Switching from a Start-up Visa to an Innovator Founder Visa
In a previous post we discussed how to switch from an Innovator Visa to an Innovator Founder Visa. This post will focus on switching from the Start-Up route to the Innovator Founder route. Applicants can switch on the basis of having had a business previously endorsed for the Start-up route (“same business”) or on the basis of having a new business endorsed. The requirements are slightly different depending on whether the business is a same business or a new business. This post will focus on switching into the Innovator Founder route based on having the same business.
As explained in a previous post, the Innovator Founder Visa route is a route to settlement for experienced entrepreneurs and business people who want to establish a business in the UK. It replaced the Innovator route on 13 April 2023. The Innovator Founder route is essentially a mix of two immigration routes, the Start-up Visa route which is now closed to new entrants without an endorsement issued before 13 April 2023 and officially closed to all new applications on 13 July 2023 and the Innovator Visa route.
General Requirements to Switch from the Innovator Visa to the Innovator Founder Visa
In order to switch from a Start-up Visa to an Innovator Founder Visa by relying on a previously endorsed business you will need to satisfy the following:
- You are aged at least 18 years old on the date of application;
- You have been issued with an endorsement letter from an approved UK Endorsing Body or Legacy Endorsing Body;
- You meet the English English language requirements, CEFR Level B2 (similar to IELTS 5.5.) in the four components of reading, writing, listening and speaking;
- If you have been in the UK for less than 12 months, you will need to have at least £1,270 in maintenance funds for yourself, additionally £285 for a dependent partner, £315 for the first child and £200 for each additional child;
- Your application must not fall for refusal under the General Grounds for Refusal.
Endorsement from a Legacy Endorsing Body for the Same Business
The Immigration Rules are well known for being badly drafted and to be full of mistakes. Appendix Innovator Founder, where the rules for those wishing to apply to enter the UK as an Innovator Founder or to switch into this route from within the UK can be found, is no exception. Please bear with me as we wade into some muddy waters of drafting.
Start-up applicants will currently be in the UK with an endorsement for a business. They should be, and technically are (if able to navigate the Home Office Rules), able to use this same business to switch into the Innovator Founder route. The impact of this is that applicants will not need to apply for a new endorsement from a new Innovator Founder Endorsing Body, however, can use their previously endorsed business and a new letter of endorsement from a Legacy Endorsing Body in order to switch into the Innovator Founder route. This is ultimately beneficial as applicants who are looking to switch will not need to come up with a new business idea that is innovative, viable and scalable.
The Rules appear to be clear in stating that one can rely on the same business where their previous permission was: “in the Innovator Founder, Innovator, Start-up or Tier 1 (Graduate Entrepreneur) route and they are pursuing a business assessed by a Home Office approved endorsing body either for the previous endorsement or at a contact point.” [Emphasis added]
This all seems straightforward so far, however, the current online version of the Immigration Rules, which was last updated on 25 July 2023 at the time of writing, currently puts a roadblock on those wishing to switch from the Start-up route into the Innovator Founder route on the basis of having the same business. Let’s break this down further. The online version of the rules currently reads as follows in relation to the mandatory requirement to have an endorsement letter:
“INNF 7.2. A letter of endorsement from a Legacy Endorsing Body in support of an application under the same business criteria will only be accepted, and points will only be awarded, if:
- (a) the applicant has or, in the 12 months immediately prior to the date of application, had permission as an Innovator Founder; and
- (b) the Legacy Endorsing Body supporting the current application is the same as the Endorsing Body for that previous permission.” [Emphasis added]
INNF 7.2 (a) is understandably confusing as one might question how they can have permission as an Innovator Founder when they are applying to switch from the Start-up route into the Innovator Founder route. The definition of Innovator Founder sheds some light on the operation of this requirement, however, it is still not helpful for Start-up applicants wishing to switch into the route on the basis of having the same business. The definition states:
“Innovator Founder means a person who has, or had, permission under Appendix Innovator Founder, or as an Innovator under Appendix Innovator of the rules in force before 13 April 2023 or under Appendix W of the rules in force before 01 December 2020.”
This definition results in an understanding of INNF 7.2. which demonstrates that those endorsed in the Innovator route pre 13 April 2013 are able to switch into the Innovator Founder route on the basis of having an endorsement letter issued by a Legacy Endorsing Body in relation to the same business they were originally endorsed for in the Innovator route, however, this definition still excludes those within the Start-up route. Ultimately it seems that Start-up applicants wishing to switch into the Innovator Founder route on the basis of a business which was previously endorsed are unable to do so as they are excluded from obtaining an endorsement letter from a Legacy Endorsing Body given that they will not have had permission in a route coming within the definition of Innovator Founder. Despite this being the current reading of Appendix Innovator Founder, the Home Office appear to have realised that there is a mistake in the Rules and made changes in a Statement of Changes issued on 17 July 2023, that INNF 7.2(a) should be updated as follows:
“APP INNF1. In INNF 7.2(a), after “Innovator Founder”, insert “or permission under the Start-up route”.
