Start Up Visa UK Closure Guide

The UK Start-up visa was once an entry route for overseas entrepreneurs seeking to establish an innovative business in Britain without the need for initial investment funds. Designed to attract ambitious first-time business founders with high-potential ideas, the visa offered a two-year stay, during which holders could both work on their venture and take other employment. However, the Government announced the closure of the Start-up route to new applicants on 13 April 2023, as part of a wider reform to the UK business immigration system. The policy shift prioritised the new Innovator Founder visa, which merged certain Start-up provisions while introducing new conditions intended to tighten business viability and innovation requirements.

What this article is about

This article explains the closure of the UK Start-up visa and what it means for current visa holders. It covers the background and reasons for the route’s withdrawal, transitional arrangements for those already holding the visa, and options for switching into other UK immigration categories, particularly the Innovator Founder visa. It also examines the implications for dependants and outlines alternative immigration pathways for entrepreneurs who still wish to establish themselves in the UK. The guide is aimed at both individuals holding the Start-up visa and business advisers supporting clients affected by its closure.

Section A: Background and Closure of the Start-up Visa

The Start-up visa was introduced in March 2019 as part of the Home Office’s overhaul of the UK’s entrepreneur immigration routes. It replaced the Tier 1 (Graduate Entrepreneur) visa, widening eligibility beyond UK graduates and allowing a broader pool of international entrepreneurs to apply. The route targeted early-stage but high-potential business ventures, designed to help founders establish themselves in the UK without requiring upfront investment capital.

Applicants had to secure an endorsement from a Home Office-approved endorsing body. These endorsing bodies — often higher education institutions or experienced business accelerators — assessed whether the business idea was innovative, viable, and scalable. Alongside endorsement, applicants had to meet English language requirements and prove sufficient maintenance funds to support themselves in the UK. One of the unique features of the Start-up visa was that it permitted holders to take employment outside their own business, providing financial stability during the crucial early years of their venture.

1. Overview of the Start-up Visa

The Start-up visa granted successful applicants permission to live in the UK for two years. It was a one-time visa category, meaning it could not be extended beyond the initial grant. The intention was for holders to use the two years to establish their business and then transition into the Innovator visa (now replaced by the Innovator Founder visa) to continue operations and potentially qualify for settlement.

Holders could:

• Work for their own business and take employment outside it
• Bring eligible dependants (partner and children under 18) to the UK
• Travel freely in and out of the UK within the validity of the visa

They could not:

• Work as a professional sportsperson or sports coach
• Access most public funds or benefits

2. Closure Announcement and Reasons

On 13 April 2023, the UK Government closed the Start-up visa route to new applicants as part of a wider simplification and tightening of business migration routes. The Government’s position was that the Start-up visa had fulfilled its transitional purpose but had limitations in monitoring business progress and maintaining quality control across endorsing bodies.

There was also a strategic move to channel entrepreneurial migration through the Innovator Founder visa, which replaced both the Innovator and Start-up visas. This new route retained elements of the Start-up visa, such as lower barriers to entry for early-stage entrepreneurs, while embedding stricter endorsement criteria and ongoing monitoring requirements. Endorsing bodies now operate under formal agreements with the Home Office that require periodic compliance checks on visa holders’ business progress.

Critics of the closure argued that the Start-up visa provided a valuable low-risk entry point for entrepreneurs with limited funds, helping to diversify the UK’s start-up ecosystem. They raised concerns that the Innovator Founder visa’s higher scrutiny could deter some genuine, but less-resourced, entrepreneurs.

3. End of New Applications

Following the closure, the Home Office stopped accepting new Start-up visa applications on 13 April 2023. Applicants who had already secured an endorsement letter dated before this date were permitted to apply within the relevant transitional timeframes set out in the Immigration Rules.

From that date, no new endorsements could be issued for the Start-up visa, and endorsing bodies shifted their focus entirely to Innovator Founder applications under the updated criteria. The closure means that the only individuals now holding Start-up visas are those granted before April 2023, all of whom will face an upcoming visa expiry without the option of renewing under the same category.

Section Summary

The Start-up visa served as a short-term platform for overseas entrepreneurs to establish their business in the UK without upfront investment. Its closure on 13 April 2023 marked a significant change in the UK’s business immigration landscape, with the Government consolidating entrepreneurial migration under the Innovator Founder visa. While existing holders retain their rights until expiry, the lack of an extension option means forward planning is now essential.

Section B: Transitional Arrangements for Existing Visa Holders

When the UK Start-up visa route closed to new applications in April 2023, the Home Office introduced transitional arrangements to ensure that those already in the UK under this category could complete their permitted period of stay. These arrangements preserved the visa’s original conditions for current holders but removed the possibility of a straightforward extension within the same category. As such, holders must now prepare for either leaving the UK at the end of their visa or switching to an alternative immigration route if they wish to continue living and working here.

