UK Business Visas Explained: Which One Fits Your Startup Plans

If you’re an overseas entrepreneur with ambitions to build a business in the United Kingdom, understanding the visa system is your first and perhaps most important step.

The UK has streamlined its business visa options in recent years, making the process more targeted but also more selective.

In 2025, there are fewer visa categories than in the past, but the requirements for those that remain have become stricter. This ensures that only entrepreneurs with truly innovative ideas, strong business plans, and a clear vision for growth can qualify.

So, what visa do you need to start a business in the UK?

Let’s find out together below!

Why the UK remains a top destination for entrepreneurs

The UK continues to be one of the most attractive destinations for entrepreneurs for several reasons.

First, it has a mature market with strong demand across multiple sectors, from technology to healthcare to sustainable products. The country also has a robust legal framework that protects intellectual property and creates a fair environment for new businesses.

• London remains a global financial hub, attracting investors who are always on the lookout for promising startups.
• Manchester, Edinburgh, and Birmingham have also grown into vibrant startup ecosystems, supported by local government initiatives, incubators, and accelerators. For international entrepreneurs, this means access to both funding and talent is easier here than in many other parts of the world.

Moreover, the UK’s visa system, while selective, is structured to welcome innovation.

If you can prove that your idea is original and can make a significant impact on the market, the country offers pathways not only to launch your business but also to gain permanent residency in a relatively short period.

The Innovator Founder visa – the primary visa to start a business in the UK

The Innovator Founder visa is the main pathway for overseas entrepreneurs in 2025 who want to set up a new, innovative, and scalable business in the UK.

It replaced two older visas, the Tier 1 (Entrepreneur) visa and the Startup visa.

This consolidation was meant to simplify the system and ensure that only the strongest, most viable business ideas move forward.

What’s the difference between the Innovator Founder visa and the Tier 1 Entrepreneur visa?

What sets the Innovator Founder visa apart is that it no longer requires a fixed investment amount, unlike the previous Tier 1 Entrepreneur route.

Instead, the focus is entirely on the quality of the business idea.

To qualify, you must prove that your idea is genuinely new, meaning it cannot be something that is already trading in the UK.

It must also be innovative, showing clear differentiation from existing solutions, and scalable, meaning it has growth potential beyond a local or niche market.

This visa is best suited for founders who are ready to take an active role in building a company from scratch.

It is not a visa for passive investors or those who want to take over an existing business. Instead, it’s a route for innovators, problem solvers, and visionaries who can present a solid case for why their idea matters and how it can succeed in the UK.

Understanding the requirements: how the 70-point system works

The UK immigration system now uses a points-based approach to assess applicants for the Innovator Founder visa. To qualify, you must score at least 70 points across three key areas:

• Business endorsement,
• English language proficiency
• Financial maintenance.

🔸The largest portion of points (50 out of 70) comes from your business endorsement.

You need to secure this from a Home Office-approved endorsing body. This is a critical step because the endorsing body will closely assess your business idea. They want to see that it is innovative, viable, and scalable. You must provide a detailed business plan, and many endorsing bodies also require an interview where you present your idea and answer questions about its market potential and growth strategy.

The other 20 points come from two separate requirements.

🔸 Ten points are awarded for English language proficiency at CEFR B2 level, which is equivalent to an IELTS score of 5.5 in all components.

🔸 The remaining ten points are for financial maintenance. If you are applying from outside the UK or have been living in the UK for less than 12 months, you need to show you have at least £1,270 in personal savings held for 28 consecutive days before the application.

🔸Additionally, you must meet the “fit and proper person” criteria, meaning you have no serious criminal convictions, immigration breaches, or financial misconduct.

The endorsing body also evaluates your credibility as a founder, ensuring you have the necessary skills and commitment to develop the business successfully.

What can and cannot you do with the Innovator Founder visa?

Once you have secured a visa to start a business in the UK, such as the Innovator Founder visa, you gain significant rights that make it easier to build and grow your company while living in the country. This visa offers flexibility and opportunities not available in many other immigration routes.

