The United Kingdom is one of the world's top destinations for high-growth start-ups, especially after securing their first funding round. Access to international talent is crucial for scaling a business, and for UK start-ups, navigating the country's immigration policies effectively can make all the difference.
This guide walks through the key steps and considerations for new businesses in the UK when establishing immigration policies after obtaining initial funding. With the UK government's intention to make the UK an AI superpower, expect a regulatory framework that will allow flexibility for new businesses in particular the tech sector to scale up.
The UK's tech sector is one of the largest in the world being worth more than $1 Trillion. Which is beat only by the USA and China. Green energy and construction are also expected to be large growth areas in the coming years.
1. Understanding the Need for Immigration Policies
After the first funding round, many start-ups require specialised skills to grow, which may involve hiring internationally. Creating an immigration policy is about planning ahead, managing legal risks, and enabling smooth onboarding for talent from across the globe.
A well-structured policy not only helps start-ups comply with the UK's legal framework but also reassures investors and enhances the company's appeal to prospective international employees.
The UK Home Office runs an agency called UK Visas and Immigration (UKVI) that processes all visa and citizenship applications.
Start ups can apply for a Sponsor Licence to start sponsoring employees inside the UK, however, they need to be aware that UKVI will want to see that you understand UK immigration policies and regulations.
2. What Policies and Regulations Will I Be Expected to Understand?
Sponsorship Licence Requirements: A sponsorship licence is required if you plan to sponsor employees for Skilled Worker visas or certain other visa types. This licence enables your business to sponsor international employees legally, and it involves significant responsibilities.
You need to understand what the responsibilities are for licence holders, and have someone to undertake the key roles on the licence, including having an Authorising Officer.
Record-Keeping and Reporting: As a licensed sponsor, you must maintain up-to-date records of all sponsored employees and report any changes in their employment status, such as promotions, change of role, or termination.
Right to Work checks: You must undertake right to work checks when employing people inside the UK. This applies to all businesses and all employees. Undertaking no right to work check for your employees inside the UK and advising the Home Office that you didn't know they needed to be done, is no excuse.
One of my tutors at university once told me, the government's approach is always, "Ignorance of the law is not a defence to breaking it". I.e. Home Office will fine you if you won't complete these checks or understand how to complete them correctly.
3. Key Visa Routes for UK Start-Ups
For UK-based businesses, several visa options are available depending on the role and skills of the employee.
- Skilled Worker Visa: For most full-time roles, the Skilled Worker visa is one of the most commonly used. It allows businesses to bring in skilled professionals from around the world, provided they meet minimum salary and skill-level requirements.
- Global Talent visa: Specifically designed for high-value roles in technology, engineering, and the arts, the Global Talent visa is ideal for individuals recognised as leaders or emerging leaders in their field. This visa type provides flexibility as it is not tied to one employer.
- Innovator and Start-up Visas: If your company plans to bring in entrepreneurs or partners, the Innovator Visa can be an excellent route. For early-stage businesses, the Start-up visa is also a consideration for employees intending to innovate within the company.
- Graduate visa: This visa type allows international students who have completed a degree in the UK to stay for two years post-graduation (three years for PhD graduates). Start-ups can benefit from this as it offers a lower-cost option for bringing in young talent with a UK education.
- Senior and Specialist Workers: Senior and Specialist Workers visa type allows employees working for your overseas company to come to the UK to work on projects for up to 5 years (its possible to stay for up to 9 years). This is for highly skilled roles or senior employees. Hence, a biochemist would be able to come to the UK to work for you on research for a new cancer drug.
4. Obtaining a Sponsor Licence
If your business anticipates needing to sponsor international employees, obtaining a Sponsor Licence is essential. This licence is required for businesses looking to sponsor Skilled Workers, or transfer employees from their overseas branches and ensures the company is compliant with UK immigration regulations.
The licence requires companies to maintain up-to-date records on sponsored employees and to report any changes in their employment status. For start-ups, keeping a well-organised HR system in place to track this data is critical for long-term compliance.
5. Creating a Comprehensive Immigration Policy
Once the visa route and sponsor licence are in place, companies should formalise an internal immigration policy. This policy should be a clear document that outlines:
- Eligibility and visa support: Specify which roles and departments will be eligible for visa sponsorship. Highlight the company's commitment to supporting the visa process, including any legal or financial assistance.
- Reimbursement and Fees: The UK employer must typically cover sponsorship licence fees and may choose to assist with other visa-related costs for employees. Clearly outline which costs the company will cover to manage expectations for prospective employees. Some fees are required to be paid by the employer and cannot be passed on to the employee. Other fees are best suited to be paid by the employee due to their nature.
- Monitoring and Compliance: Detail the HR and reporting obligations for visa-holders to ensure adherence to the UK's rules. This includes tracking visa renewal dates, changes in employment terms, and reporting responsibilities.
- Support for Dependants: Many high-skilled candidates will have family members who will accompany them. Clarify the support the company will offer, if any, to assist dependants with their visa processes.
6. Benefits of Working with Immigration Specialists
UK immigration regulations are complex and constantly evolving, particularly as post-Brexit policies impact international talent mobility.
For most start-ups, engaging a legal advisor or immigration consultant can streamline the process and ensure compliance, especially when dealing with unique cases or specific visa types, such as the Global Talent Visa.
When to Seek Legal Guidance:
- Understanding UKVI requirements for sponsor licences and UK visas
- When setting up a comprehensive compliance programme for sponsored employees.
- In cases where you want to hire multiple candidates under different visa schemes, or if your business anticipates rapid expansion.
7. Staying Informed of Policy Changes
The UK's immigration policies continue to evolve, often in response to economic trends and workforce needs. It's essential for start-ups to stay updated on any changes to immigration laws that could affect their sponsored employees or the visa options available.
Subscribing to updates from the UKVI or working with immigration consultants who provide regular updates can help your start-up stay ahead of these changes.
Conclusion
Setting up immigration policies as a newly funded UK start-up involves thoughtful planning and a clear understanding of visa options, sponsorship requirements, and compliance obligations.
Building an immigration-friendly culture and implementing robust immigration processes can position a start-up for long-term growth, opening doors to diverse, skilled talent that will help drive the business forward.
As with any investment, putting in the groundwork now to develop a comprehensive and compliant immigration policy can yield substantial returns, not only in terms of talent acquisition but also in creating a resilient, globally competitive organisation.
Originally published November 15, 2024
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