1. Visa Validity and Conditions Post-Closure

The closure of the Start-up visa did not alter the terms of existing grants. Visa holders can remain in the UK until their permission expires, provided they comply with the conditions originally attached to their visa. This includes the right to:

• Work on their endorsed business project
• Undertake employment outside their business
• Study, subject to applicable restrictions

The restrictions remain the same:

• No access to most public funds
• No work as a professional sportsperson or sports coach

Holders should keep in mind that endorsement compliance remains important — endorsing bodies may still check on business progress during the visa period, and any serious breach of conditions could affect immigration status.

2. Extension and Switching Options

There is no provision to extend the Start-up visa beyond the original two-year term. The viable way for holders to continue running their business in the UK is to switch into a different visa category before their Start-up visa expires. Applications can be made at any time during the validity of the Start-up visa, and submitting in good time helps avoid status gaps and processing risk. Overstaying will normally lead to refusal unless a narrow exception under paragraph 39E applies.

The most common progression route is the Innovator Founder visa, which allows qualifying entrepreneurs to remain in the UK for up to three years with a pathway to Indefinite Leave to Remain (ILR). Switching typically requires:

• Meeting the Innovator Founder eligibility criteria, including having an innovative, viable, and scalable business
• Securing a new endorsement from an approved endorsing body under the Innovator Founder rules (lists differ from the former Start-up scheme)
• Demonstrating active and genuine involvement in the business

Other potential routes include the Skilled Worker visa, Global Talent visa, or other work categories, depending on the holder’s circumstances and eligibility. Timing is critical — switching applications must be submitted before current permission ends to avoid overstaying.

3. Dependants of Start-up Visa Holders

Dependants — partners and children under 18 — retain the right to stay in the UK in line with the main visa holder’s permission. If the main applicant switches to a new visa, eligible dependants can apply to switch at the same time or before their own permission expires.

Dependants’ work and study rights remain unchanged while on the Start-up dependant visa. When switching, dependants should check whether the new visa category grants similar rights — for example, most dependant routes under the Innovator Founder and Skilled Worker visas do permit full-time work.

Section Summary

While the closure of the Start-up visa does not shorten the current validity of existing grants, it removes any possibility of extension. Holders must take proactive steps to plan their next move, with switching to the Innovator Founder visa being the primary continuation route for entrepreneurial activities. Dependants can transition alongside the main applicant, helping maintain family unity during the process.

Section C: Switching to the Innovator Founder Visa

The Innovator Founder visa is now the principal route for overseas entrepreneurs looking to establish or continue running an innovative business in the UK. For Start-up visa holders, switching to this category offers a way to remain in the UK, develop their business, and work towards settlement. However, the eligibility rules and endorsement process are more rigorous than under the former Start-up route, and applicants should prepare thoroughly.

1. Eligibility for Switching

To move from the Start-up visa to the Innovator Founder visa, applicants must meet the full requirements of the new route. This includes:

• Innovative, viable, and scalable business: The applicant must be pursuing a business idea that meets all three criteria, supported by evidence of progress made during the Start-up visa period.
• Endorsement by an approved endorsing body: The business will need to be re-assessed, even if it was previously endorsed under the Start-up route. The endorsing body must confirm that the business meets the Innovator Founder criteria and that the applicant plays a key role in its development.
• Active involvement: Applicants must show they have been fully engaged in day-to-day business management and development.
• Maintenance and English language requirements: These must be satisfied unless exempt.

Unlike the old Innovator visa, there is no set minimum investment requirement under the Innovator Founder rules. However, applicants must still demonstrate that the business has realistic funding in place to deliver its objectives.

2. Application Process

Start-up visa holders must apply to switch to the Innovator Founder visa from within the UK before their current visa expires. The process involves:

• Securing an endorsement from an approved endorsing body under the Innovator Founder scheme
• Preparing and submitting the online visa application via GOV.UK
• Paying the application fee and Immigration Health Surcharge
• Providing biometric information (fingerprints and photograph)
• Supplying supporting evidence, including the endorsement letter, proof of English language ability, maintenance funds, and business documentation

Endorsing bodies have a duty to monitor the business throughout the visa period. This includes at least two formal check-ins each year to confirm continued compliance and progress.

3. Settlement Prospects

One of the major advantages of the Innovator Founder visa over the Start-up visa is its direct pathway to settlement. If an applicant meets the necessary endorsement and business performance requirements, they may be eligible to apply for Indefinite Leave to Remain (ILR) after three years.

To qualify for ILR, the business must meet at least two of the Home Office’s success criteria, which can include:

• Creation of a certain number of full-time jobs for settled workers
• Significant revenue generation or investment
• Demonstrated growth in customer base and market share
• Development of intellectual property or other innovative assets

This contrasts with the Start-up visa, which had no settlement option and was intended only as a stepping stone to longer-term categories like the Innovator Founder visa.

Section Summary

Switching to the Innovator Founder visa is the most common route for Start-up visa holders wishing to continue their entrepreneurial journey in the UK. While the application process is more stringent than the original Start-up route, it offers a clear settlement pathway and the ability to fully dedicate time to the business without restrictions on outside work. Preparing early, securing endorsement, and ensuring the business meets the innovation criteria are essential to a successful switch.

