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3rd party funding using a business partner ?

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

Moderators: Casa, push, JAJ, ca.funke, Amber, zimba, vinny, Obie, EUsmileWEallsmile, batleykhan, meself2, geriatrix, John, ChetanOjha, archigabe

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chenmor
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Israel

3rd party funding using a business partner ?

Post by chenmor » Wed Feb 27, 2019 12:50 pm

👋 Hi everyone, brilliant forum and super helpful.

👉I'm just about to apply to the Tier 1 Entrepreneur VISA and my situation is very simple. 👈

1️⃣I and a UK business partner are acquiring a UK based company.

2️⃣He will be the finance director (he's an accountant by training) and
I will be the managing director.

3️⃣He has 200K in his client account that are ready for investment into the company.

❓ My questions are: ❓

1️⃣ Can he be the 3rd party investor WHILE also being one of the acquiring parties of the company?

2️⃣How critical is it to use a solicitor to carry out the application process for me?
The cost of 2K+ is not very attractive and the process seems simple enough to be carried out by myself

Thanks for the help people! Much appreciated.

- Chen

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CR001
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Re: 3rd party funding using a business partner ?

Post by CR001 » Wed Feb 27, 2019 1:32 pm

He has 200K in his client account
If money is in a client account, it is not his or your money. It is clients' money. As an accountant, he would know that very well.
Char (CR001 not Casa)
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chenmor
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Joined: Tue Feb 26, 2019 1:11 pm
Israel

Re: 3rd party funding using a business partner ?

Post by chenmor » Wed Feb 27, 2019 3:39 pm

CR001 wrote:
Wed Feb 27, 2019 1:32 pm
He has 200K in his client account
If money is in a client account, it is not his or your money. It is clients' money. As an accountant, he would know that very well.
How about if the money will be held in a designated client account under my name?

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marcnath
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Re: 3rd party funding using a business partner ?

Post by marcnath » Wed Feb 27, 2019 7:14 pm

chenmor wrote:
Wed Feb 27, 2019 3:39 pm
CR001 wrote:
Wed Feb 27, 2019 1:32 pm
He has 200K in his client account
If money is in a client account, it is not his or your money. It is clients' money. As an accountant, he would know that very well.
How about if the money will be held in a designated client account under my name?
You seem to have a misunderstanding of the route. You are supposed to invest your own money or have the money invested ON YOUR BEHALF. I can't see how you could legally do that with a clients money, irrespective of which account it is held in.
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

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Frontier Mole
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Re: 3rd party funding using a business partner ?

Post by Frontier Mole » Thu Feb 28, 2019 12:41 am

If you are using clients money to give the impression that it is yours and available for investment then that is misrepresentation and essentially is fraud.

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