Calling time on the Tier 1 (Entrepreneur) Route
The Tier 1 (Entrepreneur) Route closed to new applicants in March 2019.
If you already have already been granted leave under this route you can continue to apply for settlement but these applications are time limited.
The deadline to apply for an extension has already passed. You should now concentrate your efforts on meeting the requirement for Settlement.
You can apply to settle in the UK after 5 years in this category and no previous leave in the UK in other visa categories can be used to count towards the settlement residency criteria.
You can only submit applications to settle until 6 April 2025.
(The deadlines are different for applicants who first held Tier 1 (Graduate Entrepreneur) status. The deadline to extend where you were granted this leave before switching into Tier 1 (Entrepreneur) is 06 July 2025, and the deadline for settlement is 06 July 2027. This blog does not deal with application extensions where the applicant was granted Tier 1 (Graduate Entrepreneur) first).
Tier 1 (Entrepreneur)
There are a number of requirements you will need to evidence in your application for settlement :
- Funds: You must have invested £200,000 in UK business(es).
- Business: You must have registered as a director no more than 6 months from the date you were given permission to enter the UK as a Tier 1 (Entrepreneur). Alternatively, you must have registered as self-employed not more than 6 months from the date you were given permission to enter.
- Genuine Entrepreneur Test: You must continue to pass the Genuine Entrepreneur Test. You must provide evidence that you have been engaged as a director, or self-employed , or as a partner in a genuine business and that you will continue to do so.
- Employment: You must prove that your investment has created at least two full-time jobs for settled people that have existed for a minimum of 12 months.
- Impact of COVID-19: The Home Office introduced concessions for those businesses that were impacted by COVID-19 and were unable to meet the job creation requirements. However, the requirements for settlement where you have relied on this concession mean that you effectively need to demonstrate job creation for 24 months.
- Qualifying Period: You can apply for settlement up to 28 days before you reach the end of the qualifying period which will be five years immediately before the date you apply for settlement. You must not have spent more than 180 days during any 12 month period outside the UK.
Genuine Entrepreneur Test
You must demonstrate to the Home Office that you have established or taken over a genuine business and have invested in the same. You must also demonstrate that you intend to continue with this business.
English Language
The main applicant will not need to undertake a further English Language test or give evidence of language skills as you will have already provided this evidence for your original application. However, for the purposes of settlement, all dependents over the age of 18 will need to prove their English language to level B1 of the CEFR.
Life in the UK Test
The main applicant and any dependents that are over the age of 18 will need to pass the Life in the UK Test.
Documents
- Specified documents have to be provided to show that the financial requirement is met. Most of the documents required for a successful Tier 1 Entrepreneur Settlement application must be generated by UK regulated financial institutions, UK regulated accounts, and UK banks.
- There are specified and complex documentary requirements to prove job creation.
- It is advisable to update your business plan and provide a comprehensive outline of your business. Your business plan should identify what your business is, where it will be located, and why you believe that there is a need for your business in that area. It should also provide growth projections and staff employment, how your investment has been used, any risks identified, and what you intend to do to ensure the continued success of the business.
- This is a points-based application and it is essential you identify the number of points you require for each attribute to ensure you will be awarded points. A successful application will be awarded 75 points in total. You will be awarded 20 points for your investment, 20 further points are awarded for your registration with HMRC or Companies House as a director, and a further 20 for establishing a new business, or taking over and existing business that has created employment for at least two settled workers. You will be awarded a further 15 points for being registered as self-employed or as a director within three months of the date of your original application.
The cost of the application is made up of one mandatory element which is the Home Office application fee. At the present time there are no priority services for settlement on a Tier 1 (Entrepreneur) application so you should not make any plans to travel for at least 6 months.
These costs change frequently and you are advised to visit the Home Office website to obtain information about the latest costs.
Why are we publishing this blog now when the settlement application deadline is 06 April 2025?
The documentary evidence is complex, and if you believe you will struggle with the job creation element, you may not be able to meet the requirements for settlement. Acting now means you have more than 12 months to generate employment that may be relied upon for the application. If you do not meet the requirements for settlement, you will either need to switch into an alternative immigration route or make arrangements to leave the UK.
We are able to offer a Tier 1 (Entrepreneur) settlement health check where we can examine your business against the requirements and advise on remedies for any issues uncovered before the settlement deadline of 06 April 2025. The cost of this health check is £750 + VAT.
Take control today and talk to the experts Sally McEwen, Sam Ashley or Kate Gamester at OTB Legal by scheduling a FREE consultation using the button below: