What happened to the Investor Visa ?
There was a time when a few million pounds invested into the UK was, in theory, a smooth entry in and a fast track to Settlement. This was a popular route for High Net Worth individuals and their lawyers alike. As always with immigration laws, political motives weighed in and the glittering Golden Visa (so named for its strong international appeal) was scrapped in early 2022, with the intention of keeping out bullies from the playground. In other words, PEPS, oligarchs and those on the high-risk radar.
Various investor visa schemes existed, and continue to exist, all around the world but the UK, with its hot property market and much sought after educational institutions, was at the top of the list of those who could take their pick. The abolition of the Golden Visa was met with huge disappointment but a misplaced optimism that it was to be resurrected in a different package. It wasn’t. Keen applicants and lawyers awaited announcements that never came and the question remained – what is a the best route for an entrepreneur or High Net Worth individual to enter the UK?
What is the Self Sponsorship Visa ?
One of the hidden gems of the immigration system is a creative and completely legitimate route called Self-Sponsorship. That more people do not know about it relates to the fact that it is not an official route for which there is a direct application but rather, it involves an amalgamation of several existing routes. In practice, it is where the applicant establishes their own company of which they are usually director and shareholder and applies to the Home Office for a sponsor licence. That same company then sponsors the applicant as an employee.
The internet is awash with articles and blogs, spilling out lists of necessary documents needed for the applications and diverting interested applicants from the possible pitfalls that may occur in this relatively protracted process. The purpose of this article is not therefore to rehearse that oft-repeated advice but rather to address, head-on, that Self-Sponsorship is not just a route, but it is in practice the only route for ultra high net worth individuals and entrepreneurs to enter the UK. It is in effect the new Investor visa in disguise.
Realistically, this route will not have even been contemplated by those who would previously have been first in line for the Investor Visa. Apart from the fact that it doesn’t appear on the Home Office website, it also is commonly overlooked by many as it refers to that controversial four letter word – work ! The fact that it refers to a “skilled worker visa application” as being part of the process, means that it will slip under the radar of many eligible candidates. However, the pink elephant in the room is that the concept of “investment” has in reality moved from the previous £2 million and its various conditions, to a commitment of running a UK company, with a UK director and a genuine operation. The emphasis has moved from remote investment to establishing companies which may open the potential of creating jobs and commercial innovation in the UK. Whilst most people with a lot of money would rather exchange funds for passports, and certainly that can still be obtained in many jurisdictions where that remains a possibility, those with a decent business plan can still secure a life in the UK, for them and their dependants. As this route leads to settlement, there is also the possibility of applying for this after 5 years which could then lead to British Citizenship.
Innovator Founder Visa
What about the Innovator Founder Visa? Isn’t that a potential and attractive route for High Net Worth individuals and entrepreneurs, you may ask. However, this visa category involves qualitative decisions made by endorsing bodies as to how innovative the business idea is, together with various criteria relating to its innovation, scalability and innovation. This concept of pitching to an endorsing body is hardly likely to be attractive for those looking to an investment-esque entry to the UK and the wider choice of business options available under the self-sponsorship route is undeniably more forgiving to the applicant.
Call things by their proper names
If we wanted to be radical, we could call the Self-Sponsorship route, with its solid road-map to Citizenship, the new Golden Visa. After all, word is getting out that this is the gateway to the UK for those with money to investment and looking at the plus side, although it requires a significant amount of bureaucracy, with its financial commitment being far less than the eye-watering £2 million, it may as well be called Golden Visa 2.0.
If you have questions regarding any of the topics discussed above, please contact Sarah Khawaja.
