The Truth About Self-Sponsorship Proof of Funds Requirements
One of the most common questions I receive is: “Henry, what do you think about proof of funds for self-sponsorship? Does my business need to be earning £80,000, £100,000, or £150,000 to be eligible for self-sponsorship?”
Here’s the truth: There is no specific amount you need to show as proof of funds for self-sponsorship. However, this doesn’t mean you don’t need to show any proof of funds at all.
The Key Principle: Business Alignment
The proof of funds you need to show must correspond with the kind of business you’re planning to operate. Your financial capacity must make sense for your business model.
What Won’t Work
You cannot say you want to start an African grocery business and claim you have only £5,000, expecting to start immediately and use it for self-sponsorship. This approach will not work because the funds don’t align with the business requirements.
What Will Work
However, if you want to start the African grocery business small with £5,000, grow it over time, and then apply for sponsorship once it’s established, this is very possible and much more realistic.
Two Approaches to Self-Sponsorship
Immediate Application (Not Recommended)
If you want to start your business immediately and apply for the sponsorship license immediately, it will be very expensive for you. This approach requires significant upfront capital and carries higher risks.
Gradual Growth Approach (Recommended)
Start the business first, grow it, then apply for sponsorship. This is the most practical and cost-effective approach.
Why Start the Business First
The most important thing in this whole process is the business itself because it’s a business pathway. Here’s why you should start first:
Building Business Credibility
- Supplier Relationships: If you’re starting a new business today, nobody will want to supply you
- Credit Lines: After 2-3 months of operation, suppliers you’ve been buying from can offer you credit facilities
- Business History: Established businesses have proven track records that new businesses lack
Understanding Business Operations
- Get to know the ins and outs of your business
- Understand the business dynamics and challenges
- Learn how suppliers work in your industry
- Build operational experience and confidence
Financial Reality Check
Remember: Not everything you see in established businesses belongs to the owner. Many successful businesses operate through:
- Supplier credit arrangements
- Payment terms (buy now, pay after sales)
- Cash flow management rather than large upfront investments
The Recommended Timeline
Business Development Phase
- Duration: 3-6 months (depending on business type)
- Focus: Building credibility, understanding operations, establishing supplier relationships
- Goal: Gain confidence in business operations and scalability
Sponsorship Application Phase
Once you’re confident in your business operations (after 3-6 months), you can move forward with using that business to sponsor yourself.
Advantages of the Gradual Approach
Documentation Ready
Because you’ve been running the business, most documents you’ll need for sponsorship will already be available from your business operations.
Proven Financial Capability
- Salary Threshold Evidence: The money showing you can pay yourself the required salary threshold will be visible in your business bank statements
- Transaction History: Clear trace of money entering and leaving your business account
- Cash Flow Proof: Demonstrated ability to manage business finances
Business Viability Proof
You’ll be able to prove three critical elements:
- Business is Genuine: It already exists and operates
- Business is Viable: Cash flow and transaction history demonstrate viability
- Business is Scalable: Growth from initial investment (e.g., £5,000 to larger operations) shows scalability
Making Home Office Decisions Easier
When you follow the gradual approach, it becomes much easier for the Home Office to make positive decisions because:
- Your business has a proven track record
- Financial documents show realistic business operations
- Growth trajectory is documented and verifiable
- All required conditions have been naturally fulfilled through business operations
Strategic Advice for Different Visa Situations
If You’re Uncertain About Your COS
Start a business as a backup plan. This provides an alternative pathway if your current sponsorship situation becomes uncertain.
If You’re a Dependent
Consider starting your own business path rather than relying solely on your sponsor. This gives you independence and control over your immigration status.
If You’re on a Skilled Worker Visa Looking for Side Income
Start a business that can potentially become your main sponsorship vehicle if needed.
If Your Dependent Wants Independence
Your dependent can start and grow a business, providing an alternative sponsorship route for the family.
Protecting Your Future
Why Start Early
Even if you’ve completed 2-3 years on your current visa, if your status feels uncertain, start a business early. This way:
- If anything goes wrong with your current visa situation
- If the business is already established and profitable
- You can easily transition to self-sponsorship
- You’ll have all required documentation and conditions met
Transition Considerations
Some people ask: “Do I need to start all over again from scratch?”
You may not necessarily need to start completely over, but this depends on individual circumstances. Immigration solicitors can guide you through the specific requirements when the time comes.
Frequently Asked Questions About UK Business Visa and Self-Sponsorship
Q1: Can I register a business to sponsor myself to the UK?
