- What is the UK Start-up Visa
- What is the UK Innovator Visa
- UK Start-Up Visa vs Innovator Visa: Key Differences between the Two
- New Innovator Founder Visa
- Summary
The UK is a developed economy. The country offers significant opportunities to entrepreneurs from around the world seeking to launch and grow businesses in the UK. There were previously two visa routes designed for overseas entrepreneurs: the UK Start-up Visa and the UK Innovator Visa. However, both have been replaced by a single UK Innovator Founder visa. The requirements for this visa are a consolidation of the start-up visa and innovator visa.
The new Innovator Founder visa caters to foreign entrepreneurs who have innovative ideas and plans for scaling their business in the UK.
In this guide, we are going to discuss a comprehensive comparison of the UK Start-up visa vs the Innovator visa, explaining the key differences between the two
What is the UK Start-up Visa?
The Start-up visa was designed for entrepreneurs in their early stages wanting to set up their first business in the UK. Before being replaced by the Innovator Founder visa, the Start-up route targeted new entrepreneurs who had an innovative business idea, unique to the labour market, with growth potential.
Please note, the UK Start-up visa is closed, but if you already have a Start-up visa, it is possible to apply for your partner and children to join you in the UK. You may also switch, before your existing visa expires, from a UK Start-up visa to an Innovator Founder visa if you are already in the UK.
What is the UK Innovator Visa?
The Innovator visa was on the other hand, was designed for more experienced overseas entrepreneurs with a well-developed business idea who were looking to either scale or establish their business in the UK.
This visa was closed permanently to new applicants on 13 April 2023, and therefore, existing holders of this visa cannot apply to extend it anymore and must switch to the new Innovator Founder route before their current permission expires.
UK Start-Up Visa vs Innovator Visa: Key Differences between the Two
The main difference between the two was that one was for the early-stage entrepreneurs, while the other was for more established entrepreneurs. The other differences included the investment fund requirements, work restrictions, and path to settlement.
1. Business Experience
The business experience expectations were significantly different between the start-up visa and the innovator visa. The Start-up visa catered to the fresh entrepreneurs launching their business in the UK for the first time. It was an ideal route for individuals with no or little previous business experience but who had a strong, innovative business idea.
On the other hand, the Innovator visa provided experienced entrepreneurs with the opportunity to establish or scale their business in the UK. Applicants were expected not just to demonstrate substantial entrepreneurial experience but also the skills needed to successfully run and scale a business in the UK.
2. Investment Requirements
The amount to invest in the UK was one of the main differences between the two routes. For a Start-up visa, you did not have to make any initial investment funds in the UK. Therefore, it was a more favourable route for new entrepreneurs with innovative business ideas but limited capital.
On the other hand, the Innovator visa mostly required a minimum investment of £50,000 to fund your business, which means to use it for developing or scaling the business.
3. Work Restrictions
Considering UK Start-Up Visa vs Innovator Visa, the type of work permitted under both the routes was another key difference.
The UK Start-up visa focused on developing the business, where you were permitted to work in other jobs as well, as long as those roles did not interfere with your entrepreneurial goals.
However, restrictions applied to the type of work permitted under this visa. For example, you could not work as a doctor, a dentist in training, or as a professional sportsperson. Innovator visa holders, on the other hand, were permitted to work only for their own business, and were not allowed to take up any other employment.
4. Path to ILR (Indefinite Leave to Remain)
These two visas had different timeframes for a path to indefinite leave to remain (also known as settlement).
The Start-up Visa UK does not directly lead to ILR. You were granted an initial leave of 2 years with no option to extend your visa. However, you can, if you are eligible, switch to the Innovator visa or any other suitable visa before your existing visa expires. After the closure of the Innovator visa, those on the Start-up route can switch to the Innovator Founder route or other visa. They need to show growth with their business in the UK and were looking to scale.
On the other hand, the innovator visa, before its closure, offered a more direct path to settlement. The successful applicants were initially granted a leave of 3 years with the option to extend it as many times as they want, each time for 3 years. Those in the UK with permission on this visa who have successfully grown their business and met the visa’s criteria can apply for ILR after three years. Now, those looking to extend their innovator visa will be granted leave under the Innovator Founder route if their application is successful, which will then provide a pathway for permanent residency.
New Innovator Founder Visa
On 13 April 2023, both the UK Start-up visa and Innovator visa were closed permanently, and a single UK Innovator Founder visa replaced them. Therefore, comparing the UK Start-Up Visa vs Innovator Visa now is not necessary. The Innovator Founder visa is now the single visa route for overseas entrepreneurs (both new and established ones) looking to establish a new business in the UK or grow an existing one here. This new route combines elements from both previous visas while introducing a new criterion.
Also, unlike the previous Innovator visa route, Innovator founder visa applicants do not need to meet any minimum investment requirement.
You can apply for a fresh Innovator Founder Visa UK from outside the UK or switch to it from inside the UK if:
- You want to set up and run an innovative business in the UK. Your business idea must be new, innovative, viable, and scalable.
- An approved body (also known as an endorsement body) has approved your business or business idea.
- You meet the other eligibility requirements. For example, knowledge of the English language.
If your visa application is approved, the Home Office will grant you an initial leave of 3 years. You can apply for an extension as many times as you want, as long as you meet the eligibility criteria each time for a leave of 3 years.
You may also be able to apply for settlement after being in the UK for 3 years.
Summary
Since 2023, when the UK Start-up and innovator visa was closed, overseas entrepreneurs have needed expert guidance to navigate the transition successfully. The new innovator founder route, while more flexible, demands thorough preparation and strategic planning to meet the requirements of your business idea, which must be new, innovative, viable, and scalable, as it remains central to UK business immigration policy.
Seeking professional immigration advice is more valuable when you need to address complex transition scenarios, settlement requirements, and business development strategies that align with the enhanced opportunities on the new route.
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