Tier 1 Entrepreneur Visa Extension Guidance

This guidance relates to Tier 1 entrepreneur visa extension requirements and policy guidance under New Rules 2019. Accordingly, explains the details of Tier 1 Entrepreneur Visa Extension 95-Points requirements, Application Fees, Processing Time, Success Rate and Refusal Reasons.

Please note, effective from March 29, 2019, the Innovator visa UK has replaced Tier 1 entrepreneur visa route. However, in terms of paragraph 245DB(a) of the Immigration Rules, the migrants in the UK can apply for Tier 1 entrepreneur visa extension till 5 April 2023. Switching applications for Tier 1 (Graduate Entrepreneur) applicants will remain open until 5 July 2021. Accordingly, the Tier 1 entrepreneur extension applications will remain open for these individuals until 5 July 2025. However, the Home Office will not accept the Tier 1 entrepreneur visa extension applications.

1. Requirements 2. 95-Points 3. Invested Funds 4. Business Registration 5. Business Registration within 3-Months 6. Business Establishment 7. English Language 8. Maintenance Funds 9. Guidance Notes 10. Refusal 11. Statistics

Get in Touch

1. Requirements

The Tier 1 (Entrepreneur) category is for those individuals who wish to invest a min capital of £200,000 or $50,000 in the UK through setting up or taking over one or more businesses in the UK. Tier 1 entrepreneur migrant needs to actively involved in the running of the business. Moreover, the Tier 1 entrepreneur visa is points-based. Therefore, an applicant needs to score 95 points for the investment in business (75), language (10) and maintenance funds (10). Apart from scoring 95 points, since Jan 2013 an applicant also needs to satisfy the requirements relating to genuine entrepreneur test and business plan.

Tier 1 Entrepreneur Visa Extension Guidance

Applicants under the Tier 1 (Entrepreneur) category are granted an initial period of leave of no more than three years and four months for out-of-country applicants, and three years for in-country applicants. However, at the end of initial period leave, a migrant can get a further leave of two years if the migrant is able to prove that he/she has:

  1. invested, or had invested on their behalf, not less than £200,000 (or £50,000 if, in their last grant of leave, they were awarded points for funds of £50,000) in cash directly into one or more businesses in the UK
  2. registered as a director or as self-employed for not more than six months after the date they were given permission to stay in the UK under a Tier 1 (Entrepreneur) visa
  3. remained self-employed or working as a director of a business three months before they apply for an extension
  4. created at least two full-time equivalent jobs that have existed for at least 12 months
  5. met the period and conditions of leave to remain in the UK as a Tier 1 Entrepreneur migrant

2. 95-Points

Tier 1 Entrepreneur Visa Extension Guidance

For leave to remain as a Tier 1 entrepreneur migrant, an applicant needs to score 95 points:

  • Invested Funds (20 Points)
  • Business Registration (20 Points)
  • Business Registration within 3 Months (15 Points)
  • Business Establishment (20 Points)
  • English Language (10 Points)
  • Maintenance Funds (10 Points)

3. Invested Funds – 20 Points

Tier 1 Entrepreneur Visa Extension Guidance

The applicant has invested or had invested not less than £200,000 (or £50,000 if, in his/her last grant of leave, she/he was awarded points for funds of £50,000) in cash directly to either one or more businesses in the United Kingdom.

4. Business Registration – 20 Points

Tier 1 Entrepreneur Visa Extension Guidance

The applicant has registered with:

  • HM Revenue & Customs (HMRC) as self-employed; OR
  • Companies House as a director of either a new or an existing business – NO POINTS ARE GRANTED to directors/applicants, who are on the List of Disqualified Directors of Companies House;

If applicant’s last grant of entry clearance, leave to enter or leave to remain was as a Tier 1 (Entrepreneur) Migrant, the applicant is required to meet the above condition within six (6) months of entry to the UK. This should be on the basis that the applicant was granted entry clearance as a Tier 1 (Entrepreneur) Migrant and evidence is available to establish the date of arrival to the United Kingdom or date of the grant of leave to remain.

5. Business Registration within 3 Months – 15 Points

Tier 1 Entrepreneur Visa Extension Guidance

On a date not earlier than three (3) months before the date of application, the applicant was registered with either:

  • HM’s Revenue & Customs as self-employed OR
  • Companies House as director of new/existing business – POINTS are NOT GRANTED to applicants for directorship in companies, which are included on the list of disqualified directors of the Companies House

6. Business Establishment – 20 Points

Tier 1 Entrepreneur Visa Extension Guidance

The applicant has:

  • established new business that has created the equivalent of at least TWO (2) new full-time jobs for workers settled in the United Kingdom (UK);
  • joined or taken over an existing business and his/her services or investment have resulted in the net increase in employment provided by the business for persons settled in the United Kingdom by creating an equivalent of at least TWO (2) fresh full-time employment;

If applicant’s last grant of entry clearance or leave to enter or remain was as a Tier 1 (Entrepreneur) Migrant, the jobs must have existed for at least twelve (12) months of the period for which most recent leave was granted.

7. English Language – 10 Points

Tier 1 Entrepreneur Visa Extension Guidance

The applicant is required to prove the English Language Skills – (CEFR B1 or above).

8. Maintenance Funds – 10 Points

Tier 1 Entrepreneur Visa Extension Guidance

There are sufficient funds to support the migrant (£945) and any family member (£1890 per dependant).

Immigration Services

Now YOU can get the Best Advice and Representation for All Types of UK Visa and Immigration Applications!

