What is Tier 1 genuine entrepreneur test?

The Tier 1 Entrepreneur visa category provides a route to settle in the UK for those who would like to invest £200,000 in order to start or take over an existing business in the UK. The Home Office has made several changes to counter abuse of Tier 1 Entrepreneur visa category which led to an increase in refusal rate.

In March 2015, the government asked the Migration Advisory Committee (MAC) to review the Entrepreneur visa category. MAC’s report which was published in September 2015 suggested a more selective approach the objective of which would be to improve the quality of entrepreneurs gaining Tier 1 visas and in turn maximising the economic benefit to the UK.

MAC also recommended that the government considers introducing a visa route specifically for talented entrepreneurs looking to establish their start-up business.

What is the Genuine Entrepreneur Test?

The Genuine Entrepreneur Test which was introduced in January 2013 which became more challenging to satisfy following the immigration rule changes in April 2015. The subjective test applies to all initial, extension and Indefinite Leave to Remain (ILR) applications.

In assessing your credibility as a genuine entrepreneur, the Home Office takes the following into account your:

• Source of your funds;
• Viability and credibility of your business plan and market research into your chosen business sector;
• Academic and business background; and
• Immigration history and previous activity.
• You may need to submit extensive documentary evidence which allows the Home Office to assess your eligibility and, in some circumstances, you may be required to attend an interview.

Solid business plan – key to success?

When preparing your business plan, you should bear in mind that your credibility as an entrepreneur will be assessed by a Home Office caseworker who may not have much real-world business experience. It is, therefore, important that you submit a business plan which is clear, concise and easy for a non-business minded person to understand.

The business plan should address issues such as your:

• proposed business activities
• target market
• marketing strategy
• You should ensure that any figures quoted are accurate, realistic and consistent with the documentary evidence provided.

It is also advisable to mention what skills you are bringing to the business and if any particular skills are required, explain the costs and processes involved in getting the relevant staff.

Your business plan should reflect that you have researched your proposed business in depth and you know who your customers, suppliers and competitors will be. If interviewed, you should be able to explain confidently your proposed business activities and satisfy a caseworker that you intend genuinely to invest in a business which you will be actively involved in.

Previous Experience

You will need to be able to prove that with your experience, education and skills you will be able to execute your business plan. This will involve going through your CV thoroughly.

• What have you been involved in previous to this business venture?
• How are your experience and previous roles relevant to your business?
• How do your educational qualifications complement your business idea?
• What experience does the rest of your team bring?

Immigration History

The Home Office will also want to discuss your previous movements and activities.

• Have you been to the UK previously? Why?
• Where have you been since you last entered the UK?
• What are your long-term aims of remaining in the UK? Do you intend to apply for settlement?

Disclaimer:

The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Adivis and authors accept no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please don’t hesitate to contact Adivis. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Adivis.

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