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Extension, part of funds transferred by my relatives

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

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hanginthere
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Extension, part of funds transferred by my relatives

Post by hanginthere » Thu Apr 28, 2016 11:59 am

I'm about to apply my Tier 1 Entrepreneur Extension.

Regarding the 200K investment, I made the director loan agreement. And this I know it needs my personal bank statements EACH time i transferred money into company accounts.

However, part of the investment funds were transferred from my relatives bank account statements into company accounts, is this gonna be a problem? Cuz this will mean I used third party funds, but the guidance claims that 200K investment should be invested into company directly by me.

Does anyone have this kinda problem? Really need some advice.

Desperately.

noajthan
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Re: Extension, part of funds transferred by my relatives

Post by noajthan » Thu Apr 28, 2016 12:03 pm

If quoting the guidance accurately, you appear to have answered your own question.
All that is gold does not glitter; Not all those who wander are lost. E&OE.

hanginthere
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Re: Extension, part of funds transferred by my relatives

Post by hanginthere » Thu Apr 28, 2016 12:33 pm

noajthan wrote:If quoting the guidance accurately, you appear to have answered your own question.
Thank you for your reply. Is there any solutions for my situation? I started to realize this going to be problem...

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zimba
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Re: Extension, part of funds transferred by my relatives

Post by zimba » Thu Apr 28, 2016 12:35 pm

hanginthere wrote:I'm about to apply my Tier 1 Entrepreneur Extension.

Regarding the 200K investment, I made the director loan agreement. And this I know it needs my personal bank statements EACH time i transferred money into company accounts.

However, part of the investment funds were transferred from my relatives bank account statements into company accounts, is this gonna be a problem? Cuz this will mean I used third party funds, but the guidance claims that 200K investment should be invested into company directly by me.

Does anyone have this kinda problem? Really need some advice.

Desperately.
You applied for your initial grant showing that you had access to 200K. If you made the claim that money came from a third party (e.g a relative), then you can claim points for it.
However If you now want to change your story during extension contradicting your initial claims, then it means you obviously lied during your initial grant of leave and in fact you never had access to 200K in the first place. That is deception and you could be punished harshly for that by HO
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice

seasky
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Re: Extension, part of funds transferred by my relatives

Post by seasky » Fri Apr 29, 2016 9:53 am

zimba88 wrote:
hanginthere wrote:I'm about to apply my Tier 1 Entrepreneur Extension.

Regarding the 200K investment, I made the director loan agreement. And this I know it needs my personal bank statements EACH time i transferred money into company accounts.

However, part of the investment funds were transferred from my relatives bank account statements into company accounts, is this gonna be a problem? Cuz this will mean I used third party funds, but the guidance claims that 200K investment should be invested into company directly by me.

Does anyone have this kinda problem? Really need some advice.

Desperately.
You applied for your initial grant showing that you had access to 200K. If you made the claim that money came from a third party (e.g a relative), then you can claim points for it.
However If you now want to change your story during extension contradicting your initial claims, then it means you obviously lied during your initial grant of leave and in fact you never had access to 200K in the first place. That is deception and you could be punished harshly for that by HO
I don't see where this (necessarily) contradicts original claims. You can have a (genuine) source of investment for original application and then have the investment done alternatively. E.g. you genuinely have your own £200K funds. You then meet a financial investor and agree s/he invests a much larger sum so you can grow the business faster.

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zimba
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Re: Extension, part of funds transferred by my relatives

Post by zimba » Fri Apr 29, 2016 10:04 am

seasky wrote: I don't see where this (necessarily) contradicts original claims. You can have a (genuine) source of investment for original application and then have the investment done alternatively. E.g. you genuinely have your own £200K funds. You then meet a financial investor and agree s/he invests a much larger sum so you can grow the business faster.
According to the rules you need to have access to the funds at all times unless they are invested. However some individual could just get the funds from a relative, apply for their visa and then return the money back and seek other sources of investment. This means they lost access to the funds and the initial claim that the money was made available to them for investment was probably false. If investigated, that could be considered deception to get a visa.
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice

seasky
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Re: Extension, part of funds transferred by my relatives

Post by seasky » Fri Apr 29, 2016 10:17 am

zimba88 wrote:
seasky wrote: I don't see where this (necessarily) contradicts original claims. You can have a (genuine) source of investment for original application and then have the investment done alternatively. E.g. you genuinely have your own £200K funds. You then meet a financial investor and agree s/he invests a much larger sum so you can grow the business faster.
According to the rules you need to have access to the funds at all times unless they are invested. However some individual could just get the funds from a relative, apply for their visa and then return the money back and seek other sources of investment. This means they lost access to the funds and the initial claim that the money was made available to them for investment was probably false. If investigated, that could be considered deception to get a visa.

Zimba it is not necessarily a contradiction (at all) you can have your own £200K waiting to invest and still available and still have someone else make a financial investors (you met someone at a networking event they love your technology and invest. In fact for real entrepreneurs it is a great validation to have an external investor)

You can agree with a VC fund to make an investment and then have another one make it (because they gave you better terms for example)

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Re: Extension, part of funds transferred by my relatives

Post by zimba » Fri Apr 29, 2016 10:37 am

seasky wrote: Zimba it is not necessarily a contradiction (at all) you can have your own £200K waiting to invest and still available and still have someone else make a financial investors (you met someone at a networking event they love your technology and invest. In fact for real entrepreneurs it is a great validation to have an external investor)
You can agree with a VC fund to make an investment and then have another one make it (because they gave you better terms for example)
I do not disagree with you but according to the rules you cannot lose access to the funds. Surely you can get more funds from a VC and invest those instead (your example is perfectly fine) but the OP situation seems to be similar to what I have described (only temporary access to funds)
So HO can challenge him on the basis that he claimed he had unrestricted access to the funds to invest but in fact the access was temporary and claimed solely to secure a visa.
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice

seasky
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Re: Extension, part of funds transferred by my relatives

Post by seasky » Fri Apr 29, 2016 10:44 am

zimba88 wrote:
I do not disagree with you but according to the rules you cannot lose access to the funds. Surely you can get more funds from a VC and invest those instead (your example is perfectly fine) but the OP situation seems to be similar to what I have described (only temporary access to funds)
So HO can challenge him on the basis that he claimed he had unrestricted access to the funds to invest but in fact the access was temporary and claimed solely to secure a visa.
We are in agreement here. But what you said in your first post made it seem that changing sources -necessarily- means you didn't have access "then it means you obviously lied..."

The OP should fully make sure s/he shows with evidence and covering letter explanation that while changing investment sources always has access to original claimed funding.

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Re: Extension, part of funds transferred by my relatives

Post by sm12 » Sat Apr 30, 2016 9:08 am

Your business bank statements don't show any reference to your name?

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