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Entrepreneur visa Extension - Investment

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

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sonirulz
Junior Member
Posts: 84
Joined: Wed Jan 22, 2014 5:11 pm

Entrepreneur visa Extension - Investment

Post by sonirulz » Thu Apr 03, 2014 2:56 pm

Hi Gurus,

Please can some guide me with the investment query for entrepreneur visa extension.

Scenario 1:
During my initial visa application my friend (as an investor) vouched for 50,000 investment in my business. My friend is not an entrepreneur team. We did get bank letter and letter of confirmation that money is available in my name.But now I am getting offer from other investor who want to make investment in my business. They do not want any other person (like my friend) to make any investment. So my question is after I have obtained my visa can I change my investor or change the source from where I will get investment? Is it important to show in the unaudited accounts that my friend made that 50,000 investment?

Scenario 2:
During my initial visa application my friend (as an investor) vouched for 50,000 investment in my business. My friend is not an entrepreneur team. We did get bank letter and letter of confirmation that money is available in my name.I have 50,000 of my own money so can I make invest that 50,000 instead of my friends money?

I would appreciate some valuable inputs.

Thanks
Soni :D

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

Re: Entrepreneur visa Extension - Investment

Post by Olasunkanmi » Thu Apr 03, 2014 6:14 pm

@ sonirulz, regardless of how you proof your available funds (either personal or third party) once you get your visa you will only need to show that you have invested the 50k in the business without showing who gave you the money or where you get it from.

HO don't need you to proof who give you the money during extension, you only need to proof that you have invested the 50k in your business.
The key to success is knowledge and hardwork, and to have faith.

sonirulz
Junior Member
Posts: 84
Joined: Wed Jan 22, 2014 5:11 pm

Re: Entrepreneur visa Extension - Investment

Post by sonirulz » Thu Apr 03, 2014 7:31 pm

Dear Olasunkanmi,

Can profits reinvested in business be considered as investment.

I would also like to understand if paying freelance and external providers be considered as investment.

Thanks
Soni

sonirulz
Junior Member
Posts: 84
Joined: Wed Jan 22, 2014 5:11 pm

Re: Entrepreneur visa Extension - Investment

Post by sonirulz » Fri Apr 04, 2014 10:49 am

Dear Olasunkanmi,

Thank you for your valuable advice.
Can profits reinvested in business be considered as investment.

I would also like to understand if paying freelance and external providers be considered as investment.

Thanks
Soni

samaygrg
Senior Member
Posts: 607
Joined: Sat Jun 09, 2012 11:12 pm
Location: United Kingdom

Re: Entrepreneur visa Extension - Investment

Post by samaygrg » Fri Apr 04, 2014 11:36 am

Hi
Yes, definitely you can show the payment paid to freelancers and ext. consultant as your investment, HO is considering the 'spent expenses' of company as the investment.

samaygrg
Senior Member
Posts: 607
Joined: Sat Jun 09, 2012 11:12 pm
Location: United Kingdom

Re: Entrepreneur visa Extension - Investment

Post by samaygrg » Fri Apr 04, 2014 11:42 am

Regarding the profits of the company to be reinvested, I think and I have been advised ' if you count the profit of company used directly as your investment, then it wouldn't not counted your investment, but you can take some % or all as your Dividend at the year end and you can reinvest into the company, as that's your money, not company's'.

Hope it rings the bell.

sonirulz
Junior Member
Posts: 84
Joined: Wed Jan 22, 2014 5:11 pm

Re: Entrepreneur visa Extension - Investment

Post by sonirulz » Fri Apr 04, 2014 4:37 pm

Hi Samygrg,

A million thank you for your help. Please can you help me find this anywhere in the guideline?

Thanks
Soni

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

Re: Entrepreneur visa Extension - Investment

Post by Olasunkanmi » Sat Apr 05, 2014 4:21 pm

@ sonirulz,

Can profits reinvested in business be considered as investment.

Ans: As Samygrg advice, taking dividend out of the business is the best idea and then investing the money back into the company.
If you just want to use the profit for investment without taking it out first, then it might be difficult to proof to HO that the money came from your own funds.

I would also like to understand if paying freelance and external providers be considered as investment.

Ans: You can use money paid to freelancer and external providers as investment funds provided the service they do is to help your business perform, for example the money you pay for a freelance website designer to design your website for the purpose of your business. Or the money you pay for an engineer to install your business equipment/machinery. But don't forget that freelancer and external provider cannot be used to satisfy the requirement for job creation as they are self-employed and you can only use your own employees to get points for job creation.

The key to success is knowledge and hardwork, and to have faith.

sonirulz
Junior Member
Posts: 84
Joined: Wed Jan 22, 2014 5:11 pm

Re: Entrepreneur visa Extension - Investment

Post by sonirulz » Sun Apr 06, 2014 11:45 am

@ Olasunkanmi ,

Thank you for your advice.

If I create 10 jobs I will be eligible for PR? Or along with 10 jobs I have to have 5 million profit? Our company is alreay making profit and also has employees. We already have 2 and is planning to have more. Appreciate your response.

