Settlement Criteria for Innovator Founder Visa

The Innovator Founder Visa is the golden ticket for ambitious entrepreneurs aiming to make their mark in the UK. Not only it is an opportunity for you to build your business in an ambitious market, you can also fast-track to settlement in the UK if you fulfil 2 out of 7 criteria on this Indefinite Leave to Remain list specifically for this visa.

Today, we will break this 7 criteria down for you help you understand how to optimise your chance to apply for settlement status successfully.

Keen to dive deeper? Our blog post, "Why You Should Get an Innovator Founder Visa?" offers a wealth of insights. 

Business Requirement

To secure settlement under the Innovator Founder Visa, you have the flexibility to choose from seven distinct criteria that showcase the success and impact of your business. Meeting at least two of these criteria is your ticket to eligibility for settlement. You need to secure an endorsement letter from your endorsing body to confirms your achievements:

• Invest at least 50,000 into the business and actively spent furthering the business
• The business’s customer count has doubled in the three years and is now higher than the average for similar UK businesses
• Engage in significant research and development activity and has applied for intellectual property protection in the UK
• The business must have generated gross revenue of at least 1 million
• The business is generating a minimum of 500,000 with 100,000 from exporting overseas
• The business has created the relevant at least 10 full time job for settled workers
• The business has created 5 full-time jobs for resident workers with a minimum salary of 25,000. 

Criteria 1: 50,000 Investment

One popular route many entrepreneurs take is the investment pathway, particularly the £50,000 investment from your own pocket into your blossoming business. It's like seeding your garden with the funds it needs to grow, but there's a twist – your spending should align with the roadmap laid out in your business plan.

Salmo Pro Tips

To make sure you're on track, here’s a friendly checklist of documents to gather:

• Business Bank Statements: These should clearly show the investment being made into your business. 
• Personal Bank Statements: Keep a record showing the transfer from your personal account into the business. 
• Proof of Active Spending: This is where you show that the funds have been put to work, not just sitting pretty in the account. Gather receipts and invoices that trace the money from your initial transfer to its use in the business. 
• Link Back to Your Business Plan: Finally, ensure these expenses directly tie back to items or activities you've detailed in your business plan. It's about showing that your spending isn’t just thoughtful but follows the blueprint you've laid out for success.

Criteria 2: Customer Growth

The second criterion is the customer growth. To fulfill this requirement, your enterprise must achieve two key milestones: doubling its customer base within three years and exceeding the average size of customer bases within similar UK businesses in your sector. Achieving this not only highlights your business’s strong market presence but also underscores its leadership and potential for further growth in its industry.

Now, here’s the twist: figuring out this customer growth puzzle can be a bit like navigating a maze without a map. What exactly counts as "comparable UK businesses," and how do we even start to count customers in a way that's fair and square? Given the lack of clear guidelines from the Home Office and the absence of a universal standard, this criterion often isn't the first choice for many applicants. It becomes a tad challenging for endorsement bodies to fully back your success story without a straightforward measure. 

Salmo Pro Tips

• Try to aim for other criteria: You might want to steer your ship towards other criteria that have more straightforward guidelines. It helps dodge any surprises if your idea of growth doesn't quite match up with the Home Office's expectations. 
• Use this criteria as a bonus: If you've managed to meet this challenging criterion and have the evidence to back it up, consider using it as an extra feather in your cap. Treat it as a bonus criterion alongside the other two you've selected. 

Criteria 3: Engage in significant R&D

Diving into research and development (R&D) is a popular route for those holding the Innovator Visa, and it's no wonder why! After all, it is called the "Innovator" Visa for a reason. The Home Office is on the lookout for bright minds who are not just dreaming about innovation but are actively rolling up their sleeves and bringing fresh ideas to life in the UK.

R&D isn't just about tinkering in the background; it's about being at the forefront of change and showing that your venture is contributing something new and valuable to the market. It's your chance to stand out by demonstrating how your business is pushing boundaries and setting new standards in your industry.

Salmo Pro Tips 

• Keep a Detailed Log: From the get-go, document every step of your R&D journey. This includes project plans, objectives, the team involved, timelines, and budgets. Think of this documentation as the story of your business's quest for innovation.
• Showcase Your Successes: Any breakthrough or improvement, no matter the scale, is worth highlighting. These are the milestones that prove your R&D efforts are fruitful, demonstrating your commitment to innovation.
• Evidence Is Key: Having an IP application—or better yet, approval—ready to show is gold. It's concrete proof that your innovations are recognised and protected, reinforcing the value of your R&D activities.
• Alignment with Your Business Plan: Ensure your R&D activities resonate with the initial vision outlined in your business plan when applying for the visa. This coherence shows that your innovation journey is not just a series of experiments but a focused effort to realise your business's potential.

