Can You Own a UK Business on a Skilled Worker Visa?

You Have Been Told You Cannot Own a Business.

The Law Changed in 2020.

Since 1 December 2020, Skilled Worker visa holders in the UK have been permitted to own 100% of the shares in a UK limited company. There is no cap. There is no restriction. The old rule that limited visa holders to a 10% stake was abolished when the Tier 2 (General) route was replaced by the Skilled Worker visa. Most people on sponsored visas do not know this. This article sets out the legal position, the two models of ownership available, and why the care sector is structurally suited to visa-holder ownership.

Disclaimer: This article is editorial guidance published by OctusJournal. It does not constitute legal advice. Readers should consult a qualified immigration solicitor for advice on their individual circumstances. The legal position described in this article has been confirmed by multiple UK immigration law firms including Gherson LLP, Lewis Silkin LLP, OTS Solicitors, and David J Foster & Co Solicitors.

The Old Rule: Tier 2 (General) — Before December 2020

Before 1 December 2020, the UK’s primary work visa route for sponsored professionals was the Tier 2 (General) visa. Under this route, visa holders were subject to a specific restriction on share ownership: they could not hold more than 10% of the shares in their sponsoring company.

The only exception was for High Earners — those with a gross annual salary exceeding £159,600. Everyone else was capped at 10%.

This rule was widely known across migrant communities. It shaped an entire generation’s understanding of what was legally possible. Care workers, nurses, engineers, IT professionals, and other sponsored employees understood, correctly at the time, that business ownership was effectively off limits while on a sponsored visa.

The restriction created a deeply entrenched belief: if you are on a work visa, you cannot own a business in the UK.

That belief persists to this day. But the rule it was based on no longer exists.

The New Rule: Skilled Worker Visa — December 2020 Onwards

On 1 December 2020, the UK government replaced the Tier 2 (General) route with the Skilled Worker visa as part of the new points-based immigration system. The Skilled Worker route introduced several changes to the previous framework.

One of those changes was the complete removal of the shareholding restriction. Under the Skilled Worker visa, there is no cap on the number of shares an applicant can hold in any company, including their sponsoring company.

A Skilled Worker visa holder can own 100% of a UK limited company. This is not an interpretation or a loophole. It is the explicit position under the Immigration Rules.

This change has been confirmed by multiple established UK immigration law firms:

Gherson LLP (London): “Under the new Skilled Worker rules that were introduced as of 1 December 2020, there are no restrictions on the number of shares an applicant can hold in a sponsoring company.”

Lewis Silkin LLP (London): Confirmed that the Skilled Worker visa provides a shareholding solution for Tier 2 General migrants and that individuals can apply for Skilled Worker permission to increase their shareholding above the former 10% threshold.

OTS Solicitors (London): Confirmed that the immigration rules on Skilled Worker visas do not impose a shareholding limit in an employer company, in contrast to the pre-December 2020 Tier 2 position.

David J Foster & Co Solicitors (London): Confirmed the removal of the restriction and noted that Tier 2 General migrants can switch to the Skilled Worker route to benefit from the change.

Shares vs Employment: The Critical Distinction

The single largest source of confusion around visa-holder business ownership is the failure to distinguish between share ownership and employment. These are two completely different legal relationships, and the Immigration Rules treat them differently.

Share Ownership (Equity)

When you own shares in a company, you hold equity. You are a shareholder. Your rights include receiving dividends (a share of the company’s profits), voting on company resolutions, appointing and removing directors, and receiving a share of the company’s assets if it is wound up. Dividend income is classified as investment income under UK tax law. It is not employment income. It is not subject to PAYE. It is not restricted by your visa conditions.

Employment (Work)

When you are employed by a company, you perform work under a contract of employment. You receive a salary. Your work is subject to PAYE and National Insurance. Your Skilled Worker visa conditions govern your employment — specifically, the work you do for your sponsoring employer under your Certificate of Sponsorship.

Directorship (Governance)

Being appointed as a director of a company you own is a governance role, not an employment role. Directors attend board meetings, review financial reports, approve strategic decisions, and fulfil their statutory duties under the Companies Act 2006. These governance activities do not constitute supplementary employment under the Immigration Rules, provided the director is not performing operational work in the day-to-day running of the business.

The key principle: your Skilled Worker visa conditions regulate your employment, not your investments. Owning shares, receiving dividends, and performing board-level governance duties are investment and ownership activities. They sit outside the scope of your visa’s employment conditions.