Section D: Alternative Immigration Routes for Entrepreneurs

While the Innovator Founder visa is the natural successor to the Start-up visa for many holders, it will not be suitable for everyone. Some entrepreneurs may find they cannot meet the Innovator Founder’s stricter endorsement requirements or may prefer a different immigration route based on their career objectives, business stage, or available opportunities. Several other UK immigration categories can accommodate skilled professionals, business founders, and investors, depending on their circumstances.

1. Skilled Worker Visa

For those who are open to taking up employment with an established UK organisation, the Skilled Worker visa offers a route to live and work in the UK while benefiting from a sponsored job.

• Eligibility: A confirmed job offer from a UK-licensed sponsor, meeting the required skill and salary thresholds (with certain discounts available for shortage occupations or health and social care roles). As of 22 July 2025, the general salary threshold is £41,700, the lower threshold is £33,400, the transitional threshold is £31,300, and £25,000 applies to certain Health & Care roles.
• Advantages: Provides job security, a pathway to settlement after five years, and the ability to bring dependants.
• Considerations: The role must meet Home Office eligibility rules, and visa holders must work for the sponsoring employer unless switching or extending under new sponsorship.

2. Global Talent Visa

The Global Talent visa is aimed at individuals recognised as leaders or emerging leaders in academia or research, arts and culture, or digital technology.

• Eligibility: Endorsement by an approved body in the relevant field, or direct eligibility based on a qualifying award recognised by the Home Office.
• Advantages: Offers flexibility to work in any capacity, including self-employment and running a business, without sponsorship. Settlement can be possible after three or five years, depending on the endorsement.
• Considerations: Applicants must provide strong evidence of achievement or potential in their field, which can be demanding to compile.

3. Other Business and Work Routes

In addition to the Innovator Founder visa, the UK has other business and work immigration categories that may fit certain entrepreneurial or professional profiles:

• UK Expansion Worker visa: For senior employees of overseas businesses expanding into the UK.
• Service Supplier visa: For overseas service providers working under an eligible trade agreement.
• Scale-up Worker visa: For high-growth UK companies hiring senior or specialist talent.

Each of these routes has its own eligibility, sponsorship, and duration rules, and some can lead to settlement while others are temporary.

Section Summary

Although the Innovator Founder visa remains the primary progression path from the Start-up visa, other options exist for those whose business or personal plans do not align with its requirements. From employment-based sponsorship under the Skilled Worker visa to highly flexible self-employment under the Global Talent visa, the right choice will depend on long-term objectives, eligibility, and the ability to meet evidential demands. Early assessment of options is crucial to avoid gaps in immigration status when the Start-up visa expires.

FAQs

Can I still apply for the Start-up visa?
No. The Start-up visa route closed to new applicants on 13 April 2023. Only those who held an endorsement letter dated before this closure date were able to submit an application under transitional arrangements, and these deadlines have now passed.

What happens if my Start-up visa is about to expire?
You cannot extend the Start-up visa. Before your visa expires, you must either switch to another eligible UK immigration category — most commonly the Innovator Founder visa — or leave the UK. Applications to switch must be submitted before your current visa ends to avoid overstaying.

Do I need a new endorsement to switch to the Innovator Founder visa?
Yes. Even if your business was previously endorsed for the Start-up visa, you must obtain a new endorsement from an approved endorsing body under the Innovator Founder criteria. This involves reassessing your business for innovation, viability, and scalability.

Can my dependants switch with me?
Yes. Eligible dependants — your partner and children under 18 — can switch to remain in the UK with you if you move to another visa category. They must submit their applications at the same time or before their own permission expires.

Will my business idea still qualify under the new route?
It depends. The Innovator Founder visa applies stricter endorsement standards than the Start-up visa, so some ideas that previously qualified may not meet the current criteria. You will need to demonstrate clear innovation, commercial viability, and the ability to scale, supported by evidence of progress during your Start-up visa period.

Conclusion

The closure of the UK Start-up visa in April 2023 marked a significant shift in the country’s business immigration policy. While the route provided a flexible entry point for first-time entrepreneurs without requiring initial investment, the Government’s decision to replace it with the Innovator Founder visa reflects a move towards tighter scrutiny and ongoing business monitoring.

For current Start-up visa holders, the immediate impact is limited — existing permissions remain valid until expiry, with all associated rights and restrictions unchanged. The key challenge is the lack of an extension option, meaning forward planning is essential. The Innovator Founder visa offers the most direct pathway to continue entrepreneurial activity in the UK, now with a clearer route to settlement. However, its stricter requirements mean that applicants must prepare robust business evidence and secure a new endorsement.

For those unable or unwilling to transition to the Innovator Founder route, other immigration options exist — such as the Skilled Worker and Global Talent visas — but these involve different eligibility and evidential thresholds. Early review of options and timely application are critical to maintaining lawful status.

In summary, while the Start-up visa’s closure removes a relatively low-barrier route for overseas entrepreneurs, proactive planning and early action can ensure that current holders continue their UK journey without interruption.

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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.

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