Cost, validity, eligibility… what to know about the UK innovator founder visa

Since replacing the start-up and tier 1 (entrepreneur) routes in 2023, the UK’s innovator founder visa has become one of the most sought-after routes for entrepreneurs hoping to build a business and settle down in Britain.

However, it was not until last month that the Home Office introduced changes to allow foreign students to transition to the innovator founder route.

Previously, international students who did not apply for or qualify under the graduate visa route were generally required to leave the UK at the end of their course and apply for the innovator founder visa from outside the country.

The policy shift is part of the UK’s strategy to retain the best foreign talent who will contribute to the economy.

The route promises access to one of the world’s strongest business ecosystems, but it also comes with strict criteria and notable costs.

Here is a breakdown of what interested applicants need to know before the new changes take effect on November 25.

WHO IS ELIGIBLE?

You qualify for an innovator founder visa if you want to set up and run an innovative business in the UK.

However, it must be something that is different from anything else on the market; the idea must be endorsed by an approved body, also known as an endorsing body, and meet the English language requirement. The applicant must be at least 18 years old and be able to prove that they have enough personal savings to support themselves while in the UK.

A list of authorised endorsing organisations for the visa can be found here.

In presenting your idea to the endorsing body, applicants will need to prove that they have enough funding and where it’s from. But if your business is already established and has been endorsed for an earlier visa, or you have changed your business and already agreed to it with your endorsing body, there would be no need to show investment funds.

Depending on what situation applies to the applicant, English language requirements comprise having a UK school qualification, having a degree from a UK institution, having a degree from an institution that was outside the UK and taught in English, or passing an English test from an approved provider.

On the subject of personal savings, you will need to have had at least £1,270 in your bank account for 28 consecutive days before applying. Money from investment funds or money earned while working in the UK illegally does not apply.

This visa route is also open to applicants outside of the UK.

WHAT DOCUMENTS DO YOU NEED TO SHOW?

If the endorsing body is satisfied with your idea, you will be issued an endorsement letter, which is needed for your visa application.

But you will also need to provide other documents alongside the letter. They include a valid passport or other document that shows your identity and nationality, bank statements showing you’ve had at least £1,270 in savings in your bank account for 28 consecutive days, proof that you meet the English language requirement, and tuberculosis test results if you are from a country where you have to take the test.

SETTLEMENT ROUTE

There are no limits on the number of times this visa can be extended, and applicants may be able to apply for settlement once they have been in the UK for 3 years.

Endorsing bodies have a role to play in ensuring applicants can apply for settlement.

First, you will need to meet with your endorsing body after 12 months and 24 months to show business progress.

To be considered for settlement, the endorsing body would then need to certify 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.

The endorsing body must also confirm that your business has met at least two of the following requirements: At least £50,000 has been invested into the business and actively spent furthering the business; the number of the business’s customers has at least doubled within the most recent three years; the business has engaged in significant research and development activity and has applied for intellectual property protection in the UK; the business has generated a minimum annual gross revenue of £1 million in the last full year covered by its accounts.

In addition to the conditional requirements, the business has generated a minimum annual gross revenue of £500,000 in the last full year covered by its accounts, with at least £100,000 from exporting overseas; the business has created the equivalent of at least 10 full-time jobs for settled workers; or the business has created the equivalent of at least five full-time jobs for settled workers, each of which has a mean salary of at least £25,000 a year (gross pay, excluding any allowances).

You must also not have broken any immigration laws.

VISA COST

If you are applying from outside the UK, the visa costs £1,274 per person. If you apply to extend or switch your visa in the UK, it costs £1,590 per person.

You will also need to pay £1,000 to get an endorsement from an approved endorsing body.

If your visa application is successful, you will have to pay £500 each time you meet with your endorsing body. You need to meet at least twice during your stay in the UK. You pay these fees directly to your endorsing body.

You will also have to pay the healthcare surcharge as part of your application.

CAN I BRING DEPENDANTS?

If they are eligible, yes. A dependant partner or child is any of the following: your husband, wife, civil partner, or unmarried partner; your child under 18, including if they were born in the UK during your stay; or your child over 18 if they currently have permission (‘leave to enter’ or ‘leave to remain’) to be in the UK as your dependant.

CONDITIONS

With this visa, you can set up several businesses, work outside your business, travel abroad and return, and apply to settle permanently in the UK.

But you cannot apply for most public fund benefits or work as a professional sportsperson.

A full list of rules will be issued if your application is successful.