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Investment £50,000

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

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Rockey
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Joined: Sat Aug 09, 2014 6:01 pm

Investment £50,000

Post by Rockey » Sat Mar 28, 2015 10:13 am

Hi All,

Can any body help me find out that in how many days we are allowed to invest £50000 as entrepreneur visa, can we invest £50000 in a year?

Look forward to hearing from you guys soon.

Thanks in advance.
Best Regards

Rockey

Legal83
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Posts: 200
Joined: Sun May 26, 2013 5:32 pm

Re: Investment £50,000

Post by Legal83 » Sat Mar 28, 2015 9:47 pm

According to the guidence, once they gave you 3 years visa, you have to show this investment £50k in the period of 3 years, but you must have a proof of transfer (bank statement) that you have investment the whole capital as investment. this is what guidence says, don't know what would case worker gona say at the time of extension.

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Rockey
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Re: Investment £50,000

Post by Rockey » Sun Mar 29, 2015 7:43 pm

Thanks for reply mate..

Can i transfer money from my current account to business account straight away or have i to fill any loan agreement form pls?
Best Regards

Rockey

Legal83
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Joined: Sun May 26, 2013 5:32 pm

Re: Investment £50,000

Post by Legal83 » Sun Mar 29, 2015 9:28 pm

yes, you have to sign a loan agreement (but keep your both statements current and business as a proof that when and how much you transfered or invested at the time of extension)

zshaan21
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Re: Investment £50,000

Post by zshaan21 » Wed Apr 01, 2015 11:37 pm

@ Legal 83
But still very confuse how to invest the whole 50 k.I have checked one of the accountant he said if you transfer the funds from personal to business, then its mean you have done the investment. One accountant told me actual investment consider,when we invest in long term assets e.g. buy furniture for office, Office equipment,Lease or Marketing etc.One accountant told me, if business does not require the whole 50 k invest then use rest of the investment funds as a director loan or leave it in the business account.

So very confusing but I think I will become an accountant at the end of the day:P.

Guys please advise and share your knowledge/experience.

Kind Regards,

Atif786
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Re: Investment £50,000

Post by Atif786 » Wed Apr 08, 2015 12:07 am

Hi Guys, i have a similar question,
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
Atif

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aby00156
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Re: Investment £50,000

Post by aby00156 » Wed Apr 08, 2015 10:26 am

Hi Atif,

Let me explain you the requirement in simple points hope this helps you.

1. A director’s loan to the company will be considered for the award of points (investment) as long as it is unsecured and subordinated in favour of third-party creditors.
2. Director’s loans however are permitted to remain in a bank account and considered as investment, provided the loan is not called in.
3. The Transfer of money should be done first and then only the expenses will be considered as investment.
For eg:
You spend 10K on employees or any thing after than you are transfering 50k in your business account then that 10k will not be considered as investment. ViceVersa If you transfer 50K in your bank account first and then you pay 15K as expenses or anything then this 15K will be considered as investment.

4. you can transfer money into your business account in parts as well but you need to show all the legal document of the transfer such as Director loan agreement, Account statements showing your name and companies names etc.
So verily, with every difficulty, there is relief.

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