Investing in 200K Business with 50K Entrepreneur Visa

Is there anyone expert who can answer my question. I already hold Tier 1 Entrepreneur Visa (PSW 50K) category. My question is :


Is it possible for me to invest 200K in a business which is not at graduate level keeping in mind my current visa status?


Please either provide reason or reference to your answer. Many Thanks

You mean in another business as obviously you can put as much as you wish into your existing entity? Yes, provided you maintain your existing business as per the conditions. You can be a director of the other business but you can't be an employee. There are no general restrictions on investment and business ownership in the UK in relation to immigration status and so this is not an immigration issue; UKBA guidance generally lists what is restricted rather than what is permitted. There are, therefore, no links to this that appear on a list of what you are permitted to do as T1 (Ent) migrant, as that would be the longest list in the world.

Lucapooka wrote:You mean in another business as obviously you can put as much as you wish into your existing entity? Yes, provided you maintain your existing business as per the conditions. You can be a director of the other business but you can't be an employee. There are no general restrictions on investment and business ownership in the UK in relation to immigration status and so this is not an immigration issue; UKBA guidance generally lists what is restricted rather than what is permitted. There are, therefore, no links to this that appear on a list of what you are permitted to do as T1 (Ent) migrant, as that would be the longest list in the world.

Well as I said earlier that I am currently on PSW 50K Ent leave which means that I should be investing in a graduate level business but unfortunately I am not seeing a scope in this business and have not invested money in it yet. I am willing to invest in another business which is a food franchise which is not at graduate level. But I will be investing 200K in it. Will this be fine now as there is no restriction of graduate level business if you apply for Tier 1 Ent leave by investing 200K in a business. But do you think in my situation it is fine or not?

Lucapooka wrote:provided you maintain your existing business as per the conditions.

Which it seems you are not intending. The answer to your question is, therefore, no! You would need to leave the UK and apply for Tier 1 (Ent) in the 200K category.

Lucapooka wrote:

Lucapooka wrote:provided you maintain your existing business as per the conditions.

Which it seems you are not intending. The answer to your question is, therefore, no! You would need to leave the UK and apply for Tier 1 (Ent) in the 200K category.

So what you mean to say is that if maintain my existing graduate level business then I can also invest in any other business and that new business does not need to be at graduate level....am I getting you right?

Yes. You can buy and invest in as many UK businesses you wish, as long as your live within the terms of your original Tier 1 (Ent) leave which requires you to run that graduate level business and hire two workers.

Lucapooka wrote:Yes. You can buy and invest in as many UK businesses you wish, as long as your live within the terms of your original Tier 1 (Ent) leave which requires you to run that graduate level business and hire two workers.

I am aware of the fact that we can invest in many new businesses but my only concern is will that business be fine for immigration authorities if it is not a graduate level? Can they say that you are only allowed to invest in graduate level business? So in short can first business be at graduate level maintaining existing conditions and then 2nd business is at non graduate level? Many Thanks for your responses.

The second business is not relevant to the UKBA; they will not question it or ask for information about it. They are only concerned with the business that you joined or started to gain your Tier 1 (Ent) leave at the 50K PSW threshold. You have to continue with that enterprise to extend your leave.

Lucapooka wrote:The second business is not relevant to the UKBA; they will not question it or ask for information about it. They are only concerned with the business that you joined or started to gain your Tier 1 (Ent) leave at the 50K PSW threshold. You have to continue with that enterprise to extend your leave.

Well I do not need extension as I am completing my 10 year period next year. However I still want to make sure that I follow correct rules and procedures in case they inspect my business for any reason and I do not get into any sort of trouble. It seems that I will have to carry on both businesses now. Thank you for your responses so far.

Lucapooka wrote:You can be a director of the other business but you can't be an employee.

Could you please clarify why someone cannot be an employee of his own other business?

If one maintains his main graduate level business then his other business can be at lower level as you said earlier. Now if you can be employed in your first business and receive salary via PAYE then you can do the same in your 2nd business as well because UKBA clearly says that you can do employment only in your own business or businesses that you have established. Now I am not sure where does it say that you can only be employed in your business if it is at graduate level.

Your explanation will be highly appreciated. Many Thanks

educators wrote: Could you please clarify why someone cannot be an employee of his own other business?

Because it's not the business related to your visa. You are limited to be being employed by that entity but you can be the owner and director of any other entities that are not connected to your visa, just not a PAYE employee.

Lucapooka wrote:

educators wrote: Could you please clarify why someone cannot be an employee of his own other business?

