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Nature of Business under Tier-1 Enterprenure visa

Only for UK Tier 1 (Entrepreneur) points system

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Taleem99
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United Arab Emirates

Nature of Business under Tier-1 Enterprenure visa

Post by Taleem99 » Thu Mar 05, 2020 6:31 am

Dear sir/ ma’am,
I am on Tier-1 entrepreneur visa and in UK since July-2018. My initial business was in loss i.e wholesale of soft drinks/food stuff and employee was in and out due to poor business growth and did most of sale my own.

Now I am planning to buy a running business of tuition center for English, math and science subject for age 5 to 16 years students. The terms of taking over are under negotiation. I am aware of that the goodwill of running business is not considered under investment. However any investment / expenses after buying will be considered in investment. There will be 5 part-time teachers.

I have below questions:
1- If buying a running tuition center is covered as business and investment under Tier-1 Entrepreneur visa
2- How many hours should work of each part timer to achieve the policy of two permanent employment as earlier business, the employment was not in order and will not declare earlier employment during the extension request.

Appreciated for your kind support in replying the above question as really I am struggling to run a suitable business please

Regards

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marcnath
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Location: Milton Keynes

Re: Nature of Business under Tier-1 Enterprenure visa

Post by marcnath » Thu Mar 05, 2020 8:08 am

Taleem99 wrote:
Thu Mar 05, 2020 6:31 am
Dear sir/ ma’am,
I am on Tier-1 entrepreneur visa and in UK since July-2018. My initial business was in loss i.e wholesale of soft drinks/food stuff and employee was in and out due to poor business growth and did most of sale my own.

Now I am planning to buy a running business of tuition center for English, math and science subject for age 5 to 16 years students. The terms of taking over are under negotiation. I am aware of that the goodwill of running business is not considered under investment. However any investment / expenses after buying will be considered in investment. There will be 5 part-time teachers.

I have below questions:
1- If buying a running tuition center is covered as business and investment under Tier-1 Entrepreneur visa
2- How many hours should work of each part timer to achieve the policy of two permanent employment as earlier business, the employment was not in order and will not declare earlier employment during the extension request.

Appreciated for your kind support in replying the above question as really I am struggling to run a suitable business please

Regards
1. there are no business restrictions under the immigration rules for Tier 1 Entrepreneur. The only restriction is that investment into a property development/management business will not be counted towards your investment evidence. Even that does not restrict a T1E holder from doing a property business.
2. There is no minimum for each part timer. The combination has to be 30 hrs/week or more
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: 7
Joined: Thu Mar 05, 2020 5:58 am
United Arab Emirates

Re: Nature of Business under Tier-1 Enterprenure visa

Post by Taleem99 » Thu Mar 05, 2020 11:31 am

Thanks for reply. It really comfort me and now will take over the tuition center, but still have confusion on employment.

1. It means that minimum 2 Jobs and NOT 2 employees in Tier -1 route. Like among 5 teachers, two are Assistant teachers and three Senior Teachers are qualifying for two jobs.

2. Each job must have minimum 130 hours monthly.


3. Hours must be calculated against Jobs and not employees

4. Each jobs must be 130 hours or more on monthly bases regardless if It is covered by 2 or three part time employees or 1 full time employee on monthly bases.

5. And for two jobs hours must not be less than 260 hours (130*2) in each month regardless of number of employees if covered by two or more part time employee or 2 full time employee on monthly bases

6. Ensuring the 12 months jobs creation rules for minimum two jobs, the hours should not be less than 3120 hours for 2 jobs (130*12=1560, 130*12=1560) with minimum of two full time employees with different jobs title or with multiple numbers of part- time employees but with two different job title.

7. In case of I buy the same tuition center premise for the same business and if the amount will be consider in my Tier- 1investment as the premises has been bought for own business and NOT for development and management purpose.


8. The property is two story building where ground floor is used for tuition center and first floor with vacant room which considered as office and not residential. So will this all will be considered in investment or only the ground floor will be considered.

Really, thankful your kind support in clarifying the above questions in number, pls

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marcnath
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Location: Milton Keynes

Re: Nature of Business under Tier-1 Enterprenure visa

Post by marcnath » Thu Mar 05, 2020 12:57 pm

Taleem99 wrote:
Thu Mar 05, 2020 11:31 am
Thanks for reply. It really comfort me and now will take over the tuition center, but still have confusion on employment.

1. It means that minimum 2 Jobs and NOT 2 employees in Tier -1 route. Like among 5 teachers, two are Assistant teachers and three Senior Teachers are qualifying for two jobs.

