ESC

Click the "allow" button if you want to receive important news and updates from immigrationboards.com


Immigrationboards.com: Immigration, work visa and work permit discussion board

Welcome to immigrationboards.com!

Login Register Do not show

construction companies

Only for UK Tier 1 (Entrepreneur) points system. This route is now closed to new applicants.

Moderators: Casa, push, JAJ, ca.funke, Amber, zimba, vinny, Obie, EUsmileWEallsmile, batleykhan, meself2, geriatrix, John, ChetanOjha, archigabe

Locked
Wannabe Ent
Newly Registered
Posts: 5
Joined: Sun Jul 20, 2014 12:34 am

construction companies

Post by Wannabe Ent » Sun Jul 20, 2014 5:26 am

Hi. We would like to apply for 200K category of UK Tier 1 entrepreneur team visa. I have following questions:

1. Do we have to do the same business in uk as we would be projecting in our business plan? Or can we change our minds and start a totally different type of business?

2. UKBA guidance notes say that property development and property management are excluded from the types of investment accepted for award of points. There is no objection however, to you investing in companies that are mainly involved in construction.
Does this mean that we can creat a company that is involved in buying land and constructing houses upon it by entering into contracts with contractors, engineering and plumbing companies etc?
how can I invest in a construction company and be awarded ponits as well?
Would the price of land be included in the investment for award of points?

Olasunkanmi
Diamond Member
Posts: 1324
Joined: Sat Aug 17, 2013 10:28 pm
Location: London, UK.

Re: construction companies

Post by Olasunkanmi » Sun Jul 20, 2014 3:22 pm

@ Wannabe Ent, to answer your questions

- You can change your mind and start a different business from the one you state in your initial business plan. But you should get your visa first before trying to change the business plan.

- If you decide to open a construction company, you will have to employ your own staffs as sub-contracting is not allowed under the tier 1 entrepreneur visa.
An easy option is to invest your 200k fund in a construction company that is already established if you cannot employ staffs directly.

- If you put the 200k as capital in your company account to purchase land and build the house, then the 200k will qualify as investment fund.
The key to success is knowledge and hardwork, and to have faith.

K-Desilva
Newly Registered
Posts: 7
Joined: Wed Jul 16, 2014 10:07 pm

Re: construction companies

Post by K-Desilva » Sun Jul 20, 2014 3:40 pm

Is it ok to buy properties in Auction and then renovate it and sell in the market ?

The amount spent to buy property and renovation will be counted as investment?
Olasunkanmi wrote:@ Wannabe Ent, to answer your questions

- You can change your mind and start a different business from the one you state in your initial business plan. But you should get your visa first before trying to change the business plan.

- If you decide to open a construction company, you will have to employ your own staffs as sub-contracting is not allowed under the tier 1 entrepreneur visa.
An easy option is to invest your 200k fund in a construction company that is already established if you cannot employ staffs directly.

- If you put the 200k as capital in your company account to purchase land and build the house, then the 200k will qualify as investment fund.

attahaas
Member
Posts: 236
Joined: Tue Jul 01, 2014 3:33 am
Location: LONDON, UK
India

Re: construction companies

Post by attahaas » Sun Jul 20, 2014 3:43 pm

Wannabe Ent wrote:2. UKBA guidance notes say that property development and property management are excluded from the types of investment accepted for award of points. There is no objection however, to you investing in companies that are mainly involved in construction.
Does this mean that we can creat a company that is involved in buying land and constructing houses upon it by entering into contracts with contractors, engineering and plumbing companies etc?
how can I invest in a construction company and be awarded ponits as well?
Would the price of land be included in the investment for award of points?
Olasunkanmi wrote:- If you put the 200k as capital in your company account to purchase land and build the house, then the 200k will qualify as investment fund.
Buying land and constructing a building might be considered as "Property Development" according to the definition given under A20 on page 45-46 of 59 in theTier 1 (Entrepreneur) Visa Policy Guidance
Property development and property management are excluded from the types of investment accepted for the award of points Investment in property development and management will not be taken into account for the award of points. This is because it is not the intention of this category to allow you to set up as a landlord and let properties in the United Kingdom. The intention is to promote United Kingdom competitiveness in business and to focus the investment on promoting business beneficial to the United Kingdom economy.

