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09 Feb Can you be a UK shareholder with any type of visa?

Posted on February 9, 2022 in Working in the UK by
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Migrants who are holding a business/working visa in the UK such as the Sole Representative, Tier 1 Investor, Start-up, Innovator, Skilled Worker, Tier 1 Entrepreneur, or Skilled Worker, are subject to different requirements in terms of the share ownership.

Representative of an Overseas Business visa

A Sole Representative visa requires an applicant to be a senior employee in the parent company, but they should not be a majority shareholder in said organisation. For an entry clearance application, migrants have to provide a copy of the overseas company’s shares registration showing the ownership for the previous year.

If the individual wishes to bring his/her dependent spouse/ civil partner/ unmarried partner to the UK, their dependant cannot be a majority shareholder of the parent company.

Finally, the newly established UK branch or subsidiary must be wholly-owned by the parent company as the Sole Representative is not permitted to hold any shares in the UK company.

Tier 1 Investor visa

In order to apply for the Tier 1 Investor visa, individuals will need to invest a minimum £2 million in the form of share or capital loan, in actively trading UK companies. Migrants can also invest in an active and trading business(es) that they own, but the company must be trading in the UK and have at least two employees who are not the directors.

Start-up & Innovator visa

The Start-up and the Innovator visa schemes are for migrants who wish to establish an innovative, viable and scalable business in the UK.

In order to qualify the Start-up or Innovator visa application, individuals will need to be “sponsored” by an approved endorsing body. Some endorsing bodies might ask for a share of equity in the company before they issue an endorsement letter.

Tier 1 Entrepreneur visa

The Tier 1 Entrepreneur visa was closed in March 2019. However, those who are applying for extension or Indefinite Leave to Remain (ILR) will need to demonstrate that they are genuinely operating their UK company as Director and intend to continue to do so.

In addition to providing evidence of the holding shares in an active UK company, individuals will also need to provide further documentation to show that they have met all the other requirements such as the job creation and investment.

Skilled Worker visa

The Tier 2 General visa was replaced by Skilled Worker visa in December 2020. Under the Tier 2 General visa category, migrants were not allowed to hold more than 10% share in their sponsoring company.

Although there is no such restriction under the Skilled Worker scheme, migrants will still need to demonstrate that their role filled a genuine vacancy and that they can satisfy the other requirements such as appropriate skills and salary level. If the migrant holds a large proportion of the shares in the company, or if the share value is high but the individual’s annual salary is low, the Home Office might doubt the genuine nature of  the vacancy.

Contact Our Immigration Team

For expert advice regarding any aspect of the UK visa application, please contact our immigration team on 0203 384 3075.

The content of this article is for general use and information only. Since each case should be prepared on its own merit and in light of the constant amendments to the Immigration Rules, it is important to note that the information provided must not be relied upon unless Migra & Co has either given written consent or has been officially engaged in relation to a specific immigration matter. As a result, Migra & Co will take no responsibility for any damage, cost or loss resulting from relying on the information contained in this article, blog and website.