Switching Visas to Start a Business in the UK: What to Know?

Thinking about starting a business in the UK, but currently reside in the UK on a different type of visa?

More people are choosing to launch their own ventures while already living, studying, or working in the UK, which naturally raises the question: Can I switch my visa to one that actually lets me run a business?

The short answer is yes, but the rules, eligibility requirements, and timelines can get confusing quickly.

Switching visas to start a business in the UK isn’t something you want to go into blindly.

If you’re ready to build something in the UK, read on to learn how to do it the right way.

UK visas: The main types you should know

The UK offers a variety of visa types grouped broadly into categories based on purpose.

1. Work visas: For those intending to work in the UK, including:

• Skilled Worker visa (formerly Tier 2 General)
• Health and Care Worker visa
• Global Talent visa for exceptional skills in science, technology, and the arts
• Temporary Work visas (charity, creative, seasonal, religious, government exchanges)
• Innovator Founder visa for entrepreneurs starting innovative businesses.

2. Study visas: For international students at universities, colleges, and schools, and a Graduate visa for recent graduates who wish to work temporarily.

3. Settlement visas: For routes leading to Indefinite Leave to Remain (ILR) and eventually British citizenship, usually after continuous residence on eligible visas like Skilled Worker, Family, Innovator Founder, or Long Residence.

4. Family visas: For family members to join or remain with UK residents or citizens, including:

• Spouse or Partner visas
• Parent visas
• Child visas
• Adult dependent relative visas

5. Visit visas: For tourism, visiting family, or short business trips. Includes standard visitor visa, marriage visitor, and transit visas.

Which types of visa allow you to start a business in the UK?

The Innovator Founder visa is the main route for starting a new, innovative business in the UK.

Nonetheless, some founders with more established plans might use options like Skilled Worker self-sponsorship or the UK business representative routes, depending on how they want to structure their company.

The Innovator Founder visa: Your go-to visa for starting a business in the UK

The Innovator Founder visa replaces the former Tier 1 (Entrepreneur) visa and Start-up visa.

You can switch to this visa while in the UK from certain eligible visa categories.

For example, those on a Student visa or Graduate visa may apply if they’ve completed the course they were sponsored to study, or if they’re studying for a PhD full-time – and have been for at least 24 months.

Nonetheless, there are limitations in terms of the visa you’re switching from. For example, you cannot switch if you’re currently in the UK on:

• A Visitor visa
• A Short-term Student visa
• A parent of a Child Student visa
• A Seasonal Worker visa
• A Domestic Worker in a Private Household visa
• Immigration bail

You also can’t switch if you’re in the UK with permission outside the normal immigration rules (for example, on compassionate grounds).

What are the key requirements to get the Innovator Founder visa?

To apply for the Innovator Founder visa, you’ll need to show that your business idea meets a few key criteria:

• It has to be new – you can’t simply join or take over a business that already exists.
• It needs to be innovative, meaning it offers something that isn’t already on the market.
• It should be viable, with a realistic plan for how it will operate and grow.
• It must be scalable – you should be able to show how it could create jobs and expand nationally or even internationally over time.

Also, an approved endorsing body will need to review your business (if you already have one) or business idea and confirm that it meets these requirements before you can apply.

You’ll normally need to show that you meet the English language requirement when you apply. You can do this in a few different ways, such as:

• Having a UK school qualification
• Having a degree from a UK university
• Having a degree from a university outside the UK that was taught in English
• By passing an approved English language test

If you’ve already proved your English level in a previous successful visa application, you usually won’t need to do it again.

What are the additional requirements for setting up a new business?

You’ll need to show your endorsing body that you have the necessary funding for your business, and you need to be able to explain where that funding came from.

This means having at least £1,270 in your bank account for 28 days in a row before you:

• Apply for the Innovator Founder visa, or
• Apply to extend or switch into this visa (if you’ve been in the UK for less than 12 months)

However, you won’t need to show investment funds if:

• Your business is already up and running and was endorsed for a previous visa, or
• You’ve changed your business idea, and your endorsing body has already approved the new plan

What are the costs you can expect to pay?

Let’s break down the main costs you face when switching to the Innovator Founder visa.

• £1,590 per person if you apply to extend or switch your visa in the UK
• £1,000 to get an endorsement from an approved endorsing body. Keep in mind that if your visa gets approved, you’ll pay £500 each time you meet your endorsing body. You’ll need to have at least two meetings while you’re in the UK, and you pay these fees directly to your endorsing body.

You’ll also have to pay the healthcare surcharge as part of your application.

The amount depends on the length of your visa and whether you apply outside or within the UK. For a 3-year visa, you’re looking at £3,105 (£1,035 per year).

How long should you wait for your visa to be processed?

