The Tier 1 (Entrepreneur) route was designed for individuals investing in the UK by setting up or taking over, and being actively involved in the running of, one or more businesses in the UK. This category is closed to new applicants and has been replaced by the Innovator Founder route (and previously the Innovator and Start-up routes).
The route remains relevant only for existing Tier 1 (Entrepreneur) migrants who are eligible to apply for settlement (ILR), provided they make their application before the relevant deadline. Extension applications are no longer possible (the last deadline for extensions for most applicants expired in April 2023, or July 2025 for certain transitional cases), meaning the focus for remaining visa holders is now firmly on securing settlement.
Settlement deadlines
To qualify for settlement under the Tier 1 Entrepreneur route, an applicant must meet the requirements set out in the immigration rules, which include:
Although the deadlines for extensions (and settlement for most) have passed, some applications remain oustanding. As expedited processing was generally not available for Tier 1 (Entrepreneur) cases, some applicants are still waiting for decisions months after submission.
The refusal rate is high, even for applicants who appear to meet the objective criteria (investment and job creation numbers). Refusals frequently turn on the Genuine Entrepreneur Test, where the Home Office questions the credibility of the business or the genuineness of the roles created. Scrutiny is often subjective and granular: caseworkers may challenge whether the jobs were “real” roles necessary for the business, whether there was sufficient business activity and staffing levels were justified, or whether the investment funds were genuinely deployed for business purposes.
If an application is refused, it is critical to act quickly. An application for Administrative Review must be submitted within the strict time deadline (14 days) to ensure immigration status is protected under Section 3C. While an application or Administrative Review is pending, applicants should consider contingency planning. If there is a risk that the refusal will be upheld, it may be necessary to identify alternative immigration routes (for example Skilled Worker or Innovator Founder, if eligible) to avoid becoming an overstayer if the challenge fails. Early advice on these fallback options is essential while permission remains valid.
The Tier 1 (Entrepreneur) route is in its final phase, but it remains one of the most challenging categories for applicants. The combination of strict technical criteria (investment evidence, job creation rules, director registration dates) and the highly subjective “Genuine Entrepreneur Test” means that even genuine businesses face a significant risk of refusal. Distinct Law supports entrepreneurs to navigate the final settlement stage, manage outstanding applications, and challenge adverse decisions where the Home Office has made caseworking errors.
Services typically include:
Refusals often stem from technical failures in the job creation evidence or subjective concerns under the Genuine Entrepreneur Test. Common technical issues include jobs that did not last for a full 12 months (or where the 12-month period did not fall within the correct grant of leave), employees not meeting the definition of “settled worker, or failure to provide the specific RTI payroll documents required by the rules. On the subjective side, the Home Office frequently refuses applications where it believes the business activity was not genuine, effectively arguing that the roles were created solely to meet the visa requirement rather than for genuine business need.
Generally, no. The job creation requirement is mandatory for settlement: you must have created at least 2 full-time jobs for settled workers that have existed for at least 12 months. If you have not met this requirement by the time you apply, the application will almost certainly be refused. Unlike some previous extension scenarios where discretion might have been considered, the settlement stage (and the fact the route has closed) leaves little room for flexibility. If the jobs have not yet lasted 12 months, or if you are short on the headcount, you should take urgent advice on whether you can delay your application (if your current leave allows and you remain within the final deadline) or whether you need to switch into an alternative route such as Skilled Worker or Innovator Founder to remain in the UK lawfully.
