The Innovator Founder Visa is an ideal choice for individuals who want to establish a business in the UK, whether they are experienced businesspersons or start-up entrepreneurs. It does not require a specific amount of investment funds, but applicants must have an innovative, viable, and scalable business idea that has been endorsed by an endorsing body, along with a well-developed business plan. This article will provide you with knowledge on the introductions of this new route, the key features, changes in previous requirements and more.
As of 13 April 2023, the new Innovator Founder visa route will replace the previous Innovator route and the Start-Up visa scheme will come to an end. Under the new scheme, there will only be four Home Office approved Endorsing bodies. This article outlines the changes to the endorsement requirements and other key features of the Innovator Founder visa route.
What Is The Threshold For An Innovative Business Idea?
The Home Office provides guidance to endorsing bodies outlining key principles to consider when assessing applications for the innovative requirement. These principles include: demonstrating a clear and compelling unique selling proposition, showcasing a business concept that is difficult to replicate with reasonable barriers to market entry, and ensuring that the innovation is core to the success of the business.
Additionally, the Home Office provides examples of business plans that do not meet the innovative standard, such as those where the innovation is outsourced to a third-party provider or where the innovation is only incidental to the business proposition. For example, when designing a new app, you were to instruct an outside source for development of the app.
Examples of business plans which do not meet the innovative standard are:
- Outsourcing third-party suppliers to push/develop the innovation forward (only small elements where outside sources are used is deemed as acceptable);
- Generic businesses with an incidental innovation proposition i.e. wanting to set up a taxi firm with a new app;
Further examples and detailed guidance on what endorsing bodies should look for can be found here.
Endorsing Bodies Approved For The Innovator Founder Visa Route
The Innovator Founder visa route requires a business proposal that is innovative, viable, and scalable. Applicants can apply with a new business concept or under the same business category, provided they have previously obtained permission as an Innovator Founder, Innovator, Start-up, or Tier 1 (Graduate Entrepreneur) and were assessed in a previous application using the same business concept. The four new Endorsing Bodies approved for the Innovator Founder visa route are:
- Innovator International;
- Envestors;
- UK Endorsement Services;
- The Global Entrepreneurs Programme (GEP) – a government led program which may grant endorsements for founder whom have previously been invited to partake in their program.
Key features of the Innovator Founder visa route
The Innovator Founder visa route offers some welcome changes for entrepreneurs. There is no longer a £50,000 minimum investment requirement, providing greater flexibility for businesses that do not require a large amount of capital to kick start. Additionally, there are now only a minimum of two contact points required, which offers more flexibility for applicants to meet with their Endorsing body. Finally, secondary employment is allowed, provided the role is at a skill level not less than RQF level 3.
Using An Endorsement Letter Issued By A Legacy Endorsing body
Applicants can use an endorsement letter issued by a Legacy Endorsing body if it is dated before 13 April 2023, and they are applying on the basis of a new business. If they previously obtained their first endorsement letter with the same Legacy Endorsing body before 13 April 2023, they can rely on the endorsement from that body if they are applying under the same business category.
Eligibility for Innovator Founder applicants
Prior to submitting your application, it is necessary to have your business or business idea evaluated by an endorsing body. If your business meets the criteria, they will grant you an endorsement letter.
Additionally, you must fulfil the following requirements in order to be eligible:
- Demonstrate proficiency in the English language;
- Be at least 18 years of age;
- Provide evidence that you have adequate personal savings to support yourself while residing in the UK.
To set up a new business, you must demonstrate to your endorsing body that you have sufficient funds and their source. However, you are not required to have any investment funds if your business has already been endorsed for a previous visa or if you have received approval from your endorsing body for a change in your business. You must also have at least £1,270 in your bank account for 28 consecutive days before applying for or extending your Innovator Founder visa or switching to it, provided you have been in the UK for less than a year. You cannot rely on money from your investment funds or earnings from illegal employment to support yourself.
Endorsement Fees
Fees for the endorsement process (over a span of 3 years) are: £2,000. This fee includes an initial Innovator Founder assessment fee of £1,000 for the letter of endorsement, as well as two additional £500 fees for the regular monitoring assessments conducted by the endorsing body. The first of which is carried out at 12 months after the endorsement letter and the second at 24 months.
It is important to consult an experienced Immigration Solicitor to advise you on whether you meet the eligibility, and further requirements under this route. Contact LEXVISA to have your case assessed by our team.
Switching From The Old Route, Start-up Visa or The Graduate Entrepreneur Visa
The Home Office has given approval to a majority of endorsing bodies to endorse and assess Start-up and Innovator visas. However, new applications will not be accepted. Despite this, those on these routes will continue to be endorsed, including for extensions and settlement. Additionally, those who want to switch to the new Innovator Founder route can also be endorsed by these bodies, provided they meet the requirements. People who are on an Innovator, Start-up, or the old Tier 1 (Graduate Entrepreneur) visa can switch to the Innovator Founder visa, using the same business if it qualifies for endorsement.
If settlement requirements are met within the three-year timeframe, there is no need to switch from the old Innovator visa since it offers a route to settlement. Current endorsing bodies can endorse individuals for settlement. However, if settlement requirements are not met but the business is still active, trading, and sustainable with significant progress made against the business plan, switching to the Innovator Founder route may be possible.
In the past, those on the Start-up or Tier 1 (Graduate Entrepreneur) route would typically switch to the Innovator route for settlement. However, now they have the option to switch to the Innovator Founder route for a three-year settlement with the added benefit of being able to work for other employers.
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