How Can Graduate (PSW) Visa Holders Start a Business in the UK?

Your Step-by-Step Guide to Self-Sponsorship in 2025

Many international students want to stay in the UK after graduation. They dream of building a business here. If you hold a Graduate (Post-Study Work) visa, this is possible but you need to understand the rules.

The UK Graduate visa allows you to live and work in the UK for 2 years (or 3 for PhD holders). You can be employed, self-employed, or start your own business. But it does not provide a direct path to permanent residence.

To stay longer, most graduate visa holders switch to the Skilled Worker visa using a UK self-sponsorship route. This means you create a legal UK company, earn a sponsor licence for your company, and sponsor yourself for work.

This detailed guide explains how to do it in 2025.

The Graduate visa lets you work or start a business for a limited time after finishing your studies in the UK:

• Standard length: 2 years (3 for PhD)
• No limit on work type: full-time, part-time, self-employed allowed
• Cannot apply for settlement or permanent residency on this visa directly

Your own UK company is funding your skilled worker visa application if it is self-sponsored.
You become an employer as well as an employee. Your employer provides you with a Certificate of Sponsorship (CoS), which certifies that you are employed in a genuine, skilled profession that pays well.

You can lawfully live and work in the UK with this approach, and after five years, you can settle down.

• Go to Companies House and register a Private Limited Company (Ltd).
• Choose a polished and unique name for your business.
• Select an address for your UK registered office.
• Select the company’s shareholders and directors. Usually, you are part of this.
• To handle your money, open a business bank account in the UK.
• Write a strong business plan outlining the objectives and feasibility of your endeavour.

• To manage employee taxes, sign up your company for the PAYE (Pay As You Earn) plan.
• Invest in Employer’s Liability Insurance to safeguard your employees.
• Assign important staff members to oversee sponsorship responsibilities.
• Verify that the wage your employer may provide you satisfies the requirements for a skilled worker visa.

• Use the Sponsorship Management System (SMS) at the Home Office to submit an online application.
• Provide documentation attesting to the legitimacy and ongoing operations of your company.
• The application fee is £1,579 for larger firms and £574 for small ones.
• Be ready for a potential Home Office compliance officer to stop by and inspect your company.

• As soon as your sponsor licence is accepted, use the SMS gateway to assign yourself a CoS.
• The position you assign needs to be on the UK’s list of qualifying occupations or shortage occupations.
• We advise selecting positions that demand at least RQF Level 6 skills.
• The salary for the role should meet the “going rate” or be at least £41,700 per year for most jobs.

• Use your Certificate of Sponsorship (CoS) reference number to apply for a visa online.
• Provide evidence of your fluency in the English language.
• Both the visa application cost and the Immigration Health Surcharge need to be paid.
• Attend your biometric appointment so your photos and fingerprints can be captured.
• Wait for your visa application to be processed, which typically takes eight weeks.

• The annual Immigration Skills Charge for small businesses and charities is £1,000 or £364.
• Keep thorough records to prove that your company is operating legally.
• One of the sponsor’s duties is to inform the workers of any changes or absences.

You may claim your skilled worker visa as a dependent if your spouse and children under the age of eighteen apply. They get permission to live, work, and study in the UK.

You are eligible to apply for Indefinite Leave to Remain (settlement) after five years of continuous employment on the skilled worker visa, including self-sponsorship.

• Start-Up and Sole Representative visas are closed to new applicants
• UK Innovator founder visa remains an option but requires endorsement and higher investment
• Global Business Mobility routes serve special categories

One effective strategy for graduates with a skilled worker visa to ensure a long-term future in the UK is to launch your own company and sponsor yourself with the visa.

Carefully following each step is essential. Rely on experienced advisors to help you navigate the legal, financial, and immigration challenges.

Your UK business journey can start right now with The SmartMove2UK at your side.

Get in touch now: Schedule your free introductory consultation.