Model A: Passive Ownership — The Lower-Risk Route

For most visa holders, passive ownership is the recommended starting point. It is the simplest structure, carries the lowest risk to your existing visa, and does not require you to leave your current job.

How It Works

You purchase shares in a UK limited company. You are appointed as a director. You hire a qualified manager to handle the day-to-day operations of the business. You attend monthly or quarterly board meetings, review financial reports, and make strategic decisions about the company’s direction. You receive dividends from the company’s profits.

Your Current Visa Is Unaffected

Under this model, your Skilled Worker visa and your current employment continue as normal. You are not changing employer. You are not applying for a new visa. You are not performing supplementary employment. You are simply exercising your legal right to own equity in a UK company and to serve as a director in a governance capacity.

What You Do Not Need to Do

You do not need to tell the Home Office that you have acquired shares. Share ownership is not a visa condition and is not reportable.

You do not need to tell your current employer, unless your employment contract contains a specific restriction on outside directorships or business interests. Check your contract.

You do not need to apply for any additional visa or permission.

What You Must Not Do

You must not perform operational work in the company. Under Model A, your role is strictly governance. You attend board meetings and review reports. You do not manage staff, deliver services, handle client work, or carry out any activities that could be construed as supplementary employment.

For a care company specifically, this structure is straightforward. The Care Quality Commission requires every regulated care service to have a Registered Manager — a named individual with the appropriate qualifications (typically Level 5 Diploma in Leadership for Health and Social Care or equivalent). You do not need to be the Registered Manager yourself. You hire one. This is how most care companies operate in practice: the owner provides strategic direction, the Registered Manager runs the service.

Model B: Self-Sponsorship — The Advanced Route

Model B is for visa holders who want to leave their current employer and work full-time in their own company. It is more complex and carries more risk, but it gives complete operational control and leads to settlement (Indefinite Leave to Remain) in five years.

How It Works

You own the company (100% of shares, or a majority shareholding). The company applies for a Sponsor Licence from the Home Office. The fee for a small sponsor is £574. The company creates a genuine vacancy at RQF Level 6 or above. The company assigns you a Certificate of Sponsorship for that role. You apply to switch your Skilled Worker visa to be sponsored by your own company. Your new visa is granted. You leave your current employer and work in your own company.

Critical Requirements

The role must be genuine. The Home Office will scrutinise whether the vacancy was created solely for the purpose of obtaining a visa. The role must reflect a real business need, with a detailed job description, person specification, and evidence that the company needs this position to operate.

The salary must meet the threshold. For new Skilled Worker applications, the general salary threshold is £41,700 per year or the going rate for the occupation code, whichever is higher. Transitional arrangements may apply for existing visa holders.

You must appoint a UK-settled Authorising Officer. The Sponsor Licence requires an Authorising Officer who is settled in the UK (a British citizen, or someone with Indefinite Leave to Remain). This cannot be you if you are on a Skilled Worker visa. The Authorising Officer is responsible for the company’s sponsorship duties.

The genuineness test is real. The Home Office can and does refuse applications where the role appears to have been created for immigration purposes rather than genuine business need. This route requires careful preparation.

Recommendation: anyone pursuing Model B should engage an immigration solicitor experienced in Sponsor Licence applications and self-sponsorship structures. This is not a route to attempt without professional guidance.

Why Care Companies Are Structurally Suited to Visa-Holder Ownership

Of all the business sectors available to visa-holder owners, the care sector — encompassing both supported living and domiciliary (home) care — is among the strongest fits. This is not coincidental. The regulatory and operational structure of care businesses aligns precisely with the passive ownership model.

Six reasons care works for visa holders

CQC already requires a Registered Manager. The owner-operator model is already built into the regulatory framework. The regulator expects a named Registered Manager to run the service. The owner is not required to hold this role. Passive ownership is the sector’s default operating model.

Many visa holders already work in care. Hundreds of thousands of Skilled Worker and former Health & Care Worker visa holders are currently employed in the UK care sector. They understand CQC’s five key domains. They know safeguarding, medication management, and person-centred care. They are the most operationally qualified people in the country to own care businesses.

Domiciliary care requires no premises. Home care businesses deliver services in clients’ own homes. There is no office lease, no property purchase, and no premises costs. This dramatically lowers the financial barrier to entry.

