Dormant vs Liquidation for Tier 1 to Tier 4 Switch

emperor.uk2009 wrote: ↑

Sat Nov 11, 2017 11:04 pm

Hi, Thanks for your effort on this forum which is amazing.

As my Tier 1 (Entrepreneur) Visa is going to finish within next few month and as I couldn't generate enough income to recruit two full time staff although I'm a genuine entrepreneur and work on few award winning engineering design projects which some has been launched and show cased in design competitions and shows and some still in conceptual level, I'm looking for an alternative way to extend my UK resident permit for additional year before applying for 10yr ILR.

Can you please do me a favour and let me know whether I can
1. Switch to Tier 4 General Student Visa within UK or not?
2. Switch to Tier 2 (Sponsorship) within UK? If yes, would I be questioned about my Tier 1 Ent Progress...?

Thanks in advance for your time and attention
Kind regards

marcnath wrote: ↑

Sun Nov 12, 2017 9:04 am

Sorry to hear that.
Why did you not use your investment money to hire staff ?
You can't switch to Tier 4 from within the country but you can switch to Tier 2 if you have a sponsor and meet the other conditions.
During any Visa application, HO may check whether you have violated any conditions of previous Visa(s). It is not the same as progress on T1, but more whether you have kept to the conditions of the T1 visa such as not taking other employment.

emperor.uk2009 wrote: ↑

Mon Nov 13, 2017 7:50 pm

marcnath wrote: ↑

Sun Nov 12, 2017 9:04 am

Sorry to hear that.
Why did you not use your investment money to hire staff ?
You can't switch to Tier 4 from within the country but you can switch to Tier 2 if you have a sponsor and meet the other conditions.
During any Visa application, HO may check whether you have violated any conditions of previous Visa(s). It is not the same as progress on T1, but more whether you have kept to the conditions of the T1 visa such as not taking other employment.

Thank you marcnath for your prompt response. I tried several times to use the investment for hiring people but I wasn't confident enough to generate profit as the product my designed award-winning product was new in industry.
Thanks for your informative response.. I haven't violated any rules, except I couldn't recruit two staff which is not a violation but does not meet the Tier 1 Extension criteria.

- I remember my solicitor told me that I can switch to Tier 4 within country few month ago, however, as you mentioned, it seems it' only possible from outside the country. Am I right?

- Do you know that I need to close down my company before applying to Tier 4 as it seems I can not be a director or shareholder to apply for Tier 4? Does the liquidation make any problem for my ILR application?

Thanks in advance

marcnath wrote: ↑

Mon Nov 13, 2017 8:04 pm

emperor.uk2009 wrote: ↑

Mon Nov 13, 2017 7:50 pm

marcnath wrote: ↑

Sun Nov 12, 2017 9:04 am

Sorry to hear that.
Why did you not use your investment money to hire staff ?
You can't switch to Tier 4 from within the country but you can switch to Tier 2 if you have a sponsor and meet the other conditions.
During any Visa application, HO may check whether you have violated any conditions of previous Visa(s). It is not the same as progress on T1, but more whether you have kept to the conditions of the T1 visa such as not taking other employment.

Thank you marcnath for your prompt response. I tried several times to use the investment for hiring people but I wasn't confident enough to generate profit as the product my designed award-winning product was new in industry.
Thanks for your informative response.. I haven't violated any rules, except I couldn't recruit two staff which is not a violation but does not meet the Tier 1 Extension criteria.

- I remember my solicitor told me that I can switch to Tier 4 within country few month ago, however, as you mentioned, it seems it' only possible from outside the country. Am I right?

- Do you know that I need to close down my company before applying to Tier 4 as it seems I can not be a director or shareholder to apply for Tier 4? Does the liquidation make any problem for my ILR application?

Thanks in advance

You can't switch from T1 to T4 from within the country.

You don't have to shut down your company. I am not aware of any such restriction. You can't be employed and work for the company, but a Director appointment is not employment.

emperor.uk2009 wrote: ↑

Mon Nov 13, 2017 8:14 pm

Thanks again for your prompt response.

I was concerned due to the following statement in the Tier 4 of the Points Based
System – Policy Guidance by HO,

Self-employment and engaging in business activity
You cannot be self-employed or engage in business activity. ...
307. This would include the following:
 setting up a business as a sole trader or under a partnership
arrangement and that business is either trading or establishing a
trading presence; ==> does not apply
 being employed by a company in which you hold shares of 10% or
more (including where the shares are held in a trust for you); ==> Cannot be employed,
i.e. not on payroll, get salary, etc.or
 working for a company where you also hold a statutory role, such as
a director. ==> Again, key is working. In fact, this actually supports the idea that you can be a Director

What's your idea about it?

Can I keep it open and be a Director and only share holder but inform HMRC and make it dormant? ==> Yes, that would be one solution. But then, you could just as well liquidate it and save some additional administrative overhead.

Thanks again. I really appreciate your time and cooperation

marcnath wrote: ↑

Mon Nov 13, 2017 8:23 pm

emperor.uk2009 wrote: ↑

Mon Nov 13, 2017 8:14 pm

Thanks again for your prompt response.

