Are you a US business thinking of expanding to the UK or an entrepreneur who wants to disrupt the UK market?
Before you launch your new venture or expand your existing business into the UK, it’s important to understand how the UK immigration rules will affect your plans. Your overall strategy will need to be implemented at the onset of the due diligence phase, so that the business entity in the UK, once fully incorporated, is capable of attracting the best talent or transferring employees from the parent company in the USA. The UK government provides several visa options that cater for different types of business owners, executives and employees. This blog explores some of the most relevant visa categories.
As the global economy continues to thrive, businesses are increasingly expanding beyond their borders to tap into new markets. The UK has been one of the most attractive destinations for US businesses looking to expand their operations, given the country’s robust economy, strategic location and strong trade ties with Europe and other regions. However, relocating a business to the UK involves more than just financial and operational planning – it also requires a good understanding of the immigration laws that govern business relocations.
Sponsorship Licences for UK Employers
If your US business plans to hire employees in the UK, obtaining a Sponsorship Licence is essential. This licence allows the UK entity to sponsor foreign workers under the Skilled Worker Visa and other immigration categories.
The application process for a sponsorship licence involves proving that your business is legitimate and capable of meeting the responsibilities of a UK employer. Some key requirements include:
- Having a physical presence in the UK, such as an office or branch.
- Undertaking to comply with record-keeping requirements of employees’ visa statuses and employment details.
- Maintaining compliance with UK labour and immigration laws.
Once granted a sponsorship licence, your business must comply with ongoing monitoring and reporting requirements to avoid penalties.
Skilled Worker visa
A common route for a US business looking to hire workers in the UK on a long-term or permanent basis is the Skilled Worker Visa category. To sponsor workers under this visa:
- The UK business must be a registered sponsor with a valid sponsorship licence.
- The employee must have a job offer that meets a certain skill level and salary threshold (currently £38,700 or the going rate for the job, whichever is higher).
This visa is ideal for companies looking to hire employees, such as managers, engineers or IT specialists to their new UK operations.
Senior or Specialist Worker visa: Relocation of Key Executives
US businesses often need to transfer key executives to the UK either to lead new operations or to perform other duties for a limited period of time. High-ranking personnel may be eligible for the Global Business Mobility Visa under the Senior or Specialist Worker route. This visa allows senior executives or specialist employees to be transferred from a US branch to the UK without having to meet the same stringent criteria as for other visa categories.
Under this visa route, executives can remain in the UK for up to five years (or up to nine years for those earning more than £73,900). However, this visa typically does not lead to permanent residency in the UK, which could be a limitation for individuals seeking to relocate for long-term employment.
Expansion Worker visa: Senior Manager or Specialist Employees
The Expansion Worker visa route is designed to allow an established overseas business, which has been operating for at least 3 years, to expand into the UK, by sending a senior manager or specialist employee of the overseas business to establish and expand either a UK branch or a UK-based wholly-owned subsidiary, which will operate in the same sector as the overseas business.
Under this route, initially only one individual can be sponsored. Once that individual has come to the UK, the business can then sponsor up to five individuals at any one time (provided it is demonstrated that all of them are required to help establish the business in the UK). The partner and dependent children of an individual sponsored via this visa route are also permitted to join the Expansion Worker on Dependant visas.
This route does not in itself lead to permanent residency, typically allowing the Expansion Worker and their dependants to stay in the UK for a maximum of two years. However, the natural transition for the UK business would be to subsequently make an application to add a Skilled Worker tier to the sponsorship licence already in place, after which the Expansion Worker can switch into the Skilled Worker category (leading to settlement in the UK after five years).
Understanding Immigration Points-Based System
Following the end of free movement between the UK and the EU, the UK’s Points-Based System has expanded and is increasingly relied upon by UK employers to fill domestic skills shortages. All of the above categories fall under the Points-Based System. For most business-related visas, applicants must meet a series of requirements to accumulate enough points to be granted a visa. The system considers several factors, including:
- English language proficiency
- Salary levels
- Educational qualifications or relevant work experience
- A job offer from a UK employer.
For businesses, it means that not all employees will be eligible for transfer based on their current roles or qualifications. Therefore, it is crucial to assess your workforce early to identify which employees qualify under the points-based system, and who may need additional support or training.
Innovator Founder Visa
The Innovator Founder Visa is designed for entrepreneurs who want to establish a business in the UK that is both innovative and scalable. Applicants must demonstrate:
- An endorsement from a UK-based endorsing body
- A viable, innovative and scalable business idea.
This visa is more suitable for business leaders with a vision to develop a completely new or groundbreaking business in the UK market, rather than simply setting up a branch or subsidiary of an existing US company.
Conclusion
Starting a business in the UK offers exciting opportunities for growth but understanding the immigration landscape is essential for a smooth transition. From selecting the right visa to navigating sponsorship licences and planning for permanent residency, businesses must take a proactive approach to manage immigration requirements. By addressing these key immigration considerations early in the process, US companies can ensure that their expansion into the UK is both legally compliant and strategically successful. For personalised advice, businesses should consult with legal experts specialising in UK immigration and business law to ensure their specific needs are met.
How Gherson can assist
Gherson’s Immigration Team are highly experienced in advising on UK visa matters. If you have any questions arising from this blog, please do not hesitate to contact us for advice, send us an e-mail, or, alternatively, follow us on X, Facebook, Instagram, or LinkedIn to stay-up-to-date.
The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please do not hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.
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