UK Entrepreneur & Investor Category

Introduction:

Entrepreneurs and Investors are encouraged to both invest in, and develop business activity in the United Kingdom. Both immigration categories for Entrepreneurs and Investors fall under the Points Based System. Under the new visa rules those who invest substantial sums of money or create substantial jobs will be fast tracked to settlement in the UK.

Reasons to Invest in the UK

a) Excellent education opportunities.

b) A renowned legal system.

c) A strong and well-managed economy giving excellent working opportunities and good investment opportunities.

d) A stable and democratic political system. UK citizenship can be achieved within six years. A British passport holder has freedom to travel and work throughout the European Union.

Entrepreneurs:

The Tier 1 (Entrepreneur) Category exists to enable self-employed owner/managers who wish to establish, invest in or take over a business in the UK, to be admitted for a period of up to five years. For initial applications the applicant must show: * that he has access to at least £200,000 or £50,000 from a designated organization, * the funds must be held in a regulated financial institution and disposable in the United Kingdom, * has English language ability and * the availability of a certain amount of funds for maintenance. * No employment is permitted other than the business (es) invested in.

Entrepreneur pairs are permitted:

The immigration planning process should commence at a very early stage certainly after making initial feasibility studies and financial costing, and in any event, before entering into major contractual and/or personnel commitments. Once the application is approved the Entry Clearance Officer will grant entry clearance for an initial period of three years and four months and extensions of stay will be granted for a maximum of a further two years provided that:

– Within 6 months of entry to the UK, an applicant registers with HM Revenue & Customs as self-employed; or registered a new business in which he is a director; or registered as a director of an existing business,

– Invested self/on his behalf at least £200,000 (£50,000) cash directly into one or more businesses in the UK (No investment in residential accommodation/property development/property management)

– Engaged in business activity at the time of the application for leave to remain

– Created at least 2 full time jobs (30 hours per week) for at least 12 months.

After completing a continuous period of at least five years in the UK with permission to stay under the Tier 1 (Entrepreneur) Category they are eligible for indefinite leave to remain (settlement) in the United Kingdom.

180 days per year maximum permitted absences, this is an added advantage for those who travel extensively.

British Citizenship can be applied for after 6 years.

An accelerated route to settlement after three years is available if the turnover is £5 million and the business creates 10 jobs.

In this instance, British Citizenship can be applied for after 5 years (reduced from the current 6 year period), subject to compliance with the relevant residence requirements.

 

Investors:

In recognition of the changing commercial and financial realities, the British Government introduced an “investor” immigration category in October 1994 and this remains under the Points Based System known as Tier 1 (Investor) Category.

This entitles an overseas national to apply for entry clearance to enter the UK to invest substantial sums in this country without imposing any requirement upon that person to actively manage or direct any particular business. However, where the individuals do not fulfill the criteria of other points based categories the Tier 1 (Investor) category allows the overseas national to take up employment and be self-employed.

The individual investor must have personal available funds under his own control and held in a regulated financial institution and disposable in the United Kingdom of at least £1 million to introduce to the UK. This money may be held overseas at the time of application, or it may already be in the United Kingdom. Under this section, investor may rely on money that they own jointly with their spouse/civil partner. They may also rely on money that is owned solely by their spouse. The investor must have unrestricted right to transfer and dispose of the money held jointly and solely by their spouse/civil partner and the applicant must have permission from his/her husband, wife to have control of this money in the United Kingdom. All of the £1 million funds required to meet the Tier 1 (Investor) requirements must be freely transferable to the United Kingdom and convertible to pounds sterling. Many countries have controls over the transfer of currency and hence the additional requirement to ensure that the money can be transferred to the United Kingdom.

Alternatively, the investor owns personal assets which, taking into account any liabilities to which they are subject, have a value exceeding £2 million; and investor has money under his control held in a regulated financial institution and disposable in the United Kingdom amounting to no less than £1 million, which has been loaned to him/her by a financial institution regulated by the Financial Services Authority (FSA).

There is no requirement to demonstrate English language ability or to provide separate funds for personal maintenance for the Investor Category. The investor must apply for prior entry clearance from the appropriate British Consulate abroad. Once the application is approved the Entry Clearance Officer will grant entry clearance for three years and extension of stay will be granted for up to a maximum of a further two years provided the investor can demonstrate that he/she has invested not less than £1 million ( if he has taken a loan) in the United Kingdom by way of United Kingdom Government bonds, share capital or loan capital in active and trading United Kingdom registered companies other than those principally engaged in property investment.

Where the investor has used his personal funds then at least £750,000 must be invested as above and the investor must physically introduce an additional sum of £250,000 into the UK.

The investment must be made within three months of the entry to the UK or grant of the visa: After completing a continuous period of at least five years in the UK with permission to stay under the Tier 1 (Investor), they are eligible for indefinite leave to remain (settlement) in the United Kingdom.

 

Fast track Settlement for Investors:

1. For those who are able to invest at least £5 million in the UK, the residence period required to qualify for Settlement is now reduced to 3 years, with a reduced period of residency of 6 months in each year. If you wish to rely on borrowed funds, you must demonstrate net assets worldwide of at least £10 Million.

2. For those who are able to invest at least £10 million in the UK, the residence period required to qualify for Settlement is now reduced to 2 years, again with an annual 6 months residence requirement. If you wish to rely on borrowed funds, you must demonstrate net assets worldwide of at least £20 million.

3. For both of these new categories, British Citizenship can be applied for after 5 years (reduced from the current 6 year period), subject to compliance with the relevant residence requirements.

 

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