You have cash in the bank, a fire-proof business idea and a boarding pass with Heathrow written all over it. Now comes the only question that matters: do you chase the traditional UK Business Visa, or do you build the company first and opt for self-sponsorship UK? The two paths feel similar on paper—both let you live in Britain and run a company—but they diverge sharply on investment minimums, speed to settlement, control of your cap-table and the amount of paperwork you will juggle. Below is a straight-talking comparison that cuts through the jargon so you can choose once and choose right.
The 30-Second Definition
A UK Business Visa is an umbrella term that most entrepreneurs actually split into three real visas: Innovator Founder, Global Talent and Expansion Worker. Each carries its own entry rules, but the common thread is that you must first secure an endorsement or overseas-sponsor approval before you can touch UK soil. Self-sponsorship UK is not a visa in itself; it is a strategy where you create or acquire a UK company, win a Skilled Worker sponsor licence and then hire yourself into a qualifying role. Think of it as becoming both the employer and the star employee on the same day.
Entry Ticket: Capital, Endorsement or Both?
Innovator Founder used to demand £50,000 in seed capital. That requirement disappeared in 2023, but the endorsement hurdle is now tougher: you must convince an approved body that your idea is innovative, viable and scalable. Global Talent asks for peer-reviewed evidence of international recognition, which is hard if you are only mid-career. Expansion Worker needs an overseas parent company that has traded for at least three years and is willing to bankroll the UK launch. Self-sponsorship UK, by contrast, has no statutory minimum investment. You simply need enough working capital to pay the sponsor-licence fee (£574 or £1,579) and the first year’s salary at or above the prevailing threshold (£41,700 from July 2025). If you can fund payroll from day one, you can enter with under £50,000 in total start-up costs.
Ownership and Control
Endorsing bodies for Innovator Founder can impose quarterly check-ins and even withdraw support if you miss milestones, which kills the visa overnight. Expansion Worker assigns you to the overseas parent, so strategic decisions ultimately sit in another country. With self-sponsorship UK, you own the cap-table, set the board and change strategy without seeking anyone’s blessing. For control freaks—most entrepreneurs are—this is decisive.
Speed to Market and First Revenue
Endorsement for an Innovator Founder can take between six and twelve weeks, and you cannot legally trade until the visa is granted. Expansion Worker requires the parent to open a UK branch, register with Companies House and file dormant accounts before you arrive. Self-sponsorship UK lets the company start trading the moment the sponsor licence is issued, which can happen in as little as four weeks if your paperwork is tight. For founders who need cash flow yesterday, the difference is stark.
Settlement Timeline and Family Rights
Innovator Founder offers Indefinite Leave to Remain (ILR) after three years if you hit growth targets. Global Talent can grant ILR in three or five years, depending on your endorsement tier. Expansion Worker is a temporary route and does not count toward settlement at all. Self-sponsorship UK follows the standard Skilled Worker timeline: five years to ILR. However, dependants retain full work and study rights throughout, whereas some new low-skilled codes under the Skilled Worker lost dependant sponsorship from July 2025. If bringing your partner and children is non-negotiable, verify your occupation code sits at RQF 6 or above.
Compliance Burden: Ongoing Costs and Audits
Endorsing bodies for Innovator Founder can demand checkpoint reports at 12 and 24 months, each costing £500 plus VAT. Expansion Worker forces the UK branch to file quarterly VAT returns and annual audited accounts even if turnover is zero. Self-sponsorship UK requires you to run PAYE, keep right-to-work files and pay the Immigration Skills Charge each time you extend. In pure cash terms, expect roughly £1,500 per year in ongoing compliance for self-sponsorship UK versus £3,000–£4,000 for Innovator Founder once endorsement fees are added.
Selling Up Without Killing Your Visa
Sell your shares in an Innovator Founder business, and you may lose the endorsement that underpins your stay. Expansion Worker ties you to the parent company, so if the board decides to wind up the UK experiment, your visa dies with it. Self-sponsorship UK survives a share sale as long as the new owners keep the sponsor licence alive and you remain in the same role. That flexibility is priceless for founders who build to exit.
What Can Actually Go Wrong?
Innovator Founder risks centre on endorsement withdrawal, which is hard to insure against. Expansion Worker risks include the parent company pulling funding or failing the three-year trading test. Self-sponsorship UK risks are more mundane: cash-flow shortfalls, missed CoS deadlines or a sponsor-licence suspension triggered by HR lapses. The good news is that these are operational risks you can control with good bookkeeping and legal advice.
Combining Routes for Maximum Upside
Some entrepreneurs start with self-sponsorship UK to gain immediate market entry, then pivot into Innovator Founder once they have traction and a more compelling innovation story. The reverse path is harder because surrendering an existing Skilled Worker visa can break continuity of residence. If you think you might switch later, open a parallel file for endorsement research while your sponsor-licence application is in train.
The Two-Minute Decision Matrix
- Choose Innovator Founder if you have a genuinely disruptive idea, can wait three months for endorsement and want ILR in three years.
- Choose Expansion Worker if you represent an established overseas group that can bankroll a UK branch and you do not need a settlement.
- Choose self-sponsorship UK if you value 100 % control, need to start trading immediately and prefer a clear five-year path to ILR with family rights intact.
Conclusion: Choose Once, Then Move Fast
The route you pick today will shape your cap-table, your cash-flow and even your children’s school calendar for the next decade. The good news is that none of the doors are closing—yet. Immigration rules evolve every April and October, so locking in your strategy now beats chasing a moving target later. If you want a second pair of eyes on your business plan, endorsement pitch or sponsor-licence bundle, the team at A Y & J Solicitors offers fixed-fee packages for every UK Business Visa and self-sponsorship UK pathway.
A Y & J Solicitors is a specialist immigration law firm with extensive experience in assisting with UK Business Visa. We have an in-depth understanding of immigration law and are professional and results-focused. For assistance with your visa application or any other UK immigration law concerns, please contact us at +44 20 7404 7933. We’re here to help!