2. Each job must have minimum 130 hours monthly.

3. Hours must be calculated against Jobs and not employees

4. Each jobs must be 130 hours or more on monthly bases regardless if It is covered by 2 or three part time employees or 1 full time employee on monthly bases.

5. And for two jobs hours must not be less than 260 hours (130*2) in each month regardless of number of employees if covered by two or more part time employee or 2 full time employee on monthly bases

6. Ensuring the 12 months jobs creation rules for minimum two jobs, the hours should not be less than 3120 hours for 2 jobs (130*12=1560, 130*12=1560) with minimum of two full time employees with different jobs title or with multiple numbers of part- time employees but with two different job title.

7. In case of I buy the same tuition center premise for the same business and if the amount will be consider in my Tier- 1investment as the premises has been bought for own business and NOT for development and management purpose.


8. The property is two story building where ground floor is used for tuition center and first floor with vacant room which considered as office and not residential. So will this all will be considered in investment or only the ground floor will be considered.

Really, thankful your kind support in clarifying the above questions in number, pls
1. Yes, it is 2 jobs and not 2 employees
2. Each job must have 30 hrs/week. Nowhere in the immigration rules is 130 hrs/month mentioned but it is often used as another measure for 30 hrs/week, especially when employees are paid monthly.
3. Yes
4. Same as pt 2 above
5. Total hours is immaterial. If one job is 100 hrs in a month and the other 200 hrs, it will still be only 1 FT job.
6. Sames as point 5. Ignore totals - they don't matter.
7. Yes
8. Entire investment will be considered
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: 7
Joined: Thu Mar 05, 2020 5:58 am
United Arab Emirates

Re: Nature of Business under Tier-1 Enterprenure visa

Post by Taleem99 » Fri Mar 06, 2020 2:42 pm

thanks so much. It really helped and cleared my doubts.

One more question. Sorry getting this topic long but it really helping to understand.

1- How home house come to know if the two employee are with same job title or different job title. I means to say we are paying salary at same rate and PAYE /NI getting charged based on these payment and no job details/ description are given anywhere.

2- Do we need to update their Jobs Description and to provide the same at the time of extension request OR only to mentioned their job name in FORM of extension at extension time.

Thanks

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marcnath
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Location: Milton Keynes

Re: Nature of Business under Tier-1 Enterprenure visa

Post by marcnath » Fri Mar 06, 2020 3:46 pm

Taleem99 wrote:
Fri Mar 06, 2020 2:42 pm
thanks so much. It really helped and cleared my doubts.

One more question. Sorry getting this topic long but it really helping to understand.

1- How home house come to know if the two employee are with same job title or different job title. I means to say we are paying salary at same rate and PAYE /NI getting charged based on these payment and no job details/ description are given anywhere.

2- Do we need to update their Jobs Description and to provide the same at the time of extension request OR only to mentioned their job name in FORM of extension at extension time.

Thanks
You need to provide job details in your extension application.
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
Newly Registered
Posts: 7
Joined: Thu Mar 05, 2020 5:58 am
United Arab Emirates

Re: Nature of Business under Tier-1 Enterprenure visa

Post by Taleem99 » Sun Mar 08, 2020 4:33 pm

Thanks marcnath,

You are Fabulous. Hope my things will in order as starting a business really a challenge. So far i am spending only without gain. Hope will be stable.

In case of any confusion , will get back to you. Thanks again for great work.

Taleem99
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Posts: 7
Joined: Thu Mar 05, 2020 5:58 am
United Arab Emirates

Re: Nature of Business under Tier-1 Enterprenure visa

Post by Taleem99 » Thu May 07, 2020 9:15 pm

Dear marcnath,

I was trying to set up tuition center with own property but due to current situation, the condition are not supporting. Two business are active now a days i.e hot food takeaway and groceries. Actually I had good experience in the past of running a fast food business.

I am planning to buy a running takeaway with approx. amount of 55000/- pound . Which is inclusive of good will and equipment and stock.

I came to know that any money which goes to the previous business owner or goodwill or toward existing stock and fixtures does not count as investment in Tier-1 enterprenue business investment.

I am really confused and worried then how we can treat above cost in an investment as this is a major amount. I had asked many accountants but no one have this information.

As per seller, he asked 5000 as good will and rest 50000 will make a separate invoice for equipment, furniture and fixture and stock and same will be mentioned in the sale agreement, but the amount will go to his account. Can this 50000 will be considered in investment if we buy the equipment from the business owner.

