UK Startup Visa allows candidates to establish their innovative business ideas or pursue their professional careers in the UK. The route is alternative to the previous Tier 1 (Graduate Entrepreneur) visa. Earlier for Tier 1 Graduate Entrepreneur programs, UK degree was necessary to qualify for the program, however, under current UK startup visa there is no such requirement. Candidates for startup visa UK, will have to pay fees including UKVI fees, IELTS or UK NARIC fees, medical test fees, etc. In addition to the fees, candidates for startup visa will require funding for maintenance purposes for themselves and for their dependents, funding for endorsement bodies professional services and initial startup costs.
UKVI fees for UK Startup visa 2021
Candidates will be required to pay UKVI fees for UK startup visa. For the main applicant, UKVI fees is 363 GBP if applying outside the UK. It will be GBP 493 if applied in the UK to switch from other UK Visa category. Each dependent including your spouse/partner will also be charged the same amount as the main applicant.
Immigration Health Surcharge IHS Fee for UK Startup visa
candidates coming to UK for a period greater than six month will be required to pay immigration health surcharge. UK has recently increased immigration health surchage from on average 400 GBP per person to 624 GBP per person per year. The actual IHS fees will depend on the individuals circumstances, location of the origin country, age, etc. Immigration Health Surchage will be levied irrespective of the candidates owning a coverage from private medical insurance. IHS is collected from the candidate in advance and it covers at least the total duration of the visa applied. It means if you are applying for two year startup visa, you should have to pay around 1250 GBP for a lone application. You should also pay immigration surchage for your accompanying family members.
Endorsement Body fees for their professional services
Endorsement body for startup visa may charge fees for their services. Higher education institutions may not charge any fees for endorsing the business plan for their current students. However, UK entrepreneur accelerators, incubators and business developer charge fees for their professional services. The incentives for the endorsement bodies may vary depending on their role. However, endorsement bodies may charge an annual 6000 GBP for first year of startup visa. They may ask you to pay half of them before you are issued a startup visa. Some endorsement bodies extend loan or equity finance against profits sharing and this could be around 10percent of the total equity of the startup. The beneficial arrangment between startup entrepreneur and endorsement bodies will depend on the commercial arrangement between the parties.
Business plan cost
Startup entrepreneur/ innovator may find it easy to take professional help in developing their business idea. The cost of the business plan could be around 1000 GBP. As part of UK startup visa requirement, Candidate must bring innovation in the UK to support and expand its economic activities.
Startup funding is most important part of the startup cost. Candidates can receive startup finance from their home country financial institutions, private equity investors, Venture capital funds, seed fund competitions, startup funding clubs, innovation funds, loans from UK banks, etc. Startup candidates can receive fulltime job offer at the same time develop their business idea. It is not unusual to start a business in the UK from a mediocre 10,000 GBP. Startup candidates can reduce the initial startup cost by securing a serviced workstations located at UK incubators and accelerators. The initial startup cost can further be reduced by leveraging the professional network of these business support services.