start-up owners can control their business and their immigration status without depending on any third-party sponsors or endorsements. It is suitable for a broader range of money. Businesses that also include traditional service businesses like retail, consultancy, hospitality, or restaurants. As there is no minimum investment amount, so this route is accessible to start-ups and small business owners who have limited initial funding.

Finally, this visa is an option for you to permanently become a British citizen after completing 5 years of your skilled worker visa, there are fewer restrictions if we compare it with the traditional business visa, like innovator founder visa and start-up visa.

So if you are considering opening a startup in the UK, choose the UK self-sponsorship visa.