The online version of the rules, which has for some reason not been updated to reflect this actual reading of the requirements despite the latest update of the website being after the publishing of this statement of changes and the other changes relating to Appendix Innovator Founder having been reflected on the website, should therefore read as follows:
“INNF 7.2. A letter of endorsement from a Legacy Endorsing Body in support of an application under the same business criteria will only be accepted, and points will only be awarded, if:
- (a) the applicant has or, in the 12 months immediately prior to the date of application, had permission as an Innovator Founder or permission under the Start-up route; and
- (b) the Legacy Endorsing Body supporting the current application is the same as the Endorsing Body for that previous permission.” [Emphasis added]
Ultimately, therefore, Start-up applicants can obtain an endorsement letter from a Legacy Endorsing Body where they seek to rely on their same business to switch into the Innovator Founder category. This endorsement letter will be important as it will need to confirm that they meet the requirements needed to rely on the same business, these are that:
- their same business is active, trading and sustainable;
- their same business is registered with Companies House and the Applicant is listed as a director or member of that business;
- the Applicant has an active day-to-day role in the management and development of that business.
There is another requirement, which should be reflected in the endorsement letter but it is not very clear cut. This states:
“INNF 9.3 The applicant must:
- (a) if they have or have last had permission as an Innovator Founder, demonstrate that they have attended at least 2 Contact point meetings with their Endorsing Body at regular intervals during their period of permission or similar regular checkpoint assessments with their Legacy Endorsing Body; and
- (b) confirm that they will have at least two Contact point meetings with the endorsing body at regular intervals during their period of permission.”[Emphasis added]
The use of ‘and’ in the above creates some difficulties, as it appears that those switching from the Innovator route (coming within the definition of having or having last had permission as an Innovator Founder) are the only ones who will be required to have at least two Contact point meetings with their Endorsing Body once on the route. The Home Office Guidance reads, in relation to a section where an Endorsing Body informs them that an applicant has missed a regular contact point meeting:
“The applicant must have at least 2 contact point meetings with the endorsing body at regular intervals within their permission (normally after 12 and 24 months). The endorsing body must advise the Home Office if the applicant has missed a contact.”
It might, of course, be the case that those switching from the Start-up route will not be required to have such contact points once in the Innovator Founder route, however, this seems unusual and it is our understanding that everyone in the route is required to have at least two contact point meetings and this should be confirmed in their endorsement letter.
Further Endorsement Letter Requirements
There are other specific requirements which endorsement letters from Legacy Endorsing Bodies will need to meet. These include:
- meeting the general requirements for all letters, one of which includes the letter being dated no earlier than 3 months before the date of application to switch into the Innovator Founder route;
- demonstrating that the applicant’s business is a business previously assessed by an Endorsing Body or Legacy Endorsing Body while the applicant had permission on the Start-up route;
- confirmation of each of the same business criteria identified further above e.g. registration with Companies House, being met.
Changes to the General Grounds for Refusal for Innovator Founders
The General Grounds for Refusal relate to some of the suitability requirements which migrants seeking to enter or remain in the UK must meet when making such applications. They can be found in Part 9 of the Immigration Rules. These have been added to as a result of the new Innovator Founder route, which is focused on ensuring that applicants are genuine innovators.
Applications for permission to stay in the UK as an Innovator Founder may now be refused if a decision maker has reason to believe that an applicant:
- is the subject of any serious civil or criminal proceeding or investigation which relates to corruption, financial misconduct or other financial crime; or
- is or has been the subject of sanctions of a non-criminal nature, which include being disbarred from acting as a director or conducting regulated financial activities in any country.
Settlement as an Innovator Founder
The time spent in the Start-up route will not count towards the 3 year continuous residence period in order to obtain Indefinite Leave to Remain (‘ILR’) status in the UK. Applicants will therefore need to spend a full 3 years in the category and meet the criteria for ILR before they can settle in the UK. For more information on the Innovator Founder route, including a section on the requirements for ILR, please see here: UK Innovator Founder Visa.
Contact our Immigration Barristers
For expert advice and assistance with preparing an application to switch from a Start-up Visa to an Innovator Founder Visa, contact our immigration barristers in London on 0203 617 9173 or via our enquiry form below.
