Tier 1 Entrepreneur Investment Requirements

Hi,

I am looking to apply for Tier 1 entrepreneur 200k route. I would like to know what I have to do with my £200k to satisfy the extension requirements.
I am planning to open an investment firm which trades in stocks and bonds. I am planning to hire two analysts and register a private limited company. I have a BSc degree from the UK and a UK bank account.
Can I invest the £200k in publicly traded securities and pay the expenses with the profits or out of my own pocket? (I would have £120 in expenses for the first 3 years).

I truly appreciate your answers.

Thank you.

Ali272 wrote:Hi,

I am looking to apply for Tier 1 entrepreneur 200k route. I would like to know what I have to do with my £200k to satisfy the extension requirements.
I am planning to open an investment firm which trades in stocks and bonds. I am planning to hire two analysts and register a private limited company. I have a BSc degree from the UK and a UK bank account.
Can I invest the £200k in publicly traded securities and pay the expenses with the profits or out of my own pocket? (I would have £120 in expenses for the first 3 years).

I truly appreciate your answers.

Thank you.

Hi,

This is a very interesting question.
In my view the main question here is to define better the actual business of your company. Are you planning to invest others people's money as well or just £200k that you invest?
If you invest just your own money it might be that the Home Office will find that you should be doing the Investor visa instead as investing in bonds and stocks is what the Investor visa for.
Another point that you would need to check is whether your business will fall under the "regulated activities" and will require authorization from FCA.
What I suggest that you do, work out the actual business structure, check with the solicitor and get the solicitor to write to the Home Office to confirm that the proposed business will fulfill the Entrepreneur visa Investment requirements.
I hope this helps. If you need further help, feel free to contact me.

To prove the investment, you will have to submit accounts which show specifically your name and the investment amount. As I interpret, it has to be a business you have started or joined. The definition of "joined" seems to be unclear but I would assume being a Director would be one way of measuring it.
Also, for new applications, the guidance states:
‘Spent’ by your business’ excludes spending on all of the following:
1) your own remuneration,
2) buying the business from a previous owner, where the money goes to that previous owner rather than into the business,
3) investing in other businesses, and
4) any spending which is not directly for the purpose of establishing or running your own business or businesses.

So, point 3 will prevent your money invested into other business being counted against the 200K

Hi Guys, i have a similar question, for 50k route investment.
i have already invested 50k into my business in the form of director's loan with an agreement that loan is unsecured and subordinate to 3rd parties and it's duration is 10 years and there won't be any interest payable towards loan by the company towards me,
now my questions are
1) is it sufficient to leave the money ( 50 K) in my business account as my business dosen't need any furthr investment as i provide it services and my company earn good money through 3 contract which is good enough to pay salaries to my employees and meet out running cost of the company, why would i unnecessary put the money in buying business premises or taking a lease, when my rented office is enough.
2) or can i buy a business premises in the name of my company as money has been in business account now and have my business registered there with all the bills and counsil tax.
3) will buying a business premises in the name of my company after giving loan to company , will it considered as investment ot will they consider it to be bought for the purpose of reselling as they have pointed out in the guide lines, but i'll be registering my business there.
kindly reply