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Starting a Business or Going Self-Employed in the UK as a Romanian (2026)
The rules depend entirely on which visa you hold. Skilled Worker visa holders face strict limits. Graduate Route holders have full freedom. And self-sponsorship is possible — but complex.
Romanians on a Skilled Worker visa who want to go self-employed or start a business in the UK must ensure their visa conditions permit this, as most Skilled Worker visas restrict work to the sponsoring employer. The rules are specific, the consequences of getting them wrong are serious, and the right answer depends on which visa you hold and what kind of work you want to do.
This guide covers the position for Skilled Worker visa holders, Graduate Route holders, and those considering dedicated business visa routes. For a broader view of all available routes, see our guide to UK visa options for Romanians and the Skilled Worker visa guide.
Self-Employment Rights by Visa Route
| Visa route | Self-employment permitted? | Notes |
|---|---|---|
| Skilled Worker | Limited | Up to 20hrs/wk supplementary, same sector/level as main job only |
| Graduate Route | Yes — fully | No restrictions on sector, hours, or income level |
| Innovator Founder | Yes — primary purpose | Designed for running an endorsed innovative business |
| Global Talent | Yes — fully | Full work flexibility including self-employment |
| Student visa | No | Cannot be self-employed or run a business |
| Standard Visitor | No | No paid work or business activity permitted |
On a Skilled Worker Visa: The 20-Hour Rule
The Skilled Worker visa restricts work to the sponsored role with the sponsoring employer. However, since July 2025, visa holders can carry out supplementary self-employed work of up to 20 hours per week, provided all of the following conditions are met:
- The self-employed activity is in the same sector and at the same level as the sponsored role, or in an eligible higher-skilled occupation code, or on the Immigration Salary List
- The activity takes place outside the contracted hours of the main sponsored job
- You continue to work for your sponsor in the role described on your Certificate of Sponsorship
- The 20-hour limit applies per week — it cannot be averaged over a longer period
A software developer sponsored in SOC code 2136 can take freelance coding work from other clients up to 20 hours per week, as long as the freelance work is also in a software development role. A nurse sponsored under SOC 2231 cannot do weekend shifts as a barista — the sector and level do not match. There is no salary restriction on supplementary work, and there is no requirement to inform the Home Office, though you must register with HMRC and pay tax on the income.
The Skilled Worker visa is built around employment with a specific sponsor. Self-employment cannot replace or become more significant than the sponsored role. If your sponsor relationship ends, the supplementary self-employment permission ends immediately — you cannot remain in the UK working purely as a freelancer. Breaching the 20-hour limit or working in an unauthorised sector can result in visa curtailment.
Registering a Limited Company
You can incorporate a UK limited company at Companies House while on a Skilled Worker visa. Company formation itself is not restricted by immigration rules. What is restricted is actively working in or for that company beyond the supplementary employment rules.
In practice this means:
- You can be a director and shareholder of a UK limited company
- You can receive dividends (subject to tax rules)
- You can perform statutory director duties (filing accounts, signing documents) — these are not considered "work" under immigration law
- You cannot work full-time in the business, take on clients, or deliver services beyond the 20-hour supplementary limit
If your limited company grows to the point where you want to work in it full-time, you have two options: switch to the Innovator Founder visa, or pursue self-sponsorship.
Self-Sponsorship via Skilled Worker
Self-sponsorship is not a separate visa route — it is a configuration within the Skilled Worker framework. The process works as follows:
- Incorporate a UK limited company and establish it as a genuine trading business
- Apply for a Skilled Worker sponsor licence for the company (typically takes 8 weeks; requires evidence of genuine trading, a UK corporate bank account, PAYE registration, and compliance infrastructure)
- Issue yourself a Certificate of Sponsorship for a qualifying role at or above the minimum salary threshold (£41,700 or the going rate for your occupation code)
- Apply for a Skilled Worker visa sponsored by your own company
The role must be genuine — the Home Office will scrutinise whether the business genuinely needs the role and whether you are genuinely employed in it. The company must be registered and actively trading. You cannot self-sponsor into a role that amounts to simply doing your own freelance work. The business must pay you the required salary through PAYE. Professional immigration advice is strongly recommended before attempting this route.
On a Graduate Route Visa: Full Freedom
The Graduate Route is the most flexible visa for self-employment and business. If you have completed a UK degree on a Student visa and switched to the Graduate Route, you can:
- Register as a sole trader with HMRC from day one
- Set up and actively work in a UK limited company
- Freelance in any sector, for any clients, with no hour restrictions
- Take on employees (as an employer, not as a sponsored migrant)
The Graduate Route lasts 2 years (3 years for PhD graduates). It does not lead directly to settlement. If your business is still developing when the Graduate Route expires, your main options are: switch to the Innovator Founder visa (if the business is innovative enough to secure endorsement), or switch to the Skilled Worker visa sponsored by your own company (self-sponsorship).
Innovator Founder Visa
The Innovator Founder visa is the UK's dedicated route for entrepreneurs who want to build a genuinely innovative business. Unlike the Skilled Worker route, there is no minimum investment requirement and no salary threshold — but the barrier is the endorsement requirement.
