The United Kingdom has established itself as a global hub for innovation and entrepreneurship. Startups in the UK often look to hire international talent to bring diverse perspectives and specialised skills to their teams.
The breadth of visa options for migrant employees can be confusing for those unused to dealing with immigration processes.
This article explores the visa options available to UK based startups looking to hire international talent. If you are a foreign tech business looking to open in the UK please refer to our page on the UK Expansion Worker visa.
Narrow Down Your Options
As a starting point, you need to consider a number of questions so you can narrow down your visa options.
Do you want to sponsor the migrant directly? Do you consider you will need to sponsor further migrant employees in the future?
Yes: If so you must consider a sponsor licence application for the business and a skilled worker visa. If so, you need to ask the following questions:
- Can you evidence that you have a genuine business and vacancy?
- Will you meet the salary requirements?
- Are you ready to take on compliance dutiesin the business?
No: You need to ask further questions:
- Has the migrant employee graduated from a UK university in the last two years? If so they might consider a graduate visa.
- Does the migrant have a track record of innovation, do you consider them to be outstanding? If so you might consider the Global Talent visa.
- Is the role a temporary, trainee style role? You might consider the Government Authorised Exchange (GAE) visa.
- Is it important that the migrant is placed on a track to settlement?
If so you need a longterm visa: options are Innovator Founder, Global Talent, Skilled Worker
- Is the founder the migrant that needs to be sponsored?
You might consider the Innovator Founder visa (or self-sponsorship with the Skilled Worker visa in some cases)
Read on below to dig down into the details of each visa option.
Longterm Visas Options
1. Visas sponsored by the Employer: Skilled Worker, GBM and Scale Up
Scenario: You want to employ a graduate from an Indian university on a long-term basis as a software developer in your UK business.
Using a sponsor licence to sponsor international workers international employees in the UK. It allows startups to recruit skilled professionals from overseas for roles that meet certain eligibility criteria.
The business needs to first apply for the licence which is granted for 10 years. Thereafter you need to assign a certificate of sponsorship (CoS) to each migrant that you want to sponsor.
For the licence application you need to provide 4 mandatory business documents (e.g. bank statement, VAT certificate etc) as well as a representation to the Home Office explaining why you need the licence.
Once the licence has been approved, you gain access to the Home Office portal wherein you apply and assign the CoS (work permit) to the migrant. The migrant then applies for his visa.
The Skilled Worker visa is the most common type of employer sponsored route. The visa required that the job you are sponsoring features on the Home Office's list of skilled occupations and that the salary you are paying meets the set threshold (typically starting at £38, 700 per annum).
For startups who are majority owned by foreign businesses, it will also be worth adding the Global Business Mobility (GBM) route to the licence which potentially allows for a much faster turnaround on certificates of sponsorship.
The Scale Up visa is another category of visa that requires the business to have a sponsor licence. The visa is specifically aimed at startups that can prove rapid growth.
Unlike the Skilled Worker and GBM, the scale up allows the migrant to move employers after 6 months of work with the initial sponsor.
Timeframes:
- Home Office Sponsor Licence application: 1 week (if using priority) or up to 10 weeks if using standard service
- CoS: 2 days – 10 weeks (depending on whether the Home Office request further information)
- Visa: 4-6 weeks or 1 week if priority is available
Key Features:
- The employer must be a licensed sponsor – a start-up will need to apply for a sponsor licence and be able to prove that they are a genuine business with real vacancies;
- The role must meet the minimum skill and salary requirements. Note salary requirements< a href="/redirection.asp?article_id=1566224&company_id=33382&redirectaddress=https://wbbi.co.uk/major-shifts-in-uk-immigration-policy-2024/" target="_blank">raised dramatically in April 2024;
- The applicant must prove their English proficiency (but not in the GBM route)
Pros:
- Not a high barrier to entry in terms of skills and experience so can be used for junior roles;
- Potentially a quick turn around to get migrants 'through the door';
- Long-term visas with pathways to settlement.
Cons:
- Sponsorship licence applications can be complex for startups;
- Sponsorship Home Office fees mount up;
- No job flexibility for Skilled Worker and GBM – if a role changes significantly, it can require that the sponsored employee must reapply for a new visa.
- Employer must meet ongoing compliance requirements (although not significant);
- Employer must pay minimum salary (eg developer typically requires £49,400 per annum);
- Employee's visa is linked to their role with the sponsoring employer;
- CoS processing time can fluctuate.
2. Global Talent Visa
Scenario: Where you want to hire a CPO with a track record of innovation:
The Global Talent Visa is for applicants who can demonstrate an established track record of innovation in the technology sector but can also be used for younger entrepreneurs.
The visa leads to settlement in 3 or 5 years and allows the applicant to enter the UK and work in the technology field.