✅ What you are allowed to do

• Run your own business – You can establish and operate your company in the UK, and if you have several innovative ideas, you are permitted to manage more than one venture at a time.
• Work in skilled employment – Alongside running your startup, you may take on skilled roles with other employers. This option allows you to earn extra income and gain experience while scaling your business.
• Bring your dependants – Your partner and children can join you in the UK. Under this visa, they have the right to work and study, which is an important advantage for applicants relocating with their families.

❌ What you cannot do

• Access public funds – You are not eligible for benefits, housing assistance, or other forms of public financial support.
• Work as a professional sportsperson or coach – These activities are prohibited under this visa.
• Neglect your business – You must remain actively engaged in developing your business. If your endorsing body withdraws its support because the business fails to progress, your visa status may be affected.

This balance of rights and responsibilities makes the Innovator Founder visa attractive for entrepreneurs who are committed to building their business while enjoying the flexibility to explore other professional opportunities in the UK.

How long can you stay on a UK business visa and your path to settlement

When you obtain a visa to start a business in the UK under the Innovator Founder category, your stay is not open-ended from the start.

Instead, it is structured around an initial three-year period during which you must prove that your business idea is progressing as expected.

The Home Office uses this period to assess whether your company remains innovative, viable, and scalable – qualities that are central to the visa’s criteria.

Initial visa duration

• Length of stay: The Innovator Founder visa is initially issued for three years.
• Your obligations: During this time, you must actively develop and grow your business, staying fully engaged in its operations. You cannot simply hold the visa without showing real progress; the UK immigration system is designed to support only entrepreneurs who are committed to building successful, innovative companies.

This three-year period is effectively your opportunity to prove that your business is making a real impact in the UK market.

Mandatory check-in meetings with the endorsing body

To ensure compliance, you are required to attend two mandatory check-in meetings with your endorsing body:

1. The first meeting takes place at the 12-month mark.
2. The second meeting happens at the 24-month mark.

These meetings are critical checkpoints, not box-ticking exercises. At each session, the endorsing body reviews the progress of your business against the plan you submitted with your visa application. You must present:

• Evidence of growth, such as revenue figures, new contracts, customer acquisition data, or expansion milestones.
• Proof of innovation, showing that your business continues to offer something new and different in the market.
• Scalability indicators, including plans or actions taken to scale operations, enter new markets, or attract investment.

If the endorsing body feels that your business is stagnating or no longer meets the required standards, they have the authority to withdraw their endorsement.

Without this endorsement, your visa may be curtailed, leading to the need to either rectify the situation quickly or switch to another visa category if eligible.

Extending your visa

If your business meets expectations and you successfully pass both check-ins, you may extend your stay. The Innovator Founder visa can be renewed in three-year increments as many times as needed, provided the business continues to demonstrate progress and innovation.

The extension process requires you to:

• Maintain an active endorsement from an approved body.
• Provide updated evidence that your company remains innovative, viable, and scalable.
• Show that you remain actively engaged in running the business.

Path to settlement (Indefinite Leave to Remain – ILR)

One of the most attractive aspects of this visa to start a business in the UK is the accelerated path to settlement.

While many other UK visa routes require at least five years before you can apply for Indefinite Leave to Remain (ILR), the Innovator Founder visa allows you to apply after only three years, provided you meet the Home Office’s strict growth criteria.

To qualify for ILR, you must:

• Show that your business has achieved significant success, often measured against the financial and operational goals outlined in your business plan.
• Demonstrate that you have remained actively involved in managing the company throughout your stay.
• Provide evidence that your venture continues to meet the criteria of innovation, viability, and scalability.

ILR grants you permanent residency in the UK, allowing you to live and work without time restrictions. It also removes the need for endorsements and ongoing visa renewals.

The final step: British citizenship

After achieving ILR, you can take the next step toward becoming a British citizen. You may apply for British citizenship after spending one additional year as a settled resident. Citizenship gives you full rights, including the ability to hold a UK passport, vote, and live in the UK indefinitely without any immigration conditions.

