Business Visa Options for Expats: How to Start a Company in the UK
Moving to the United Kingdom to start a business can be one of the most rewarding decisions an expat makes. The UK is home to a thriving economy, a transparent legal system, and a strong entrepreneurial culture. However, before you can open your company doors, the most important step is ensuring that you are legally allowed to run a business in the country. For expats, this means securing the right business visa.
This guide explores the top visa options available for expats who want to start a company in the UK, along with step-by-step advice on how to launch and grow your business once your immigration status is settled.
Why the UK Is Attractive for Expat Entrepreneurs
Before diving into visa categories, let’s examine why so many expats choose the UK to start their businesses:
- Strong economy – The UK consistently ranks among the top 10 global economies.
- Global financial hub – London is one of the world’s leading centers for finance, tech, and commerce.
- Business-friendly environment – Low bureaucracy compared to many EU countries.
- Access to talent – The UK attracts global professionals and offers a highly skilled workforce.
- Support for startups – The government provides funding programs, grants, and networking platforms.
With these benefits, it’s no surprise the UK continues to attract ambitious expat entrepreneurs.
Step 1: Understanding Business Visa Options
For expats, the first legal step is choosing the right business visa. The type of visa you apply for depends on your experience, business idea, and investment capacity.
1. Innovator Founder Visa
Introduced in April 2023, this visa replaced the old Innovator and Start-up visas.
- Purpose: For experienced entrepreneurs with innovative, viable, and scalable business ideas.
- Requirements:
- Business idea endorsed by an approved UK endorsing body.
- At least £50,000 investment funds (unless exempted by your endorsement).
- Strong business plan demonstrating innovation and scalability.
- Duration: 3 years, with an option to extend or apply for indefinite leave to remain (ILR).
- Benefits: Allows you to bring dependents (spouse and children) and eventually apply for settlement.
👉 Best for expats with substantial experience and funding.
2. Start-up Visa (Phased Out but Still Relevant)
The Start-up Visa was for new entrepreneurs with high-potential ideas but no initial investment requirement. As of 2023, it has been phased out and replaced by the Innovator Founder Visa.
However, if you already hold a Start-up Visa, you can still operate your business until it expires and then switch to another route (like the Innovator Founder Visa).
3. Global Talent Visa
- Purpose: For leaders or potential leaders in fields such as technology, digital industries, arts, culture, or academia.
- Requirements:
- Endorsement from a recognized UK body (Tech Nation, Arts Council England, UKRI, etc.).
- Proof of exceptional talent or promise.
- Duration: Up to 5 years, renewable, with a pathway to permanent settlement.
- Business Rights: Holders can work as self-employed, directors, or business owners without restrictions.
👉 Best for expats in specialized industries who want flexibility.
4. Skilled Worker Visa (with Restrictions)
Primarily designed for foreign employees, not entrepreneurs. However, some visa holders may explore side-business opportunities if approved by the Home Office.
- Requirements: A job offer from a licensed UK employer.
- Business Limitations: You cannot run a full-time company unless switching to another visa.
👉 Best as a stepping stone for expats who later plan to switch to a business-focused visa.
5. Innovator Founder Visa vs. Investor Visa
Previously, the UK had a Tier 1 Investor Visa, which required £2 million in investment funds. This visa was closed in 2022 due to concerns over misuse. Now, the Innovator Founder Visa is the primary option for serious investors and entrepreneurs.
Step 2: Visa Application Process
Applying for a UK business visa involves several steps:
- Develop a Business Plan – Must demonstrate innovation, viability, and scalability.
- Secure Endorsement – Contact approved endorsing bodies in the UK.
- Prepare Supporting Documents – Passport, proof of funds, English language certificate, tuberculosis test (for certain countries).
- Apply Online – Via the UK Home Office website.
- Attend Biometrics Appointment – Provide fingerprints and photographs.
- Wait for Decision – Usually 3–8 weeks.
👉 Legal assistance is highly recommended, as rejections often happen due to poorly prepared business plans.
Step 3: Legal Requirements After Receiving a Visa
Getting your visa is only the first step. Once in the UK, you must comply with local legal requirements to operate your business.
Register Your Business
- Sole Traders → Register with HM Revenue & Customs (HMRC).
- Limited Companies → Register with Companies House.
Open a Business Bank Account
Banks require ID, proof of address, and company registration documents. Digital banks like Tide and Starling are expat-friendly.
Register for Taxes
- Corporation Tax (for Ltd companies).
- Self-assessment (for sole traders).
- VAT if turnover exceeds £90,000 (2024 threshold).
Obtain Necessary Licenses
Depending on your sector (food, import/export, financial services, etc.), additional licenses may be required.
Step 4: Challenges for Expats
- Visa Restrictions – Not all visas allow self-employment.
- Banking Barriers – Some banks require UK credit history.
- Funding Difficulties – Investors may prefer UK residents.
- Cultural Adjustment – Business etiquette and networking can differ from your home country.
- Legal Compliance – Missing filing deadlines with HMRC or Companies House can result in fines.
Step 5: Benefits of Starting a Business on the Right Visa
- Legal Protection – Ensures compliance and prevents deportation.
- Access to Funding – Investors are more confident in legally compliant companies.
- Growth Opportunities – Ability to scale and apply for settlement in the UK.
- Family Support – Many visas allow dependents to live, study, and work in the UK.
Case Study: How Expats Have Succeeded
- Tech Entrepreneur from India – Used a Global Talent Visa to launch a fintech startup in London, later raised millions in funding.
- Healthcare Innovator from Nigeria – Entered on an Innovator Founder Visa, developed an AI-driven health app, and gained endorsement from NHS-related bodies.
- Designer from Brazil – Came on a Global Talent Visa, set up a creative agency in Manchester, now employing 15 staff.
Step 6: Long-Term Residency and Settlement
One of the greatest advantages of choosing the right business visa is the pathway to settlement.
- Innovator Founder Visa → Apply for Indefinite Leave to Remain (ILR) after 3 years.
- Global Talent Visa → Apply for ILR after 3 or 5 years, depending on circumstances.
- ILR → British Citizenship → After holding ILR for 12 months, you can apply for citizenship.
This pathway not only allows permanent residency but also grants the ability to expand businesses freely across the UK and internationally.
Resources for Expat Entrepreneurs
- UK Home Office → Visa applications and immigration rules.
- Companies House → Business registration.
- HM Revenue & Customs (HMRC) → Tax guidance.
- Endorsing Bodies → Innovator Founder Visa endorsements.
- Local Enterprise Partnerships (LEPs) → Regional funding and support.
Final Thoughts
For expats, starting a company in the UK begins with securing the correct visa. The Innovator Founder Visa and Global Talent Visa stand out as the most flexible and practical routes. Once legal status is secured, the process of registering, funding, and growing your company becomes much smoother.
By taking the right steps from the beginning—choosing the correct visa, preparing a strong business plan, and staying compliant—you can join the thousands of successful expat entrepreneurs who have built thriving businesses in the UK.
The UK rewards innovation, ambition, and global talent. If you bring those qualities, your journey as an expat entrepreneur can lead not only to business success but also to a new life in one of the world’s most dynamic countries.
