Self-Sponsorship Visa vs Innovator Founder Visa: Which Route is Right for You?

The United Kingdom offers a number of visa routes for entrepreneurs and professionals seeking to establish themselves in the country.

Among these, the Self-Sponsorship Visa and the Innovator Founder Visa stand out as viable options for those looking to start or expand their business in the UK.

But which visa is the better option? Understanding the key differences, advantages, and limitations of each route is crucial in determining which one aligns best with your goals.

Innovator Founder Visa

What is the Innovator Founder Visa?

The Innovator Founder Visa is for experienced entrepreneurs who want to establish an innovative business in the UK.

This route requires applicants to have a business idea that is innovative, viable, and scalable, which must be endorsed by an approved endorsing body.

Key Requirements of the Innovator Founder Visa:

• The business idea must be original and innovative.
• You need endorsement from an endorsement body which has been approved by the Home Office.
• The focus of this visa is on high-growth potential businesses, mainly in tech or other cutting-edge industries.

Advantages of the Innovator Founder Visa:

• No minimum investment: Unlike its predecessor, the Innovator Visa, the Innovator Founder Visa does not require a minimum investment of £50,000.
• Endorsement Support: The endorsing body provides guidance and support to you and your business and will assess whether your business meets the requirements.
• Short pathway to Settlement: The visa offers the possibility of settlement after three years.

Limitations of the Innovator Founder Visa:

• Sector-Specific: This route is best suited for innovative, high-growth businesses in tech and cutting edge industries and may not be ideal for traditional sectors.
• New Business Idea: applicants need to have a new business idea and the business will not already exist.
• Endorsement Challenges: Securing endorsement is a rigorous process.
• Restrictions on work: Applicants are typically expected to work solely on their endorsed business.

Self-Sponsorship Visa

What is the Self-Sponsorship Visa?

The Self-Sponsorship Visa is not an official Home Office category but rather a structured pathway for individuals who wish to set up a business in the UK and sponsor themselves for a Skilled Worker visa. This route involves the following steps:

1. Establishing a UK-based company.
2. Applying for a sponsor licence to enable the company to sponsor Skilled Worker visas.
3. Sponsoring yourself as an employee of the business.

This pathway is particularly attractive to individuals who want to maintain control of their business while meeting UK immigration requirements.

Advantages of the Self-Sponsorship Visa:

• Flexibility: You can choose the business sector and operational model. The business does not have to be “innovative” and can already exist.
• Long-Term Stability: The Skilled Worker visa offers a pathway to settlement after five years.
• Control: You maintain full ownership and control of the business and therefore your skilled worker visa.

Limitations of the Self-Sponsorship Visa:

• Complexity: This is a complex visa which involves multiple steps which all need to be carried out correctly for the application to be successful. Setting up a business in the UK and obtaining the appropriate documents can be challenging and obtaining a sponsor licence requires compliance with strict Home Office requirements.
• Costs: There are significant initial and ongoing costs. This includes application fees, and legal compliance expenses.

Quick-look Comparison of Self-sponsorship and Innovator FounderVisa

Aspect	Self-Sponsorship Visa	Innovator Founder Visa
Business Ownership	Full ownership and control	Full ownership but with endorsing body oversight
Initial Investment	No specific investment threshold but requires capital to set up and run a business	No specific investment threshold but business must be viable
Innovation Focus	Not required	Required
Pathway to Settlement	After 5 years	After 3 years
Sector Flexibility	Any sector	Focus on innovative sectors e.g. tech
Endorsement	Not required	Required

Which Route is Right for You?

The best route depends on your business idea, sector, and long-term goals:

• If you are an experienced entrepreneur with a groundbreaking idea and the drive to create a high-growth business, the Innovator Founder Visa is likely the more suitable option.
• If you have a business idea that does not necessarily involve innovation but aligns with the UK’s economic needs, the Self-Sponsorship Visa may be the better choice

Conclusion

Both the Self-Sponsorship Visa and the Innovator Founder Visa offer unique opportunities for entrepreneurs to establish themselves in the UK. While the Self-Sponsorship Visa provides flexibility and control, the Innovator Founder Visa is ideal for innovators looking to leverage their expertise in building high-impact businesses. 

Templeton Legal Services assist entrepreneurs and existing business owners establish their businesses in the UK. 

Contact our experts and we can help you navigate the complexities of these routes and choose the one that aligns best with your vision.