Tier 1 Entrepreneur ILR: Genuine Entrepreneur Requirement
In This Article
1. Tier 1 Entrepreneur Settlement: Key Deadlines and Genuine Requirement Overview
2. Understanding the Tier 1 (Entrepreneur) Genuine Entrepreneur Requirement
3. Demonstrating Genuine Business Activity: Required Evidence
4. Assessing Business Credibility: Evidence and Scrutiny
5. Evidencing Investment for Tier 1 (Entrepreneur) Settlement Applications
6. Demonstrating Intention to Continue Business Operations in the UK
7. Assessing the Genuine Entrepreneur Test: The Balance of Probabilities
8. Home Office Requests for Further Evidence: What to Expect
9. Attending a Home Office Interview: What to Expect and How to Prepare
10. Alternative Immigration Routes for Tier 1 (Entrepreneur) Migrants
11. Options Following a Tier 1 (Entrepreneur) Refusal
12. Contact Our Immigration Barristers
13. Frequently Asked Questions
14. Glossary
1. Tier 1 Entrepreneur Settlement: Key Deadlines and Genuine Requirement Overview
The deadline for Tier 1 (Entrepreneurs) to apply for settlement is fast approaching, with those in the route having until 06 April 2025 to apply for indefinite leave to remain in the UK. This is the case for those individuals who have never held leave as a Tier 1 (Graduate Entrepreneur). Applicants who have held leave as a Tier 1 (Graduate Entrepreneur) or who switched to the Start-up visa before switching into the Tier 1 (Entrepreneur) route can submit applications for indefinite leave to remain until 06 July 2027.
Each applicant will, of course, need to demonstrate they meet all the requirements to obtain settlement as a Tier 1 (Entrepreneur) Migrant. One such requirement is that they show they have been a genuine entrepreneur during the period they have held leave in the route. This post provides a brief overview of the requirement.
2. Understanding the Tier 1 (Entrepreneur) Genuine Entrepreneur Requirement
Paragraph 245DF of the Immigration Rules sets out the requirements a Tier 1 (Entrepreneur) Migrant must meet in order to be granted indefinite leave to remain. The genuine entrepreneur requirement is set out at paragraph 245DF(f). There are three elements to this requirement. The applicant must ensure that the Secretary of State is satisfied that they have:
(i) “established, taken over or become a director of one or more genuine businesses in the UK, and [they have] genuinely operated that business or businesses while [they] had leave as a Tier 1 (Entrepreneur) Migrant; and
(ii) [they have] genuinely invested the money [specified in the Rules] into one or more businesses in the UK to be spent for the purpose of that business or businesses; and
(iii) [they] genuinely intend to continue operating one or more businesses in the UK.”
3. Demonstrating Genuine Business Activity: Required Evidence
The decision maker will want to know that you have genuinely operated the business/relevant businesses during the period you have held leave as a Tier 1 (Entrepreneur). Table 6 of Appendix A to the Immigration Rules provides some clarification as to what the Home Office is looking for when considering this part of the requirement. It sets out the specified documents relating to business activity.
Where an individual is self-employed, they are required to provide:
- evidence of their registration with HM Revenue & Customs, showing the business as based in the UK,
- evidence of the applicant making tax returns within the self-assessment tax system, and
- a personal bank statement showing transactions for their business or a business bank statement, or a letter from a UK regulated financial institution confirming that the applicant has a business and uses the bank for business purposes.
Where an individual is a director of a UK company or a member of a UK partnership, they are required to provide:
- companies house documents showing that they are a director or member of the company and the date they were appointed as director or a member, amongst other specified information,
- evidence from HM Revenue and Customs confirming that the company is registered for corporation tax (if a director) or they are making tax returns as a self-employed individual (where self-employed), and
- a business bank statement from a UK account showing business transactions, or a letter from the UK bank on letterhead confirming the company or partnership’s bank account, its use for the purpose of the business and that the applicant is a signatory of the account.
All applicants (irrespective of whether self-employed, a director or member) are additionally required to provide:
- an overview of the business’ activity, including an explanation of the goods or services provided to customers or clients; and
- their job title and job description, setting out their role within the business, how they are implementing their business plan and what their main tasks and responsibilities in running the business on a day to day basis are.
Please note that certain documents provided will need to be dated no earlier than 3 months before the date of application.
4. Assessing Business Credibility: Evidence and Scrutiny
The Home Office will scrutinise all the evidence provided and have been focusing on the genuine entrepreneur requirements. The Rules state that in assessing the requirement in Paragraph 245DF(f), the Secretary of State may take into account “the credibility of the applicant’s business activity in the UK, including when [they] had leave as a Tier 1 (Entrepreneur) Migrant.”
