While the Investor Visa (Tier 1) closed in February 2022, there are other extremely beneficial immigration routes open to high-net-worth individuals (HNWIs) who would like to secure UK residency for themselves and their family members. The most popular immigration routes for HNWI investors currently include the Innovator Founder visa and innovative self-sponsorship routes. Here, we will take a closer look at the investment visa routes for HNWIs seeking residency in the UK in the near future.
Understanding the investment visa routes: eligibility and Key Requirements for HNWIs
The old Investor Visa (Tier 1), which allowed UK residency for wealthy individuals by making substantial investments in the UK, closed on 17th February 2022, largely due to concerns over security and misuse. Thankfully, there are now other excellent alternative immigration pathways, such as the Innovator Founder visa and self-sponsorship routes, which enable HNWIs to secure residency in the UK.
Innovator Founder Visa
The Innovator Founder visa is aimed at experienced business people who want to launch an innovative business in the UK. Unlike the Tier 1 Investor Visa, this visa is not solely focused on financial investment but instead emphasises entrepreneurship and innovation. To make a successful application for an Innovator Founder visa, you will need to demonstrate that you:
- Have an innovative, viable, and scalable business idea
- Have received endorsement from a UK-based endorsing body for your business idea and plan
- Will be actively involved in the day-to-day operations of the business they intend to establish in the UK and
- Have sufficient personal funds to establish the business and support yourself and your dependants while in the UK
The Innovator Founder visa is ideal for HNWIs who are interested in establishing a business in cutting-edge fields such as AI, healthcare, or sustainability, where innovation is key. This visa typically leads to UK residency after 3 just years, provided the business continues to meet the requirements set by the Home Office. This compares to the normal 5 years it takes to gain permanent settlement. Once you have settled in the UK, you can apply for citizenship 12 months later.
Self-sponsorship route
The self-sponsorship route is an emerging and innovative option for HNWIs who wish to create their own pathway to UK residency without relying on a traditional employer or external sponsor. To apply for self-sponsorship, you must:
- Set up a UK-based company, typically in a sector within your professional expertise or investment interests.
- Apply for and obtain a sponsor licence from the Home Office for your new business, allowing it to sponsor foreign workers, including you. To apply for a sponsor licence, you must be able to show that you can meet the duties and responsibilities of a sponsor. We can help you with this process to ensure your application is approved the first time.
- Issue a sponsor licence under your new sponsor licence, allowing you to apply for a work visa and
- Apply for a work visa (e.g. a Skilled Worker visa) allowing you to come to the UK and work within your business.
In addition, you will need to meet the English language requirements, pay yourself in accordance with the salary threshold, and have sufficient funds to support yourself and your dependant family members.
The self-sponsorship route gives HNWIs much greater autonomy and control of their immigration status as long as the business remains operational and meets the Home Office requirements.
Comparing the self-sponsored route UK with the Innovator Founder visa and other UK visa options
Before you decide on the best immigration route to gain permanent residency, it is important to compare the benefits and drawbacks of each option.
Innovator Founder visa vs. Self-Sponsorsed route UK
The Innovator Founder visa requires applicants to have an innovative and scalable business idea that addresses a gap in the UK market. In contrast, the self-sponsorship route is more flexible as the business does not need to be groundbreaking—so long as it is viable and contributes to the UK economy.
Another key consideration is endorsement. The Innovator Founder visa requires endorsement from a recognised UK endorsing body, which can be a time-consuming process. The self-sponsorship route, however, does not require external endorsement; instead, the applicant must satisfy the Home Office’s criteria for a sponsor licence.
From an investment perspective, the Innovator Founder visa does not have a specific financial threshold for investment, but applicants must show they have sufficient funds to start the business and support themselves. Self-sponsorship may require more significant initial capital to establish and maintain a UK business capable of sponsoring visas.
Other visa options for HNWIs
While the Innovator Founder visa and self-sponsorship routes are the most popular for HNWIs planning to settle in the UK, there are others. The Global Talent Visa (GTV) offers residency for individuals recognised as leaders or potential leaders in fields such as science, technology, engineering, the arts, and humanities. However, this route is highly competitive and typically requires the applicant to be internationally renowned in their field.
The role of immigration lawyers in ensuring a smooth path to UK residency
As anyone who has ever applied to the Home Office for a visa will tell you, the UK’s immigration system is ever-changing. We are often instructed by HNWI, who want the confidence of knowing that their application is in the best possible hands and they are on a smooth path to UK residency. In particular, we can help you with:
- Navigating the complexities of obtaining endorsements for the Innovator Founder visa
- Guiding you through the self-sponsorship process, including the application for a sponsor licence
- Ensuring your business remains compliant with its sponsor licence duties and obligations – failure to do so can result in your licence being revoked.
- Advising on the most suitable visa route based on individual circumstances and business goals.
- Reducing the risk of delays or refusal in the application process, ensuring that all documentation and criteria are met.
- Help your family members gain a dependant visa and settlement, and
- Gaining British citizenship.
How HNWIs can secure UK residency through investments
While the investor visa no longer enables HNWIs to secure UK residency through investments, it is still possible through the Innovator Founder visa or the self-sponsorship route. AY&J Solicitors specialise in the self-sponsorship route and handle the various steps in the application process for you, including:
- Advising how to register a company with Companies House, ensuring it meets the criteria for business operations in the UK.
- Submitting an application to the Home Office for a sponsor licence, demonstrating that the business can sponsor skilled workers, including the applicant.
- Issuing a certificate of sponsorship
- Applying for a Skilled Worker visa
- Ensuring that your business remains operational and compliant with the UK financial regulations for investors to retain the sponsor licence and visa status.
- Applying for ILR after five years, provided all conditions are met, apply for indefinite leave to remain, and
Transitioning from UK residency to citizenship: What HNWIs should know
After securing UK residency through the Innovator Founder or self-sponsorship route, HNWIs can eventually apply for British citizenship. In most cases, you can apply for citizenship after 1 year with permanent settlement (also known as ILR). This means that those on the Innovator Founder visa can normally apply for citizenship after 4 years (3 years on an Innovator Founder visa plus an additional 12 months) or 6 years on the Self-Sponsorship route (5 years plus an additional 12 months).
Final words
Immigration routes such as the Innovator Founder visa and self-sponsorship offer new opportunities for HNWIs to secure UK residency. By working with an experienced UK immigration lawyer for HNWIs and choosing the best route for you and your family, you will be able to achieve your goal of settling in the UK permanently through business innovation and investment.
A Y & J Solicitors is a specialist immigration law firm with extensive experience with all types of visa applications. We have an in-depth understanding of immigration law and are professional and results-focused. For assistance with your visa application or any other UK immigration law concerns, please contact us on +44 20 7404 7933 or contact us today. We’re here to help!