Their visa is not tied to a single employer/sponsor. In order to obtain an endorsement for this visa, the applicant will require 3 tailored reference letters from leaders in the technology field as well as evidence of their innovation track record.
For example, founders will need evidence of revenue traction and an innovative technology product.
Timeframes:
- Tech Nation endorsing body decision: 8 weeks
- Visa: 4-6 weeks or 1 week if priority is available
Key Features:
- Applicants must be endorsed as leaders or potential leaders by Tech Nation
- No minimum salary or job offer required.
- Flexible visa duration (up to 5 years) and a pathway to settlement.
Pros:
- No employer sponsorship required meaning freedom to change job duties/title without any reporting or change of visa required
- Settlement is possible in 3 years instead of 5.
Cons:
- The endorsement process is stringent and time-consuming. For example, applicants must provide 3 individually written references from tech leaders with specific knowledge of the applicant's innovation.
- The endorsing body is slow to make a decision.
Endorsing body can make poor decisions leading to refusal and further delays.
3. Innovator Founder Visa
Migrant founder with an innovative, viable and scalable tech business idea (evidenced via a business plan) with suitable funding.
The Innovator Business Founder Visa was introduced by the UK Home Office in 2023 to encourage innovation in the UK.
It is for international entrepreneurs who have a business idea that is innovative, viable and scalable and who want to launch that business in the UK.
The business plan is assessed by a third party endorsing body and funding needs to be in the business bank account at the time of the endorsement application. Funds need to be sufficient to establish the business.
Applicants need to have relevant background to bear out the business viability requirement.
Timeframes:
- Endorsing body decision: average 6 weeks
- Visa: 4-6 weeks or 1 week if priority is available
Key Features:
- Successful applicants are granted stay in the UK for a 3-year period, in which they must establish and grow their business. At the end of the 3 years, they are able to apply for either extension or settlement.
- To qualify, businesses must be new and founders must be able to speak, read, understand and write in English.
- Business must be new
Pros:
- Leads to settlement in 3 years
- No sponsorship required
Cons:
- Limited to businesses that have not started trading;
- Time consuming to prepare endorsement application;
- Endorsing body can make poor decisions leading to refusal/delays.
Short Term Visa Options (No path to Settlement)
4. High Potential Individual (HPI) Visa
Scenario: You want to hire a migrant who has graduated from an eligible university
The HPI Visa targets recent graduates from top global universities, allowing them to work in the UK without employer sponsorship.
Timeframes:
Standard service is from 4-8 weeks whilst a priority visa can be approved in less than a week.
Key Features:
- Open to graduates who completed their degree at an eligible university within the last five years.
- Visa duration: 2 years for bachelor's or master's graduates, 3 years for PhD holders.
Pros:
- No sponsorship required.
- Ideal for startups seeking high-achieving young professionals.
- Rapid turnaround
- No compliance
Cons:
- Limited pool of eligible candidates due to university list restrictions;
- Does not lead to settlement
5. Graduate Visa
Scenario: You have hired a migrant who has recently completed a university degree course
The Graduate Visa is an excellent option for hiring international students who have recently completed their studies at a UK university.
Timeframes:
Standard service is from 4-8 weeks whilst a priority visa can be approved in less than a week.
Key Features:
- Allows graduates to work or look for work in the UK for 2 years (3 years for PhD graduates).
- No sponsorship required.
Pros:
- Provides access to a talent pool of job-ready graduates.
- No employer sponsorship: no restrictions on job roles or salary, no compliance requirements.
Cons:
- Temporary visa that does not lead to sponsorship
- Requiring eventual sponsorship for long-term employment.
6. Government Authorised Exchange
Scenario: You want to offer a migrant graduate in your UK business for a limited period (up to 12 months)
Typically used for interns who have graduated from their degree recently to carry out a training based skilled role in a VAT and PAYE registered UK business.
The UK business needs to obtain a certificate of sponsorship (CoS) from a third party endorser. Must pay at least minimum wage.
Timeframes:
- Endorsing sponsorship:3 weeks
- Visa:Visa: 4-6 weeks or 1 week if priority is available
Key Features:
- Temporary visa that allows you to offer internships in your startup;
Pros:
- Low costs with low payroll expenses;
- No sponsor licence required.
Cons:
- 12 month duration;
- Cannot be used to fill vacancies (ie the role must be supernumerary).
Conclusion
The UK's visa system offers a variety of pathways for startups to hire international talent.
Whether you need skilled workers, global leaders, or recent graduates or interns, there's likely a visa route that suits your requirements. Initial immigration discussions require startups to carefully assess the circumstances to define the right visa pathway.
It is also important to note that the UK Immigration Rules, constantly buffeted by political headwinds, are subject to rapid changes and, as such, professional advice in this area is recommended.
Originally published on November 22, 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.
