Can I Start a Business on Skilled Worker Visa

Can I Start a Business on a Skilled Worker Visa UK

Starting a business in the UK while holding a Skilled Worker visa is a common question among entrepreneurial professionals who are already working in the country. The UK Skilled Worker visa allows foreign nationals to work in a specific role for a UK employer that holds a sponsor licence. While it opens the door to valuable career opportunities, it also comes with limitations that affect your ability to engage in other forms of work or self-employment.

If you are currently in the UK on a Skilled Worker visa and considering whether you can start your own business, either alongside your main job or as a long-term plan, it is essential to understand the conditions of your visa. There are specific restrictions that apply to business activity, and breaching them could put your immigration status at risk. This guide explains what is allowed, what is not, and what options are available if your goal is to become a business owner in the UK.

What the Skilled Worker Visa Allows

The Skilled Worker visa is designed to allow overseas professionals to live and work in the UK in a sponsored role. Your permission to stay in the UK is tied to the job you have been sponsored to do, and the employer that offered you the role. The visa allows you to work for your sponsoring employer in the role detailed in your certificate of sponsorship.

In addition to this main role, Skilled Worker visa holders are allowed to take on supplementary employment under strict conditions. These conditions include working for no more than 20 hours per week in a role that is either on the shortage occupation list or in the same occupation code as your sponsored job. However, these additional hours must not interfere with your main sponsored employment, and you must continue to meet the requirements of your visa.

Can You Start a Business While on a Skilled Worker Visa

The short answer is no. Under the current UK immigration rules, individuals on a Skilled Worker visa are not permitted to engage in self-employment or start their own business. This includes registering as a sole trader, becoming a partner in a business, or setting up a limited company in which you actively work. Doing so would breach the conditions of your visa, which could result in your visa being curtailed and affect any future immigration applications.

Running a business requires a form of self-employment, which is not permitted under this visa route. Even if the business is run in your spare time or does not generate immediate income, if you are actively involved in managing, operating or promoting it, you are likely in breach of your visa conditions.

What About Passive Income or Investment

There is a distinction between actively running a business and being a passive investor. As a Skilled Worker visa holder, you can invest in UK businesses or own shares in a company, as long as you are not employed by that business or involved in its day to day operations. For example, if you purchase shares on the stock market or invest in a company as a silent partner, this is usually allowed. However, you must not take on any role within the business that counts as employment or self-employment.

It is important to keep clear documentation and seek legal advice if you are unsure about any investment activity. You must be able to demonstrate that your primary role remains with your sponsoring employer and that you are not engaging in unauthorised work.

What Are the Alternatives if You Want to Start a Business

If your long term goal is to run your own business in the UK, you will need to consider switching to a visa that permits self-employment or business ownership. The UK does offer several immigration routes for entrepreneurs and business owners, though they each have specific criteria and application processes.

One option is the Innovator Founder visa, which replaced the old Innovator and Start-up visas. This visa is aimed at individuals who want to start an innovative business in the UK and have their idea endorsed by an approved endorsing body. The business must be viable, scalable and original, and you must be actively involved in developing and managing it. This visa allows you to live in the UK while working on your business full time.

Another route may be available through the Global Talent visa, which is for individuals recognised as leaders or potential leaders in fields such as academia, technology, the arts and science. This visa offers more flexibility around self-employment and allows you to set up a business without a sponsoring employer.

You may also become eligible for settlement after five years on a Skilled Worker visa, after which you can apply for Indefinite Leave to Remain. Once granted, you are no longer bound by the conditions of the Skilled Worker visa and can start your own business freely.

Important Considerations and Legal Advice

If you are on a Skilled Worker visa and thinking about starting a business, it is essential to seek professional immigration advice before taking any action. Even well intentioned side projects or freelance work can unintentionally breach visa conditions. The Home Office takes visa compliance seriously, and breaches can lead to visa curtailment, removal from the UK and a bar on future applications.

It is also important to be cautious about offers to start businesses through friends or family members. While you might not be officially listed as a director or employee, if you are found to be involved in running or promoting a business, this may still count as unauthorised work.

If you are in discussions with your current employer about developing a new business venture within their organisation, they may be able to sponsor a new role under the Skilled Worker visa if it meets the salary and skill requirements. This approach must be handled carefully and with legal guidance to ensure compliance with immigration rules.

Final Thoughts

While the Skilled Worker visa provides a valuable opportunity to live and work in the UK, it is not a route that supports self-employment or starting your own business. Any active involvement in a business outside your sponsored employment is likely to breach visa conditions. If you are serious about becoming an entrepreneur in the UK, it is worth exploring alternative immigration routes that support business ownership. In the meantime, remain compliant with your visa conditions and focus on building your skills, network and understanding of the UK business environment so that you are well prepared when the time comes to make the switch.