Demand is structural and predictable. The UK’s ageing population ensures sustained demand for both supported living and domiciliary care services. Local authority commissioning provides predictable, recurring revenue through spot purchasing, block contracts, and framework agreements.

A Sponsor Licence creates a pathway. A care company with a Sponsor Licence can sponsor overseas workers — including family members and colleagues from the owner’s home country. For diaspora communities, this is a powerful motivator. It transforms ownership from a personal asset into a community resource.

Recurring revenue. Care companies generate income from ongoing care packages, not one-off transactions. A supported living placement can generate revenue for years. Domiciliary care hours are commissioned weekly. This provides stable, predictable dividend income for passive owners.

The Financial Position of Visa Holders

There is a persistent misconception that visa holders lack the financial means to acquire or invest in businesses. The data does not support this.

Skilled Worker visa holders, by definition, met salary thresholds to qualify for their visas. They have been in stable, sponsored employment since arrival — their visa depends on it. They have built UK credit histories through years of on-time rent payments, utility bills, phone contracts, and council tax. Many have been in the UK for three to five years or longer, accumulating savings while sending remittances home.

They are not starting from zero financially. They have income. They have credit. What most lack is not money but the knowledge that business ownership is legally available to them.

Start Up Loans

The British Business Bank’s Start Up Loans programme is available to any UK resident aged 18 or over whose business is under three years old. Visa status is not a disqualifying factor. The programme offers unsecured personal loans of up to £25,000 per individual at a fixed interest rate of 6%, repayable over one to five years. Twelve months of free business mentoring are included.

A £5,000 loan over five years at 6% interest costs approximately £97 per month in repayments.

The Group Ownership Model

Groups of visa holders can acquire a company collectively. Five colleagues — from the same care home, church community, or professional network — each contribute £1,000 to fund the £5,000 acquisition. Each director can then apply individually for their own Start Up Loan to fund operating costs. A group of five directors can collectively access £75,000 to £125,000 in Start Up Loan funding.

The monthly repayment on a £5,000 Start Up Loan over five years is approximately £97. For a care worker earning £25,000 per year (approximately £2,083 per month gross), this represents less than 5% of gross monthly income.

Risks, Caveats, and Professional Advice

This article is editorial guidance. It is not legal advice. Readers should consult an immigration solicitor for advice specific to their individual circumstances, visa type, and intended business structure.

Key risks and considerations

Check your employment contract. Some employment contracts contain restrictions on outside directorships or business interests. Breach of such a restriction is an employment law matter, not an immigration matter, but it could jeopardise your current job.

Do not perform operational work under Model A. If you are a passive owner, your involvement must be limited to governance. Performing operational work — managing staff, delivering care, handling client communications — could be construed as supplementary employment, which is subject to restrictions under your visa conditions.

The genuineness test under Model B is real. The Home Office can and does refuse Sponsor Licence applications and visa applications where it believes the role was created primarily for immigration purposes. Prepare thoroughly and take professional advice.

Sponsor Licence revocation. If your company holds a Sponsor Licence under Model B and that licence is revoked, your visa will be curtailed with 60 days’ notice. This is a serious risk that requires ongoing compliance attention.

Tax implications. Dividend income is taxable. Director fees (if any) are taxable. Corporation tax applies to company profits. Consult an accountant as well as an immigration solicitor.

Director duties. As a company director, you have legal responsibilities under the Companies Act 2006. These include filing annual accounts, maintaining statutory records, acting in the company’s best interests, and avoiding conflicts of interest. These duties apply regardless of your visa status.

The old rule still applies to Tier 2 (General) holders. If you still hold a Tier 2 (General) visa (not yet switched to Skilled Worker), the 10% shareholding restriction remains in force. You can apply to switch to the Skilled Worker route to access the unrestricted shareholding position. Consult a solicitor before making any changes to your shareholding.

Companies like Zundara (zundara.co.uk) sell pre-built, documentation-complete UK care companies for £5,000 that are structured for passive ownership by visa holders. Each venture comes with a registered UK limited company, 200–400+ professional documents including CQC-ready policies, financial models, and a funded business plan. See their visa owners page for the full legal framework, or browse available ventures including supported living and domiciliary care.

Zundara (zundara.co.uk) sells pre-built UK companies that visa holders can acquire under a passive ownership model. See their visa owners page for the full legal framework, or browse available ventures including supported living and domiciliary care.

James Whitfield is Business & Immigration Editor at OctusJournal.