Post
by dnf » Wed Jun 01, 2016 2:54 pm
There is no simple answer to it but I will try and explain this to you from an accountants point of view:
1. Bought business for £200k
On your company accounts, £200k will show as assets, which may be the mixture intangible asset (lease premium/goodwill etc) and tangible assets (furniture and fixtures/equipment etc). The other side of the transaction will either show director loan or capital (depending how your accountant has advised you)
2. Home Office point of view
If the other side is shown under director loan than you may have an issue showing the transactions i.e. money transferred from you personally to the business, unless this was done and the company paid the previous owner. If this was not done and it is shown under director loan than I would suggest that you speak to your accountant and ask him to issue share capital and convert the loan to share capital. This way, your accountant can provide you with the share certificate which would suffice the requirement.
3. Visa extension
The requirement is to show that you have invested £200k in the business. By converting loan to share capital and having a share certificate would suffice the requirement.
My suggestion - don't leave till you are refused and I have a strong feeling that if you do the above than your visa extension will be approved.