Costs you need to budget for

Applying for the Innovator Founder visa comes with multiple costs. The application fee is £1,274 if you apply from outside the UK and £1,590 if you apply from within the UK.

Here are additional costs:

Tips to increase your chances of success in getting a business visa

Applying for a visa to start a business in the UK under the Innovator Founder route takes more than just filling out forms. It requires a well-prepared strategy and attention to detail at every stage.

✅ Build a strong business plan

Your business plan is the foundation of your application. Avoid generic content, because endorsing bodies want to see a plan that is specific, evidence-based, and tailored to the UK market. Use detailed market research, identify the gap your business will fill, and provide solid financial projections that prove the idea is both viable and scalable.

✅ Engage early with endorsing bodies

Endorsing bodies are selective and may have industry preferences or limited spaces. Some focus on tech, others on social impact or sustainability. Reach out to them early, understand their expectations, and submit your plan well ahead of deadlines to avoid missing opportunities.

✅ Stay connected and document progress

After approval, your work does not stop. Maintain regular communication with your endorsing body and keep comprehensive records, like contracts, invoices, partnerships, and growth milestones. These will be critical during check-in meetings to prove your business is on track.

✅ Keep your plan updated

Businesses evolve, and so should your plan. Update it regularly to reflect your achievements and future strategies. This not only helps with compliance but also strengthens your case for extensions or settlement.

✅ Seek expert advice when needed

Even small errors in your application can lead to delays or refusal. If your situation is complex, consult an immigration lawyer or business advisor to ensure your application meets all requirements and is presented in the strongest way possible.

Other visas to consider when starting a business in the UK

While the Innovator Founder visa suits most entrepreneurs, it’s not the only option. Depending on your situation, other visas may be more appropriate.

Bonus: Best startups to start in the UK in 2025

Choosing the right sector not only improves your chances of endorsement but also increases your likelihood of success. In 2025, several industries stand out as promising:

• Green technology: Renewable energy, eco-friendly products, and sustainable solutions are in high demand as businesses and consumers prioritise environmental responsibility.
• Health tech: Digital healthcare platforms, AI-driven diagnostic tools, and telemedicine services are growing rapidly, especially with ongoing innovation in the medical field.
• Fintech: London continues to lead as a global fintech hub, creating opportunities for startups in digital banking, payment solutions, and blockchain technology.
• Niche e-commerce: Markets for sustainable fashion, ethical products, and specialty foods are expanding, offering room for creative new brands.
• Creative industries: Gaming, digital media, and online content creation remain lucrative, supported by a strong consumer base and international demand.

Starting in one of these high-growth areas not only aligns with UK market trends but also strengthens your case during the endorsement process.

How can ANNA help you start your business in the UK?

ANNA offers a simple, hassle-free way to register a UK limited company and open a business account simultaneously, making it ideal for new entrepreneurs.

With transparent pricing plans (from a basic one-off registration fee to comprehensive all-in-one support packages) ANNA handles everything you need to get your business off the ground quickly and smoothly.

Key benefits include:

• Fast company registration: Register a Private Limited Company in just minutes, with certificate of incorporation received in hours.
• Business account: Open a business bank account with no monthly fees (depending on plan) that includes a debit Mastercard, local/international payments, invoice generation, receipt scanning, and cashback offers.
• Compliance & Tax support: ANNA manages mandatory Companies House filings, tax submissions to HMRC, VAT registration, PAYE setup, and can even handle payroll and corporation tax with the Total Support plan.
• Virtual Office service: Keep your personal address private with a prestigious London virtual address, plus same-day mail scanning and forwarding.
• Additional services: You can add support for director management, share handling, company cancellations, and more, customizing your package to your needs.
• Expert assistance: Access 24/7 support by email, plus tax and business advice to reduce admin burden and help you focus on growing your business.

Whether you need a straightforward company incorporation or a comprehensive business setup with ongoing accounting and tax support, ANNA offers an efficient, reliable, and modern platform specifically designed for startups and small businesses in the UK.

Kickstart your business journey – join ANNA and make your startup goals happen today!