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Nature of Business under Tier-1 Enterprenure visa

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

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Taleem99
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Re: Nature of Business under Tier-1 Enterprenure visa

Post by Taleem99 » Sun Nov 22, 2020 12:35 pm

Dear Marcnath,

Can you please comment on my earlier post . I am sorry asking this but your comments always gives proper insight to me. thanks

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Re: Nature of Business under Tier-1 Enterprenure visa

Post by marcnath » Mon Nov 23, 2020 8:26 am

Taleem99 wrote:
Sun Nov 22, 2020 12:35 pm
Dear Marcnath,

Can you please comment on my earlier post . I am sorry asking this but your comments always gives proper insight to me. thanks
I really can't comment as there are no guidelines nor has anyone else reported anything.

Again, my guess is that it will not be required. But always good to be prepared. You don't need to provide it until you are asked.
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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Re: Nature of Business under Tier-1 Enterprenure visa

Post by Taleem99 » Thu Dec 03, 2020 8:14 pm

Thanks Marcnath.

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Re: Nature of Business under Tier-1 Enterprenure visa

Post by Anontier25 » Tue Dec 08, 2020 5:04 pm

Marcnath, I hope it's ok for me to post on this post as I know you guys don't like it when someone joins a conversation but as it's in a similar vein thought to ask here.

What happens to Tier 1 business owners who for eg spent the £50K on a first business and were successful until extension stage. But as the nature of trade has been impacted looked at buying a business with additional funds, not the original £50k ( as that's already been spent), would the individual be penalised for this?

And what are the HO rules on individuals having a few ltd companies but only using the initial company they have for the 5 years of the paperwork ( still following all the rules for eg employees etc)? Have you come across such a situation before?

And at the time of ILR stage, do we have to submit the bank account statements to show all the payslips/ wages etc?

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Re: Nature of Business under Tier-1 Enterprenure visa

Post by CR001 » Tue Dec 08, 2020 6:39 pm

Anontier25 wrote:
Tue Dec 08, 2020 5:04 pm
Marcnath, I hope it's ok for me to post on this post as I know you guys don't like it when someone joins a conversation but as it's in a similar vein thought to ask here.

What happens to Tier 1 business owners who for eg spent the £50K on a first business and were successful until extension stage. But as the nature of trade has been impacted looked at buying a business with additional funds, not the original £50k ( as that's already been spent), would the individual be penalised for this?

And what are the HO rules on individuals having a few ltd companies but only using the initial company they have for the 5 years of the paperwork ( still following all the rules for eg employees etc)? Have you come across such a situation before?

And at the time of ILR stage, do we have to submit the bank account statements to show all the payslips/ wages etc?
You have been asked more than once to STOP tagging onto other members topics. Why on earth you continue to do so, knowing the rules, is beyond me and the moderating team!!! Persistent disregard for the fulorum rules and moderators request will result in your forum access being terminated permanently without any further notice.

Here is a link, point 12 specifically, with a collection of all the FAQs re forum rules. I suggest you read all of it!

announcements/read-me-getting-started-t ... 24804.html
Char (CR001 not Casa)
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Anontier25
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Re: Nature of Business under Tier-1 Enterprenure visa

Post by Anontier25 » Tue Dec 08, 2020 9:17 pm

As you can see it's because I said it's a similar thread and I did say it,but it seems you would prefer new threads and almost repetitive questions. I've created a new thread, and this is only the 2nd time I have tagged onto someone else's thread. Please don't insinuate I do it every time I use this platform as that is incorrect.

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Re: Nature of Business under Tier-1 Enterprenure visa

Post by Taleem99 » Thu Dec 10, 2020 3:47 pm

Hi Marcnath
I had a confusion, if can I start a new business (2nd business) under the same (main) company or shall open a new company if this allowed under Tier-1E. Nine month has left for our submission for extension. I will try to explain with through below example:

Below is example used for understanding purpose only.

Main Company name: ABC/123 Enterprise LTD.
Nature of business (SIC)
1-Other retail sale in non-specialised stores
2-Other education not elsewhere classified
3-Take-away food shops and mobile food stands

• For example, Business 1 started under main company in first year and closed.
• 2nd business started in 3rd year under the main company and going well.
• Now getting an opportunity to start 3rd listed business

Question: Is that ok to start under the same company or to open a new company with new bank account and transfer the fund from main company to new company for operation. Some expenses are already made under the main company like purchase of commercial property for this food new business.

Last question: The director has spend some amount of money from business account to bought the air ticket for family and self. So this has to be refunded back to business account any time during the first three year to protect the actual investment else it will be considered short investment if it fall below 200,000/-. If my this understanding is correct?

