Changes to UK Immigration Visas - What Are the Requirements for Setting Up a Company to Obtain a Self-Sponsorship Visa?
- TBA
- May 30
- 5 min read
Following the fiscal changes outlined in the Spring Budget Statement, the UK is set to make reforms to the immigration visa system.
One of the key proposals under consideration is reforming the Graduate Visa (also known as the ‘PSW’ visa). The UK Home Office previously indicated that international students wishing to stay in the UK must secure a graduate-level job – with a salary exceeding £30,000 – to be eligible for a PSW visa.
While current discussions have focused primarily on the Graduate Visa, it is clear that the Labour government will face various challenges and policy adjustments once the new net migration figures are released.
Although no specific target has been set, it is expected that annual net migration will be brought under several hundred thousand. Reforming work visas and skills-based policies will thus be key strategies in achieving this goal.
With salary thresholds for work visas rising and potential reforms to the Graduate Visa, the idea of setting up a company to obtain a work visa has gained traction, drawing interest from entrepreneurs and highly skilled professionals alike.
But is it really that simple? What exactly is a self-sponsorship visa, and what are the requirements for setting up a company?
UK immigration visas - what is a ‘self-sponsorship visa’?
The so-called Self-Sponsorship Skilled Worker Visa is not an official, standalone visa category.
Rather, it is a strategy based on the existing Skilled Worker Visa route.
This pathway allows applicants to establish or own a business in the UK, secure a sponsor licence for the company, and then sponsor themselves in a qualifying role within that business – essentially sponsoring themselves.
While this removes reliance on a third-party UK employer, the regulatory standards are equally, if not more, stringent, with a particular focus on authenticity and legitimacy.
Basic requirements for a self-sponsorship visa
With increased salary thresholds and shifting immigration policies, the self-sponsorship route has become attractive to skilled professionals with technical or management experience, entrepreneurs seeking to expand overseas, and former Innovator Founder applicants who may not meet investment or innovation criteria.
To apply for a self-sponsorship visa, the following basic conditions must be met:
Be at least 18 years old
Own a registered and operational UK company
The company must hold a valid Sponsor Licence for Skilled Workers
The job role created for yourself must be genuine, match an eligible occupation code (SOC 2020), and meet skill level requirements
The role must meet or exceed both the minimum salary threshold and industry-standard rates
English language proficiency at CEFR level B1 or equivalent (e.g. IELTS 4.0)
Proof of sufficient funds to support yourself in the UK (typically at least £1,270 in your bank account)
If applicable, provide a police clearance certificate and tuberculosis test results
In short, once you meet the age and language requirements, the process involves four key steps:
Set up a UK company
Apply for a Sponsor Licence
Issue a Certificate of Sponsorship
Apply for a Skilled Worker Visa
What are the requirements for registering a UK company?
The first step is registering a company in the UK.
There is no requirement for directors to be UK residents or citizens. Most applicants choose to set up a Private Limited Company (Ltd), which offers a clear legal structure, limited liability, and better credibility when applying for a Sponsor Licence.
When registering a UK private limited company, you will need the following:
1. Choose a Company Name
The name must comply with Companies House regulations. It must not duplicate existing company names or include restricted terms. You can check name availability on the Companies House website.
2. Registered Office Address
The company must have a UK-based registered office address for receiving official correspondence such as tax notices, court documents, and Companies House filings. If you don’t have a physical office, you may use an agent address service.
3. Director and Shareholder Details
At least one director is required. You must provide the full name, address, nationality, and date of birth.
Shareholders’ full names and share percentages must be disclosed (they may be individuals or companies).
Valid ID (passport or ID card) and proof of address (e.g. bank statement or utility bill) are required for all parties.
4. Memorandum and Articles of Association
Memorandum of Association: Confirms the shareholders' agreement to form the company.
Articles of Association: Sets out the rules for running the company, such as director responsibilities and shareholder rights. A standard template can be used, or you may customise your own.
5. Share Capital Information
State the amount and value of issued shares (typically £1 per share).If a corporate entity is a shareholder, its company details must also be provided.
6. Business Activities – SIC Code
Clearly define the industry in which the company will operate, aligning with the job role you will sponsor.
Sponsor licence approval
Registering a company is only the first step. The Home Office evaluates whether the business is genuinely operational when reviewing Sponsor Licence applications. Common indicators include:
Having a UK business bank account
Signed commercial contracts or client relationships
Business website
Records of employing staff (not mandatory, but advantageous)
Office or service address
Business plan, HMRC registration, VAT returns, etc.
Proper documentation will strengthen your Sponsor Licence application and support your self-sponsored job role as a legitimate position.
Key tax filings for companies
It is essential to maintain accurate accounting records and ensure timely submission to HMRC to remain compliant. These include:
Confirmation Statement (annual)
Annual Accounts
Corporation Tax Return
PAYE and National Insurance contributions
VAT Returns (if registered)
Note that while most of these are annual, VAT can require monthly or quarterly submissions. Companies may also be eligible for various tax reliefs.
If you are unsure about deadlines, requirements, or tax relief opportunities, it is highly advisable to consult a professional accountant or tax advisor.
Some advice from TB Accountants
The self-sponsorship visa route offers a feasible pathway for those looking to establish a long-term presence in the UK through entrepreneurship.
However, it involves complex legal and compliance procedures, particularly around company registration and legitimate operations.
Under the UK’s revised immigration rules effective 9 April 2025, new regulations have been introduced to tighten oversight of self-sponsorship under the Skilled Worker Visa.
Notably, SW 14.2A now clarifies that certain payments can no longer count towards meeting salary requirements. This includes:
Salary deductions
Loan repayments
Investment contributions
This means applicants must ensure their basic salary, after excluding the above items, still meets the required threshold.
