UK: OPEN FOR BUSINESS Satinder Gill Barrister and Consultant with Georgiades and Associates

1. UK: OPEN FOR BUSINESS Satinder Gill Barrister and Consultant with Georgiades and Associates

2. UK: OPEN FOR BUSINESS UK is open for business and provides a competitive and secure market for: • Investors • Entrepreneurs • Overseas Business

3. EEA Nationals • Nationals of EEA may work, conduct business and invest in UK in exercise of rights under EU Treaty • Today we focus upon 3 key routes for nationals of countries outside of EU Treaty rights or derivative rights

4. 3 Key Routes • Tier 1 Investor • Tier 1 Entrepreneur • Representative of an Overseas Business

5. Tiers, PBS & Immigration Rules • Tier 1 - part of Points Based System (PBS) • PBS - major part of UK immigration system operated by Home Office through UK Visas and Immigration • PBS - covers routes for stay/entry for work, business, investment and study purposes • Immigration Rules - statements of Home Office practice

6. Points • PBS requires applicants to achieve designated number of points • Misnomer • Migrant applicants must fully meet requirements of each route • PBS applications must be submitted correctly • Little scope to correct errors

7. Terminology • Entry clearance / leave to enter / LTE • Visa that allows entry to UK • Leave to remain / LTR • Residence permit allows stay in UK • Indefinite Leave to Remain / ILR / PR • Residence permit that allows permanent residence in UK

8. TIER 1 INVESTOR Route for high net worth individuals making a substantial financial investment to UK

9. Key Requirements • Minimum amount of investment £1M • Accelerated permanent residence for investment of £5M or £10M • No English language requirement • No maintenance requirement for applicant or dependants

10. Initial Leave • Initial Entry Clearance is granted for 3 years and 4 months • Initial Leave to Remain is granted for 3 years • Migrants may but are not required to work • Migrants may not work as professional sportspersons • Leave will be curtailed if investment not maintained

11. Investment Requirement • There are 2 ways to meet the investment requirement Route 1 • £1M own money Route 2 • £2M net assets and £1M money on loan

12. Route 1 At least £1M money of own held in regulated financial institution and disposable in UK

13. Route 1 • Can rely on money held jointly with a spouse, civil, unmarried or same-sex partner • Money may already be invested in UK (in last 12 months) or held abroad

14. Route 1 What investments qualify? • Government bonds • Share or loan capital in active and trading companies registered in UK

15. Route 1 Source of funds: • Gift • Deeds of sale • Evidence of business • Will / Inheritance • Divorce settlement or Order • Award or winnings

16. Route 2 • Owns net personal assets of at least £2M AND • Has at least £1M under control held in a regulated financial institution and disposable in UK which has been loaned by a UK regulated financial institution

17. Route 2 Under Route 2: • All of the funds may be borrowed • Applicants may not mix borrowed funds with personal funds (including those held by a spouse, civil, same-sex or unmarried partner)

18. Route 2 Letter from UK regulated financial institution must confirm: • At least £1M available on date of letter • Institution is UK regulated financial institution • Migrant’s personal assets worth at least £2M • Institution will confirm contents of letter to Home Office if required

19. Permanent Residence Permanent residence requirements: • Qualifying length of residence and amount of investment and/or assets • Not an illegal entrant and does not fall for refusal under general grounds for refusal under Immigration Rules • Sufficient knowledge of English language and of life in UK

20. Qualifying assets, investment & periods of residence Interlinked requirements • Amount of assets and/or investment relevant to period of residence required before applicant may apply for permanent residence

21. PR after 5 years • Investment of £1M own money OR • £1M on loan and net assets of £2M

22. PR after 3 years • Investment of £5M own money OR • £5M on loan and net assets of £10M

23. PR after 2 years • Investment of £10M own money OR • £10M on loan and net assets of £20M

24. Dependants Family members may apply for settlement: • Spouse, civil, unmarried, same-sex partner • Children under 18 years of age

25. TIER 1 ENTREPRENEUR Route for migrants who wish to establish, join or take over 1 or more businesses in UK

26. Key Requirements • Up to 2 migrants invest £200K OR £50K into a business • Sufficient knowledge of English language • Sufficient additional funds for maintenance • For subsequent leave applications, creation of 2 full-time jobs for settled workers

27. Initial Leave • Initial Entry Clearance is granted for 3 years and 4 months • Initial Leave to Remain is granted for 3 years • Migrants must not take other employment in UK

28. Investment Requirement There are 3 ways to meet the investment requirement • Route 1 £200K • Route 2 £50K from specified sources • Route 3 £50K if switching from 2 specified immigration categories

29. Migrant Teams Applications may be made by a migrant entrepreneur or a team of up 2 migrant entrepreneurs Each of the team members must meet the requirements The team may share the same investment funds (£200K or £50K) divided between them as deemed fit

