Primary activity and source of revenue approach under Sole Representative visa route
Commonly known as a Sole Representative visa and formally called Representative of an Overseas Business visa, it was designed for employees of overseas companies to be recruited to set up and supervise a United Kingdom branch or a wholly-owned subsidiary. Being closed on 11 April 2022 for new applicants and replaced by a UK Expansion Worker route, this visa route continues to be employed by existing Sole Representative visa holders and their family members to extend their stay or settle in the United Kingdom.
The Sole Representative visa route, introduced on 1 October 2009, slowly gained popularity. As a number of applicants eventually grew, the Home Office started implementing tougher requirements and a more thorough approach to decision-making.
This post intends to bring attention to the existing Sole Representative visa holders the “primary activity and source of revenue” approach in the Home Office decision-making in a case of business diversification.
The purpose under the Sole Representative visa route is for the UK establishment to operate in the same business as its overseas parent company. This requirement must be met throughout the period the applicant requires to qualify for settlement in the United Kingdom, which in most cases is 5 years.
If the overseas company diversifies its business offerings, for example bringing new product lines or services that become the primary activity and the primary source of revenue, so must the UK entity. In our most recent settlement application under the Representative of an Overseas Business visa route, we had to dive deep into the “primary activity” and “primary source of revenue” approach to satisfy the Home Office requirements.
Essentially, “primary activity” is a core function of a business to generate revenue, whereas “primary source of revenue” is income generated from primary business activity. If the business has several activities, it is the activity that generates the most revenue is regarded as the business’s primary activity.
When the business starts diversifying its offerings, under the provisions of the Sole Representative rules, it is imperative that whatever activity becomes the primary activity of the overseas business, it also becomes the primary activity of the UK establishment. This is exactly what happened in our case, where the overseas business, due to the COVID-19 pandemic and the Ukrainian war, had to diversify its primary activity several times to ensure the continuous profitability. The UK establishments mirrored the parent company’s offerings.
During the application review process, the Home Office’s caseworker team thoroughly assessed the financial accounts of both parent and UK entities. The consideration was given to the revenue generated during each financial year and what business activity generated the most revenue at each point of the business’s diversification. The Home Office caseworking team also assessed the business’s website on whether it reflects the business’s current primary offering.
Interestingly, the Home Office also quired what experience and, if applicable, qualifications the Sole Representative applicant had to be able to successfully supervise the UK business in the wake of the overseas business bringing new offerings to the equation. This was not covered in the original application but was evidenced with the relevant documentary evidence in the additional information request received from the Home Office caseworking team. This only demonstrates how thorough the decision-making team is in their application review.
Our Immigration Team has many years of experience assisting Sole Representative applicants in their visa applications, often successfully taking on cases with a high degree of complexity.
Do not hesitate to get in touch for an assessment of your circumstances and advice on how we could assist.
