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‘defined contribution’ basis. They are alsooften linked to a life assurance schemeproviding a tax-free lump sum defined as amultiple of salary in respect of employees whodie whilst in the company’s service.Each employee in such a scheme has theirown personal pension, under the umbrella ofan agreement between their employer and theinsurance company. If the employee leavesthe company’s employment his pension willautomatically follow him to his new employerand he may continue contributing to it until hisretirement, if his new employer does notoperate its own scheme.3. ImmigrationNationals of European Economic Area (EEA)countries, Swiss nationals, and certainCommonwealth citizens with UK parents orgrandparents have the right to live and work inthe UK, as do certain dependants of British orEEA nationals (subject to appropriate visas).The following paragraphs apply to nationals ofother countries.Since 2008 the UK has had a 5-tier pointsbased system to cover most economic,working and studying visas for entry to the UK.Tiers 1 and 2 will be the most relevant aspectsof the 5-tier system for those seeking toestablish a business in the UK but otheraspects of the system may be relevant in somecases. We also only highlight aspects of Tiers1 and 2 and do not cover themcomprehensively.1. Applications under Tier 1An individual who wishes to establish abusiness in the UK can make an application toenter the UK under Tier 1 (Entrepreneur) of thePoints-Based System (“PBS”). The applicationshould be made to the British diplomatic postin the country where the individual is legallyresident. The Tier 1 (Investor) category mayalso be relevant.In all Tier 1 categories applicants will need toprovide original documentary evidence tosupport their claim for points, and the evidencewill be rigorously checked.Tier 1 (Entrepreneur)Tier 1 (Entrepreneur) is for individualsinvesting in the UK by either setting up ortaking over a business. Entrepreneurs must beactively involved in the running of this businessin the UK, and cannot take up any otheremployment in the UK. A total of 95 points isrequired for a successful application.Individuals must score 75 points bydemonstrating that at the date of theirapplication they have access to £200,000 (orin certain circumstances £50,000) which isheld in a regulated financial institution, andfreely transferable to and disposable in the UKfor the purposes of investment in the intendedbusiness.Entrepreneur applicants must also score afurther 20 points by demonstrating that theycan speak English to the required standardand that they have enough money to supportthemselves whilst in the UK,To obtain a further 2 year extension of theinitial 3 year 4 months Tier 1 (Entrepreneur)visa, applicants must demonstrate thefollowing:• that they have made the £200,000investment in one or more businesses inthe UK (the investment should notinclude the value of any residentialaccommodation, property development,or property management);• within 6 months of initial entry into the UKthey registered as a director of anexisting or newly established company orregistered as self-employed with HMRevenue and Customs and continue tobe so registered;• that they were actively engaged in thebusiness at the time of their application;• that their investment created theequivalent of two new full time paid jobsfor at least two persons settled in the UK,and that these jobs have existed for atleast 12 months each; and• that they satisfy the language andmaintenance requirements.Tier 1 (Investor)This category is for high net worth individualswho are willing to make a substantialinvestment in the UK. Investors must score 75points by demonstrating that they either haveat least £1,000,000 of their own money whichis held in a regulated financial institution anddisposable in the UK, or by demonstrating thatthey own personal assets which (taking intoaccount any liabilities to which they aresubject) have a value exceeding £2,000,000PAGE 20