Tier 1 Entrepreneur Visa

The Tier 1 Entrepreneur visa was once a key UK immigration route for individuals seeking to establish or take over a business in the UK. It allowed qualifying applicants to invest in and actively manage a UK enterprise, provided they met strict requirements for investment funds, business viability, and job creation. However, the route has now been closed to new applicants and most extension applications, marking a significant shift in the UK’s approach to business immigration.

What this article is about: This guide explains the closure of the Tier 1 Entrepreneur visa, outlines the transitional provisions for existing visa holders, and directs those interested in starting or investing in a UK business towards the replacement routes now available. It also compares the original Tier 1 Entrepreneur requirements with the criteria under the new Innovator Founder and other relevant visas, to help readers understand their current options.

Before its closure, the Tier 1 Entrepreneur visa served as an important pathway for foreign nationals to establish themselves in the UK’s commercial sector. While it is no longer open for new applications, some transitional provisions still apply to existing holders, and other visa categories have been introduced to support genuine, high-potential business ventures in the UK.

Section A: Overview of the Tier 1 Entrepreneur Visa

The Tier 1 Entrepreneur visa was part of the UK’s points-based immigration system, specifically designed to attract individuals who wished to establish or take over a business in the UK. It was targeted at entrepreneurs with the financial resources and business acumen to contribute to the UK economy, particularly by creating jobs for settled workers.

1. Original Purpose and Eligibility

The visa’s primary objective was to facilitate the entry of foreign entrepreneurs who could demonstrate the ability to invest significant capital into a UK business and manage it actively. Applicants were required to:

• Have access to either £200,000 or £50,000 in investment funds (depending on the route of application, such as from a regulated venture capital firm, UK entrepreneurial seed funding competition, or government department).
• Meet English language requirements.
• Satisfy maintenance requirements to show they could support themselves without recourse to public funds.
• Present a credible business plan showing the viability and sustainability of the proposed venture.

Once granted, visa holders had to demonstrate ongoing business activity and fulfil job creation requirements, typically by creating at least two full-time positions for settled workers.

2. Closure of the Route

The Tier 1 Entrepreneur visa was officially closed to new applicants on 29 March 2019. The Home Office cited concerns about abuse of the route, inconsistent economic benefit, and a desire to create a visa model more closely aligned with innovation and scalability.

While initial applications were no longer accepted after this date, transitional provisions were put in place to allow existing Tier 1 Entrepreneur visa holders to apply for extensions and eventually Indefinite Leave to Remain (ILR), provided they met the necessary requirements within strict deadlines.

Section A Summary

The Tier 1 Entrepreneur visa played an important role in the UK’s business immigration landscape for many years, but its closure reflected a broader policy shift towards attracting high-growth, innovative businesses through more targeted visa routes. While the original requirements focused on investment levels and job creation, the new visa categories place greater emphasis on innovation, scalability, and endorsement by approved bodies.

Section B: Transitional Provisions for Existing Tier 1 Entrepreneurs

Although the Tier 1 Entrepreneur visa closed to new applicants on 29 March 2019, the Home Office introduced transitional provisions to allow existing visa holders to continue on the route until they became eligible for settlement. These measures were designed to ensure that individuals who had already invested in the UK and committed to meeting the original requirements would not be disadvantaged by the closure.

1. Extension Applications

Following the closure, Tier 1 Entrepreneur visa holders could still apply to extend their stay if they:

• Held valid leave as a Tier 1 Entrepreneur at the time of application.
• Could provide evidence of ongoing business activity in the UK.
• Had created at least two full-time jobs for settled workers that had existed for a minimum of 12 months each during their current visa period.
• Continued to meet the investment requirement, including proof that the required funds had been invested into one or more UK businesses.

The deadline for extension applications was 5 April 2023. After this date, no further extension applications under this route have been accepted.

2. Indefinite Leave to Remain (ILR) Eligibility

The final stage for Tier 1 Entrepreneur visa holders was to secure Indefinite Leave to Remain (ILR), which grants permanent residence in the UK. Applicants needed to:

• Meet the same job creation and investment requirements as for extensions.
• Demonstrate continuous residence in the UK for the required period (usually five years, or three years for accelerated settlement if certain conditions were met, such as creating 10 jobs or generating a turnover of £5 million).
• Pass the Life in the UK Test and meet English language requirements.

The deadline for ILR applications under this route is 5 April 2025. After this date, no further settlement applications from Tier 1 Entrepreneur visa holders will be accepted.

Section B Summary

The transitional provisions gave existing Tier 1 Entrepreneur visa holders a clear timeframe to extend their visas and progress to settlement. These provisions maintained the original compliance obligations but imposed firm deadlines, meaning those who have not yet applied for ILR must do so by April 2025 if they wish to remain in the UK on a permanent basis through this route.

Section C: Current UK Business Immigration Routes

With the closure of the Tier 1 Entrepreneur visa, the UK introduced new business immigration categories aimed at attracting innovative, viable, and scalable business ventures. These new visas place greater emphasis on endorsement from recognised bodies and the potential for high-growth contribution to the UK economy, rather than focusing solely on capital investment levels.

1. Innovator Founder Visa

The Innovator Founder visa, launched on 13 April 2023, is the primary replacement for the Tier 1 Entrepreneur route. It is designed for experienced entrepreneurs seeking to establish a business in the UK that is:

• Innovative – offering a new product, service, or business model not already available in the UK market.
• Viable – with potential for growth and long-term sustainability.
• Scalable – with potential for job creation and expansion domestically and internationally.

Applicants must secure an endorsement from a Home Office-approved endorsing body. There is no fixed minimum investment requirement under this route, but applicants must have sufficient resources to deliver their business plan. Endorsing bodies will also monitor progress and continued compliance during the visa period.

