UK RESIDENCE FOR INVESTORS and ENTREPRENEURS

UK RESIDENCE THROUGH INVESTMENT OVERVIEW

There are two avenues through which foreign nationals may obtain UK residence through investment

ENTREPRENEURS must invest £200,000 and are required to be actively involved in the day to day management of the company in which they invest. These are also sometimes referred to as ‘self-employed persons’ as their investment may take the form of setting up their own independent business.

INVESTORS are required to invest £1,000,000 into the UK and are not required to be actively involved in the management of their investments.

Persons entering the UK through investment are granted residence for themselves, their spouse and their minor dependent children. After four years they may apply for permanent residence and one year later they may apply for British citizenship.

RESIDENCE FOR BUSINESS ENTREPRENEURS

Business person and self-employed persons are required to invest a minimum of £200,000 in a new or existing business in the United Kingdom.

The main conditions that must be met for entry as a business person or self-employed person are:

The applicant must have £200,000 under his control and disposable in the United Kingdom.
He must be able to show that until the business provides him with an income, he will have sufficient additional funds to maintain and accommodate himself and any dependants without recourse to employment or public funds.
The applicant must be actively involved full-time in the running of the business by providing services on his own account, in partnership, or as a company director. He should have a controlling or equal interest in the business and his work should not amount to disguised employment.
His level of financial investment should be proportional to his interests in the business.
He should be able to bear his share of liabilities.
His share of the profits of the business should be sufficient to maintain and accommodate himself and any dependants without recourse to public funds or other employment.
He should not intend to supplement his activities by taking other employment in the UK.
In addition, the business should create employment opportunities for at least two persons who are already settled in the UK.

An application must be made for entry clearance to the applicant’s nearest British Embassy, Consulate, or High Commission overseas.

A comprehensive business plan must be prepared and submitted in support of the application. In addition, documentary evidence must be provided that the money to be invested in the business is under the person’s control and disposable in the UK.

Applications are forwarded to the Home Office in London for final decision.

ENTREPRENEUR APPLICATIONS

Applications for entry clearance as an entrepreneur require careful preparation and must be accompanied by comprehensive and professionally prepared documentation.
While the basic requirements are relatively straightforward, there are many details with which prospective applicants should be familiar before entering into dialogue with the authorities.

We recommend that persons considering this type of application take professional advice from a specialist immigration solicitor.

You need somebody who has a great deal of experience in the preparation of entrepreneur applications and works with recognised accounting professionals to help clients prepare business feasibility studies in support of their applications.

You need somebody who will have helped many entrepreneurs from all over the world to settle in the UK. We offer sound confidential advice and are prepared to travel to provide advice and also to accompany entrepreneurs to their immigration interviews if required.

RESIDENCE FOR INVESTORS

The investor category has been added to the UK Immigration Rules to encourage inward investment to the UK.

In order to meet the requirements the applicant must:

Have at least £1 million of his own, which is under his control and disposable in the UK.
Invest at least £750,000 of this capital in UK Government Bonds, shares or loan capital in active and trading UK registered companies.
Intend to make the UK his main home.
Be able to maintain and accommodate himself and any dependants without recourse to public funds or other employment.
Hold a valid entry clearance.

Applications are normally made to the British Embassy, Consulate or High Commission nearest to the applicant’s place of residence.

THE UK AS A TAX HAVEN

London offers many attractions for the wealthy international investor.

Apart from its wealth of cultural, entertainment and eating offerings, and its position as one of the world’s major financial and investment centres, London can also be a tax haven for wealthy foreign residents.

It is possible for wealthy investors to structure their affairs in such a way that they can live in the UK while lawfully minimising their tax bill.

THE INVESTMENT

The qualifying investment must be made shortly after the investor enters the UK.

The investor is allowed complete control of the funds and they may be placed in long term investments or moved from one investment to the next as required.

However the investments allowed under this program are limited to specific types, including
Government Bonds (more often called ‘Gilts’ or ‘Gilt-edged Stocks’)

Stocks and shares, purchased either directly in public or private limited companies, or in the form of a ‘collective investment’, such as unit/investment trusts or investment bond.

UK INVESTOR APPLICATIONS

Applications for entry clearance as an investor must be carefully prepared. While the basic requirements are relatively straightforward, there are many details with which prospective applicants should be familiar before entering into dialogue with the authorities.

We recommend that persons considering this type of application take professional advice from a specialist immigration solicitor who has a great deal of experience in the preparation of these applications and offers investors a highly personalised service. You need somebody who has helped many investors from all over the world to settle in the UK, and who offers sound confidential advice and are prepared to travel to provide advice and also to accompany investors to their immigration interviews.

Where requested we will also accompany applicants and their families when they make the first entry into the UK at which time they receive resident status.

_{Under current rules, migrants who are here on a work visa can apply after five years for permanent settlement, known as Indefinite Leave to Remain. Once this is approved, they can go on to apply for citizenship. But the full range of benefits becomes payable as soon as they are granted ILR. Those arriving to marry have slightly different rules. They can apply to settle here - and then for citizenship - after two years. Officials say only 60 per cent of people given ILR ever apply for citizenship, but in 2006 alone, that led to 150,000 passports being handed out. Ministers now want the remaining 40 per cent to become Britons as well, adding another 105,000. Even the ultra-wealthy will be expected to apply for British nationality or permanent residence. The new proposals include scrapping the ILR system. Winning citizenship will take at least six years from the date of arrival, a year longer than at present because of a new stage of 'probationary citizenship' on top of the initial five years.}