Clarification on acceptable investments/purchase of business

I have seen many posts on this forum with regard to the confusion that UKVI caused with introduction of what they will not count towards investment made in the business and in particular the queries with regard to purchasing leasehold businesses and goodwill.

UKVI will not accept as investment the money you spend on purchasing leasehold businesses and goodwill where the money will go to the previous owner.

The suggested way to purchase the businesses is to partner with an existing owner and invest in the existing business, provided that such business is structured as an incorporated entity (ie a company) and you will be acquiring part in its share capital.

If you have made your investments and purchased leasehold businesses and goodwill from the previous owners before the clarification was introduced you should be fine, as the immigration rules do not have retroactive effect. However I do suggest that you make a review of your investments before your visa extension to see whether you could restructure them in a way that would be compliant with the current rules.

Please PM if you require more information or contact me at email details removed - advertising not permitted on this forum

GLL wrote:I have seen many posts on this forum with regard to the confusion that UKVI caused with introduction of what they will not count towards investment made in the business and in particular the queries with regard to purchasing leasehold businesses and goodwill.

UKVI will not accept as investment the money you spend on purchasing leasehold businesses and goodwill where the money will go to the previous owner.

The suggested way to purchase the businesses is to partner with an existing owner and invest in the existing business, provided that such business is structured as an incorporated entity (ie a company) and you will be acquiring part in its share capital.

If you have made your investments and purchased leasehold businesses and goodwill from the previous owners before the clarification was introduced you should be fine, as the immigration rules do not have retroactive effect. However I do suggest that you make a review of your investments before your visa extension to see whether you could restructure them in a way that would be compliant with the current rules.

Please PM if you require more information or contact me at email details removed - advertising not permitted on this forum

What if you pay for the stock and fixtures and fittings. Not pay royalty etc change the rental lease on your name

Hello !
I want to confirm that if you want to let any shop in a good location you can't find any empty shop .
The old talent/lease holder of the shop ask for goodwill to vacat his shop or ask a handsome amount to sublet this shop to you.
In UK specially in London the good will is more then 50000 . If you give this money to perious tanent/lease holder the UKBA not accept this amount in investment.

In this cercamtanses what is the procedure to find a shop without good will ?
Any body please help me

I want to ask one thing that I am interested to buy a business in Birmingham the name of dixy chicken.
This is lease hold property the person who is selling this business asking 150000 altogether for this business.
can I buy this business ? As I am in entrepreneur visa.

this 150000 is not totally a goodwill .
1. He rebuild this shop to dixy standard layout. Like change
floor , roof, wall papers , counter .
2. New machines
3. He paid 15000 for franchise

He started this business one year ago. He had some of the bills of renovation. Some machines bills .chain fees @15000

Can I buy this business ? If he gave me all the bills of his expenses carried out in this shop ?
Can this business comes in my investment ? Any body please help me

shuja1979 wrote:I want to ask one thing that I am interested to buy a business in Birmingham the name of dixy chicken.
This is lease hold property the person who is selling this business asking 150000 altogether for this business.
can I buy this business ? As I am in entrepreneur visa.

this 150000 is not totally a goodwill .
1. He rebuild this shop to dixy standard layout. Like change
floor , roof, wall papers , counter .
2. New machines
3. He paid 15000 for franchise

He started this business one year ago. He had some of the bills of renovation. Some machines bills .chain fees @15000

Can I buy this business ? If he gave me all the bills of his expenses carried out in this shop ?
Can this business comes in my investment ? Any body please help me

Any money that goes to the previous owner is not considered as investment.
I suggest you buy the equipment from the previous owner.

GLL wrote:I have seen many posts on this forum with regard to the confusion that UKVI caused with introduction of what they will not count towards investment made in the business and in particular the queries with regard to purchasing leasehold businesses and goodwill.

UKVI will not accept as investment the money you spend on purchasing leasehold businesses and goodwill where the money will go to the previous owner.

The suggested way to purchase the businesses is to partner with an existing owner and invest in the existing business, provided that such business is structured as an incorporated entity (ie a company) and you will be acquiring part in its share capital.

If you have made your investments and purchased leasehold businesses and goodwill from the previous owners before the clarification was introduced you should be fine, as the immigration rules do not have retroactive effect. However I do suggest that you make a review of your investments before your visa extension to see whether you could restructure them in a way that would be compliant with the current rules.

Please PM if you require more information or contact me at email details removed - advertising not permitted on this forum

Is this your understanding of policy or you have got this confirmation from HO ?

I will appreciate if you can share the correspondence with HO if any for our benefit.

MTZ510 wrote:

GLL wrote:I have seen many posts on this forum with regard to the confusion that UKVI caused with introduction of what they will not count towards investment made in the business and in particular the queries with regard to purchasing leasehold businesses and goodwill.

UKVI will not accept as investment the money you spend on purchasing leasehold businesses and goodwill where the money will go to the previous owner.

The suggested way to purchase the businesses is to partner with an existing owner and invest in the existing business, provided that such business is structured as an incorporated entity (ie a company) and you will be acquiring part in its share capital.

If you have made your investments and purchased leasehold businesses and goodwill from the previous owners before the clarification was introduced you should be fine, as the immigration rules do not have retroactive effect. However I do suggest that you make a review of your investments before your visa extension to see whether you could restructure them in a way that would be compliant with the current rules.

Please PM if you require more information or contact me at email details removed - advertising not permitted on this forum

Is this your understanding of policy or you have got this confirmation from HO ?

I will appreciate if you can share the correspondence with HO if any for our benefit.

In my opinion if you buy the equipment from the previous owner and don't pay the previous owner goodwill you should be ok

MTZ510 wrote:

GLL wrote:I have seen many posts on this forum with regard to the confusion that UKVI caused with introduction of what they will not count towards investment made in the business and in particular the queries with regard to purchasing leasehold businesses and goodwill.

UKVI will not accept as investment the money you spend on purchasing leasehold businesses and goodwill where the money will go to the previous owner.

The suggested way to purchase the businesses is to partner with an existing owner and invest in the existing business, provided that such business is structured as an incorporated entity (ie a company) and you will be acquiring part in its share capital.

If you have made your investments and purchased leasehold businesses and goodwill from the previous owners before the clarification was introduced you should be fine, as the immigration rules do not have retroactive effect. However I do suggest that you make a review of your investments before your visa extension to see whether you could restructure them in a way that would be compliant with the current rules.

Please PM if you require more information or contact me at email details removed - advertising not permitted on this forum

Is this your understanding of policy or you have got this confirmation from HO ?

I will appreciate if you can share the correspondence with HO if any for our benefit.

We are assisting Tier 1 Entrepreneurs setting up businesses and investing in existing UK businesses and clarified the above with our immigration solicitors and HO as well, as we had a number of cases where our clients purchased businesses such as hotels and we had to ensure that the clients had additional £200k for investment on top of the purchase price. I hope this answers your question.

I agree with you that the money should not go to the owner of the business. Another alternate is to buy the equipment hence not pay any goodwill.
As for buying of assets is concerned as long as you are buying for the purpose of the business e.g A Garage for storage of goods it will be accepted. Or a Car.
This is my understanding, and i am not a consultant or claim to be one.

cappachino wrote:
Any money that goes to the previous owner is not considered as investment.
I suggest you buy the equipment from the previous owner.

So any money paid into owning a franchise business isn't considered an investment? or is this criteria applicable to only TIE applicants after a certain date?