How to Open a Business in the UK and Get Citizenship as Foreigners

Last updated: 10 April 2024

Under the current immigration rules, there are several routes that allow foreigners to open a business in the UK that ultimately lead to citizenship. These include the Innovator Founder Visa, the Global Talent Visa, the ‘Self-sponsorship Visa’, the Expansion Worker Visa (part of the Global Business Mobility scheme), and the self-employed visa.

When it comes to how to start a business in the UK as a foreigner and applying under any of these routes, it is imperative to understand the specific eligibility requirements. For example, under the Innovator Founder visa requirements, while there is no longer a minimum level of investment required, applicants still need sufficient funds to launch their venture, and they must have endorsement for their business idea from an approved endorsing body. Likewise, anyone applying under the ‘self-sponsorship visa’ must first have a British national working for their business in the role of an Authorising Officer before they can apply for a sponsor licence. It is only once the new business has a sponsor licence that it is possible to apply for a Skilled Worker visa.

How to start a business in the UK as a foreigner

Starting a business in the UK as an overseas national requires careful research, planning, and an understanding of the steps to be taken. The exact process you will need to complete will depend on the type of visa you will ultimately apply for. As such, there may be additional requirements you need to meet before you can start your business in the UK as a foreign national.

The following sets out the main steps you will need to follow in order to establish a new business venture in the UK as a foreign national:

1. Do your research – Before you proceed too far with your plans, it is important to visit the UK and carry out all of the necessary research. You will need a firm understanding of the overall market for your products and services, your competition, the available routes to market, pricing, suppliers, potential business partners, the availability of staff and skills, locations and premises, infrastructure, and investment and finance.
2. Create a business plan – Having completed your research, you will need to create a robust and comprehensive business plan that sets out all of your plans in writing.
3. Decide on your legal business structure – It is advisable to speak to a specialist in the different types of business structures in the UK and the pros and cons of each. For example, you may set up your business as a:
   1. Sole Trader
   2. Limited Company
   3. Partnership, or a
   4. Limited Liability Partnership
4. Sponsor licence (if applicable) – if you are considering the self-sponsorship route, you will need to put in place the HR systems and processes necessary to meet the duties and obligations of a sponsoring employer. You will also need to employ a British national who can undertake the role of ‘Authorising Officer’ who can manage your sponsorship process.
5. Apply for endorsement (if applicable) – if you intend to apply for a visa that requires endorsement (e.g. Innovator Founder visa or Global Talent visa), you will need to apply to an approved UK endorsing body. In the case of the Innovator Founder visa, the endorsing body will check whether you have a unique, viable, innovative, and scalable business idea. If you intend to apply for a Global Talent visa, you will need an endorsement to confirm that you are a potential leader or leader in your specialist field.
6. Apply for your visa – you will only be able to apply for a business visa once you have completed the applicable steps outlined above. You will need to satisfy the Home Office that you meet the specific requirements for the visa you are applying for. See the following section for the main eligibility requirements for UK business visas, and
7. Travel to the UK and start to implement your business plans once your visa has been approved.

Please note the list of steps above is by no means exhaustive, and depending on your chosen business immigration route, there may be other important considerations (e.g. regulatory approval and professional accreditation).

UK business visas that lead to citizenship

There is no business visa route that directly leads to British citizenship. In order to gain UK citizenship as a foreign entrepreneur, you will first need permanent settlement status (referred to as Indefinite Leave to Remain – ILR). ILR is acquired after living in the UK on a qualifying visa for a certain number of years (this depends on the visa type held, as explained below).

• Innovator Founder visa – to apply for an Innovator Founder visa, you must have endorsement from an approved endorsing body that your business plan is unique, innovative, viable and scalable. You must also meet the English language requirements, be at least 18, have sufficient funds to support yourself, and have enough funds to establish your business. The time to ILR under this route is 3 years.
• Global Talent visa – applicants under this route requirement first need to apply for endorsement as a leader or potential leader in the field of academia or research, arts and culture, or digital technology. The time to ILR under this route is 3 or 5 years. 3 years applies if endorsed by the British Academy, the Royal Academy of Engineering, the Royal Society, UK Research and Innovation, Arts Council England or Tech Nation as a recognised leader.
• Skilled worker visa (UK self-sponsorship) – to apply under the self-sponsorship route, applicants need to 1) set up a business in the UK, 2) Apply to the Home Office for a sponsor licence, 3) Issue a Certificate of Sponsorship, and 4) Apply for a Skilled Worker visa. Before applying for a sponsorship licence, you will need to appoint a British national as an Authorising Officer. Then to apply for your visa, you will need to satisfy the Home Officer that you have a salary of at least £38,700 per year, or the ‘going rate’ for your type of work, and you can read, write, speak and understand English to CEFR level B1 or above.

Please note because self-sponsorship is not a mainstream immigration route and entails a complex application process, it is advisable to engage the help of an immigration solicitor who can guide you through each stage. For assistance on how to open a business in the UK and get citizenship, please speak to one of our immigration lawyers on 020 3744 2797 or by email at info@reissedwards.co.uk.

Opening a UK business branch for British citizenship

In addition to the immigration routes outlined above, there are other visa options available to foreign nationals who wish to open a UK business branch of an overseas business and ultimately gain British citizenship, including the UK Senior or Specialist Worker Visa and the UK Expansion Worker visa. These are both part of the Global Business Mobility visa scheme.

It is important to note, however, that these visas do not lead directly lead to ILR and then citizenship. To get ILR and then British citizenship, Senior or Specialist Worker and UK Expansion Worker visa holders need to switch to an ILR-qualifying type of visa once in the UK. Alternatively, if you have been in the UK legally for 10 consecutive years, you may be able to apply for ILR no matter which visa or combination of visas you have held. This is also known as the 10 year long residence route.