Start-Up Visa Route: Closure and Alternative Options
Important Notice: The Start-Up visa route was permanently closed to new applications on 13 April 2023. This closure was part of wider immigration policy reforms that consolidated entrepreneurial routes under the Innovator Founder visa category. Existing Start-Up visa holders can continue their business activities until their permission expires, but no new applications are being accepted.
What Was the Start-Up Visa?
The Start-Up visa category was introduced in March 2019 as an entrepreneurial immigration route aimed at early-stage entrepreneurs who wanted to establish a business in the UK for the first time. This visa replaced the previous Tier 1 Graduate Entrepreneur visa programme and was designed to attract innovative business talent to the UK.
Key features of the former Start-Up visa included:
- Two-year initial permission period with no extension option within the same category
- No minimum investment requirement, unlike other business visa categories
- Endorsement from approved Higher Education Institutions or business organisations
- Pathway to the Innovator visa category after the initial two-year period
- Focus on innovation, viability, and scalability of business ideas
Why Was the Start-Up Visa Closed?
The Home Office closed the Start-Up visa route as part of comprehensive immigration reforms aimed at:
- Streamlining entrepreneurial visa categories to reduce complexity
- Consolidating similar routes under the new Innovator Founder visa
- Addressing concerns about the effectiveness of the endorsement system
- Ensuring better alignment with UK economic priorities
- Reducing administrative burden on endorsing bodies
Alternative Routes for Entrepreneurs
Following the closure of the Start-Up visa, aspiring entrepreneurs have several alternative immigration routes available:
1. Innovator Founder Visa
The primary replacement for both Start-Up and Innovator visas, offering:
- Three-year initial permission with extension and settlement options
- Minimum investment requirement of £50,000 (with some exceptions)
- Endorsement from approved bodies assessing innovation, viability, and scalability
- Pathway to settlement after three years if specific criteria are met
- Greater flexibility in business operations and investment sources
2. Global Talent Visa
For exceptional individuals in specific sectors:
- Recognition as a leader or emerging leader in technology, academia, or arts
- Endorsement from designated competent bodies
- Five-year permission with settlement pathway after three years
- Freedom to work, study, or establish businesses
- No investment requirements
3. Skilled Worker Visa with Self-Employment
Limited self-employment opportunities for skilled workers:
- Primary employment must be with a licensed sponsor
- Supplementary self-employment permitted in same field
- Not suitable for full-time entrepreneurship
- Five-year pathway to settlement available
4. Youth Mobility Scheme
For eligible nationals aged 18-30:
- Two-year permission to work and establish businesses
- Available to specific countries with reciprocal agreements
- Limited to one application per lifetime
- No settlement pathway directly available
Transitioning from Start-Up to Other Routes
Existing Start-Up visa holders approaching the end of their two-year permission should consider:
Switching to Innovator Founder Visa
- Demonstrate business development and progress since Start-Up visa grant
- Meet minimum investment requirements or qualify for exemptions
- Obtain fresh endorsement from approved body
- Show compliance with previous visa conditions
- Evidence of genuine entrepreneurial activity
Alternative Immigration Routes
- Skilled Worker sponsorship if employed by UK company
- Family-based applications if eligible through relationships
- Global Talent if demonstrating exceptional ability
- Student visa to pursue further qualifications
Previous Start-Up Visa Requirements (For Reference)
For those researching the former requirements or preparing transition applications, the Start-Up visa previously required:
Basic Eligibility Criteria
- Minimum age of 18 years
- Non-EEA/Swiss nationality
- No previous UK business establishment (with limited exceptions)
- Commitment to dedicating working time to the business
Endorsement Requirements
- Business idea meeting innovation criteria (genuine, original concept)
- Viability assessment (skills, knowledge, experience to succeed)
- Scalability potential (job creation and economic benefit)
- Endorsement letter issued within three months of application
Financial and Language Requirements
- English language proficiency at CEFR Level B2
- Financial maintenance: £1,270 for main applicant
- Additional funds for dependents if applicable
- No minimum business investment required
Impact of Closure on UK Entrepreneurship
The closure of the Start-Up visa has several implications:
- Higher barriers to entry for early-stage entrepreneurs due to Innovator Founder investment requirements
- Reduced options for graduates without significant capital
- Greater emphasis on proven business experience and substantial investment
- Potential impact on UK’s attractiveness to international entrepreneurial talent
- Increased importance of alternative pathways for business establishment
Professional Guidance for Entrepreneurs
Given the closure of the Start-Up route and complexity of alternative options, we strongly recommend that aspiring entrepreneurs:
- Seek specialist immigration advice to identify the most suitable visa category
- Understand investment requirements and funding sources for Innovator Founder applications
- Explore endorsement body requirements and application processes
- Develop comprehensive business plans that demonstrate innovation, viability, and scalability
- Consider timing of applications and transition strategies
- Evaluate alternative immigration routes that may better suit individual circumstances
Future Policy Considerations
The UK government continues to review entrepreneurial immigration policies. Future developments may include:
- Adjustments to Innovator Founder visa requirements based on performance data
- New schemes targeting specific sectors or skill shortages
- Changes to investment thresholds or endorsement criteria
- Enhanced support for graduate entrepreneurs through alternative mechanisms
While the Start-Up visa route is no longer available, the UK remains committed to attracting entrepreneurial talent through other immigration categories. Early professional guidance is essential to navigate the current landscape and identify the most appropriate pathway for establishing a business in the UK.