Successful applicants are granted an initial three-year visa, with the potential to qualify for ILR after three years if they meet the accelerated settlement requirements.

2. Start-up Visa Closure

The Start-up visa was a short-term immigration route aimed at new entrepreneurs starting a UK business for the first time. However, it was closed to new applications from 13 July 2023. Many of the features of the Start-up visa have been absorbed into the Innovator Founder category, which now serves as the main route for both new and experienced entrepreneurs.

3. Other Business & Investment Routes

In addition to the Innovator Founder visa, other UK immigration categories may be suitable for business purposes:

• Global Talent visa – for leaders or potential leaders in fields such as science, engineering, technology, humanities, and the arts. This route can be used by entrepreneurs whose expertise aligns with an eligible sector.
• UK Expansion Worker visa (Global Business Mobility route) – for overseas businesses seeking to establish a branch or subsidiary in the UK.
• Skilled Worker visa – while not a business visa, this can be used by entrepreneurs if they secure a role with their own UK-based business, provided the business holds a valid sponsor licence and meets genuine vacancy requirements.

Section C Summary

The closure of the Tier 1 Entrepreneur visa marked a strategic policy shift. Instead of capital-based thresholds, the UK’s current business visa framework focuses on innovation, scalability, and endorsement. The Innovator Founder visa is now the main pathway for entrepreneurial entry, while other routes like Global Talent and Expansion Worker visas provide alternative options for certain business and professional activities.

Section D: Choosing the Right Replacement Visa

Selecting the correct UK business immigration route after the closure of the Tier 1 Entrepreneur visa depends on your business objectives, personal circumstances, and long-term settlement goals. The current visa framework is more targeted, requiring applicants to meet specific eligibility conditions and often to obtain third-party endorsement before applying.

1. Assessing Your Business Plans

Before applying for a replacement visa, you should evaluate the nature of your proposed business activity:

• Innovator Founder visa – best suited to entrepreneurs with a new, innovative, and scalable business concept that can gain endorsement from an approved body.
• Global Talent visa – appropriate if your achievements or expertise in a relevant field are internationally recognised, and your work has the potential to benefit the UK economy or society.
• UK Expansion Worker visa – relevant if you are expanding an existing overseas business into the UK.
• Skilled Worker visa – viable if you will be employed by a UK company, including your own, that holds a sponsor licence and meets the genuine vacancy requirement.

When considering each option, assess not only the eligibility criteria but also how the visa aligns with your intended business timeline, access to funding, and settlement objectives.

2. Professional Advice

Given the complexity of the UK’s business immigration system, professional advice can be invaluable. Immigration rules change frequently, and the requirements for endorsement, business activity, and compliance can be strict. An experienced adviser can help you:

• Identify the most suitable visa route.
• Ensure your application meets all evidential requirements.
• Avoid costly delays or refusals.

Engaging early with professional support can also help refine your business plan to meet Home Office expectations and endorsement body criteria, maximising your chances of success.

Section D Summary

There is no direct one-size-fits-all replacement for the Tier 1 Entrepreneur visa. The most suitable option will depend on the type of business you intend to run, your personal immigration history, and your long-term settlement plans. Understanding the differences between the current visa categories and securing the right professional guidance are essential steps in making a successful application.

FAQs

Is the Tier 1 Entrepreneur visa still valid?
No. The Tier 1 Entrepreneur visa closed to new applications on 29 March 2019. Extension applications were accepted until 5 April 2023, and the final deadline for ILR applications is 5 April 2025.

Can I switch from Tier 1 Entrepreneur to Innovator Founder?
Yes, if you meet the Innovator Founder eligibility requirements and secure endorsement from an approved endorsing body. You must also comply with the rules for switching immigration categories from within the UK, and make the application before your current leave expires.

What is the ILR deadline for Tier 1 Entrepreneur holders?
The deadline to apply for ILR under the Tier 1 Entrepreneur route is 5 April 2025. After this date, no settlement applications will be accepted for this visa.

What replaced the Tier 1 Entrepreneur visa?
The main replacement is the Innovator Founder visa. Other routes, such as the Global Talent visa and the UK Expansion Worker visa, may also be relevant depending on your circumstances.

Can I apply for Tier 1 Entrepreneur from outside the UK?
No. The route is closed to all new applicants, both inside and outside the UK. Only existing Tier 1 Entrepreneur visa holders who met the transitional deadlines could extend or apply for ILR.

Conclusion

The Tier 1 Entrepreneur visa was once a central route for overseas entrepreneurs to establish or take over UK businesses, but its closure in March 2019 marked a fundamental change in the UK’s business immigration landscape. While existing visa holders have been given a limited window to extend and apply for ILR — with the final settlement deadline set for 5 April 2025 — no new applications are accepted under this route.

The UK’s current approach prioritises innovative and high-potential business ventures, with the Innovator Founder visa now serving as the primary pathway for entrepreneurs. Other visas, such as the Global Talent and UK Expansion Worker routes, can also provide opportunities depending on the applicant’s profile and business objectives.

For anyone considering a move to the UK for business purposes, it is crucial to assess the nature of your venture, understand the requirements of the available visa categories, and seek professional guidance early in the process. By aligning your application with the UK’s immigration priorities, you will maximise your chances of securing the right visa and achieving your long-term goals in the UK.

Glossary

Useful Links

Gill Laing

Gill Laing is a qualified Legal Researcher & Analyst with niche specialisms in Law, Tax, Human Resources, Immigration & Employment Law. Gill is a Multiple Business Owner and the Managing Director of Prof Services - a Marketing & Content Agency for the Professional Services Sector.

See Full Bio