A person involved in property development makes improvements of some kind to immovable property (real estate), which increases its value. A person involved in property management is charged with operating immovable property (real estate) for a fee, on behalf of the owner. The restrictions on investment in property development and property management are intended to ensure that the Entrepreneur route is used to promote United Kingdom competitiveness in business.

There is no objection, however, to you investing in companies that are mainly involved in construction.
According to this if you want to be a construction company you are supposed to only provide construction services and not buy land and develop it.
•12-Feb-2015: Applied online (Team), 200K, India
•13-Feb-2015: Submitted documents and biometrics
•25-Feb-2015: Received email saying that they need more time
•03-Mar-2015: Interviewed separately
•05-Mar-2105: Received docs and passport with visa stamped!

Wannabe Ent
Newly Registered
Posts: 5
Joined: Sun Jul 20, 2014 12:34 am

Re: construction companies

Post by Wannabe Ent » Sun Jul 20, 2014 7:52 pm

Thanks guys for such prompt replies. Regarding the change of business venture from the one projected in business plan, it seems clear that it is allowed.
However, I have some confusion as to the construction business and what is allowed under this.
can you please let me know if subcontracting is not allowed at all , or whether it is allowed if I hire the required staff, ie create two jobs and get rest of the construction work like engineering and masonry etc by subcontracting.
Would the money paid to subcontracting firms count toward investment funds or shall we buy all the materials ourselves and just pay the firms for services so that we can show money spent by our own company and include it in the investment funds?
Also, I am concerned about the other answer saying that it might come under property development. Who's right? If I get the visa, would anyone in ukba or other official position be willing to help clarify this?
Does anyone know what kind of counselling is provided to the tier 1 entrepreneurs in uk?
Thanks.

Olasunkanmi
Diamond Member
Posts: 1324
Joined: Sat Aug 17, 2013 10:28 pm
Location: London, UK.

Re: construction companies

Post by Olasunkanmi » Sun Jul 20, 2014 8:01 pm

@ attahaas, you have quoted my statement out of context, the whole statement is as stated below;
''If you decide to open a construction company, you will have to employ your own staffs as sub-contracting is not allowed under the tier 1 entrepreneur visa.
An easy option is to invest your 200k fund in a construction company that is already established if you cannot employ staffs directly.

If you put the 200k as capital in your company account to purchase land and build the house, then the 200k will qualify as investment fund.''
Buying land and constructing a building if your company is a construction company is allowed under the rule because the restriction is that you cannot develop an existing building or manage a property, but if you decide to knock down an existing building and re-construct from the scratch, then you should be fine as this qualify as the job of a construction company and not a renovation or refurbishment company.

Most construction company now buy land and build the houses before selling it on for profit.
The key to success is knowledge and hardwork, and to have faith.

Wannabe Ent
Newly Registered
Posts: 5
Joined: Sun Jul 20, 2014 12:34 am

Re: construction companies

Post by Wannabe Ent » Sun Jul 20, 2014 8:10 pm

Dear Olasunkanmi, you seem to be right from what I I have read on the topic. But could you please answer my query about the hiring of required staff, ie 2 jobs and hiring subcontractors for other jobs. Is that allowed?

attahaas
Member
Posts: 236
Joined: Tue Jul 01, 2014 3:33 am
Location: LONDON, UK
India

Re: construction companies

Post by attahaas » Mon Jul 21, 2014 3:20 am

Olasunkanmi wrote:@ attahaas, you have quoted my statement out of context, the whole statement is as stated below;
''If you decide to open a construction company, you will have to employ your own staffs as sub-contracting is not allowed under the tier 1 entrepreneur visa.
An easy option is to invest your 200k fund in a construction company that is already established if you cannot employ staffs directly.

If you put the 200k as capital in your company account to purchase land and build the house, then the 200k will qualify as investment fund.''
Buying land and constructing a building if your company is a construction company is allowed under the rule because the restriction is that you cannot develop an existing building or manage a property, but if you decide to knock down an existing building and re-construct from the scratch, then you should be fine as this qualify as the job of a construction company and not a renovation or refurbishment company.

Most construction company now buy land and build the houses before selling it on for profit.
It is an assumption that buying land and constructing a building on it is "allowed" under the rule. I would like to see an official guidance on this particular subject. According to what is stated in the existing guidance, "real estate" means land and/or existing building, not just existing building. So, if you are buying land and constructing on it, then you are merely increasing the entire value of that real estate, there by developing the property. Again this is my interpretation/assumption as I don't have or known someone verifiable, with a first hand experience with the exact query you posted.