Thanks

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Re: Nature of Business under Tier-1 Enterprenure visa

Post by marcnath » Thu Dec 10, 2020 3:52 pm

Taleem99 wrote:
Thu Dec 10, 2020 3:47 pm
Hi Marcnath
I had a confusion, if can I start a new business (2nd business) under the same (main) company or shall open a new company if this allowed under Tier-1E. Nine month has left for our submission for extension. I will try to explain with through below example:

Below is example used for understanding purpose only.

Main Company name: ABC/123 Enterprise LTD.
Nature of business (SIC)
1-Other retail sale in non-specialised stores
2-Other education not elsewhere classified
3-Take-away food shops and mobile food stands

• For example, Business 1 started under main company in first year and closed.
• 2nd business started in 3rd year under the main company and going well.
• Now getting an opportunity to start 3rd listed business

Question: Is that ok to start under the same company or to open a new company with new bank account and transfer the fund from main company to new company for operation. Some expenses are already made under the main company like purchase of commercial property for this food new business.

Last question: The director has spend some amount of money from business account to bought the air ticket for family and self. So this has to be refunded back to business account any time during the first three year to protect the actual investment else it will be considered short investment if it fall below 200,000/-. If my this understanding is correct?

Thanks
For immigration purposes, it does not matter whether you start a new company or do a different business under the same company. It has nothing to do with immigration rules.

To be safe, assume that the cost of the air tickets will be considered part of your remuneration. And if that has been spent from the money you invested, then yes you need to top it up. If has been spent from your company's sales, then it should not matter.
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.

Taleem99
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Re: Nature of Business under Tier-1 Enterprenure visa

Post by Taleem99 » Fri Dec 11, 2020 2:24 pm

Thanks Marcnath

I thought as Tier-1E is linked with the business like you can start one or more business with 200k investment to qualify for extension. This was the reason had asked multiple business either to be under same company or new company so it will be convenient to Home office Officer to access smoothly.

Can I ask for another clarification/doubt like we pay the staff like for example to teachers with minimum wage rate as per their age? The teachers are very young and fresh graduate and fresh experience. If the home office asked why we paid such less hourly rate to teachers which are exact as per their age like for 19 year of age 6.45 per hours and 17.5 @ of 4.55. Is this ok?

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Re: Nature of Business under Tier-1 Enterprenure visa

Post by marcnath » Sun Dec 13, 2020 7:15 am

Taleem99 wrote:
Fri Dec 11, 2020 2:24 pm
Thanks Marcnath

I thought as Tier-1E is linked with the business like you can start one or more business with 200k investment to qualify for extension. This was the reason had asked multiple business either to be under same company or new company so it will be convenient to Home office Officer to access smoothly.

Can I ask for another clarification/doubt like we pay the staff like for example to teachers with minimum wage rate as per their age? The teachers are very young and fresh graduate and fresh experience. If the home office asked why we paid such less hourly rate to teachers which are exact as per their age like for 19 year of age 6.45 per hours and 17.5 @ of 4.55. Is this ok?
There is nothing wrong with that
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.

Taleem99
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Re: Nature of Business under Tier-1 Enterprenure visa

Post by Taleem99 » Sun Dec 13, 2020 3:41 pm

Thanks Marcnath

Taleem99
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Re: Nature of Business under Tier-1 Enterprenure visa

Post by Taleem99 » Fri Dec 18, 2020 10:16 pm

Hi Marcnath and respected experts/ Moderators

One of my friend requested me to ask the below question as per UK law as he do not have his own user/login name on this forum and I am also interested to know the rule:

A person bought a commercial property and used this for own business purpose but did not invest the full amount as 80000/- pound still remains in his business account at the time of extension.

Like in worst scenario if extension is rejected after all appeals then if they will be given sufficient time to sell the property as selling the commercial property in UK is not easy and required enough time. What will be the alternate solution to avoid been illegal /overstay as after rejection of appeal, the person does not have enough time to follow related sale procedure.

The property bought under business name and if the ownership can be easily changed from LTD company to company director name. There is only one director in the company.

Thanks

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Re: Nature of Business under Tier-1 Enterprenure visa

Post by marcnath » Fri Dec 18, 2020 11:21 pm

Taleem99 wrote:
Fri Dec 18, 2020 10:16 pm
Hi Marcnath and respected experts/ Moderators

One of my friend requested me to ask the below question as per UK law as he do not have his own user/login name on this forum and I am also interested to know the rule:

A person bought a commercial property and used this for own business purpose but did not invest the full amount as 80000/- pound still remains in his business account at the time of extension.

Like in worst scenario if extension is rejected after all appeals then if they will be given sufficient time to sell the property as selling the commercial property in UK is not easy and required enough time. What will be the alternate solution to avoid been illegal /overstay as after rejection of appeal, the person does not have enough time to follow related sale procedure.

