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Immigration Solutions for Overseas Business Expansion into the UK

Posted by: Jarmila Entezari
Posted in: Business immigration
Date published: 15/10/2024

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Introduction

The United Kingdom is a popular destination for businesses which often seek to expand internationally to tap into new markets and increase their global footprint. However, for businesses outside the UK, entering the British market presents legal and logistical challenges, particularly  meeting the requirements of the immigration rules. This case study focuses on an overseas client, a sole trader, who sought to expand their business into the UK and the immigration pathways available to achieve this goal.

The focus of this case revolves around the Global Business Mobility (GBM) UK Expansion Worker Visa, a key route used to facilitate the client’s  expansion on to the UK market. This visa was chosen after considering various options, including the Skilled Worker Visa. The legal process, requirements, and challenges faced during this application are discussed, providing valuable insight for businesses and individuals in similar circumstances.

All the information can be found in the video.

Choosing the Appropriate Immigration Route

The first and most crucial step in expanding a business into the UK is selecting the correct immigration category. Depending on the specific circumstances of a business, there are  some immigration routes to consider:

• Skilled Worker Sponsor Licence: This option requires an established UK business with an active sponsorship management system to sponsor foreign workers.

• Self-Sponsorship: A less common option for individuals looking to start a business in the UK and sponsor their own work visa and which works only in particular circumstances.

• Global Business Mobility (GBM) UK Expansion Worker Visa: The visa chosen for our client in this case.

In this instance, the GBM UK Expansion Worker Visa was selected as the most appropriate solution. The key reason for this decision was that the client’s business had no trading presence in the UK at the time of application. The Home Office requires a UK footprint—typically involving company registration—but no actual trading activity at the time of application, making this visa ideal for businesses in the initial stages of expansion.

Key Differences Between Visa Options

The Skilled Worker Visa is typically but not necessarily used by businesses that are already established and operating in the UK. It allows these companies to sponsor foreign workers to fill skilled roles. However, businesses applying for a skilled worker sponsor licence must have a registered presence and be actively trading in the UK. For a new business with no existing UK operations, this visa may not be feasible initially.

By contrast, the GBM UK Expansion Worker Visa offers a temporary solution, allowing a business to send a representative to the UK to set up operations and manage the initial stages of expansion. Unlike the Skilled Worker Visa, this visa does not require the business to already be trading in the UK, making it ideal for companies just entering the market.

The GBM Visa is also limited in scope: it allows for a temporary stay of up to maximum of two years, Leave to remain does not lead to indefinite leave to remain (ILR), meaning that long-term residency requires a transition to another visa, such as the Skilled Worker Visa, once the business is more established.

Application Process and Challenges

The application process for the GBM UK Expansion Worker Visa is rigorous, and the Home Office is stringent in assessing the genuineness of applications. For this case, the following key requirements were met:

• Business Plan: A comprehensive business plan was prepared, detailing the market research and demonstrating the need for the client’s business in the UK. This document was critical in convincing the Home Office of the business’s viability in the UK market.

• Sponsorship Licence: Since the client was a sole trader, the business had to apply for a sponsor licence to sponsor the client as the expansion worker. This included demonstrating the client’s capability to manage the sponsorship system.

• Employment and Experience Requirements: The client had to show that they had worked for their overseas business for at least 12 months before applying for the visa. For businesses sending workers to the UK under this visa, it is essential that the individual has a proven employment history with the organisation unless the worker which is being sent is a high earner.

• Salary Requirements: The applicant was required to demonstrate that they would receive a salary that met or exceeded the general salary threshold of £48,500 per year, as well as the going rate for the occupation code applicable to their role.

Visa Approval and Next Steps

Following the preparation of the necessary documents and meeting all the Home Office’s requirements, the client’s application for the GBM UK Expansion Worker Visa was approved. The client was granted entry clearance for one year, during which they were able to set up the business operations in the UK.

Upon completing the initial year, the client could apply for a one-year extension, allowing a total stay of up to two years on this visa. However, if the business wishes to continue operating in the UK beyond this period, the business will need to apply for a different immigration route, such as the Skilled Worker Sponsor Licence. This would also allow the client and any dependents to switch to the Skilled Worker Visa, offering a pathway to indefinite leave to remain in the UK.

Key Considerations for Businesses Expanding to the UK

• Choosing the Right Visa: Businesses must carefully consider their circumstances when choosing the appropriate visa. The GBM UK Expansion Worker Visa is ideal for businesses without a UK trading presence, but it is a temporary solution.

• Long-Term Planning: For businesses aiming for long-term establishment in the UK, it is essential to plan for the future. Transitioning to the Skilled Worker Sponsor Licence is critical for businesses wishing to remain in the UK beyond the two-year limit of the GBM visa.

• Comprehensive Business Plan: A detailed and well-researched business plan is crucial for demonstrating the viability of the business in the UK and meeting the Home Office’s stringent requirements.

• Compliance with Immigration Law: The Home Office expects businesses to comply with all immigration rules, including managing sponsorship duties. Failure to meet these obligations can result in severe penalties, including the revocation of the sponsorship licence.

Conclusion

The Global Business Mobility UK Expansion Worker Visa offers a flexible and temporary solution for overseas businesses seeking to enter the UK market. While it provides an initial foothold, businesses must prepare for the future by planning their operations and potential immigration routes for the long term. For this case, the client successfully expanded their business into the UK, with the option to transition to a more permanent solution in the future.

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.

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