Starting a business on a UK student visa is a common aspiration among international students, but the rules are strict and often misunderstood. Self-employment is prohibited for all Student visa holders, with very limited exceptions. This comprehensive guide explains what activities are permitted, what is strictly forbidden, and the legal pathways available after graduation for those with entrepreneurial ambitions.
Understanding Business Restrictions on UK Student Visa 2026
The UK Student visa (which replaced the former Tier 4 visa in 2020) is designed exclusively for academic study. While the visa permits limited part-time employment—typically up to 20 hours per week during term time—self-employment and business activities are explicitly prohibited under the Immigration Rules (Appendix Student).
UK Student Visa Self-Employment Rules 2026
Can I be self-employed on a student visa in the UK?
No. Self-employment is strictly prohibited for all UK Student visa holders. You cannot work as a freelancer, sole trader, contractor, or through your own company. The only exception is preparing a business plan for an Innovator Founder visa application—but you cannot actually conduct any business activities until you have successfully switched visa categories.
The Immigration Rules are explicit on this point. Paragraph ST 26.4 of Appendix Student states that a Student must not "be self-employed or engage in business activity." This prohibition applies regardless of your course level, whether you're an undergraduate, postgraduate, or PhD student. There is no exemption based on the number of hours or the nature of the business activity.
What counts as self-employment under immigration law?
The Home Office interprets self-employment broadly. If you control when, where, and how you work—rather than working under an employer's direction—you are likely engaged in self-employment. This applies even if the activity generates minimal income or is described as a "side project."
Prohibited Business Activities for International Students
Can international students start a business in the UK?
No, international students on a Student visa cannot start or run a business in the UK. This includes registering a company, being a company director, trading as a sole trader, running an online business, or engaging in any commercial activities. The only permitted preparation is developing a business plan for an Innovator Founder visa application.
The prohibition on business activities is comprehensive. It applies to both physical and online businesses, regardless of whether the business is profitable or how much time you spend on it.
- Registering or operating any business (online or physical)
- Being a company director or holding significant shares (10%+)
- Trading as a sole trader or through a limited company
- Freelancing, consulting, or contract work
- Self-employed gig economy work (Uber, Deliveroo, etc.)
- E-commerce, dropshipping, or affiliate marketing
- Professional sports (player or coach)
- Working as an entertainer
Consequences of Breaching Self-Employment Rules
The consequences of engaging in self-employment or business activities on a Student visa are severe:
- Visa Cancellation: Your Student visa can be curtailed (shortened) or cancelled
- Removal from UK: You may be required to leave the UK immediately
- Re-entry Ban: A 10-year ban from entering the UK if deception is involved
- Future Applications: Refusal history affects all future UK visa applications
- Criminal Liability: Potential prosecution for working illegally
What International Students Can Do
What work activities are allowed on a UK student visa?
Student visa holders can work up to 20 hours per week during term time in employed positions (not self-employed). Full-time work is permitted during official vacation periods. You can also undertake unpaid voluntary work, participate in business competitions and workshops, and prepare business plans for future visa applications—but you cannot conduct actual business activities.
While business activities are prohibited, there are legitimate ways to develop your entrepreneurial skills and prepare for future ventures:
Attending business workshops, entrepreneurship courses, and networking events is not considered "work" and does not breach your visa conditions. These activities can help you build skills and contacts for future business ventures after graduation.
Innovator Founder Visa: The Exception for Student Entrepreneurs
Can students switch to a business visa from within the UK?
Yes. From 25 November 2025, students can switch to the Innovator Founder visa from within the UK without first completing their course. Critically, once the Innovator Founder application is submitted, you can begin self-employment activities while waiting for the decision—a significant change that makes this pathway more accessible for student entrepreneurs.
The Innovator Founder visa is the primary route for entrepreneurs who want to establish innovative businesses in the UK. It requires endorsement from an approved body that validates your business idea as innovative, viable, and scalable.
