Only for UK Tier 1 (Entrepreneur) points system
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- Newly Registered
- Posts: 15
- Joined: Sun Nov 27, 2016 6:23 pm
Dear respected members,
I have a question regarding the investment funds.
I am on 50,000 route, applied for Extension and waiting for decision. I have invested through director loan to the business. Due to service oriented nature of my business, salaries and other expenses are coming from revenue. 80% of the investment fund remains unused for long period of time.
Is it okay, If I open another business to use this money or become a director of the other company and invest from current company, what rules says about it? If I do so, then is there any issue will come to my Primary Company in terms of HO satisfaction.
If you anyone share any comments will be much appreciated.
Thank you in advance.
- Senior Member
- Posts: 607
- Joined: Sat Jun 09, 2012 11:12 pm
- Location: United Kingdom
I think it will be very wise to wait till you get the decision of your current application.
Once you get extended, we can invest in any business more confidently as we do not need to disclose our business accounts to HO in the next application [which will be settlement].
Having said this, guidance has not said us not to invest in other businesses, we can but just remain less complicated for the required time being.
Hope it helped.
- Posts: 30
- Joined: Wed Nov 30, 2016 11:16 am
As per my understanding a company can run multiple businesses and you need to add code for the new business in the existing company and you do not need to open a new company. For HO you can present two accounts for the two businesses run by the same company but for HMRC one is enough. Some explanation can be added in the notes of accounts by Accountant.
If you want to formulate a new company then you should transfer money from your personal account to business account as DL. If you transfer funds from your existing company to new company then it could be risky because you may not be able to claim points for that investment. If your extension is close then you should wait to avoid any complication because anything can trigger confusion to case worker which could lead to interview call or any unwanted situation.
- Posts: 14725
- Joined: Mon Aug 11, 2014 5:13 pm
- Location: UK
I highly recommend to hold to that thought until after your extension is approved.
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice