What Every International Student Should Know Before Starting a UK Business [Explained]

Starting a business in the UK is an exciting idea, especially for international students studying at some of the world’s top universities.

With the UK’s reputation as a global business hub, it’s natural to wonder if you can combine your studies with launching a startup.

But here's the truth: the rules around entrepreneurship for student visa holders are strict, and diving in without understanding them could put your immigration status at risk.

Can international students start a business in the UK?

The short answer is no, not while you're on a Student visa.

However, the full picture is more nuanced, and there are legal ways to transition into entrepreneurship after your studies.

Let’s break down what’s allowed, what’s not, and what your options are after graduation if you're planning to set up your own business in the UK.

Can international students start a business in the UK?

Under the current immigration rules, international students cannot start or run a business while on a Student visa (previously Tier 4). That includes:

• Starting a business (as a sole trader, partnership, or company)
• Working as a freelancer or consultant
• Holding a significant stake (10% or more) in a company you work for
• Taking on a statutory role like a company director

Even if you're not actively trading yet, simply setting up a business entity or promoting a future business could be considered a breach of visa conditions.

What is allowed on a Student visa?

While the rules may seem restrictive, there are still things you can do to prepare for life as a founder:

✅ Work part-time during your studies: Up to 20 hours a week during term time (10 if your course is below degree level), and full-time during holidays.

✅ Join student enterprise programs: Many universities run startup incubators or pitch competitions that allow you to explore business ideas academically.

✅ Develop a business idea without launching or trading. You can build your business plan, conduct market research, and make connections.

✅ Apply for a future visa while you're still in the UK, provided your current visa hasn't expired.

❌ What you can’t do is start making money from a business idea or self-employment while your primary immigration status is that of a student.

Why are these rules about international students starting a business so strict?

The UK Student visa is explicitly designed for full-time academic study.

The Home Office puts clear boundaries around work to ensure students prioritise their education and do not engage in business activities that may compete with UK labour or distort the intention of their stay.

Working outside of permitted conditions, such as freelancing or running a business, is seen as a breach of visa rules.

This can result in:

• Visa cancellation
• Deportation
• Future visa refusals

Remember, it’s essential not to cross that line.

Prohibited business activities on a Student visa

To give you a better idea, here are some examples of what counts as “business activity” that is not allowed under a Student visa:

🚫 Running a dropshipping or affiliate website

🚫 Selling digital products or coaching services online

🚫 Freelance tutoring, writing, consulting, or photography

🚫 Operating an eBay, Depop, or Etsy shop for profit

🚫 Working as a self-employed Deliveroo rider or Uber driver

🚫 Holding a 10%+ share in a company where you also work

🚫 Serving as a director of a UK company

Even passive income that involves ongoing business management can get you into trouble.

If you're earning money in a way that’s not through an employer-employee contract, it's likely non-compliant.

Laying the groundwork for future business while studying

Even though you can't launch yet, your student years can be a great time to build the foundation for your future business.

Here’s how you can make the most of your time:

• Use university resources: Many UK universities have business societies, enterprise centers, and mentoring programs to help students explore entrepreneurship.
• Build a business plan: Use this time to research the market, refine your idea, and get clarity on what makes your business viable, innovative, and scalable.
• Network: Attend pitch nights, startup meetups, or online events where you can meet mentors and future collaborators.
• Start preparing for the right visa route post-study: Knowing your immigration options early can help you align your business plans with visa requirements.

What happens after graduation?

Once your studies end, you have more flexibility. You can legally switch to a visa that allows business activity. Two of the most popular routes for student entrepreneurs are:

1. Graduate Visa Route

The Graduate visa lets international students stay in the UK for:

• 2 years after completing a UK bachelor’s or master’s degree
• 3 years if you’ve completed a PhD

✅ On a Graduate visa, you can start and run a business

✅ You don’t need a job offer or sponsorship

✅ You can also work in any type of job while you build your business

Many students use this route to test their business idea, build a client base, and lay the legal groundwork (like forming a company or registering as a sole trader).

📌 Important: This visa cannot be extended and does not lead to permanent residency. Before it expires, you must switch to another visa, usually the Innovator Founder visa, if you want to continue running your business in the UK.

There are also some changes that take effect from May 2025 onwards, so make sure you stay informed.

2. Innovator Founder Visa

If your business idea is original, viable, and scalable, you may be eligible to apply for an Innovator Founder visa. This is a more permanent solution for entrepreneurs.

✅ Valid for 3 years, with the potential to apply for Indefinite Leave to Remain (ILR)

✅ No minimum investment requirement (unlike the previous Innovator visa)

✅ You can run your business full-time

To apply, you’ll need:

• Endorsement from a Home Office-approved endorsing body
• A strong business plan showing innovation and growth potential
• Proof that you've completed your studies
• Evidence of personal savings (at least £1,270 in most cases)
• English language proficiency (IELTS 5.5+ or equivalent)

You’ll also be expected to stay in touch with the endorsing body through regular check-ins and demonstrate progress against your business milestones.

Can I switch directly from a Student Visa to an Innovator Founder Visa?

You can, but only after you complete your course.

Switching is only allowed if:

• You’ve finished your degree-level course
• Your institution is a recognised sponsor with a good compliance record
• You’re not trying to start your business before completing the course
• PhD students can apply after completing 24 months of their program.

What about Family or Partner visas?

In some cases, international students may be able to remain in the UK on a Family visa, such as a:

• Spouse/Partner visa (if your partner is a UK citizen or settled)
• Dependant visa (if your partner is on a Skilled Worker or other long-term visa)

These routes allow you to:

✅ Work full-time

✅ Be self-employed

✅ Start and run your own business

They also offer a pathway to permanent residency after 5 years. But your right to remain in the UK is tied to your relationship, so stability and documentation are key.

Key takeaways: Can international students start a business in the UK?

Practical tips for student entrepreneurs

• Plan ahead: Start working on your business plan while you're still studying. Don’t wait until your visa is about to expire.
• Understand visa rules: Don’t assume a side hustle is “just a small project.” Anything profit-driven may count as self-employment.
• Use your university network: Join student enterprise programs or innovation hubs, since many have links to endorsing bodies.
• Learn the basics of UK business setup: Understand how to register a limited company, pay taxes, keep financial records, and comply with employment laws.
• Seek professional advice: Immigration laws change, and mistakes can cost you your right to stay. Consult an immigration solicitor if unsure.

Final thoughts

So, can international students start a business in the UK?

Not while on a Student visa.

But the UK does offer clear post-graduation routes for budding entrepreneurs through the Graduate and Innovator Founder visas.

If you’re serious about turning your business idea into reality, the key is to plan early, follow the rules, and choose the right immigration path.

The UK is full of opportunities for those who do things by the book. Your time as a student can be the perfect launchpad; you just need to make sure you're legally and strategically prepared for what comes next.

Once eligible: ANNA is your business assistant

When you switch to a Graduate, Innovator Founder, or qualifying Family/Partner visa, the next step is getting your startup set up, and that usually starts with a business bank account.

That’s where ANNA (short for Absolutely No Nonsense Admin) can help you greatly.

⚡ Fast, friendly startup setup

• Sign up in under 10 minutes and receive your sort code and account number instantly. Your physical debit card will arrive in 3 – 4 days.
• Get a virtual debit card immediately, so you can start making payments even before the physical one lands .

⚡ Built-in admin tools

ANNA goes beyond banking; it automates your admin:

• Snap receipts or forward them via email; ANNA matches transactions and sorts them by category
• Create invoices, quotes, and payment links easily  and ANNA can chase unpaid ones for you
• Pots, or savings buckets, let you set money aside for taxes, salaries, or projects – either manually or automatically .

⚡ Expense management & team access

• Issue your own Mastercard debit card, plus multiple virtual cards, which is ideal for contractors or team members, with adjustable spend limits and auto-categorisation
• Tap your card with Apple Pay or Google Pay for secure, contactless transactions

⚡ Payments everywhere

• Make UK faster payments, CHAPS, international SWIFT transfers, and receive via IBAN
• Direct Debits and standing orders come free with any plan, making recurring payments simple

⚡24/7 support & peace of mind

• Live chat support is available 24/7, with an average wait time of under a minute.
• Though not FSCS-protected (unlike banks), your funds are safeguarded under EMI regulations, so they can't be lent out.

Open a business account, take care of your taxes, or register a company: whatever you need is available at your fingertips in just under 10 minutes!

FAQ

Can international students do freelance or gig work?

No. Freelance work, gig economy jobs (like Deliveroo or Uber), or any activity where you're not employed under a formal contract is classed as self-employment and is not permitted on a Student visa.

Can I run an online store or generate income passively?

No. Running an eBay, Etsy, or affiliate marketing site with the goal of earning profit would count as trading and is prohibited. Even passive income (if it requires business setup or regular management) may breach visa rules.

What kind of work is allowed on a UK Student visa?

You can:

• Work part-time (up to 20 hours per week during term time for degree-level courses)
• Work full-time during holidays
• Take on work placements if they are part of your course
• Work in jobs where you're formally employed, not self-employed