A Home Office spokesperson said in a statement that it is essential that the UK continues to attract entrepreneurial talent from overseas to help foster the development of new innovative businesses in the UK. “We are introducing reformed endorsing body arrangements to support the operation of the route, which will deliver a simpler, easier-to-use system for applicants.”

During the year 2022, the UK Home Office approved 299 Innovator Visas and 377 Start-up Visas. However, by making up for the shortcomings of these two visa categories, from April 13, 2023, these two visa categories will be merged into the Innovator Founder visa.

What is Innovator Founder Route?

The newly revamped innovative founder route can be applied from April 13, 2023. The previously operated start-up visa and innovator visa can only be applied for by applicants who have received endorsement by April 12, 2023. The start-up visa route is closed from April 13, 2023, and the innovator visa route is still open for applicants who need an extension.

The Innovator Founder route will see at least three positive changes.

There is no longer a need to show evidence of initial investment funds
Visa holders may have a supplementary job to support themselves in addition to running a business.
From the first day of entering the UK with an Innovator Founder visa, it is included in the period during which you can apply for permanent residency.

What are the key Changes to the Innovator Route

Endorsing bodies and requirements

Similar to the existing Innovator visa, the Innovator Founder visa requires business approval (Endorsement). Applicants must still gain endorsement from an approved endorsing body in the UK. They need to demonstrate that the business idea is innovative, viable, and scalable. The previous approval bodies are named 'Legacy Endorsing Body', The “legacy endorsing Body’ can continue to issue an endorsement for those whose visas have been approved according to the Innovator Visa rules and can continue to apply until they receive permanent residency.

However, for the Innovator Founder route, only 3 Endorsing bodies are allowed to issue an endorsement.

The new changes to the Innovator route include further clarifications on endorsing body letters of endorsement. Section INNF 6.3 states that letters must confirm that:

The applicant is considered a fit and proper person to receive endorsement under the rules and guidelines of the Innovator Founder route; and
The endorsing body has no concerns over the legitimacy of sources of funds or
Modes of transfer of funds invested by the applicant into their endorsed business; and
The endorsing body has identified no reason to believe that the applicant or their endorsed business may be the beneficiary of illicit or otherwise unsatisfactorily explained wealth.

Removal of the £50,000 Minimum Investment Requirement

The requirement for applicants to show that they have at least £50,000 to invest in a business plan has been removed. This reduces the burden on applicants, but depending on their business plan, some applicants may still need to prove that they have sufficient funds to start a business. As the requirement to demonstrate the viability of the business plan still exists, if the business idea requires significant investment, the endorsing body may request evidence of how the applicant has sufficient funds to grow their business.

The removal of the minimum investment capital requirement may make it easier for people with innovative business ideas to come to the UK.

Secondary Employment

A welcome change is the possibility of secondary employment for Innovator Founder visa holders. Under the Innovator route, applicants are excluded from working for any other business other than the business(es) that they have established, though this was permitted for Start-up migrants. The Innovator Founder route is much more flexible in that it allows employment outside of the applicant’s business(es). Innovator Founders can take up secondary employment provided that the employed role is at least RQF Level 3, equivalent to A-levels.

The study is also acceptable if you meet the requirements of ATAS.

2 Contact point meetings

A ‘contact point meeting’ is a checkpoint assessment between the applicant and their endorsing body to assess progress against the applicant’s business plan.

Under the Innovator route, Endorsing Bodies were required to contact Innovator applicants at the following checkpoints – 6, 12, and 24 months.

Under the Innovator Founder route, Endorsing Bodies only need to hold two contact point meetings at regular intervals during the period of permission. However, this is a minimum and the Endorsing Body may decide that more regular contact is required. This is, again, a more flexible approach as it allows for different businesses to develop at different rates.

English Language Requirement

Innovator Founder Visa applicants must show that they meet the English language requirement at CEFR level B2 in all four components (reading, writing, speaking, and listening).

Financial Requirement

Prospective Innovator Founder Visa applicants must show that they have held at least £1,270 for 28 days. Applicants applying with dependents are required to show higher levels of funds.

Dependents and Family Members

The Innovator Founder Visa scheme will not only allow international business founders a distinct possibility to launch their enterprises in the UK but also bring their family members to the UK. Under this route, family members (wives, husbands, children under the age of 18, etc) can also relocate along with their dependents to the UK.

The Innovator Founder visa route grants the principal visa holder's family members a visa for the same period as the main applicant's visa. Dependents must prove their relationship with the visa holder is genuine and prove that they can maintain themselves financially without turning to public funds.

The New Innovator Founder Visa, which was recently announced by the UK government, is a great option for entrepreneurs who want to establish and grow their businesses in the UK., but one of the main requirements is an innovative business idea that can be certified by an endorsing body. This means that you will need to demonstrate that your business has the potential to grow and succeed in the UK market and that it is aligned with the UK’s innovation priorities

The Innovator Founder visa is designed for experienced entrepreneurs with a proven track record of running successful businesses, making it a great choice for entrepreneurs with strong business ideas, relevant experience, and the financial resources to make the necessary investments. However, it is important to carefully evaluate your individual circumstances, goals, and resources and consider potential problems and obstacles you may encounter when relocating to the UK.

If you need specific advice on the Innovator Founder visa, related risks, business plans, market research, potential challenges, etc., please leave a message for further consultation.