Q&As

Tier 2 (General) Migrant Shareholding Rules for Non-High Earners

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Produced in partnership with Gary McIndoe of Latitude Law
Published on: 24 September 2020

Is a Tier 2 (General) migrant (who is not a ‘high earner’) able to hold more than 10% of shares in a company in the same group of the company which sponsors them? Eg a majority stake in a second group company, where that second company would have the option to purchase IP created by the migrant for their role in the sponsoring company? Are there any restrictions on a Tier 2 migrant being a director and shareholder of one group company but an employee of another?

It is possible for a Tier 2 (General) migrant to hold Shares in the company which sponsors them, although they will be prohibited from owning more than 10% of shares in their sponsor’s company unless they are a ‘high earner’ (earning £159,600 or more annually).

From a practical perspective, it could be argued that this is a crude rule. Compare, for example, amendments to the 'sole representative of an overseas business' Rules in 2020 (see: Statement of Changes in Immigration Rules, CP 232), which introduced a more refined requirement

Gary McIndoe
Gary McIndoe

Gary has practised UK-inbound immigration, nationality and refugee law for more than 25 years. His first taste of work in his field was at the Home Office, where his role included policy work on the return of Hong Kong to Chinese control in 1997.

He qualified as a solicitor in 2000 and founded Latitude Law in 2007; the firm has grown steadily since then and currently has a 15-strong legal team undertaking a full range of immigration work.

Latitude has recognised expertise in guiding businesses, from start-ups to mulitnationals, through sponsor licensing and related regulatory processes. It is also noted for its work with high-net-worth individuals, with particular focus on the sole representative of overseas business, innovator and start-up visa categories.

Gary and his team have developed strong links with exceptionally talented individuals in a burgeoning regional tech sector. Latitude also continues to take on complex asylum and deportation work. The firm has a satellite office in London and a subsidiary business in Brussels. Gary is registered as a foreign lawyer with the Brussels Bar.

Gary is an AILA international associate and has contributed to panels at the organisation’s global and European conferences in recent years. He is chair of trustees of Electronic Immigration Network, a charity providing information services in the sector, and a patron of Middle Eastern human rights charity Salam DHR. In 2021 he co-authored, with Gemma Tracey, a practical guide to deportation (Law Brief Publishing).


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Jurisdiction(s):
United Kingdom
Key definition:
Shares definition
What does Shares mean?

The CA 2006 merely provides that a share is a share in the company's share capital. A company's share capital comprises the number of shares issued by it to investors either on or after incorporation. Those investors then become the shareholders in the company. A shareholder’s shares are their personal property. By contrast, the assets of a company are owned by the company itself. Owning shares does not entitle a shareholder to any property rights in the company's assets.

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