31. Difference Between UK Innovator Visa and UK Startup Visa

The UK’s new points-based immigration system aims to attract high-skilled expatriate workers to the UK to contribute to its economy.

The Skilled Worker route is by far the most popular route for foreign nationals wishing to come to the UK to work. Skilled work visas require applicants to have a job offer from a sponsoring employer that meets the relevant skills and salary requirements.

However, if you are planning to set up a new business in the UK, you will likely be able to enter the UK without a job offer. Both the Start-up visa and the Innovator visa are designed to attract entrepreneurial talent from overseas who wish to establish innovative businesses in the UK.

On the surface, the Startup and Innovator visas appear to be very similar, so new entrepreneurs often ask: What’s the difference between the two? While both visas are aimed at individuals wishing to start a business in the UK, there are some differences between the two, so it is important to choose the type of visa that is right for you.

To learn about the application requirements for both types of visas, and which visa is more suitable for your resume and business plan, you can refer to the following.

Uk Startup visa

The Start-up visa is for individuals wishing to establish an innovative business in the UK for the first time. You must be able to demonstrate that your business has the following:

• New Ideas – You cannot join a business that is already trading.
• Innovative – Your business idea is original and therefore different from other businesses already on the market.
• Viability – The business needs to have the potential to grow.

Before applying for a start-up visa, your business or business idea must be assessed by an endorsement agency approved by the Home Office. If the endorsing agency accepts your business idea, you will get a letter of endorsement from it to hand in with your application.

You must also meet the following application requirements:

• You must be at least 18 years old.
• You must meet the English language requirements.
• You must be able to show that you have at least £1,270 in personal savings in your bank account to cover basic expenses while you are in the UK.

Once you get a start-up visa, you can stay in the UK for 2 years and you cannot apply for an extension after your visa has expired. If you wish to stay in the UK for a longer period, you may be able to switch to an Innovator visa, provided that you have successfully established and continued to be involved in a business that is actively trading while on the Startup visa. You must also be assessed by an endorsing agency before switching visas.

Innovator visa

Like the Startup visa, the Innovator visa is also available for individuals who wish to establish a business in the UK that is different from the existing business in the market. You need to have an extensible corporate strategy that can be developed by you or primarily by you.

The business or business idea of ​​an Innovator visa applicant must also be assessed by an endorsement agency approved by the Department of Home Affairs.

Applicants must also:

• Be over 18 years of age.
• Meet the English language requirements.
• Proof of personal savings of at least £1,270 in a bank account to cover basic expenses while in the UK.

You must have an investment of at least £50,000 and be able to prove the source of the funds to apply for the Innovator visa. You may be exempt from the investment capital requirement if:

• Your business is already established and recognised in a previous visa application.
• You have changed your business and have agreed with your endorsing agency.

After obtaining an Innovation visa, you can stay in the UK for 3 years. If you want to stay in the UK after your visa expires, you can extend your visa for a further 3 years. There is no limit to the number of extensions and once you have lived in the UK for 3 years you may be able to apply for settlement.

Which type of visa is right for me?

The main difference between the start-up visa and the innovator visa comes from the applicant’s entrepreneurial experience and financial requirements. Applicants with more experience and investment funds are more suitable for the Innovator visa, while entrepreneurs who have less experience and have not established a business in the UK are more suitable for the Start-up visa.

When deciding on the type of visa, you need to consider the following important points:

• Your experience – Except in special circumstances, the start-up visa stipulates that the applicant must not have established any business history in the UK before, which means that this business must be your first business established in the UK. The Innovator visa does not have this requirement, so applicants who have previously carried out a business in the UK can still apply for this visa.
• Your funds – The funds you have are a key factor in deciding which visa is right for you. Both visas require applicants to have at least £1,270 in personal savings. But in most cases you will also need to have at least £50,000 to invest in the business when applying for the Innovator visa.
• Do you wish to do other work in the UK – Innovator visas do not allow applicants to work outside of business and require you to have a key role in the day-to-day management and development of your business, but start-up visa holders can Work for your own business while doing other jobs. Therefore, if you wish to do extra work or do volunteer work, you should choose the Start-up visa.
• Do you wish to settle in the UK – the Start-up visa does not offer a pathway to permanent residence and you cannot renew it when the 2 year visa period expires. If you wish to settle in the UK, you can switch to another visa category, such as an Innovator visa or Skilled Work visa, if the relevant requirements are met. In contrast, holders of the Innovator visa can apply for permanent residence after three years if they meet certain requirements , which is two years faster than the Skilled Work visa.

Changes to the Innovator Visa

Previously, Smith Stone Walters discussed immigration policy reforms proposed in the government’s innovation strategy . The strategy addresses future plans to revitalize the innovator visa.

Planned reforms include:

• Simplified and streamlined business qualification requirements – applicants need to demonstrate that their innovative business has the potential to grow and add value to the UK.
• Speed ​​up the application process – The government is exploring a fast and easy endorsement process for applicants with particularly advanced business ideas. Applicants who have been accredited by the Department of International Trade’s Global Entrepreneurship Program will be automatically eligible.
• Increased flexibility – applicants will not need to have an investment of at least £50,000 to apply for an Innovator visa if the Endorsing Body is satisfied that the applicant has sufficient funds to grow their business. Restrictions on working outside of your main business may also be lifted. If these reforms are implemented, it will give holders of the Innovator visa more flexibility and make the visa available to more applicants.