How the money must be used

There are no changes regarding money used. I just thought I would link the updated version here as it still says what you quoted from the previous one.

Thanks

From latest guidance for caseworkers (18th December)

‘Investment in property development and property management’. The second half of this section has been re-written.

An applicant is permitted to invest in:
 a company that is mainly involved in construction
 a decorating business if they do not own the property being improved
 a hotel, where the property is not being rented and guests don’t sign a tenancy agreement
 an estate agency if they are not involved in letting the properties, or acting as
landlords.
The core principle is that the business income must be generated from the supply of goods
and/or services, not from increased property values or from rent.
Applicants may not invest in student accommodation management services.

whiteroses wrote:From latest guidance for caseworkers (18th December)

‘Investment in property development and property management’. The second half of this section has been re-written.

An applicant is permitted to invest in:
 a company that is mainly involved in construction
 a decorating business if they do not own the property being improved
 a hotel, where the property is not being rented and guests don’t sign a tenancy agreement
 an estate agency if they are not involved in letting the properties, or acting as
landlords.
The core principle is that the business income must be generated from the supply of goods
and/or services, not from increased property values or from rent.
Applicants may not invest in student accommodation management services.

What about the money made from the business can we spend the income in any way we want property or personal expenses.

Just an update- My friend who is planning to apply for this visa emailed HO twice, and she asked whether all the investment has to be spent very clearly in both the emails. However, HO did not comment on the spending part both times, they repeated the same thing- that you must invest the 50K or 200K, and that it must be an unsecured loan, shares, etc.

whiteroses wrote:Just an update- My friend who is planning to apply for this visa emailed HO twice, and she asked whether all the investment has to be spent very clearly in both the emails. However, HO did not comment on the spending part both times, they repeated the same thing- that you must invest the 50K or 200K, and that it must be an unsecured loan, shares, etc.

Try asking what restrictions if any are on the revenue or profit made from the business.

What do they mean when they say
Business should be profitable
how can one predict if the business will be profitable or what if the business ends up making a loss
if it makes a loss extention application can be refused based on this?

Hello Every one, please please do not confuse you self with this, and focus on your business progress and growth. this is exactly HO is after. to show you have invested in UK Business only thing you need is DL or Share Capital of 50K. now once money has been given to the business it is no longer your money its business money you can not just withdraw and use it for personal use (you know what I mean), and now if you are genuine entrepreneur and running business, your business will use money when it will be required. but also bear in your mind all the money can not just sit in business bank account and considered as investment. for example your business total spending needs to be 50k or above in three years, all the revenue your business generate is profit and up to directors how to spend. ( if that makes any sense). this is exactly what HO will look for is if your business is running healthy etc. (hope this helps)

So if the business is making a loss it is not considered as investment?
Usually most businesses make a loss in the first two or three years due to the initial expenses.
what do u guys think.