To qualify you need:
- An original business idea that is innovative, viable, and scalable — not a copy of an existing business and not a straightforward commercial venture
- Endorsement from an approved endorsing body (a Home Office-authorised organisation, typically a university, incubator, or business accelerator)
- Evidence of English language proficiency (B2 level)
- £1,270 in savings
The endorsement is the significant hurdle. Endorsing bodies apply their own criteria and will not endorse businesses that are not genuinely innovative or that lack a credible plan for growth. A Romanian with a conventional service business or a replica of an existing product is unlikely to secure endorsement. A Romanian with a genuinely novel technology product, a new approach to a market, or a scalable software solution has a stronger case.
The Innovator Founder visa leads to ILR after 3 years — faster than the standard Skilled Worker route.
Tax and HMRC Registration
If you earn income from self-employment or business activity, you must register with HMRC regardless of the visa route. The key obligations are:
- Sole trader: register for Self Assessment with HMRC; file a tax return annually; pay Income Tax and Class 4 National Insurance on profits
- Limited company: register at Companies House; register for Corporation Tax; file annual accounts and confirmation statement; pay Corporation Tax on profits; pay yourself through PAYE if taking a salary
- VAT: mandatory registration if turnover exceeds £90,000; voluntary registration possible below this threshold
If you remain a Romanian tax resident while working in the UK, or have income from both countries, you may have tax obligations in Romania as well as the UK. The UK-Romania Double Taxation Agreement governs which country has the right to tax specific types of income and prevents the same income being taxed twice. A cross-border accountant who understands both systems is strongly recommended — this is not a situation where generic advice is sufficient.
Choosing the Right Path
The practical reality for most Romanians on a Skilled Worker visa is that the 20-hour supplementary rule gives meaningful room for freelancing within your professional field — enough to test a business idea, build a client base, and generate supplementary income without breaching your visa conditions. Many Romanian professionals in the UK use this to run small consultancies or take on project work alongside their employed role.
The decision point comes when the business grows beyond what the supplementary limit allows, or when you want to leave employment entirely. At that stage the question is whether the business qualifies for the Innovator Founder route or whether self-sponsorship via Skilled Worker is the more realistic path. Both are legitimate — but both require professional immigration and legal advice before you act. The consequences of getting the visa conditions wrong are not minor.
If you are still on the Graduate Route, move quickly: two years passes fast, and the window to establish a business, secure endorsement, or set up self-sponsorship before your Graduate Route expires needs active planning from the start — not six months before it ends.
Disclaimer: This guide is for general informational purposes only and does not constitute legal, immigration, or tax advice. UK immigration and tax rules change regularly. Always verify current requirements at gov.uk and consult a regulated immigration adviser and qualified accountant before taking any action. Last reviewed April 2026.
Frequently Asked Questions
In a limited way, yes. Skilled Worker visa holders can carry out self-employed activity for up to 20 hours per week as supplementary work, provided it is in the same sector and at the same level as the sponsored role, or in an eligible higher-skilled occupation code. The activity must take place outside contracted hours, and the visa holder must continue to work for their sponsor. Self-employment cannot be the main source of income on a Skilled Worker visa.
You can incorporate a UK limited company while on a Skilled Worker visa. You can be a director and shareholder and receive dividends. However, you cannot actively work in the company beyond the supplementary employment rules — up to 20 hours per week in an eligible occupation. If you want to work full-time in your own company, you need either the Innovator Founder visa or to self-sponsor yourself under the Skilled Worker route via a sponsor licence.
The Innovator Founder visa is the UK's main route for entrepreneurs who want to set up and run an innovative business. You need an original business idea endorsed by a Home Office-approved endorsing body — a university, incubator, or business accelerator that assesses innovation, viability, and scalability. There is no minimum investment requirement, but the idea must be genuinely innovative. The visa leads to ILR after 3 years — faster than the standard Skilled Worker route.
Yes — fully. The Graduate Route allows complete self-employment with no restrictions on sector, hours, or income. You can register as a sole trader, set up a limited company, or freelance. The Graduate Route lasts 2 years (3 for PhD graduates) and does not lead directly to settlement. You would need to switch to another visa before it expires — typically Innovator Founder or Skilled Worker via self-sponsorship — if you want to remain in the UK.
Self-sponsorship involves setting up a UK limited company, applying for a Skilled Worker sponsor licence for that company, and then having the company issue a Certificate of Sponsorship for you in a qualifying role. You then apply for a Skilled Worker visa sponsored by your own company. The sponsor licence application takes around 8 weeks. The role must be genuine and at the required salary level. This is a legitimate route but is scrutinised by the Home Office — professional immigration advice is essential.
Yes. If you earn income from self-employment or freelance work, you must register with HMRC as self-employed and complete a Self Assessment tax return. Tax registration is separate from immigration permission — you must confirm your visa conditions permit the activity before earning from it. If you have income from both Romania and the UK, the UK-Romania Double Taxation Agreement applies. A cross-border accountant is recommended for this situation.
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