Innovator Founder Requirements for Students
- Endorsement: Required from an approved endorsing body validating your business idea
- Innovation: Business must be innovative, viable, and scalable
- No minimum investment: Unlike the old Tier 1 Entrepreneur, no £50,000 requirement
- Switching: Can switch from Student visa within UK (from Nov 2025)
- Self-employment while pending: Can begin business activities once application submitted
- Settlement: Leads to ILR after 3 years if business criteria met
Important: While you can prepare a business plan on a Student visa, you cannot conduct any actual business activities (trading, invoicing, accepting clients) until you have either received your Innovator Founder visa or submitted your application under the November 2025 rules.
Starting a Business After Graduation
Can I start a business on a PSW visa in the UK?
Yes. The Graduate Route (PSW visa) permits self-employment and starting a business. You can work in any job, at any skill level, including running your own business. However, time on the Graduate Route does not count toward settlement (ILR), so you would need to switch to another visa category for long-term residence.
After completing your studies, the Graduate Route provides a valuable opportunity to launch your entrepreneurial career in the UK:
For detailed information on post-study options, see our guides to the Graduate Route, Innovator Founder visa, and Skilled Worker visa.
- Self-employment is strictly prohibited on a Student visa
- Business plan preparation (only) is allowed for Innovator Founder applications
- From Nov 2025: Students can switch to Innovator Founder and start trading while application pending
- Graduate Route permits self-employment (2 years, or 18 months from Jan 2027)
- Breach of conditions = visa cancellation + potential 10-year ban
- Employed part-time work remains permitted (20 hrs/week during term)
Frequently Asked Questions
Starting Business on UK Student Visa: FAQs
Can I be self-employed on a student visa in the UK?
No. Self-employment is strictly prohibited for all UK Student visa holders. This includes freelancing, sole trading, running any business, and gig economy work. The only exception is preparing a business plan for an Innovator Founder visa application—but you cannot conduct actual business activities until you switch visa categories.
Can international students start a business in the UK?
Not while on a Student visa. International students must wait until they have a visa that permits self-employment—either the Graduate Route (after completing studies) or the Innovator Founder visa. From November 2025, students can switch to Innovator Founder from within the UK and begin business activities once their application is submitted.
What is Tier 4 visa UK?
Tier 4 was the former name for the UK student visa, which was replaced by the "Student visa" route in October 2020 as part of the UK's new points-based immigration system. The rules regarding self-employment and business activities remain the same—both are prohibited for student visa holders regardless of what the visa is called.
Can I start an online business as an international student in the UK?
No. Online businesses are treated the same as physical businesses under immigration law. E-commerce, dropshipping, affiliate marketing, content creation for income, and any other online commercial activities are all prohibited on a Student visa. Engaging in these activities can result in visa cancellation and future entry bans.
Can I start a business on a PSW visa in the UK?
Yes. The Graduate Route (PSW visa) permits self-employment and starting a business. You can work in any capacity, including running your own business. However, time on the Graduate Route does not count toward settlement, so you would need to switch to a different visa (such as Innovator Founder or Skilled Worker) for long-term residence.
Can I drive Uber on a student visa in the UK?
No. Uber drivers in the UK are classified as self-employed, which is prohibited for Student visa holders. The same applies to other gig economy platforms like Deliveroo, Just Eat, and similar services where you work as an independent contractor rather than an employee. This rule applies regardless of the number of hours worked.
What happens if I breach self-employment rules on a student visa?
Consequences can be severe: your visa may be curtailed or cancelled, you could be required to leave the UK, and you may face a 10-year re-entry ban if deception is involved. The breach will also be recorded and affect all future UK visa applications. Immigration enforcement actively investigates suspected breaches through employer audits and tax records.
Can I register a company while on a UK student visa?
Technically you can register a dormant company at Companies House, but you cannot trade through it, act as a director, or conduct any business activities. The safest approach is to wait until you have a visa that permits self-employment. If you're planning to apply for an Innovator Founder visa, seek legal advice about the appropriate timing for company registration.
For detailed information on UK Student visa conditions and work restrictions, visit the official GOV.UK Student visa guidance.