30. Route 1 £200K of own money, or money made available from a third party or parties • Third party includes another investor, a corporate body, the applicant’s spouse, civil, unmarried or same-sex partner • Each third party must provide a specified form of signed declaration • Independent legal representative’s confirmation of third party signature(s)

31. Route 2 £50K from any combination of 3 sources: • 1 or more registered venture capitalist firms registered with Financial Conduct Authority • 1 or more UK Entrepreneurial seed funding competitions as endorsed on UK Trade & Investment website • 1 or more UK government departments or devolved government departments and made available for that purpose

32. Route 3 (1) £50K of own money, or money made available from a third party or parties (as above) if migrant applicant: • Was lasted granted leave as a Tier 1 Graduate Entrepreneur migrant

33. Route 3(2) £50K of own money, or money made available from a third party or parties (as above) if migrant applicant: • Was lasted granted leave as a Tier 1 (Post-study Work) migrant AND • Within 3 months prior to applying: • Registered with HMRC as self-employed OR • Registered a new business in which he was a director OR • Registered as a director of an existing business • Is working in an occupation at level 4 or above of UK National Qualifications Framework. Level 6 is equivalent to a UK Bachelor’s degree with Honours

34. General Requirements • Money must be held in 1 or more regulated financial institutions • Money is disposable in UK • Application is genuine

35. Job Creation Requirement for migrants when applying for further leave to remain and whether establishing new or investing in existing businesses: • 2 new full-time jobs for persons settled in UK

36. English Language 3 ways to meet this requirement: • Pass certificate for a Home Office approved test at level B1 of Common European Framework for Language Learning • National of Home Office designated English-speaking country • Holder of degree accepted by Home Office as taught in English language and equivalent to at least UK Bachelor’s degree

37. Entry clearance maintenance Higher sums are required for maintenance for entry clearance applications or when the migrant has spent less than 12 months in UK • £3,100 for migrant if outside of UK OR • £900 for migrant if in UK • £1,800 for each dependant • Money must be personal savings held for consecutive 90 day period ending no earlier than 31 days before application date

38. Leave to remain maintenance If the migrant has been in the UK for 12 months or more, the maintenance requirements are: • £900 for migrant • £600 for each dependant • Money must be personal savings as above

39. OVERSEAS REPRESENTATIVE • Route for an overseas business to send a senior employee to establish a branch or wholly owned subsidiary in UK

40. Requirements for Overseas Business Overseas business: • Must have its HQ and principal place of business outside of UK • Must not have existing UK branch or subsidiary • Ensure UK branch or subsidiary will be concerned with same type of business activity

41. Requirements for Representative Representative must: • Be senior employee with authority to take operational decisions • Be sole representative of overseas business • Work full time as overseas representative • Not be majority shareholder in overseas business • Competence in English language • Maintain and accommodate himself and any dependants adequately without recourse to public funds

42. Language Requirement • Pass certificate for a Home Office approved test at level A1 of Common European Framework for Language Learning • National of Home Office designated English-speaking country • Holder of degree accepted by Home Office as taught in English language and equivalent to at least UK Bachelor’s degree

43. Maintenance Requirement • Question of fact and degree • No set minimum amount is required • Maintenance and accommodation for migrant and dependants

44. Extension applications Extension applications (for LTR) require: • Applicant must have entered as an overseas representative (no switching) • Overseas business still has its HQ and principal place of business outside of UK • Migrant employed full time as overseas representative and in charge of UK branch or subsidiary • Employer certifies that migrant still required for employment in question

45. Permanent Residence • 5 years’ continuous residence • Requirements for route met throughout period • Representative still required for employment in question as certified by employer • Sufficient knowledge of English language and life in UK • Not fall for refusal under general grounds

46. Dependants • Spouse, civil, unmarried or same-sex partner • Children under 18 years of age • All can apply for entry clearance, LTR or ILR / PR

47. Advantages Overseas Representative route: • Outside of PBS – UKVI and judicial system allow more flexibility in applications • Lower threshold English language ability • No minimum specified amounts for maintenance

48. OVERVIEW 3 important routes considered: • Tier 1 Investor – high net worth individuals at least £1M, £5M or £10M investment in UK • Tier 1 Entrepreneur – business people with £200K / £50K investment and job creation • Overseas representative – establishment of UK branch of wholly owned subsidiary of an overseas business

49. CONCLUSION • Attractive routes to inward investment into UK • PBS under constant reviews to meet trends in migration and governmental immigration policy • Recent consultation on Tier 1 Investor Thank you for attending and listening Any questions?

50. DISCLAIMER This presentation contains general information on UK immigration law and should not be taken as legal advice There are very detailed and specific requirements in addition to those set out in this presentation Satinder Gill Barrister 23 May 2014