StartupTalky

Tag: startup expansion

  • What’s on the Horizon for UK Tech Immigration in 2022?

    The article is contributed by Gayatri Panda, Business Partner, Themis Technologies Ltd., London.

    The UK tech industry is now worth $1 trillion, making it the world’s third largest behind the United States and China. The UK tech startups and scaleups are receiving more investments than ever before, such as £29.4 billion in 2021; as a result, tech hiring activities within the UK organisations have skyrocketed. According to the statistics, the number of advertised IT jobs is up 42% compared to pre-pandemic levels. As the talent competition is getting fierce globally, the UK is joining the worldwide hunt for talents with a world-leading migration system. So what are the immigration routes for international technology talent to join the UK’s thriving tech sector?

    SPONSORED VISA

    SCALEUP VISA
    INDEPENDENT VISA FOR EMPLOYMENT AND BUSINESS

    A visa sponsorship means that an organisation, also known as the sponsor, is providing you a job because they are unable to fill a position in the local market. The sponsor is also legally and financially responsible for you and your activities throughout your stay in the country and must report to the UK government. There are various types of sponsored visas;

    Skilled Worker Visa

    A Skilled Worker visa allows foreign nationals to enter or remain in the UK to work for an authorised company in an eligible job. The Tier 2 (General) work visa was replaced by this visa route. To be eligible for a Skilled Worker visa, you must have a job offer from a UK company with appropriate salary level. After five years of stay in the UK, the Skilled Worker route can lead to Indefinite Leave to Remain (ILR) and eventually British Citizenship or British Passport.

    Global Business Mobility Visa

    It’s a new sponsored work visa option for international companies wanting to temporarily relocate employees to the UK to establish a UK presence or for specific commercial purposes. The introduction of the new route corresponds with the end of the Sole Representative visa and Intra Company Transfer or known as the ICT visa.

    There are five subcategories in the Global Business Mobility route:

    1. Senior or Specialist Worker: This visa has taken the position of the Intra-company Transfer visa. This category is for senior managers or specialists assigned to a UK company affiliated with their employer. It will not result in a settlement in the United Kingdom.
    2. Graduate Trainee: The Graduate Trainee route replaces the Intra-Company Graduate Trainee Visa. This visa is intended for employees who are being relocated to the UK as part of a structured graduate training programme for a managerial or speciality post. You must have worked for your employer overseas for at least three months prior to the date of application. Graduate trainees will be paid at least £23,100 per year as a minimum wage. It does not directly lead to settlement in the UK. However, you may be able to change your immigration status to one that leads to permanent residence.
    3. UK Expansion Worker: The UK Expansion Worker visa, which supersedes the Sole Representative visa, allows senior or specialised employees to enter the UK for a short length of time to carry out work related to their company’s expansion ambitions in the UK. It does not directly lead to settlement in the UK. However, you may be able to change your immigration status to one that leads to permanent residence.

    SCALEUP VISA

    The Scale-up visa is a newly introduced sponsored work visa that will become available on August 22, 2022. The sponsoring employer must be a scaleup firm in the United Kingdom, with annualised turnover or staffing growth of at least 20% for the three years preceding the application and a minimum of 10 employees at the commencement of the three-year period.

    You need a sponsorship from a scaleup company and you must work full-time for the company in any position for 6 months. So, after just 6 months of being linked to a single company, you will be free to work in the UK in any employment of your choice. Nevertheless, the job must also meet specific standards, such as having a skill level of at least degree level (RQF level 6) and paying a minimum wage of £33,000 or the market rate for the position, whichever is higher.

    After 5 years of continuous residency, you will be able to apply for settlement (indefinite leave to remain). You must have earned at least £33,000 (PAYE) in at least two of the three years preceding your ILR application.

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    INDEPENDENT VISA FOR EMPLOYMENT AND BUSINESS

    One of the ways the UK government believes Britain can attract high-quality migration is by implementing independent elite visa routes.

    High Potential Individual Visa

    The government’s attempt to attract the world’s “brightest and best” into the UK economy incorporates the High Potential Individual visa. It is scheduled to open on May 30, 2022. The High Potential Individual visa is intended for international graduates with a bachelor’s, postgraduate or PhD degree within the last 5 years from a university outside the United Kingdom that is listed in the top 50 global universities ranking. Graduates with a bachelor’s or master’s degree can stay in the UK for up to two years, or up to three years if they have a PhD. It does not lead to permanent residence in the United Kingdom, visa holders can move to another UK visa option, such as the Skilled Worker visa.

    Global Talent Visa

    This visa is for globally recognised world leaders or promising individuals in Science and Medicine, Engineering, Humanities, Digital Technology, Arts and Culture, and Research. This visa provides absolute freedom and greater flexibility regarding work, location, remuneration, leave and engagement with organisations. You can join a company or start your business without any restriction. This results in a settlement after 3 years if you are a leader applicant or 5 years if you are a promising candidate. The UK govt has appointed Endorsement Bodies for above mentioned fields, you need to make an application along with proof of your past achievements and future plan in line with the government guideline. Upon successful approval, you can apply for immigration.