I was concerned due to the following statement in the Tier 4 of the Points Based
System – Policy Guidance by HO,

Self-employment and engaging in business activity
You cannot be self-employed or engage in business activity. ...
307. This would include the following:
 setting up a business as a sole trader or under a partnership
arrangement and that business is either trading or establishing a
trading presence; ==> does not apply
 being employed by a company in which you hold shares of 10% or
more (including where the shares are held in a trust for you); ==> Cannot be employed,
i.e. not on payroll, get salary, etc.or
 working for a company where you also hold a statutory role, such as
a director. ==> Again, key is working. In fact, this actually supports the idea that you can be a Director

What's your idea about it?

Can I keep it open and be a Director and only share holder but inform HMRC and make it dormant? ==> Yes, that would be one solution. But then, you could just as well liquidate it and save some additional administrative overhead.

Thanks again. I really appreciate your time and cooperation

zimba88 wrote: ↑

Sun Nov 12, 2017 1:29 pm

You also can leave the UK before visa expiry and come back with a new visa within 180 days without breaking your continuous stay.

zimba88 wrote: ↑

Sat Nov 18, 2017 12:24 am

Yes
https://www.gov.uk/government/publicati ... -residence

zimba88 wrote: ↑

Sat Nov 18, 2017 12:38 am

That is what I alluded to. As I said above your continuous period will be protected if you leave with a valid visa and return within 180 days with another visa.

Example 2
An applicant:
• enters the UK on 1 September 2004 with entry clearance as a student which is
valid until 31 October 2005
• leaves the UK on 25 October 2005, before their previous leave expired
• re-enters the UK with valid entry clearance as a student on 5 January 2006

HO Response: The person had valid leave on the date of their departure and on the date of their
return to the UK, and the time spent outside the UK was less than 6 months.
Continuous residence has been maintained, even though the person entered the UK
with a fresh grant of leave.

zimba88 wrote: ↑

Sat Nov 18, 2017 12:38 am

That is what I alluded to. As I said above your continuous period will be protected if you leave with a valid visa and return within 180 days with another visa.

zimba88 wrote: ↑

Sat Nov 18, 2017 12:56 am

Any absence from the UK will be counted towards the 540 days limit under long residence

emperor.uk2009 wrote: ↑

Wed Feb 14, 2018 1:19 am

I've been offered a PhD position and as it is in the area which I was always interested to work on which is why I'm going to switch my Tier 1 (Entrepreneur) Visa by leaving the country and apply for Tier 4.

However, I'm concerned about my company which I'm still the director and only share holder of the company.

I've discussed this matter with different solicitors and they have different understanding on Home Office rules about running a company. I prefer to do not close the company in order to prevent any issues for my ILR in next couple of year, which is why I prefer to make the company DORMANT and freeze all the activities rather than take it to liquidation.

sah10406 wrote: ↑

Wed Feb 14, 2018 12:02 pm

If you don't want to close the company, why switch to a Tier 4 visa at all? Why not continue with your company and your studies under Tier 1 (Entrepreneur)?

CR001 wrote: ↑

Wed Feb 14, 2018 1:04 pm

OP has failed to meet the requirements of job creation for a Tier 1 Ent extension and is looking for a route to stay in the UK to complete 10 years LR.

sah10406 wrote: ↑

Wed Feb 14, 2018 1:47 pm

CR001 wrote: ↑

Wed Feb 14, 2018 1:04 pm

OP has failed to meet the requirements of job creation for a Tier 1 Ent extension and is looking for a route to stay in the UK to complete 10 years LR.

Thanks. Maybe merge topics?

CR001 wrote: ↑

Wed Feb 14, 2018 1:47 pm

sah10406 wrote: ↑

Wed Feb 14, 2018 1:47 pm

CR001 wrote: ↑

Wed Feb 14, 2018 1:04 pm

OP has failed to meet the requirements of job creation for a Tier 1 Ent extension and is looking for a route to stay in the UK to complete 10 years LR.

Thanks. Maybe merge topics?

To Tier 4 sub forum??

sah10406 wrote: ↑

Wed Feb 14, 2018 12:02 pm

emperor.uk2009 wrote: ↑

Wed Feb 14, 2018 1:19 am

I've been offered a PhD position and as it is in the area which I was always interested to work on which is why I'm going to switch my Tier 1 (Entrepreneur) Visa by leaving the country and apply for Tier 4.

However, I'm concerned about my company which I'm still the director and only share holder of the company.

I've discussed this matter with different solicitors and they have different understanding on Home Office rules about running a company. I prefer to do not close the company in order to prevent any issues for my ILR in next couple of year, which is why I prefer to make the company DORMANT and freeze all the activities rather than take it to liquidation.

If you don't want to close the company, why switch to a Tier 4 visa at all? Why not continue with your company and your studies under Tier 1 (Entrepreneur)?

CR001 wrote: ↑

Wed Feb 14, 2018 1:04 pm

sah10406 wrote: ↑

Wed Feb 14, 2018 12:02 pm

If you don't want to close the company, why switch to a Tier 4 visa at all? Why not continue with your company and your studies under Tier 1 (Entrepreneur)?

OP has failed to meet the requirements of job creation for a Tier 1 Ent extension and is looking for a route to stay in the UK to complete 10 years LR.

uk-tier-1-entrepreneur-visas/tier-1-ent ... l#p1563324