The Skilled Worker visa is one of the most popular immigration routes for non-UK nationals who want to live and work in the UK. But what if you’re looking beyond employment – and considering starting your own business? Can a Skilled Worker open a company in the UK?
The answer is yes – but with important restrictions. In this article, we explain what Skilled Worker visa holders can and cannot do when it comes to setting up a business in the UK, the risks of breaching visa conditions and alternative routes for those aiming to run a company full-time. Plus, you’ll have the chance to discuss those options in a free 30-minute consultation with our Skilled Worker visa solicitors.
What is the Skilled Worker visa?
The Skilled Worker visa is designed to allow overseas nationals to work in the UK for a licensed sponsor in an eligible role. It replaced the Tier 2 (General) visa and requires applicants to:
- Have a confirmed job offer from a UK employer
- Work in a role on the list of eligible occupations
- Be paid a minimum salary (usually £26,200 or £10.75 per hour, depending on the role)
- Prove their knowledge of English
The visa is tied to a specific employer and job. This means the holder is sponsored to work for that employer – not to be self-employed or start a business.
Can Skilled Worker visa holders register a company?
Yes – there is nothing stopping a Skilled Worker visa holder from registering a private limited company at Companies House. You can also:
- Be listed as a company director
- Own shares in a UK company
- Open a UK business bank account
In other words, you can take legal steps to establish a company. However, running that company full-time or receiving income from it may breach your visa conditions.
What does the visa allow – and what doesn’t it?
The Skilled Worker visa allows you to:
- Work for your sponsoring employer in the role you were approved for
- Do supplementary work under strict rules (including up to 20 hours a week in the same occupation or a shortage role)
- Study, provided it doesn’t interfere with your sponsored job
- Bring dependants (partner and children)
It does not allow you to:
- Be self-employed
- Work in a role other than the one you were sponsored for (unless you change visa conditions)
- Run your own business as your main job
- Work freelance, contract or gig-economy jobs unless permitted
If your company pays you a salary and you are effectively working for your own business outside the terms of your sponsored employment, you may be in breach of immigration rules.
What if you set up a business on the side?
Setting up a business in a personal capacity, such as developing a product, creating a brand or preparing a future venture, may be acceptable as long as:
- You are not working for or being paid by the business
- The business is not yet trading or generating income for you
- Your main job remains with your sponsoring employer
However, this is a grey area and highly case-specific. If the Home Office finds that you are operating a business in a way that constitutes self-employment or unauthorised work, your visa could be cancelled.
It’s vital to get legal advice from an immigration solicitor before proceeding with anything that could be considered work outside your visa conditions.
What happens if you breach visa conditions?
The consequences of breaching the terms of your Skilled Worker visa can be serious. You may face:
- Visa cancellation or curtailment
- Refusal of future visa applications
- A ban on re-entry to the UK for a number of years
Even if you are acting in good faith – for example, registering a business without trading – it’s important to stay within the rules and seek professional advice where necessary.
Can you switch from a Skilled Worker visa to a business visa?
Yes – if you wish to run your own business full-time, you may be able to switch to a different visa category. The most relevant options include:
1. Innovator Founder visa
The innovator visa route is designed for entrepreneurs who want to start an innovative, viable and scalable business in the UK. To be eligible, you must:
- Have an original business idea
- Get endorsement from a Home Office-approved body
- Show you are actively involved in running the business
Unlike the previous Tier 1 Entrepreneur visa, there is no fixed investment amount – but you must demonstrate the business has strong growth potential.
2. Global Talent visa
If you’re a leader or emerging talent in fields like science, digital technology or the arts, you may qualify for the Global Talent visa. This route offers greater flexibility, including the right to work, be self-employed and open a business without sponsorship.
3. Start-up visa (now closed to new applicants)
Previously a popular route, the Start-up visa closed to new applications in July 2023. Those on the Start-up visa can still switch to the Innovator Founder route.
Can dependants of Skilled Workers run a business?
Yes – dependants (spouses or partners) of Skilled Worker visa holders are allowed to be self-employed or open a business. They are not subject to the same restrictions as the main visa holder.
This can be a useful workaround for families where one partner holds the Skilled Worker visa and the other wants to explore entrepreneurship.
Speak to a solicitor before starting a business
If you’re in the UK on a Skilled Worker visa and are considering setting up a business, it’s essential to get professional advice. UK immigration solicitors can help you:
- Understand what activity is and isn’t permitted
- Assess your risk of breaching visa conditions
- Explore suitable visa switching options
- Structure your business legally and compliantly
At Osbourne Pinner Solicitors, we specialise in business immigration and visa advice for Skilled Workers and entrepreneurs. We’ll help you take the right steps without jeopardising your immigration status, starting with a free 30-minute consultation.
This important steps allows you to ask any questions, explore your options and get a feel for our friendly immigration solicitors. You can come to our offices in Harrow, Canary Wharf, Piccadilly Circus or Manchester City Centre – or speak to us on a video call if you’re based further afield. To get started, simply call 0203 983 5080, email [email protected] or use the form below.
