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Direct cash investment

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

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jafersadeq
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Direct cash investment

Post by jafersadeq » Tue Jan 24, 2017 11:20 am

Dear Gurus,

Application Form-Section 3-K3-Page 41, Investment:

The investment was made during your initial period of tier1 Entrepreneur leave directly by you into the business in cash.

PBS Guidance-Page 46:
132. You must show that either the full amount of £200,000 or of £50,000 if appropriate, in cash has been invested in business in the UK.

Tier 1(Entrepreneur) Policy Guidance - Page 74
Types of investment accepted for the award of points
A20. Direct cash investment in order to ensure that the money is used by the business, you should provide the accounts of that business for assessment. These accounts must show the investment in money made directly by you, in your own name.

What do they mean (IN CASH)?

To whom this investment? Is it for directors of companies?

Thanks
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zimba
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Re: Direct cash investment

Post by zimba » Wed Jan 25, 2017 2:36 pm

It means you cannot give assets to a company as an investment, for example you cannot change the ownership of a shop from your name to your business name and claim it as an investment
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice
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jafersadeq
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Location: LONDON
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Re: Direct cash investment

Post by jafersadeq » Thu Jan 26, 2017 6:32 am

zimba88 wrote:It means you cannot give assets to a company as an investment, for example you cannot change the ownership of a shop from your name to your business name and claim it as an investment
Thanks Zimba88,

What is the difference in investment between Director's Loan and Direct cash Investment, both of them is cash investment.
HO classified the investment to 3 types, the above is part of it, share capital is clear, DL is clear but what about Direct Cash Investment, it is an investment in cash too.

Please clarify
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zimba
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Re: Direct cash investment

Post by zimba » Thu Jan 26, 2017 2:37 pm

Only two ways to invest both in cash, either DL or Shares
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice
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samaygrg
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Re: Direct cash investment

Post by samaygrg » Thu Jan 26, 2017 2:39 pm

Direct cash investment meant our investment must be in the form of Cash Injections which we allowed to do via to mechanisms/options ...Directo's Loan or Share Capital.
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jafersadeq
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Re: Direct cash investment

Post by jafersadeq » Fri Jan 27, 2017 1:16 pm

zimba88 wrote:Only two ways to invest both in cash, either DL or Shares
samaygrg wrote:Direct cash investment meant our investment must be in the form of Cash Injections which we allowed to do via to mechanisms/options ...Directo's Loan or Share Capital.
HO-Application Form wrote:Tier 1 (Entrepreneur) Application Form - Section 3
K3. You must have invested no less than £200,000 (or £50,000 if, in your last grant of leave, you were awarded points for funds of £50,000) directly into one or more businesses in the UK. Please tick to confirm how this investment has been made (you may tick more than one box, where applicable):
Box1: Part or all of the investment was made in the 12 months (or 24 months if you were a Tier 1 (Graduate Entrepreneur)) prior to your initial Tier 1 (Entrepreneur) application, and you demonstrated this investment when you made your initial Tier 1 (Entrepreneur) application;
Box2: The investment was made during your initial period of Tier 1 (Entrepreneur) leave in the form of a director’s loan;
Box3: The investment was made during your initial period of Tier 1 (Entrepreneur) leave in the form of share capital;
Box4: The investment was made during your initial period of Tier 1 (Entrepreneur) leave using funding made available by a Venture Capital firm/a UK Seed Funding Competition/a UK Government Department;
Box5: The investment was made during your initial period of Tier 1 (Entrepreneur) leave directly by you into the business, in cash;
Box6: The investment was made during your initial period of Tier 1 (Entrepreneur) leave directly by a third party, but on your behalf.
Dear Zimba88 & samaygrg

I invested via Director’s Loan in cash. I have to tick box 2 regarding director’s loan. What about box 5. Is it mandatory to tick it because it shows direct cash?
Please advise,
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samaygrg
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Re: Direct cash investment

Post by samaygrg » Fri Jan 27, 2017 2:54 pm

HO-Application Form wrote:Tier 1 (Entrepreneur) Application Form - Section 3
K3. You must have invested no less than £200,000 (or £50,000 if, in your last grant of leave, you were awarded points for funds of £50,000) directly into one or more businesses in the UK. Please tick to confirm how this investment has been made (you may tick more than one box, where applicable):
Box1: Part or all of the investment was made in the 12 months (or 24 months if you were a Tier 1 (Graduate Entrepreneur)) prior to your initial Tier 1 (Entrepreneur) application, and you demonstrated this investment when you made your initial Tier 1 (Entrepreneur) application;
Box2: The investment was made during your initial period of Tier 1 (Entrepreneur) leave in the form of a director’s loan;
Box3: The investment was made during your initial period of Tier 1 (Entrepreneur) leave in the form of share capital;
Box4: The investment was made during your initial period of Tier 1 (Entrepreneur) leave using funding made available by a Venture Capital firm/a UK Seed Funding Competition/a UK Government Department;
Box5: The investment was made during your initial period of Tier 1 (Entrepreneur) leave directly by you into the business, in cash;
Box6: The investment was made during your initial period of Tier 1 (Entrepreneur) leave directly by a third party, but on your behalf.
Dear Zimba88 & samaygrg

I invested via Director’s Loan in cash. I have to tick box 2 regarding director’s loan. What about box 5. Is it mandatory to tick it because it shows direct cash?

Please advise,[/quote]


Yes, you need to tick it in.
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jafersadeq
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Re: Direct cash investment

Post by jafersadeq » Mon Feb 06, 2017 11:07 pm

Dear Gurus,

Shall I tick two boxes, one for director's loan and one for direct cash investment ?

Thanks
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zimba
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Re: Direct cash investment

Post by zimba » Mon Feb 06, 2017 11:22 pm

jafersadeq wrote:Dear Gurus,

Shall I tick two boxes, one for director's loan and one for direct cash investment ?

Thanks
Yes, this is not really important
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice
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