    Startup Visa

    The Startup visa category is for high-potential entrepreneurs looking to establish their business in the United Kingdom. To qualify, you need a new, innovative, viable and scalable business idea that is endorsed by a UK govt appointed endorsing body. The Startup visa is valid for a maximum of two years, after which you can switch to the Innovator Visa.

    Innovator Visa

    The Innovator Visa is for experienced business individuals who want to start a company in the United Kingdom. You must have a new, innovative, viable and scalable business idea that is endorsed by a UK govt appointed endorsing body and you are ready to invest £50,000 to your business. Under the Innovator Visa you are eligible to apply for ILR after 3 years.

    Conclusion

    The United Kingdom recognises migrants as one of the most efficient means to encourage the development and investments in viable, innovative, and scalable businesses in the United Kingdom in order to drive economic growth. The UK government has done everything possible to remove barriers to innovation and business expansion, resulting in a 31% increase in the number of technology firms in the UK private sector since 2010. With this fast and easy visa support,  a favourable tax regime, stable and democratic political system, strong and respected system of law and a strengthening British Pound also known as safe haven currency, the UK is becoming the home for technology experts and digital innovators globally.

  • Startup Guide: How an Indian Startup can expand to the UK

    This article is contributed by Mr. Yash Dubal, Director, A‌ ‌Y‌ ‌&‌ ‌J‌ ‌Solicitors‌.

    When the UK voted to leave the European Union in a national referendum in 2016 one of the defining issues that led to the leave vote was immigration. One of the conditions of membership of the European Union was the free movement of people across all borders. In effect, this meant a pattern of movement from poorer nation-states in the East of the bloc, to the richer states in the West and North. Great Britain saw an uncontrolled influx of migrants, mainly from nations such as Poland and Romania, and many people worried that these hard-working people were driving down wages and out-competing domestic workers. Brexit – the process of leaving the EU- effectively returned full control of immigration back to the UK government.

    On January 1 this year the government introduced a new points-based immigration system which included several new visa routes. The system does not include any routes for migrant workers classed as low-skilled. Instead, the political aim is to attract ‘the brightest and best’ workers from around the world. The new routes have a particular emphasis on workers in technology, IT, fintech, science, engineering, and research and are designed to encourage investment. The aim is to lure skilled people to the UK and to attract investment from successful startups wishing to expand into the British market.

    The new immigration regime in the UK is designed to make it easier for the ‘brightest and best’ from the rest of the world to invest in and work in the UK.

    It is fair to say that the policy has not gone entirely to plan. Brexit and the pandemic led to an exodus of workers returning to their home nations in Europe. The result has been acute shortages of personnel in several key industries including care, hospitality, and logistics. Short-term visas to fill certain vacancies have been introduced. Additionally, reports this week show that zero applications have been made for one of the new headline-grabbing visa routes. The fast-track route for award-winners in science, engineering, the humanities, and medicine received no applications.

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    While these teething problems are undoubtedly embarrassing for British politicians, they are good news for Indian startups wishing to expand and invest in the UK. For example, startups from outside the EU wishing to expand into Britain will now be playing on a level playing field. There is no longer an inherent bias towards European businesses. Everyone is welcome and the same rules apply to all.

    Those startups that do set up branches and subsidiaries in the UK will find a fertile environment. The British SME economy is booming. According to the UK Federation of Small Businesses, at the start of 2021, there were 5.5 million small businesses in the UK, making 99.2% of the total business. SMEs account for 99.9% of the business population employing 16.3 million people, or 61% of the working population. The combined UK SME turnover was estimated at £2.3 trillion. The legislative, investment, and logistical frameworks within the UK encourage start-ups and contribute to the success of this sector.

    UK internationalist political will is geared towards cross-border links and investment in trade and commerce. As a result of Brexit, the UK is on a global mission to make new trade deals with other countries. One of its key targets is India. The British government is eager to build business and trade links with India, with a view to signing a free trade agreement, and, over the past year has already signed a raft of agreements and joint initiatives covering sectors such as hydrogen energy and green energy grids. There are already strong historic and cultural links between the two nations and the UK government is intent on cementing these links further. There is also a large, well-established community of Indian ex-pat business owners already established in the UK with many examples of Indian businesses recently investing and expanding successfully in the UK.

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    One of the key routes Indian start-ups are eligible to take when expanding into the UK is via the Sole Representative visa. This visa route allows a senior representative of an Indian business to locate in the UK for the purposes of establishing a satellite office, branch, or subsidiary of the parent company. There are criteria that need to be met in order to qualify for this visa route and I would urge any business considering expansion into the UK to seek professional legal advice on immigration and visa legislation, which will save time and money and maximize the chances of success.

    Once all the correct paperwork is in place and the move is made, however, the rewards are great.