Seeking business opportunity in UK

Dear Mr Bassie,

I am a businessman and considering investing in a business in the United Kingdom (UK). I intend to, subsequently, migrate if the business takes off.

I understand there have been some favourable changes in the immigration rules for investors.

Would you please highlight these rules that could possibly assist me in achieving my aim.

- S.T.

Dear S.T.,

You are correct that there have been some recent changes to the visa rules that could possibly assist you in any plans to invest in the United Kingdom as an entrepreneur and investor.

Generally speaking, the new visa rules now provide an extra incentive for foreign entrepreneurs and investors to go to the UK, which will recompense those who endeavour to contribute to the UK's economic growth.

It should be noted, under the new immigration rules anyone who goes to the UK, under Tier 1 (Investor) of the points-based system, he or she will be able to settle there faster if he/she is willing to invest large sums of money. Those who invest £5 million will be allowed to settle there after three years, and those investing £10 million or more will be allowed to settle after two years. This compares with the current minimum five-year requirement.

The new rules propose a right to accelerated settlement that will apply to those investors who are already in the UK, as well as those who will be arriving there and who also are prepared to invest large sums in the country. The Tier 1 (Entrepreneur) migrant will also be able to settle in the UK more quickly if he or she is able to create 10 jobs or turn over £5 million within a three-year period.

The thinking behind the new rules is that the United Kingdom is encouraging those who wish to invest to go and settle there, as it is believed that entrepreneurs and investors can play a major part in the UK's economic recovery.

high-potential businesses

Although presently the standard investment threshold for an entrepreneur to qualify for a Tier 1 visa will remain at £200,000, the government will now allow high-potential businesses to go to the UK with £50,000 in funding if it is from a reputable organisation. Also, entrepreneurs will be allowed to enter the UK with their business partners, as long as they have access to joint funds.

Further changes will permit major investors to enjoy more flexibility. Investors who meet the criteria will be allowed to spend up to 180 days per year, rather than 90, outside of the UK without affecting their right to settle there. This change will address a major concern cited by investors, as they claim that there is a need for them to be constantly mobile.

In addition, a new type of visitor visa will be created for prospective entrepreneurs. They will be allowed to enter the UK for the purpose of securing funding and making arrangements for starting their business, before they transfer to a full Tier 1 (Entrepreneur) visa while they are there. To facilitate this, the government has also published a statement of intent outlining how the new Tier 1 (Exceptional Talent) route will operate from April 2011. This new route will be limited to exceptionally talented migrants, and will be limited to 1,000 visas per year. You should be aware that it is for those persons who have already been recognised or have the potential to be recognised as leaders in the fields of science, arts and humanities.

Migrants seeking entry under Tier 1 (Exceptional Talent) will not need to be sponsored by an employer. However, they will need to be endorsed by an accredited competent body. These competent bodies will be announced in the near future, and it will be for each competent body to select those who they feel meet the necessary criteria and qualify for endorsement. Under Tier 1 (Exceptional Talent), migrants will initially be granted permission to stay in the United Kingdom for three years and four months. After this period the migrant will then be able to extend their stay for a further two years, and then be able to settle there after five years' residence in the UK.

I hope this provides you with some insight.

John S. Bassie is a barrister/attorney-at-law who practises in Jamaica. He is a Supreme Court-appointed mediator and a Fellow of the Chartered Institute of Arbitrators and a Chartered Arbitrator. Email: lawbassie@yahoo.com