People or Tier 1 Entrepreneurs here are not like "most construction companies". The Entrepreneur visa holders are supposed to follow specific guidelines that do not apply to "most construction companies" which more often than not are owned by settlers or citizens.

@Wannabe Ent: If you really are serious about a construction company, you better check with UKBA/HO for formal clarification. This forum is not the right place to do that. As long as the advice is coming from someone who has done exactly what you are intending to do, then you might get the correct answer and ONLY IF you can verify what that particular member has done. OTHERWISE, everything else is guesswork including that of the senior members and of junior members (which also includes me).

I am NOT saying "Olasunkanmi" or what you, Wannabe Ent has "read/heard" is outright wrong, but just cautioning you to get official clarification.

I would rather be safe than sorry! Check with UKBA/HO, you will be happy that you did.
•12-Feb-2015: Applied online (Team), 200K, India
•13-Feb-2015: Submitted documents and biometrics
•25-Feb-2015: Received email saying that they need more time
•03-Mar-2015: Interviewed separately
•05-Mar-2105: Received docs and passport with visa stamped!

GLL
BANNED
Posts: 56
Joined: Thu Jul 17, 2014 2:48 pm

Re: construction companies

Post by GLL » Mon Jul 21, 2014 9:34 am

Strictly speaking if you want to be on the safe side regarding your visa, your business model should involve merely construction ie planning, design, engineering, building, etc.

If your business model involves buying the land, constructing a building and then selling it, it is already a grey area, as this may be viewed as property development.

If you are considering investing in existing construction companies, let me know, we can find something suitable for you.

Wannabe Ent
Newly Registered
Posts: 5
Joined: Sun Jul 20, 2014 12:34 am

Re: construction companies

Post by Wannabe Ent » Mon Jul 21, 2014 12:34 pm

Thanks. That's good advice. I will definitely check with ukba HO. Regarding investment in an existing construction company, we would definitely want to invest that way rather than starting out on our own if the deal pans out.

GLL
BANNED
Posts: 56
Joined: Thu Jul 17, 2014 2:48 pm

Re: construction companies

Post by GLL » Mon Jul 21, 2014 1:08 pm

We help overseas entrepreneurs with finding suitable UK companies for investment. If this is something that you are considering you can send me your CV and immigration situation at spammer@spam.com and I will see if we can help you with the construction companies.

Wannabe Ent
Newly Registered
Posts: 5
Joined: Sun Jul 20, 2014 12:34 am

Re: construction companies

Post by Wannabe Ent » Mon Jul 21, 2014 4:48 pm

Great, thanks. Though I still need to confirm with ukba what they consider as investment under the heading of construction.

Olasunkanmi
Diamond Member
Posts: 1324
Joined: Sat Aug 17, 2013 10:28 pm
Location: London, UK.

Re: construction companies

Post by Olasunkanmi » Wed Jul 23, 2014 7:11 am

Wannabe Ent wrote:Dear Olasunkanmi, you seem to be right from what I I have read on the topic. But could you please answer my query about the hiring of required staff, ie 2 jobs and hiring subcontractors for other jobs. Is that allowed?

@ Wannabe, you cannot employ someone as a sub-contractor under the Tier 1 entrepreneur visa, your staffs should be on your payroll as you will have to deduct their PAYE and NI directly.
The key to success is knowledge and hardwork, and to have faith.

aesthetic homes
Newly Registered
Posts: 1
Joined: Wed Oct 01, 2014 5:08 pm
Location: london
Contact:

Re: construction companies

Post by aesthetic homes » Wed Oct 01, 2014 5:38 pm

Hi, I need an investor for my construction company. I am developing flats in london and can give 30% return on investment in the period of 15 months. If interested let me know an I can send the proposal and further details.

amisintier1
Newly Registered
Posts: 4
Joined: Mon Oct 13, 2014 1:18 pm

Re: construction companies

Post by amisintier1 » Wed Jan 07, 2015 2:12 pm

aesthetic homes wrote:Hi, I need an investor for my construction company. I am developing flats in london and can give 30% return on investment in the period of 15 months. If interested let me know an I can send the proposal and further details.

Hi, Just came across your post. Would you mind sending me your proposal and further details. we might work together. my email address is

Locked
cron