In order for a parent company to send a representative to establish a branch in the UK, the representative must not be a major shareholder of the parent company. The applicant can be the largest shareholder, providing they do not own more than 50%. The UK Immigration rules state that if the applicant owns more than 50% of the company's available shares, the application will be refused. Any shareholding of 30% or more is likely to attract extra scrutiny for UKVI and hinder the possibility of the application being accepted.
The purpose of the shareholding requirement is to ensure that the repetitive is genuinely a senior employee who will work to establish the business in the UK. If the employee has the ability to control the business, then this could lead to the application being subject to a higher degree of scrutiny than usual.
Can I sell my shares in the overseas parent business?
It is possible for the applicant to sell shares of the parent company. However, as of the visa application date, it is required that you provide the previous year’s share register and evidence of selling shares since then, and an updated share register. Therefore, if you owned the shares in the previous year, you may have to submit the reason for selling shares.
Can the representative own shares in the UK?
The sole representative of overseas business must work as an employee at the business entity established in the UK. As a representative of the parent company, you can set up and manage the UK company in charge, but all shares should be held by the overseas parent company.
What if you don't want to sell your parent company's shares or I want to be a shareholder in the UK company?
If the applicant wants to maintain their shareholding in the parent company or hold shares in the UK company, then there are a number of other potential possible immigration routes:
- Tier 1 (investor): You must have £2 million in cash or funding assets to invest in the UK.
- Skilled Worker: An individual of all nationalities who has been offered a job from a UK company with sponsorship can apply for a skilled worker visa. Previous Tier 2 required applicants are not to hold more than 10% of the company's shares, but the new skilled worker rules do not include these restrictions. However, when applying for a skilled worker visa, the applicant must demonstrate that the job is a genuine vacancy for the company and is at the appropriate level of skill and salary. This may be questioned whether the applicant holds a large portion of the shares in the business, or if the share value is high but the salary is low. If the Home Office consider that the job offer has been created mainly so that the applicant can apply for permission to be in the UK, the required test will not be met.
- ICT worker: If you are transferred from an overseas parent company, there is no restriction on shareholding of the parent company or UK company. However, this route does not lead to permanent settlement in the UK currently.
For expert advice and assistance regarding an application for entry clearance, leave to remain or indefinite leave to remain as a Sole Representative of an Overseas Business, please contact 0203 865 6219 or send a message.