Because it's not the business related to your visa. You are limited to be being employed by that entity but you can be the owner and director of any other entities that are not connected to your visa, just not a PAYE employee.

I understand one has to maintain his main business at graduate level according to UKBA rules and if one does that then along with his main business if he starts 2nd business at lower level and it is totally fine for him to do like this then according to UKBA statement given below I think he can be employed in his own 2nd business as well because your employment is not limited to one entity only. For Exampe: If you have 3 businesses then you can be employed in all of your 3 businesses. Am I right or wrong?

no employment other than working for the business or businesses that you have established, joined or taken over;

Sorry i could not get your point of view. Will it be possible for you to may be clarify my confusion in a different way. Thanks in advance

@ educators

it seems like u are insisting on what u interpret from policy guideline rather what policy guideline states.

lucapoka has clearly explain everything but u still in denial.

ukba has no concern how many business one can run/manage however to only one which used to get T1E and its T&C. it cant be more simple than this.

Darvesh wrote:@ educators

it seems like u are insisting on what u interpret from policy guideline rather what policy guideline states.

lucapoka has clearly explain everything but u still in denial.

ukba has no concern how many business one can run/manage however to only one which used to get T1E and its T&C. it cant be more simple than this.

If UKBA has no concern about other businesses except the first main one then how come being employed in your own other business can make an issue. I know you are trying to interpret the policy guidance then what do you think is the interpretation of this condition:

no employment other than working for the business or businesses that you have established, joined or taken over;

@ educators

no employment other than working for the business or businesses that you have established, joined or taken over;

why dont u read that statement in its context rather than just a single statement.? must read before and after that statement

even that statement link ur visa to the business u have used to qualify for that visa.

Darvesh wrote:@ educators

no employment other than working for the business or businesses that you have established, joined or taken over;

why dont u read that statement in its context rather than just a single statement.? must read before and after that statement

even that statement link ur visa to the business u have used to qualify for that visa.

You always apply for visa based on 1 business but later on you may establish more businesses and you can clearly see in the statement that they have not said about employment in 1 business only. They have said about business or businesses that you have established.

they have not said about employment in 1 business only. They have said about business or businesses that you have established.

when there is restriction on level of business from psw->T1E route then its mean all of ur business established or being established must be of same / above that category.

ukba will never allow you to qualify for visa based on certain conditions and then later those conditions wont be observed???

if u establish any business which is not according to psw->T1E conditions and u work for that business then u in breach of condition of ur stay which is "no employment is allowed"........however ukba allow administering of any sort of business.....

Hi guys i have the same confusion,
Hi guys,
i have been coming across a lot of Tier 1 entrepreneur 50 K route visa holders those who want to switch to 200k route so that they are not restricted to run a skilled business which is equivalent to NQF level 4 as they are struggling to make profit through such kind of business especially after the new policies where an IT technician can not take a contract with any company or even trough consultance as it would be considered as employment which could leave to visa refusal or curtailment , we also understand that there is work around to it and language of a contract can be tailored in way which looks like like contract of services not contract for services, however still there is a grey area and eventually it's at the discretion of caseworker how it looks at it.
i am also in the same situation and any kind of advise and suggestions are welcome and highly appreciable.
so the question arises
1) i have got the visa in April 2014 ( 50 K PSW route), can i go ahead and change the nature of business which may not be skilled to NQF 4 however i am ready to invest 200k ?
2) if yes, do we need to inform UKBA that i'll be investing 200k as find more opportunities in other businesses for eg ( import and export).
what would be the appropriate approach.

Thanks & Regards

Hi Guys, i have just read all the suggestion and if i have interpreted it correctly you mean to say that in order to abide the rules and policies of tier1 E 50k psw route , we need to maintain our 1st business which is skilled to level 4 and used for getting an initial Visa and we can also be a Payee aswell apart from being a director, and we need to invest 50k in the same business or any other business which is equivalent to Skilled NQF 4 and can be the employees of all those companies however if you want to invest in a company or establish a company with a directorship in it, which is not skilled to NQF 4 so that investment will not be considered for extension eventough it's 200k and secondly we can't even a payee of that company as it's nature of business is below level,( i hope i got it right so far),
now the question arises if i am a director of my second business, which is not skilled to level 4 and i am allowed to administer it but can't be employee but at the end of the year can i take dividend out of it as i can't take my salary and ofcourse it can be declared in self assessment which is compulsory for all the directors to submit regardless salary.

kindly put some light on it.
Thanks in Advance