Tier 1 Entrepreneur Visa Extension

9. Guidance Notes

Tier 1 Entrepreneur Visa Extension Requirements

Genuineness Test

When introduced in 2008, the entrepreneur route for migrant was a points-based application. However, over the years due to the abuse of the route, the Home Office does not assess and decide application on points. There are a lot of subjective factors such as an applicant’s:

  • personal academic background
  • experience
  • business plan
  • market research
  • nature of business
  • job creation

The evaluation of all these factors leads to the subjective nature of the application to establish the genuineness of investment funds, business activity and job creation. Certainly, the entrepreneur route is only for establishing a genuine business in the UK. However, most of the applicants tried to seek UK settlement under the route without doing a meaningful business activity.

Who can switch to Tier 1 entrepreneur after March 29, 2019?

Prior to March 29, 2019, a person can switch to Tier 1 entrepreneur from a multitude of migrants’ routes such as Tier 1 general, investor, graduate entrepreneur, businessperson, a participant in the fresh talent – working in Scotland scheme, post-graduate doctor/dentist, self-employed lawyer, work permit holder, Tier-2 migrant, a prospective entrepreneur, Tier 4 student etc. However, after the changes effective from March 29, 2019, only a few types of applicants can switch to Tier 1 entrepreneur visa route from inside. If a person is already in the UK, then can switch to a Tier 1 entrepreneur visa if they:

  1. are on a Tier 1 graduate entrepreneur visa in the UK or
  2. have switched to a Start-up visa from a Tier 1 Graduate Entrepreneur visa during the second year

Accordingly, a person can stay in the UK for 3 years after switching to Tier 1 entrepreneur visa. After March 29, 2019, a person can apply to switch to a Tier 1 Entrepreneur visa if they have a:

  1. valid Tier 1 Graduate Entrepreneur visa
  2. valid start-up visa and the person switched from a Tier 1 Graduate Entrepreneur visa for the second year
  3. Tier 1 Graduate Entrepreneur visa that expired less than 12 months ago
  4. Start-up visa that expired less than 12 months ago and the person has switched from a Tier 1 Graduate Entrepreneur visa for the second year

Job Creations

For extensions applications during the initial period of three (3) and four (4) months, a Tier 1 (Entrepreneur) migrant needs to create a full-time job (at least 30 hours of work a week) for at least 12 months. Moreover, two or more part-time jobs that add up to 30 hours a week can count as one full-time job. Tier 1 Entrepreneur migrants who invest in the same business and are not part of an entrepreneurial team preferably may not use the same evidence of job creation. Applicants who have had entry clearance, leave to enter, or leave to remain as a Tier 1 (Entrepreneur) Migrant, businessperson, or an innovator, in the preceding twelve months immediately before the application date, must meet the extension criteria and as they cannot utilise the initial criteria for applying.

Application Fees

For applications made on this form as a Tier 1 (Entrepreneur) migrant, there is a fee of £1,277 for standard postal applications. A £55 discount of CESC (Council of Europe Social Charter) discount is applicable for the main applicant.

10. Refusal

Tier 1 Entrepreneur Visa Extension Rejection Reasons

Perhaps, most of the Tier 1 entrepreneur visa extension refusal grounds are due to the inability of the applicants to clearly establish genuine intentions of doing business in the UK. However, the Tier 1 entrepreneur visa extension refusal grounds may relate to:

  1. General Grounds for Refusal
  2. Source of Funding
  3. Doing Business is not the Main Purpose
  4. Generic Business Plan
  5. Insufficient Evidence of Employment Creation
  6. Shell Companies
  7. Abuse of the Route
  8. Poor quality of applications
  9. Leakage from the System
  10. Subjectivity of the Genuine Entrepreneur Test
  11. Convoluted and Unclear Rules
  12. Insufficient Training of the Immigration Officers
  13. Unclear Policy Objectives
  14. Policy Bias!
  15. Lack of Differentiation between start-ups and existing businesses

What to do after Tier 1 Entrepreneur visa extension refusal?

There is no right of appeal against the Tier 1 Entrepreneur Visa Extension Refusal. A migrant cannot file an administrative review after the refusal letter. However, can challenge the Tier 1 Entrepreneur visa extension refusal by way of a Judicial Review.

11. Statistics 2008-18

Tier 1 Entrepreneur Visa Extension Success and Refusal Rate

From 2008 to 2018, a total of 50,588 Tier 1 entrepreneur extensions and leave to remain applications have been decided. Accordingly, a total of 33,189 and 17,399 decisions relates to the Tier 1 entrepreneur Main Applicants and their dependants, respectively. During the period 27,757 Tier 1 entrepreneur extensions and leave to remain issued to the Main Applicants (17,215) and their dependants (10,542). The average Tier 1 entrepreneur visa success rate for extensions and leave to remain applications have been 54.87%. The success rate for dependants applicants (60.59%) is higher than that for the main applicants (51.87%).

During 2008-18, a total of 22,831 Tier 1 entrepreneur extensions and leave to remain applications have been refused for Main Applicants (15,974) and dependants (6,857). Accordingly, the average Tier 1 entrepreneur extensions and leave to remain refusal rate for entry clearance applications have been 45.13%. The refusal rate for dependants applicants (39.41%) is certainly quite lower than that for the main applicants (48.13%).

 

Tier 1 Entrepreneur Visa Extension Success Rate 2008-18

TypeDecisionsSuccess Rate
Main Applicants33,18951.87%
Dependants17,39960.59%
Total50,58854.87%

    GET IN TOUCH

    For Case Discussion and Representation

    *What Happens Next?

    Multilingual qualified London based immigration specialists will get back to you. Usually within 2-3 working days. If you have not attached any documents, then the UK based Law firm may ask for the relevant Case-Specific Document(s) such as Refusal Letters, Deportation Orders, Application Forms etc. Moreover, after reviewing the papers and information, the legal advisor may advise a course of action and quote the fees for processing the application.

    Have a great day!