Visa rule changes to help international students start a business

The UK government is set to majorly overhaul its immigration policy this November, with several measures expected to directly affect international students and graduates.

Among the measures, this group will be permitted to become self-employed via the Innovator Founder visa for the first time. This will allow foreign students who attain a degree to establish and run businesses here.

For young entrepreneurs, this is a major opportunity to establish themselves in the UK while nourishing their ideas into viable ventures.

What’s changing with the Innovator Founder visa?

As laid out in the Statement of Changes, from 25 November 2025, international students will be able to transfer directly from their Student visa to the Innovator Founder route upon graduating. This replaces the now-closed Start-up route.

Previously, graduates from overseas would have had to leave the UK, raise at least £50k in investment, and obtain a separate endorsement to apply for the visa, which often discouraged would-be founders.

The updated Innovator Founder visa route will still require applicants to receive an endorsement, but they no longer need to leave the UK or raise £50k to apply, as they can instead do so directly while still at university (provided they have an endorsement from an approved body for an innovative, viable, and scalable business idea).

For universities, startup incubators, and employers, the change is likely to strengthen ties with international graduates who want to translate their existing research and innovation into tangible, profitable initiatives.

In addition, the updated visa will support the UK in attracting world-class talent at a time when competition for skilled workers is intensifying across the world.

What’s changing with the HPI visa?

If the Innovator Founder route isn’t quite the right fit, graduates might also consider the High Potential Individual (HPI) visa, which targets top graduates from leading global universities.

The government has also updated this visa route by doubling the list of eligible institutions, with the change due to come into effect on November 4th. This will widen access for high-performing international grads looking to work or start businesses in the UK.

Both Innovator Founder and HPI changes sit within a broader effort to modernise the UK’s visa framework. And combined, they should make it easier for ambitious graduates to transition smoothly from study to entrepreneurship. But other changes may hinder this.

To caveat, a new 8,000 annual cap will be introduced, which can be both an opportunity and a limitation. While a tighter cap might introduce an air of prestige to the visa route, it also makes things more competitive for those looking to build their careers in the UK.

Applicants will also have less time to debate the decision. In January 2027, the maximum post-study stay will be reduced to 18 months from the current two years.

Will visa changes fuel a new startup boom?

The reforms could give the UK’s startup ecosystem a much-needed lift by helping international graduates stay on to build businesses, while also attracting new entrepreneurial talent from abroad.

It also comes at a time when many small businesses are struggling to recruit internationally. Recent changes to the UK’s Skilled Worker visa have made it harder for firms to hire international talent due to higher salary thresholds and stricter eligibility criteria.

Indeed, changes to English language requirements for economic migration routes are due to come into effect on 8 January 2026. Visa applicants will need to pass an “A Level standard” of English to stay in the country.

While the Innovator Founder and HPI visa routes could introduce flexibility, the picture remains mixed. These changes may support the UK’s goal to remain a global hub for innovation and skilled migration, but tightened rules may deter other applicants.