Possible changes to Tier 1 ENTREPRENEUR from April 2011

Easier Settlement rules

Allow absences of up to 180 days outside of the UK in any 12 months period to retain eligibility for settlement
Allow an application for Indefinite Leave to Remain after 3 years, if at least 10 jobs (full time equivalent) have been created and in place for 6 months; or where the business has generated a total of more than £5m in turnover during the first 3 years (start-up companies), or an additional £5m compared with the previous 3 year average (existing business)

Lower minimum investments for innovative start-ups

Facilitating the entry of high potential entrepreneurs with less than £200k funding, for innovating start ups. This could be for those cases where they have received investment of £50k or more from:
a registered venture capital forum; or
an investment body affiliated to the Government (e.g. the BSID Technology Strategy Board); or
as the winner of a registered UK investment seed funding competition open to the UK and non-UK Tier 1 entrepreneurs
Allowing entry outside Tier 2 for support staff to help set up the business

Allowing entrepreneurs to bring some migrant staff with them at the outset to help set a new business up. We propose to allow those coming to establish a business to be accompanied by up to 4 migrants depending on the level of the investment as set out in the table below:

Level of investment Number of additional accompanying staff

£200k 1
£500k 2
£750k 3
£1m 4

We will need to establish some firm parameters to ensure that this facility is not open to abuse and we would expect to:
require that those using this facility have knowledge and experience that is essential to the successful establishment of the business in the UK; and
limit their stay up to 12 months and require that if they do wish to remain longer they will need to qualify under Tier 2
Accompanying staff would not be eligible for settlement or extensions
Easier process on entry

Allowing entrepreneurs up to 6 months to register with Companies House

Easier rules for extensions

Provide greater flexibility at the 3 year extension stage: a person who has created more than 5 new jobs should not also be required to show that they have invested the full £200k originally available to them.

Can I ask where you got this information from? Sounds really promising.

ruthie wrote:Can I ask where you got this information from? Sounds really promising.

insiders` info,

however, expected to be published next week on Home Office website.

now, officially

http://www.ukba.homeoffice.gov.uk/sitec ... -investors

http://www.ukba.homeoffice.gov.uk/sitec ... ier1-2.pdf

Government 'rolls out the red carpet' for entrepreneurs and investors

16 March 2011
Foreign entrepreneurs and investors are being given an extra incentive to come to the UK today by new visa rules, which will reward those who contribute to economic growth.
Under changes to the Immigration Rules, which were laid in Parliament today, people who come to the UK under Tier 1 (Investor) of the points-based system will be able to settle here faster 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.
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:
'Today 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.
Major investors will also enjoy more flexibility: they 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.
Prospective entrepreneurs
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.
Tier 1 (Exceptional talent)
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 1,000 visas per year. It is 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. These competent bodies will be announced 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 added:
'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. They were announced today by Damian Green in a written ministerial statement, which you can find under 'Related documents' on the right side of this page.
A statement of policy contains more information about the changes to Tier 1. You can find this statement, and an assessment of the likely impact of the new limits being applied to Tiers 1 and 2 of the points-based system, under 'Policy and law' on the right side of this page.
The government has made clear its commitment to supporting a private-sector-led economic recovery. For growth to be strong and sustainable, the economy must be rebalanced to support private-sector jobs, exports and investment.
Micha-Rose Emmett, Associate of Henley & Partners Ltd, said:
'We applaud the Home Office on the introduction of these new rules for the investor and entrepreneur categories. This is evidence that the UK is becoming again a key player in investor immigration worldwide.
'With these changes, high net worth individuals will be more likely to chose the UK as their preferred country to reside as the physical presence requirements have been sensibly relaxed. The investment opportunity becomes more interesting for investors, and this is a very encouraging prospect for the future of the country.
'International wealthy individuals and families need effective, interesting solutions that can be implemented swiftly, and this new policy give these people those possibilities, which in turn will attract significant capital to the UK.'
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). You can find this under 'Policy and law' on the right side of this page.