Business People

The immigration rules are designed to ensure that only wealthy business people will be permitted to come to set up or to join businesses. Entry clearance is necessary. People have to show:

• They have at least £200,000 capital of their own to put into the business. This has to be readily available capital, either in the UK already or easily transferable to the UK, which can be put into the business. The immigration authorities are entitled to ask about its provenance, so borrowing money from a rich friend or having money in trust will not be adequate. The business should need this amount of new financial investment;
  
  
• They will be involved full-time in running the business, will be able to meet their share of any liabilities and there is a genuine need for their time and investment. This means that they should not have other time-consuming activities within or outside the UK. They will not be allowed to do other work.
  
  
  • This is intended to ensure that people coming to do business are actually needed for the business and that this part of the rules is not being used as a way for rich people who do not otherwise qualify to come to join their relatives;
    
    
  • they have a controlling or equal interest in the business with a proportionate financial investment in it, showing that they are owners of the business rather than its employees;
    
    
  • they have to show that new, full-time employment will be created for at least two people already living in the UK as a result of the admission of the business person from abroad;
    
    
  • if they are planning to set up a new business, they have to show that they have enough money left over after the investment of the £200,000 to support themselves and their family, without doing any other work, until the business can reasonably expect to make a profit;
    
    
  • if they are joining an existing business, they need to show its audited accounts for previous years and a written explanation of the terms on which the new partner will be joining. They need to show that the share of the profits they will receive is likely to be adequate to support them and any dependants;

Business people are normally granted leave to enter for a year initially and can apply to the Home Office, on form FLR(0), to extend this near the end of the year. If there is evidence that the business is continuing, the money has been invested and is being used in the business and the new employment has been created, an extension of three years should be granted. The spouse and children under 18 of the business person may be granted entry clearance to come to join him or her and will be granted an extension of stay in line with the business person. After four years, they can all apply to settle, and this will be granted provided the business is still continuing and is making enough profit to support them, and full yearly accounts are provided. There are separate provisions for Polish, Lithuanian, Bulgarian, Czech, Romanian, Slovakian and Hungarian citizens, who benefit from an EC Association Agreements.

Michael Reason LLM, April 2000.

http://www.michael-reason.com

References

JCWI Immigration nationality & refugee handbook 1999 edition

Butterworths Immigration Law Handbook