The property bought under business name and if the ownership can be easily changed from LTD company to company director name. There is only one director in the company.

Thanks
Not sure what the issue is. The person does not need to be in the UK to complete the sale. He/she can appoint an agent and take whatever time is needed.
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.

Taleem99
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Re: Nature of Business under Tier-1 Enterprenure visa

Post by Taleem99 » Sun Dec 20, 2020 3:38 pm

Thanks again Marcnath
God blessed you.
Happy Christmas.

Taleem99
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Re: Nature of Business under Tier-1 Enterprenure visa

Post by Taleem99 » Sun Jan 03, 2021 5:45 pm

Dear Marcnath

At the time of extension request, the investment in the business would be likely with an amount of pound 120,000/- and 80,000/- is still in the business account with the purpose to use for further investment in term of working capital.

Will this 80,000/- be considered in investment or we must spend full 200,000/- before extension and if the salary paid from business account will be considered as part of investment.

I thought to deposit ( another 20000/- from personal to business account to top up the blanks as during the previous year’s some amount were used by Director for personal use like buying air ticket and purchased a car which is in the name of director and not company name. By the time (extension) the amount will be in account around 100,000/- with total spend 120000/-

( total amount bring into business account will be AED 220,000/-)

Will provide the justification to use this amount to expend the business for future growth as currently due to covid, all business ideas getting declined due to market situation

Appreciated for your kind expert comment please. thanks

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Re: Nature of Business under Tier-1 Enterprenure visa

Post by marcnath » Sun Jan 03, 2021 9:22 pm

Taleem99 wrote:
Sun Jan 03, 2021 5:45 pm
Dear Marcnath

At the time of extension request, the investment in the business would be likely with an amount of pound 120,000/- and 80,000/- is still in the business account with the purpose to use for further investment in term of working capital.

Will this 80,000/- be considered in investment or we must spend full 200,000/- before extension and if the salary paid from business account will be considered as part of investment.

I thought to deposit ( another 20000/- from personal to business account to top up the blanks as during the previous year’s some amount were used by Director for personal use like buying air ticket and purchased a car which is in the name of director and not company name. By the time (extension) the amount will be in account around 100,000/- with total spend 120000/-

( total amount bring into business account will be AED 220,000/-)

Will provide the justification to use this amount to expend the business for future growth as currently due to covid, all business ideas getting declined due to market situation

Appreciated for your kind expert comment please. thanks
The requirement is only that you invest the money. There is no requirement that you spend it all.

If any of the investment money has been used to pay salary, expenses or any other form of remuneration for the applicant, then it will not be counted towards the investment.
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.

Taleem99
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Re: Nature of Business under Tier-1 Enterprenure visa

Post by Taleem99 » Tue Jan 05, 2021 5:45 pm

Dear marcnath,

Thanks for your reply.

I have one doubt like our business is closed now due to national lock down and if we can apply for business grant and take the falroo benefits for our part time and full time employees and if these factors are going to affect extension under tier-1 entrepreneur visa route.

Like if home office says this business grant and falroo scheme is not for those granted business immigration visa like for us under Tier-1 entrepreneur.

Thanks

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Re: Nature of Business under Tier-1 Enterprenure visa

Post by marcnath » Tue Jan 05, 2021 6:49 pm

Taleem99 wrote:
Tue Jan 05, 2021 5:45 pm
Dear marcnath,

Thanks for your reply.

I have one doubt like our business is closed now due to national lock down and if we can apply for business grant and take the falroo benefits for our part time and full time employees and if these factors are going to affect extension under tier-1 entrepreneur visa route.

Like if home office says this business grant and falroo scheme is not for those granted business immigration visa like for us under Tier-1 entrepreneur.

Thanks
There is no restriction on a Tier 1 entrepreneur owned business making use of any of the COVID support measures.
Employees on Furlough are not counted towards job creation unless they are paid 80% of their salary, at least.
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.

Taleem99
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Re: Nature of Business under Tier-1 Enterprenure visa

Post by Taleem99 » Tue Jan 05, 2021 7:39 pm

thanks marcnath

God Blessed you and keep you safe from current pandemic.

Taleem99
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Re: Nature of Business under Tier-1 Enterprenure visa

Post by Taleem99 » Sat Jan 16, 2021 1:59 pm

Dear Marcnath,

Ref. to earlier post dt 3rd July about investment spending. I was trying to search in home office document and in related web search as had a conversation with friend and checked with some solicitors and they were giving different opinion as one says yes it required to spend full 200k and other says NO. So I thought to check from the office documents. Can you please provide the link of this source which will be highly appreciated.

