On 10th of July 2014 The UK’s immigration minister James Brokenshire has released a document containing the changes in Tier 1 Entrepreneur Visa which came in to effect on 11th July 2014on 11th July.

According to Mr Brokenshire and Home Office Tier 1 Entrepreneur Visa stream had been targeted by fraudsters, specially after the Tier 1 Post study work Visa was discontinued in 2012.

On throughly examining tax records, the government has uncovered evidence that few foreign nationals in the UK with Tier 4 (Student) visas had transferred to the Tier 1 (Entrepreneur) visa where they were working for someone else and not running their own businesses.

The Government also said that the Students with Tier 4 student had presented the bogus business plan, who in reality did not even apply or met the Investment rewuirements to qualify for the Tier 1 Entrepreneur Visa

Therefore, a new rule was created by Mr. Brokenshire were announced; which stated
from now on the students who can show that their qualifying investment funding comes from a government approved sources can only apply to transfer from Tier 4 to Tier 1 entreneur visa. Other then the Government approved sources if the Funding comes from a venture capitalist will not be entertained. the funding must come from
Seed funding companies endorsed by UK Trade and Investment or
UK government departments (including departments of the Welsh, Scottish or Northern Irish governments)
The New rule also specified that the person transferring from Tier 1 post study work to Tier 1 entrepreneur Visa can only transfer in two circumstances’
– First condition already specified above
– OR If they have funding from any source but can show that they have already established a ‘genuine business’ which is ‘not de facto employment with another employer’ and ‘are working in a skilled occupation’. In such case the business must have been established before 11th July 2014.

The new rule also specifies that the person applying for such transfer Must be ‘working for their own business’

This also means the person who wants to apply cannot claim to be self-employed yet work in a de facto employment relationship with another employer’.

In addition Where the funding is granted to a company, rather than to an entrepreneur in person, the Tier 1 (Entrepreneur) visa applicant must be registered as a director of that company.
In the evidence wehre a business bank account is requested by UK Visas and Immigration, the Tier 1 (Entrepreneur) visa applicant must be a signatory to that account.

Normally, the Home Office will give 21 days’ notice of changes to the immigration rules. On this occasion the changes have been introduced immediately to prevent a spike in applications before the new rules are introduced.