Overseas businesses – key information

There are several common misconceptions about overseas nationals entering the UK to conduct business, and overseas organisations wishing to set up a UK branch or office. This page aims to broadly cover some of the main issues, and in the process clarify matters and dispel some myths.

Is a visa required, or not?

One common misconception is that nationals of certain countries (e.g. USA, Canada, Australia) “don’t need a visa to come to the UK”. This is not strictly correct. While certain non-EEA nationals (including those above) don’t need to obtain entry clearance before travelling to the UK, they will be given a “visa” on arrival at the port of entry. This visa will be of a particular type, depending on which immigration category the person is deemed to fall under. Sometimes it will be decided that a person doesn’t fall into the rules of any immigration category, and they may be refused entry.

Business Visitors

A common route that has been used by business people is the business visitor visa. By taking advantage of this category it has for many years been quite straightforward for people to arrive in the UK, and be allowed entry to the UK for up to six months on the basis that they are “on a business trip”. The rules for many years permitted individuals to “transact business” (attend meetings, conferences, negotiations, and training etc.) but did not permit actual work. The system was open to abuse by people actually seeking to work in the UK, and for many years it was used as a quick and easy means of entry. Business people would enter the UK in order to establish businesses using this category (sometimes, wrongly, working in those businesses), and overseas group employees would use this category, and then perform activities (i.e. actual work) that were beyond what was permitted. The requirements for business visitor visas have however recently become more restricted. Immigration Officers have been issued with “tighter” guidance and instructions on the situations where business visitor visas should be granted and where they should not. Recently, it has become much more difficult to obtain a business visitor visas on arrival. US nationals in particular have been asked many more questions than they were accustomed to, and many individuals have been very surprised to be refused entry, because contrary to what they thought, the purpose of their visit did not fall in line with the business visitor requirements.

It is worth noting that the business visitor visa is not the correct category for those wishing to set up a UK branch of an overseas organisation (the sole representative visa is designed for this purpose – see below), and according to the most recent Border Agency guidance, the business visitor visa should not be issued for overseas group employees (these people should be sponsored by the UK employer, under Tier 2 of the Points Based System), except in very particular circumstances.

If anyone wishes to gain entry to the UK as a business visitor, they should satisfy themselves prior to departure that the nature and purpose of their visit falls in line with the current business visitor guidance. If it does not, then they run the risk of being refused entry.

More information on business visitor visas can be seen here.

Sole Representative Visa

This immigration category is designed to allow a suitable person to enter the UK in order to establish a wholly owned subsidiary of an overseas parent company, or register a branch of that company in the UK. The existing overseas firm must have no branch, subsidiary or other representative already active in the UK (however if there is a legal entity in the UK but this does not employ staff or transact business (a dormant company) then this category can still apply). This option is only available to (and would only be necessary for) non-EEA nationals.

The purpose of this immigration category is to allow representatives of overseas companies to establish a commercial presence for their company in the UK in the form of a registered branch or a wholly owned subsidiary. The provisions do not allow individuals to do business of their own or represent any other company’s interests while in the UK.

No Switching

This type of immigration category can only be applied for from a British Diplomatic Post overeas. A person in the UK under a different immigration category cannot “switch” into this category while remaining in the UK. This follows from the fact that the individual is a current employee of the established overseas business. Readers should note therefore that it is not possible for an individual currently in the UK (for example on a business visitor visa) to obtain permission to stay in the UK under this category. This forms another argument for obtaining advice and having a sensible strategy in place regarding immigration from the beginning.

Sensible Approach

One common and often sensible procedure for an overeas company wishing to enter the UK market is to begin by sending a sole representative to the UK (using a Sole Representative Visa) in order to establish the UK branch / subsidiary, and then to have the UK organisation apply for a Sponsor’s Licence under Tier 2 of the Points Based System. The Sponsor’s Licence will then enable the transfer of further staff from the overseas parent company through the Intra Company Transfer route.

More information on Tier 2 of the Points Based System, and Intra Company Transfers can be seen via these links.

Professional Advice

UK Work Permits Ltd has assisted many overseas organisations with the processes of Sole Rep visa application, sponsor licensing, and the ongoing short term and long term transfer of skilled staff to the UK. We also have a network of complementary service providers and professional advisors, available to facilitate the smooth and orderly setting up of a UK branch. Please contact us for more information.