Switching to the Innovator Founder visa usually takes around 8 weeks from the time you submit your application to the decision.

Make sure you apply before your current visa expires so you can keep your legal status in the UK while waiting for the outcome.

If your visa is approved, it will last for 3 years. After that, you can apply for Indefinite Leave to Remain (ILR).

🚨 If you travel outside the UK, Ireland, the Channel Islands, or the Isle of Man before you receive the decision, your application will automatically be withdrawn.

6 common pitfalls to avoid when switching visas

Being aware of common mistakes when switching visas can save you a lot of stress down the road.

❌ Being on a visa that doesn’t allow switching

Not every visa lets you switch in-country. Check your current visa status first. If it’s not eligible, you’ll need to apply from outside the UK.

❌ Having a business plan that isn’t convincing enough

For visas like Innovator Founder, your business plan needs to clearly show innovation, viability, and potential to scale. A vague or generic plan is a common reason for refusal.

❌ Not showing the required funds

Even if you don’t need investment capital, you usually still need to show you can support yourself financially. Make sure you have the required balance in your account for the full 28-day period before applying.

❌ Misunderstanding job and salary conditions (if self-sponsoring)

If you’re using the Skilled Worker route through your own company, your role must match a qualifying occupation code and meet the salary threshold. If either part is off, the application may fail.

❌ Travelling too soon

Once you submit your application, stay in the UK (or the Common Travel Area). If you leave before you get the decision, your application will be withdrawn automatically.

❌ Letting dependants fall out of sync

If your partner or children are in the UK with you, their visas usually need to be switched or extended at the same time. Keeping everyone aligned avoids accidental overstay issues.

A quick checklist: How to prepare for the switch

Here’s a step-by-step checklist to help you get organised and stay on track.

• Assess your current visa status: type, expiry date, restrictions.
• Research your target route: requirements, endorsement (if needed), investment funds, and a business plan.
• Set up or plan your business in the UK: company registration, bank account, business plan, trading address, etc.
• If required: apply for a sponsor licence (for self-sponsorship under Skilled Worker) or endorsement (for Innovator)
• Compile documentation: identity, current visa, maintenance funds, business evidence, etc.
• Apply online before the current leave expires.
• Don’t leave the UK if applying in-country.
• After the switch, ensure compliance with conditions, such as actually running the business, investing funds, adhering to the job role, and salary.

How does ANNA support business founders?

Once you’ve decided to switch your visa and set up your UK business, you need a UK business account that handles day-to-day operations, financial admin, and compliance. ANNA offers a:

• Company registration,
• Business account,
• Tax-filing tools,
• Invoicing, and
• Expense tracking, all in one place, from day one.

This makes it ideal for early-stage founders who must prove trading activity, manage expenses, and stay audit-ready.

As you build your business under your new visa route, keeping clear financial records via a streamlined account helps satisfy both business and immigration requirements.

Here’s what we bring to the table:

🔥 Provide same-day company registration with Companies House. From February 2026, the Companies House fee will double in price.

But if you register your business through ANNA, you won’t pay anything extra. We’ll still cover the fee for you as part of the setup process.

🔥 Keep all your documents safe, sorted, and accessible, making it easier to supply them for your visa application.

🔥 Calculate the most tax-efficient amount you owe.

🔥 Prepare and file your Self-Assessment income tax with free MTD service.

🔥 Calculate and submit your VAT returns.

🔥 Prepare and file Corporation Tax directly with HMRC.

🔥 Manage PAYE for your team.

🔥 Create and track invoices automatically.

Unlike most accounting software, ANNA is designed for business owners. It means no onboarding headaches, complicated setups, and no paying for features you won’t use.

Try ANNA today and let us deal with complex admin bureaucracy while you focus on growing your new venture.

FAQ:

1. How to legally start a business in the UK?

To legally start a business in the UK, you’ll need to register your company with Companies House and set up a UK business account.

You must also choose the right business structure, such as a limited company, sole trader, or partnership, and make sure you’re registered with HMRC.

With ANNA, you can get guidance and tools for every step of the way, from company registration to accounting and tax filing, all in one place.

2. Can you get a visa to start a business in the UK?

Yes, you can. The main route is the Innovator Founder visa, which lets you start and grow an innovative business in the UK.

Some entrepreneurs also opt for the Skilled Worker self-sponsorship route, where they set up their own company and sponsor themselves for a qualifying job role.

3. Can I stay in the UK if I start a business?

Yes, you can stay in the UK if you start a business, as long as you’re on the right visa.

Visas like the Innovator Founder or Skilled Worker (self-sponsorship) route let you run a business legally and can even lead to permanent residency if you meet the long-term requirements. The duration of these two visas is 3 and 5 years, respectively.