Another question like we paid one full time employee monthly 130 or more hours but now will claim furlough and will be paid 80%, the same amount given by HRMS will be transferred to employee account as salary. This will not be equal to 130 monthly hours against 80% Furlough. My question is if this 80% will be considered against the same hours or the difference ( addition) has to pay from business in order to keep and pay 100% in order keep this as full time job to meet Tier-1 requirement,

thanks

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Re: Nature of Business under Tier-1 Enterprenure visa

Post by marcnath » Sat Jan 16, 2021 2:47 pm

Taleem99 wrote:
Sat Jan 16, 2021 1:59 pm
Dear Marcnath,

Ref. to earlier post dt 3rd July about investment spending. I was trying to search in home office document and in related web search as had a conversation with friend and checked with some solicitors and they were giving different opinion as one says yes it required to spend full 200k and other says NO. So I thought to check from the office documents. Can you please provide the link of this source which will be highly appreciated.
Not sure what link you are looking for. What information are you expecting that link to provide?
Taleem99 wrote:
Sat Jan 16, 2021 1:59 pm
Another question like we paid one full time employee monthly 130 or more hours but now will claim furlough and will be paid 80%, the same amount given by HRMS will be transferred to employee account as salary. This will not be equal to 130 monthly hours against 80% Furlough. My question is if this 80% will be considered against the same hours or the difference ( addition) has to pay from business in order to keep and pay 100% in order keep this as full time job to meet Tier-1 requirement,

thanks
Again, not clear? Are you not paying 80% of 130 hrs? If you are, that would be sufficient
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.

Taleem99
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Posts: 75
Joined: Thu Mar 05, 2020 5:58 am
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Re: Nature of Business under Tier-1 Enterprenure visa

Post by Taleem99 » Sat Jan 16, 2021 4:41 pm

Dear Marcnath,

I mean to say any home office document where it is mentioned that to invest 200k and if any amount left in business account either in working capital or in shape of balance in bank account like 70000/- left in as a balance amount in business bank account ( i.e not spent but it is in business bank account) will be sufficient to consider in investment.

We will pay 80% of 130 hours against furlough payment. Do we need to pay rest 20% of 130 hours from business account to claim full one time Job.

Thanks

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marcnath
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Re: Nature of Business under Tier-1 Enterprenure visa

Post by marcnath » Sat Jan 16, 2021 8:02 pm

Taleem99 wrote:
Sat Jan 16, 2021 4:41 pm
Dear Marcnath,

I mean to say any home office document where it is mentioned that to invest 200k and if any amount left in business account either in working capital or in shape of balance in bank account like 70000/- left in as a balance amount in business bank account ( i.e not spent but it is in business bank account) will be sufficient to consider in investment.
No, there is no such document.
There is no document that says that the investment must be completely spent (which would be a ridiculous requirement if HO ever made that)
Taleem99 wrote:
Sat Jan 16, 2021 4:41 pm
We will pay 80% of 130 hours against furlough payment. Do we need to pay rest 20% of 130 hours from business account to claim full one time Job.

Thanks
No
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.

Taleem99
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Posts: 75
Joined: Thu Mar 05, 2020 5:58 am
United Arab Emirates

Re: Nature of Business under Tier-1 Enterprenure visa

Post by Taleem99 » Sun Jan 17, 2021 2:24 pm

Thanks marcnath .

Taleem99
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Re: Nature of Business under Tier-1 Enterprenure visa

Post by Taleem99 » Fri Jan 22, 2021 4:31 pm

Hi Marcnath
I am stuck with below to understand and looking for expert advice/opinion.

Currently, I run one business under company. Business trade name is different which we bought from ex-owner without his company name as we bought only trade name. All activity sale /purchase is done under main company only. Like ABC is our main company and trading name is XYZ House. XYZ is not a company and we don’t maintain its separate account. The accounts of this XYZ are within ABC Company.

Another new business activities also started. A commercial property has been purchased under the same main company (ABC) and spending on renovation with one employee under the same company.

I had asked the accountant to register the trade name of this new business (food business) which will run under the main company (ABC) since all the expenses of 2nd business already paid from the main business account. (ABC)

He suggested opening a new company/business name like to treat subsidiary of the main company (ABC) and whatever paid from the main company will be treated loan to the new company.

Since all expenses already paid from the main company (ABC) and I had suggested him to open a new company in order to protect the trade name but will file the zero account of this company whereas the business activities (expenses and income ) will be under main company (ABC) as his suggestion for new company ( for new business) against an loan from main company will be mixed and looks complex whereas the home office has to check the two companies account then.

OR If two business can be run under main company (ABC) without creating new company that will be given batter review to home office case worker to check the total investment, employment creation easily… but in this case how we can protect the new trade name of new business?

To understand this setup really paining me how can I simplify this. Other moderators are also kindly requested to guide me with their opinion, please.

Thanks

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