Government announces new immigration rules for entrepreneurs and investors
18 March 2011
Foreign entrepreneurs and investors are being given an extra incentive to come to the UK by new visa rules announced by the UK Border Agency on 16 March. The new rules will reward those who contribute exceptionally to economic growth in the UK.
Under changes to the Immigration Rules, which have now been laid before Parliament, people who come to the UK under Tier 1 (Investor) of the points-based system will be able to settle here slightly sooner if they invest large sums of money. Those who invest £5 million will be allowed to settle here after 3 years, and those investing £10 million or more will be allowed to settle after 2 years. This compares with the current minimum 5-year requirement which applies irrespective of investment.
The right to accelerated settlement will apply to those investors who are already in the UK and have invested large sums, as well as new arrivals. Tier 1 (Entrepreneur) migrants will also be able to settle in the UK more quickly if they create 10 jobs or turn over £5 million in a 3-year period.
Immigration Minister Damian Green said:
‘I have sent out a clear message – the UK remains open for business and we want those who have the most to offer to come and settle here.
‘Entrepreneurs and investors can play a major part in our economic recovery, and I want to do everything I can to ensure that Britain remains an attractive destination for them.
‘Last year we issued far too few visas to those who wish to set up a business or invest in the UK – I intend to change that.’
The standard investment threshold for an entrepreneur to qualify for a Tier 1 visa will remain at £200,000, but the government will allow high-potential businesses to come to the UK with £50,000 in funding from a reputable organisation. And entrepreneurs will be allowed to enter the UK with their business partners as long as they have access to joint funds. This is an addition to the previous rules which failed to recognise the intricacies of business relationships.
Major investors will now enjoy more flexibility and will be allowed to spend up to 180 days per year, rather than 90, outside the UK without affecting their right to settle here. This addresses a major concern cited by investors, as they need to be constantly mobile.
Additionally, a new type of visitor visa will be created for prospective entrepreneurs. They will be allowed to enter the UK so that they can secure funding and make arrangements for starting their business before they transfer to a full Tier 1 (Entrepreneur) visa while they are here.
The government has also published a statement of intent outlining how the new Tier 1 (Exceptional talent) route will operate from April 2011.
This innovative new route for exceptionally talented migrants will be limited to just 1,000 visas per year. It is only for those who have already been recognised or have the potential to be recognised as leaders in the fields of science, arts and humanities.
Migrants seeking entry under Tier 1 (Exceptional talent) will not need to be sponsored by an employer but will need to be endorsed by an accredited competent body. Quite who these accredited competent bodies are remains a mystery and we will have to await an announcement in the near future. It will be for each competent body to select those who will qualify for endorsement.
Under Tier 1 (Exceptional talent), migrants will initially be granted permission to stay in the UK for 3 years and 4 months. They will then be able to extend their stay for a further 2 years, and to settle here after 5 years’ residence in the UK.
Damian Green said of the Exceptional Talent route:
‘Our new exceptional talent route will ensure that we continue to allow the brightest and the best who can make a valued contribution into the UK.
‘This comes at a time of major reform to the immigration system to bring net migration back down to the tens of thousands.’
The changes will come into effect on 6 April 2011. Quite how successful these new rules will be remains to be seen. Some criticise the Government’s immigration policy as short-sighted, lacking any real understanding of immigration and ‘window shopping for talent’. Critics say that the UK Government is setting such a high standard of professional immigration that they are in actual fact ‘pricing themselves out of the market’. The complexity of UK immigration law now is such that many migrants will look to alternative opportunities in the Americas, Australasia and the Far East where better opportunities are more easily attainable with a better standard of life.
If you are thinking of emigrating to the UK under the new Entrepreneur, Investor, Prospective Entrepreneur or Exceptional Talent categories of immigration, contact us today for a free 30 minute no obligation and factual consultation about your prospects of success. Call us today on 020 8401 7352 or email us your query at info@solicitorsfirm.com
Full details of all the changes that will come into effect on 6 April are set out in a stetement of changes to the Immigration Rules (HC 863) which you can download here