Criteria 4 and 5: Gross revenue

For the revenue criteria, you can achieve either of the following:

1. The business must have generated gross revenue of at least 1 million
2. The business is generating a minimum of 500,000 with 100,000 from exporting overseas

Hitting the magical number in gross revenue is like throwing a massive party to celebrate your business's success – it shows the world (and especially the Home Office) that you've not only got a great idea but also that people are loving it enough to open their wallets. It's a huge high-five to your team's hard work, your savvy business strategies, and your knack for knowing just what the market wants. This milestone isn't just about the money; it's proof that your business is on fire, in the best way possible!

Salmo Pro Tips

Make sure to keep a record of the following documents:

• Last Set of Financial Accounts: This is like the highlight reel of your business's financial year. Make sure it's up-to-date and accurately reflects your business's performance.
• Corporation Tax Returns (CT600): Think of this as your business's tax report card. It's crucial for showing the Home Office that you're playing by the rules and contributing your fair share.
• Invoices for Sales or Services Rendered: These are the bread and butter of your business's financial transactions. They're proof positive that your business is active, engaging with customers, and bringing in revenue.
• Contracts with Clients: These documents are like the handshake deals of your business, only better because they're in writing. They show the Home Office the scope of your work and the trust clients place in your business.
• Business Bank Statements: The financial diary of your business. These statements should clearly show money coming in from sales or services, acting as a testament to your business's active operations.
• Evidence of Domestic and/or International Sales: Break down your sales by country, channel, and timeline. Whether it's online sales soaring or physical retail thriving, give a clear picture of who's buying what and where. If you're a global operator, highlighting your customer base across borders can be a gold star on your application.

Criteria 6 and 7: Employment

Diving into the employment criteria for the Innovator Visa, you're presented with two pathways to demonstrate your business's positive impact on the UK job market:

1. The business has created the relevant at least 10 full time job for settled workers
2. The business has created 5 full-time jobs for resident workers with a minimum salary of 25,000. 
   

These two criteria really shine a light on how your business can be a force for good in the local economy by offering jobs to settled workers. It's like giving your venture a high-five for not just doing well but also doing good, adding a bit of sparkle to the community by opening up new job opportunities. Creating these roles isn't just a sign that your business is on the up and up; it's proof that you're weaving your success into the fabric of the community, helping to lift everyone up with you. It's about showing that your entrepreneurial journey is about more than just profit—it's about making a real difference in people's lives and contributing to the collective prosperity.

Salmo Pro Tips

Make sure to keep a record of the following documents:

• List of employees: Keep a handy list of all your team members. It's like your business family tree, showing everyone who's helping your dream grow.
• Copy of the employment contracts: These aren't just formalities; they're the story of how you and your team members came together. Keep copies of these employment contracts safe and sound.
• The right to work: Make sure you have a copy of your employee's passport, this is important because you'll need to prove to the Home Office that your employees are either British or settled workers.
• Payment slips for the last 12 months: Keep a record of payment slips for the last 12 months. It's like keeping a score of all the hard work and dedication month by month.
• Registration with PAYE: If you’re playing the role of employer, being registered with PAYE (Pay As You Earn) is key. It’s like your official membership card into the responsible employers’ club.

Other Requirement

In addition to showcasing your business's success through the specific criteria, there are other important boxes to tick on your path to settlement with the Innovator Visa:

• Ace the Life in the UK Test: This isn't just any test; it's a rite of passage for those looking to settle in the UK. It assesses your knowledge of British customs, culture, and history, ensuring you're ready to be part of the UK's vibrant community.
• Keep Your Travels in Check: The UK wants to know you've been around, but not too far away. You must ensure that you haven't spent more than 180 days outside the UK in any given 12 months during your qualifying period. It's all about striking the right balance between exploring the world and building your life and business in the UK.
  

Meeting these requirements is as crucial as fulfilling the business criteria, painting a complete picture of your commitment to making the UK your long-term home and contributing to its society and economy.

Conclusion

Wishing you the very best on your entrepreneurial voyage! We know this journey is filled with both daunting challenges and shining opportunities, akin to steering a ship through the vast ocean of entrepreneurship. 

But remember, you don't have to sail these waters by yourself. Salmo is here to navigate alongside you, providing consulting services and developing tools specifically designed to make this journey smoother, and to transform your UK dreams into reality. Dive into our services today and let us help you chart a course for success.