Thanks
Soni

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

Re: Entrepreneur visa Extension - Investment

Post by Olasunkanmi » Sun Apr 06, 2014 12:57 pm

@ sonirulz,

If I create 10 jobs I will be eligible for PR? Or along with 10 jobs I have to have 5 million profit?

If you employ 10 full time worker within 3yrs then you will get ILR or
If your company turns £5million in income (not profit) within 3yrs you also get ILR.
Its either of the two scenario and not both.
The key to success is knowledge and hardwork, and to have faith.

rabzu
Newly Registered
Posts: 1
Joined: Sun May 11, 2014 9:04 pm

Re: Entrepreneur visa Extension - Investment

Post by rabzu » Sun May 11, 2014 9:08 pm

Dear Sir/Madam,
I received a Tier 1 Entrepreneur visa (£50K). I have transferred money to the business account and I have following questions

1.In order to be eligible for the extension in three years time are there any restrictions on how the business uses the invested £50,000?
2.Can the funds be invested in office rent ?
3. Can the funds be used to buy a property?
4. Can the funds be used to pay the salaries?
Kind regards,

ishfaqsangra
- thin ice -
Posts: 866
Joined: Wed Aug 14, 2013 10:10 pm
Pakistan

Re: Entrepreneur visa Extension - Investment

Post by ishfaqsangra » Wed Jun 18, 2014 4:44 pm

Yes,all these are forms of investment

goyethe
Newly Registered
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Joined: Sun Oct 09, 2011 11:48 pm

Re: Entrepreneur visa Extension - Investment

Post by goyethe » Fri Aug 29, 2014 11:04 pm

Hi Guys , need bit of advice here please. I got my entrepreneur visa in 2013 and i m running a legit IT business; got some regular contracts and making profit too in my second year.
When I made my initial visa application i had to wait for 8 long months before an outcome of application came (uKba had backlog). I had over 50K available in my own account and my application was successful. During these 8 months i had to use a significant amount of this money to help out for a family crisis back home.
Since i got my visa i am gradually investing but didn't transfer 50K as whole to my business account. I got two employee, paying my rent and got number of company contracts and business seems to be promising. By the end of year three I should be able to complete over 50K investment which will include rent for my office & employees salaries too.
Can some one guide me about chances of getting extension as i m nervous about 50K not being available as whole and gradually transferring them as investment?

Many thanks in advance .

ishfaqsangra
- thin ice -
Posts: 866
Joined: Wed Aug 14, 2013 10:10 pm
Pakistan

Re: Entrepreneur visa Extension - Investment

Post by ishfaqsangra » Fri Aug 29, 2014 11:42 pm

I can not understand if your business is generating then how would you justify 50,000 in salaries and rest unless there is a fixed asset investment

secondly,home office can ask for proof of availability of funds in future or may be not but for example lets say they ask for available amount then you have to explain where the money is?how much invested?any related docs such as directors loan etc.


But hopefully they will not generate an audit of availability of funds and might expect investment before extension

goyethe
Newly Registered
Posts: 8
Joined: Sun Oct 09, 2011 11:48 pm

Re: Entrepreneur visa Extension - Investment

Post by goyethe » Sat Aug 30, 2014 7:04 am

I can not understand if your business is generating then how would you justify 50,000 in salaries and rest unless there is a fixed asset investment

i didn't understand your question. Business is making money and i am paying myself salary and dividend at the same time investing money to pay out for employee salaries.

Not sure if it says any where about money to b available all the time during this three year investment preriod, can any guru give some clarification on this please ?

ishfaqsangra
- thin ice -
Posts: 866
Joined: Wed Aug 14, 2013 10:10 pm
Pakistan

Re: Entrepreneur visa Extension - Investment

Post by ishfaqsangra » Sat Aug 30, 2014 9:27 am

say for example business generates 2000,you pay yourself 1000 and 2000 to employees,so yes 1000 is net investment.
Q1: you are employing people worth of 3000 pounds every month(including you) continuously doing that could raise question ?

goyethe
Newly Registered
Posts: 8
Joined: Sun Oct 09, 2011 11:48 pm

Re: Entrepreneur visa Extension - Investment

Post by goyethe » Sat Aug 30, 2014 3:19 pm

I m not paying employee salary from company income . I am injecting my investment into company account gradually and paying company expenses like (Salaries, Rent).
company income is separate.

ishfaqsangra
- thin ice -
Posts: 866
Joined: Wed Aug 14, 2013 10:10 pm
Pakistan

Re: Entrepreneur visa Extension - Investment

Post by ishfaqsangra » Wed Sep 03, 2014 4:14 pm

its same as I explained.If you r injecting for salaries and rent where the income of company is going?

samaygrg
Senior Member
Posts: 607
Joined: Sat Jun 09, 2012 11:12 pm
Location: United Kingdom

Re: Entrepreneur visa Extension - Investment

Post by samaygrg » Wed Sep 03, 2014 5:24 pm

ishfaqsangra wrote:its same as I explained.If you r injecting for salaries and rent where the income of company is going?
It will come up in your profit/loss account at year end. Then in upcoming fiscal year, you can take your profit further as retained profit (whole or in proportion as per your company's policy), and/or you can take out the profit as your dividend. Hope it clears little bit of your blur sky.

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