An entrepreneur visa is designed for migrants who wish to establish or expand their business in a foreign country. Most jurisdictions have a version of the entrepreneur vis, but they may have different names.
Through the entrepreneur visa, applicants can often obtain permanent residency and, later, even citizenship status.
What’s the purpose of an entrepreneur visa?
The main purpose of an entrepreneur visa is to attract foreign nationals who can contribute to the economy through investments and job creation. Often, these businesses fill gaps in the country’s market or reduce unemployment levels in specific regions or industries.
By welcoming foreign businesses, countries also encourage the flow of skills and innovative ideas. Visa applicants may have some skills or expertise that citizens could benefit from. For example, entrepreneurs might have a patent for a new form of renewable energy that could provide more affordable power.
What’s the difference between an entrepreneur and a work visa?
The main difference between the two visas lies in the intent and requirements of the applicant. Work visas are employment-based, so individuals usually need a job offer and sponsorship. By comparison, the entrepreneur visa is for people planning to own and operate their own business, meaning they should have a business plan and capital to invest.
What’s the difference between an entrepreneur and an investor visa?
The two visas are similar but have different requirements. While the entrepreneur must play an active role in the business, the investor visa allows you to be passive. However, both types of visa holders have to make a capital investment in the host country.
Can an entrepreneur visa be renewed or extended?
Many countries allow individuals to renew or extend an entrepreneur visa, provided their business continues to meet the initial criteria. Namely, they must continue to provide jobs to citizens and meet their objectives. Some entrepreneur visas may require you to maintain a continuous presence in the country.
How can businesses benefit from the entrepreneur visa?
The entrepreneur visa has advantages for both organizations in the host country and ones overseas.
If you’re considering expanding abroad, the entrepreneur visa allows you to relocate key workers to desirable locations. You can move other employees with them, provided you hire enough citizens for full-time jobs to meet the visa quota. That way, you can benefit from local expertise and rely on your current team’s experience.
From a personal perspective, the entrepreneur visa frequently lets you include immediate family members. You can also use it as a stepping stone or permanent residency through programs like the US Green Card.
Businesses in the host country can benefit from the entrepreneur visa by gaining access to more networking and partnership opportunities. They may also capitalize on any talent, technology, or innovative practices the entrepreneur brings with them.
See also: A Guide to Global Expansion
What are the qualifying criteria for an entrepreneur visa?
The general requirements for an entrepreneur visa are a combination of financial, business, and legal criteria. Immigration officials use these to assess the viability and potential impact of the applicant’s venture. They often vary between countries, but here are some of the most common ones:
- Sufficient investment funds
- A business plan outlining objectives and financial projections
- Qualifications related to the industry
- Extraordinary ability and skills
- Experience in the field
- A clear criminal background check
- Proficiency in one of the country’s national languages
What’s the process for obtaining an entrepreneur visa?
Applying for an entrepreneur visa typically involves submitting a business plan and market analysis. Officials will use these to determine your eligibility.
Otherwise, the application process usually is similar to many other visa categories. You have to submit forms, provide supporting documents, and undergo background checks. Any checks will include your financial records to ensure you have the minimum investment to launch a new commercial enterprise.
How are HR teams relevant to the entrepreneur visa?
HR teams play a crucial role in supporting applicants throughout the visa process and beyond. They can stay updated with visa requirements and help the applicant verify their eligibility. During the process, they can help gather the paperwork, file forms, and arrange appointments,
After approval, HR can ensure entrepreneurs comply with both the visa requirements and local tax and employment laws. For example, they could guide them through the process of hiring abroad and assist them with benefits administration.
How can HR improve the entrepreneur visa process?
HR teams can implement several strategies to support applicants through the visa process and ensure the success of expansion plans.
- Determine how to quickly and accurately identify candidates that meet the visa criteria
- Seek legal advice or outsource the visa process to specialists in immigration law
- Maintain meticulous records that demonstrate compliance with regulations
- Develop hiring schemes with foreign companies and institutions to facilitate job creation
- Leverage technology to automate administrative tasks to ensure you manage time effectively
- Consolidate HR, payroll, and legal processes so teams can collaborate and communicate more easily across borders
See also: 9 Benefits of Consolidated Payroll for Global Teams
What are the potential compliance issues with an entrepreneur visa?
There are substantial compliance risks to using an entrepreneur visa to establish a presence abroad. Many jurisdictions also have strict conditions about the amount of capital you can invest and what type of business activities you should engage in. If your worker violates these conditions, their visa could be revoked.
Especially if you’re unfamiliar with the market, it’s best to outsource compliance management to immigration services like Deel. We have qualified local immigration attorneys across over 30 countries who can assist with every step of the process.
Explore the locations we support using our visa checker tool.
What if an entrepreneur visa is denied?
In most cases, applicants can appeal the decision or reapply once they’ve addressed the underlying issue. If they still can’t meet the eligibility criteria, they could consider other visa options.
Many global companies use an employer of record (EOR) service to ensure they can set up and hire within a country. The EOR can hire workers, including new division heads, and sponsor visas using their in-house team of localized immigration lawyers. As they’ve established a presence in the country and have expertise with visa processes, you have better chances of success through them.
See also: Employer of Record for Global Expansion and Market Testing
What’s the role of the entrepreneur visa in the global workforce?
The entrepreneur visa can play a pivotal role in shaping global workforces by enabling the movement of talent across borders. Companies can move into new markets more easily, bringing skilled workers with them and hiring new candidates.
By allowing the transfer of knowledge, skills, and innovative practices, the entrepreneur visa can also enhance the global labor market. Both local and international networks can become richer and more diverse. Ultimately, entrepreneur visas not only broaden opportunities for employees but lead to a more dynamic and creative business environment.
Examples of popular entrepreneur visas
- USA E-2 Visa: Allows entrepreneurs from treaty countries to enter and work in America based on a substantial investment in an American business
- Canada Start-Up Visa Program: Targets immigrant entrepreneurs with the skills and potential to build businesses in Canada that are innovative, can create jobs for citizens, and compete on a global scale
- United Kingdom Innovator Visa: Designed for experienced businesspeople to set up an innovative business in the UK, which must be something the market lacks and needs
- Australia Business Innovation and Investment (Provisional) visa (subclass 188): Encourages successful business owners and investors to establish or develop their businesses in Australia
- Germany Entrepreneur Visa for Business Owners: Allows entrepreneurs to live in Germany and set up their business, provided it has a positive economic impact
- Singapore EntrePass: Aimed at foreign entrepreneurs wanting to start and operate a business that is venture-backed or possesses innovative technologies