We have seen further requests of information relating to this element, particularly focusing on evidence going to show business transactions, likely seeking to understand the viability of the business and the nature of the work undertaken, and also evidence relating to what work individuals have been doing on a day to day basis.
The evidence provided by applicants to show the work they have been undertaking daily will differ, depending on the nature of the business. Individuals may wish to provide a written statement explaining the work they have been undertaking and covering the other points raised in the last two bullet points above. A selection of emails/correspondence with clients, customers and/or colleagues covering the period they have held leave, which helps show the work they have been doing, evidence of any contracts obtained due to their contributions and/or evidence of any contributions they have specifically made to the business, outside of their investment could also be provided. Applicants may also wish to have individuals they have worked with write letters of support detailing their contributions and involvement in the business.
5. Evidencing Investment for Tier 1 (Entrepreneur) Settlement Applications
The Applicant will be required to show that they have invested, or had invested on their behalf, at least £200,000 in cash directly into one or more businesses in the UK. They can also show they have invested £50,000 if, in their last grant of leave, they were awarded points for funding or investment of £50,000. It is likely that applicants will not need to provide evidence of their investments at the indefinite leave to remain stage, as they should have been awarded points for investments as specified in their previous grant. It may, however, be helpful to provide evidence of such investments again to make it easier for the decision maker to see that the requirement is met.
6. Demonstrating Intention to Continue Business Operations in the UK
The Home Office will assess the evidence provided for the business to see whether it is viable for it to continue, for example. However, applicants may intend to operate one or more businesses which are not the ones they are relying on in the present application. The requirement simply states that an applicant “must genuinely intend to continue operating one or more businesses in the UK. ”Applicants may wish to set out their intentions and plans for operating a business or businesses in the UK in the future in a written statement.
7. Assessing the Genuine Entrepreneur Test: The Balance of Probabilities
Decision makers are to consider whether the applicant satisfies the genuine entrepreneur test on the balance of probabilities. This means that they should be satisfied that it is more likely than not that the requirement is met by the applicant. Where they are not satisfied, they are instructed to “arrange for an interview or refuse the application.”
8. Home Office Requests for Further Evidence: What to Expect
The Home Office has the power to ask for further evidence and do use this power. If asking for further evidence, they will contact the applicant requesting the evidence they are seeking, for example, evidence of the day to day tasks the applicant has been undertaking on behalf of the business. They must allow you 28 days to provide the requested documents.
9. Attending a Home Office Interview: What to Expect and How to Prepare
It is open to the Home Office to invite an applicant for an interview. The relevant caseworker guidance states clearly that those who are applying for permission to stay in the UK or indefinite leave to remain “must comply with any request we make for them to attend an interview, unless a reasonable explanation is provided as to why they cannot comply.” If an applicant does not attend a scheduled interview without a reasonable excuse, the application will need to be refused under paragraph 9.9.1(a) of the Immigration Rules – the general grounds for refusal.
Caseworkers are advised that it is good practice to verify documents provided with an application before the genuine entrepreneur test is undertaken. If they think an interview is required, they are informed to go straight to that stage without needing to verify documents, although this is not obligatory as it adds more time to considering the application. Applicants can be asked to attend an interview at any point during the application process, including the day the application is submitted (although this is probably unlikely to happen, given UKVI’s processing times).
Those attending interviews should make sure they are familiar with their business and be able to clearly explain the work they have been undertaking in the UK whilst in the route, taking into consideration the requirements set out above.
10. Alternative Immigration Routes for Tier 1 (Entrepreneur) Migrants
There may be other routes open to you to switch into such as the Skilled Worker route (where you have a job offer from a licensed sponsor) or through self-sponsorship (although this is increasingly getting difficult). It may be that you meet the requirements for the Global Talent route, depending on the field in which your business is in or your overall experience. You may also wish to consider the Innovator Founder route, also depending on the nature of your business or if you have a viable, scalable and innovative business idea. Time you spent as a Tier 1 (Entrepreneur) migrant will count towards the continuous residence requirements for each of those routes, so it may be that you find you can switch into the relevant route and then quickly apply for settlement. This will depend on, of course, whether you meet the settlement criteria for the relevant route.
Outside of the business routes, you may wish to consider personal immigration routes, where you, for example, have a qualifying partner or spouse in the UK.
11. Options Following a Tier 1 (Entrepreneur) Refusal
Depending on the date of the refusal and the reasons for the refusal, it may be open for you to submit a new application (as long as this is before 06 April 2025) or challenge the decision through administrative review or judicial review. You should seek expert immigration advice in coming to this decision.
12. Contact Our Immigration Barristers
For tailored guidance on meeting the Tier 1 (Entrepreneur) settlement requirements or addressing a refusal, our business immigration barristers can provide expert advice. Contact us on 0203 617 9173 or complete our enquiry form below.