Answer: Yes, you can register a business to sponsor yourself to the UK through the Self-Sponsorship route. However, this requires obtaining a Sponsor Licence for your business first. The business must be genuine, viable, and scalable. You’ll need to demonstrate that the business can pay the required salary threshold and meet all Home Office requirements. It’s recommended to establish and run the business for 3-6 months before applying for the sponsor licence to build credibility and gather necessary documentation.
Q2: I need proof of funds urgently for a visit visa. What should I do?
Answer: For UK visit visa proof of funds, you need to show you can financially support yourself during your stay. The amount depends on your trip duration and planned expenses. Key requirements include:
- Bank statements showing sufficient funds for your trip
- Evidence of regular income or employment
- Proof of accommodation arrangements
- Return flight bookings
- Clear purpose and duration of visit
The funds should be in your account for at least 28 days before application. Ensure your bank statements show genuine transactions, not large deposits made just before applying.
Q3: As a main applicant on a visa, can I still do business in the UK?
Answer: This depends on your current visa type:
- Skilled Worker Visa: You can run a business as long as it doesn’t interfere with your sponsored employment. The business cannot be your main source of income initially.
- Student Visa: Limited business activities are allowed, but you cannot be a director of a limited company or work more than 20 hours per week during term time.
- Spouse/Partner Visa: You generally have unrestricted work rights and can start any business.
Always check your specific visa conditions and consider getting legal advice before starting business activities.
Q4: On a student visa, can I register a business?
Answer: Student visa holders have restrictions on business activities:
- You cannot be a director of a limited company
- You cannot be self-employed as your main activity
- You can work up to 20 hours per week during term time (full-time during holidays)
- You can start preparing for future business ventures
However, you can register a business in preparation for future visa applications, ensuring it’s properly structured for when you transition to a visa that allows business ownership (like Graduate Route or Skilled Worker route).
Q5: Can a non-limited partnership business apply for a sponsor licence?
Answer: Yes, various business structures can apply for sponsor licences, including:
- Limited Companies (most common and recommended)
- Limited Liability Partnerships (LLP)
- Partnerships
- Sole Traders (in some circumstances)
However, Limited Companies are generally preferred by the Home Office as they provide:
- Clear corporate structure
- Better compliance tracking
- More straightforward documentation
- Limited liability protection
Partnerships can apply but may face additional scrutiny regarding management structure and compliance responsibilities.
Q6: What documents are needed to process a visa if I have a Certificate of Sponsorship (COS)?
Answer: With a valid COS, you’ll need:
- Valid passport (with at least 6 months validity)
- Certificate of Sponsorship reference number
- Job offer letter from your sponsor
- Proof of English language ability (unless exempt)
- Financial evidence showing required maintenance funds
- Educational qualifications (if required for your role)
- Previous visa history documents
- Tuberculosis test results (if from certain countries)
- Criminal record certificate (if required)
- Relationship documents (if bringing dependents)
The specific requirements may vary based on your nationality, role, and circumstances.
Q7: I want to register a cleaning business in the UK from outside the UK. What are the proof of funds and process requirements for self-sponsorship?
Answer: Registering a cleaning business from outside the UK for self-sponsorship involves several steps:
Business Registration Process:
- Register the limited company with Companies House
- Obtain necessary business licenses and insurance
- Open a UK business bank account
- Establish business operations and client base
- Apply for Sponsor Licence
- Apply for your visa once sponsor licence is approved
Proof of Funds Requirements:
- Business funds: Sufficient to demonstrate the business is viable (varies by scale of operations)
- Salary capability: Evidence the business can pay the required salary threshold (currently £38,700 or going rate for the role)
- Operating capital: Funds to cover business expenses, equipment, insurance, and initial operating costs
- Personal maintenance: Funds to support yourself initially
Cleaning Business Specific Considerations:
- Obtain public liability insurance
- Register for appropriate tax schemes
- Ensure compliance with health and safety regulations
- Demonstrate genuine business activity and client contracts
- Show scalability potential for sponsor licence approval
Recommended Timeline:
- Months 1-3: Business registration, setup, and initial operations
- Months 4-6: Build client base and demonstrate viability
- Month 6+: Apply for sponsor licence with proven business track record
Important Reminders
- Professional Advice: Always consult immigration lawyers for complex cases
- Genuine Business: The business must be real, not just a visa vehicle
- Compliance: Maintain proper records and follow all regulations
- Timeline: Allow sufficient time for each stage of the process
- Updates: Immigration rules change regularly – stay informed
Getting Started
Whether you’re planning self-sponsorship, need proof of funds, or have questions about business registration while on various visa types, the key is proper planning and understanding current requirements. Each situation is unique, so consider getting personalized advice from qualified immigration professionals.
This FAQ covers common questions about UK business visa and self-sponsorship routes. Requirements may change, so always verify current rules with official sources or qualified immigration advisers.
