Clarkslegal LLP - Solicitors in Reading and London

Legal Updates

Acceptable investments for Entrepreneur visa applicants

17 November 2016 #Immigration #UK Immigration #Entrepreneurs & Start-Ups #Franchising

The Tier 1 Entrepreneur visa route is for non-European migrants who want to invest in the UK by setting up or taking over and being actively involved in the running of a business or businesses here. The UK is one of the most open economies in the world and applicants can generally invest in most types of businesses but there are some exceptions.

Under this category, you are not allowed to set up a business as a landlord and let out properties in the UK – so any investment in any business that owns residential property or is involved in property development or property management will not be accepted for visa purposes. A property construction company on the other hand is fine.

The immigration rules define property development or property management “as any development of property owned by the applicant or his business to increase the value of the property with a view to earning a return either through rent or a future sale or both, or management of property (whether or not it is owned by the applicant or his business) for the purposes of renting it out or resale.”

The principle is that the business income must be generated from the supply of goods and/or services, and not derived from the increased value of property or any income generated from property, such as rent.

Investments which are acceptable include:

  • Direct cash investments – you should provide your accounts which should show the money has been used by the business
  • Share capital – only if the company structure allows you to raise money through shares
  • Directors loan – only if it is unsecured and subordinated in favour of third party creditors

It is envisaged that applicants will need to be more creative in their business propositions and although the vibe seems to be “Britain is open for business”, it is but only for those who can show a high degree of genuineness and entrepreneurialism in their business propositions.

Our business immigration team are regularly instructed to prepare initial and extension visa applications for entrepreneur migrants. We often find many clients have no issues obtaining their initial visa but struggle to make their business a success due to the extra challenges they face such as a new business and legal environment and a completely different market place for their goods and services.

Our team are here to put you in touch with the experts to ensure you will remain compliant with your visa conditions and will be able to demonstrate your eligibility for an extension visa or indefinite leave to remain when the time comes. If you would like further information, please get in touch with our highly experienced business immigration solicitors today.   




Clarkslegal, specialist Immigration lawyers in London, Reading and throughout the Thames Valley.
For further information about this or any other Immigration matter please contact Clarkslegal's immigration team by email at by telephone 020 7539 8000 (London office), 0118 958 5321 (Reading office) or by completing the form on this page.
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

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