How skilled South African entrepreneurs are expanding businesses to the UK

If a South African business has a UK presence, it can apply for a sponsor licence to bring international talent to the UK.

If a South African business has a UK presence, it can apply for a sponsor licence to bring international talent to the UK.

Published Sep 10, 2024

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By Saskia Johnston

Getting into the UK has been challenging for many skilled South Africans, but this may no longer be the case for artisans and others with skills in high demand, including bricklayers, welders, roofers, carpenters, and plasterers.

Why is the UK so keen on South African business owners?

Around the world, South Africans are known for having a reliable and strong work ethic. Also, the underlying skills learned in South Africa are very similar to those learned in the UK. For example, the plumbing and electrical systems are very similar. Yes, some industries might require conversion courses, but generally speaking, the South African market has a large skilled labour workforce, which is attractive to the UK market.

Which visas are required for South Africans?

The visa class primarily used is the Skilled Working Visa class. This visa allows you to bring your family over to the UK.

When hiring a migrant worker on a Skilled Worker visa, the sponsoring employer is required to match the job with its corresponding Standard Occupational Classification (SOC) code from the list of eligible occupations.

These codes are used to show the Home Office that the migrant worker’s role meets the prescribed skills in order to qualify for a Skilled Worker visa.

The Home Office has taken all the occupation codes, from a doctor to a hospitality manager, to a bricklayer. In recent years, there have been more occupation codes in the building and trades sector, and some of those have been added to the shortage occupation list.

The shortage occupation list details professions that are heavily desired in the UK. The home office has identified that there aren’t sufficient local resources to fulfil those positions. For example, bricklayers are currently on that shortage occupation list.

How long is the Skilled Working Visa valid for?

This is at the business’ discretion in terms of how long they anticipate needing the candidates in the UK. Skilled Working Visas can be issued from one to five years. In order to keep initial costs down, most businesses opt for a two-year visa. Once the business starts generating sterling revenue, they could do a three-year renewal, and then after five years in the UK, a candidate could qualify for indefinite leave to remain, which is known as permanent residency.

How are business owners bringing their workforces over?

If a South African business has a UK presence, it can apply for a sponsor licence to bring international talent to the UK.

A popular trend is for entrepreneurs in South Africa to use this as an expansion opportunity to internationalise their wealth and business. The benefits include the fact that revenue is generated in sterling, compared to rands, and labour is less expensive in the South African market, compared to the UK market, so they can compete very well at fair prices. The business can scale and leverage using overseas resources effectively.

For business owners themselves, they are sometimes able to use this as an immigration tool to relocate themselves, should they have in-demand skills.

What are the biggest challenges and considerations when expanding a business in the UK?

There has to be an appetite from the entrepreneur or the business owner to go through this process of expansion in terms of the logistical business set up. It’s relatively straightforward process in terms of how the UK government enables international businesses to set up in the UK. A business registering with HMRC for tax, pensions, and VAT is routine.

Some of the complexities involve the UK banking infrastructure, which can be quite difficult to set up. Most South African entrepreneurs would use a local resident director in the UK, often somebody known to them, or perhaps a business partner in the UK, who would help with the company set up. This makes the account opening process much more straightforward.

The importance of a sponsorship licence

In order to become a licensed sponsor in the UK, a business has to have either a UK resident employee or UK resident office holder (company secretary or company director or equivalent). if a South African business owner has a UK resident in the UK, as well as the bank account and the logistics in place, the business would meet the requirements to register as a licensed sponsor in the UK. In order to sponsor skilled workers to live and work in the UK, you have to be a licensed sponsor.

Once a business is a licensed sponsor, they can sponsor as many candidates as they require, provided the business can demonstrate to the Home Office that it is a genuine business and there is a genuine vacancy within that business. Whether the business requires 1 or 100 candidates to relocate to the UK, the same sponsorship licence could be used.

Which jobs are in high demand?

There’s a great demand for trades and artisans. Fibre cabling technicians, plumbers, electricians, welders, and bricklayers are most sought after in the UK.

Many qualified artisans struggle to find a job in South Africa, whereas in the UK, it’s more of a struggle to find a candidate to fulfil the job.

* Johnston is the client services director at Sable International.

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