I really appreciate for your kind advice how to handle this situation in this difficult time.
Thanks

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marcnath
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Location: Milton Keynes

Re: Nature of Business under Tier-1 Enterprenure visa

Post by marcnath » Fri May 08, 2020 1:11 pm

Taleem99 wrote:
Thu May 07, 2020 9:15 pm
Dear marcnath,

I was trying to set up tuition center with own property but due to current situation, the condition are not supporting. Two business are active now a days i.e hot food takeaway and groceries. Actually I had good experience in the past of running a fast food business.

I am planning to buy a running takeaway with approx. amount of 55000/- pound . Which is inclusive of good will and equipment and stock.

I came to know that any money which goes to the previous business owner or goodwill or toward existing stock and fixtures does not count as investment in Tier-1 enterprenue business investment.

I am really confused and worried then how we can treat above cost in an investment as this is a major amount. I had asked many accountants but no one have this information.

As per seller, he asked 5000 as good will and rest 50000 will make a separate invoice for equipment, furniture and fixture and stock and same will be mentioned in the sale agreement, but the amount will go to his account. Can this 50000 will be considered in investment if we buy the equipment from the business owner.

I really appreciate for your kind advice how to handle this situation in this difficult time.
Thanks
A strict reading of them immigration rules would define that as not counting towards investment.

But why are you buying that business if you already have a takeaway business? Isn't it just sufficient to buy their equipment, etc. ?
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
Newly Registered
Posts: 7
Joined: Thu Mar 05, 2020 5:58 am
United Arab Emirates

Re: Nature of Business under Tier-1 Enterprenure visa

Post by Taleem99 » Fri May 08, 2020 5:05 pm

The business mentioned above was in UAE. In UK never have this now trying to setup hot food takeaway but got stuck due to condition of investment.

I thought to become a 50% shareholder of running takeaway which I had planned to buy. Later If the partner resigned and I will be 100% owner of his company and business. The amount which I had transferred from my original company to this new company will be used to pay the partner against his share and later this company will dissolved and shift the activity under my original company.

I am not sure if the amount which has been transferred to the old partner which used to buy his share will be considered in investment?

Can I have your kind advise on this complex situation if this will fulfill the T1E visa investment requirement as I had discuss with many solicitors and accountant and nobody had experienced and everyone gives different answered which never matched with their statements.

Thanks

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marcnath
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Joined: Tue Jul 03, 2012 2:27 pm
Location: Milton Keynes

Re: Nature of Business under Tier-1 Enterprenure visa

Post by marcnath » Fri May 08, 2020 8:43 pm

Taleem99 wrote:
Fri May 08, 2020 5:05 pm
The business mentioned above was in UAE. In UK never have this now trying to setup hot food takeaway but got stuck due to condition of investment.

I thought to become a 50% shareholder of running takeaway which I had planned to buy. Later If the partner resigned and I will be 100% owner of his company and business. The amount which I had transferred from my original company to this new company will be used to pay the partner against his share and later this company will dissolved and shift the activity under my original company.

I am not sure if the amount which has been transferred to the old partner which used to buy his share will be considered in investment?

Can I have your kind advise on this complex situation if this will fulfill the T1E visa investment requirement as I had discuss with many solicitors and accountant and nobody had experienced and everyone gives different answered which never matched with their statements.

Thanks
It may be possible to do some such mechanics to get around this. If you buy the 50% of shares, then it will obviously be the same situation. But if the company buys that 50%, on paper it may work, especially if there is enough revenue in the business to cover that payment.

However, it still goes against the reason why that rule was there in the first place. So, HO will most probably not accept it.

It would be risky.
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
Newly Registered
Posts: 7
Joined: Thu Mar 05, 2020 5:58 am
United Arab Emirates

Re: Nature of Business under Tier-1 Enterprenure visa

Post by Taleem99 » Thu May 14, 2020 10:25 pm

Thanks marcnath for your honest and kind advise.

Here I have one confusion, like which company to buy the share (to avoid individual to buy) like my original company which I had open on my arrival or the new company which I planned to buy with 50% share? Can I pay from the business account of my original company to prove that 50% of share has been bought by my original company.?

At the time of buying and being a 2nd director of new company, should I transfer some amount either from my personal account or from my original company business account to the new company account and at same time will ask accountant to increase the number of share as currently the company has not enough share. So when the original/first director resigned, will be paid his share from the original company bank account to prove that the share of first director was paid from the company and share belongs to company only?

Here I am not sure that which company to buy the 50% share , new company or original company?
After few weeks, all amount will be transferred from new company account to my original company bank account considering the merger of activity under one company but will operate the business under same trade name.( new company business name). if my understanding is correct ?

• I feel the above scenario looks very weird to bring the paid account into investment category to avoid goodwill and paying directly to the previous business owner but your kind advise always helped and support me to get some work around.
• Another question, my BRP will expire on 12 Oct 22 (will be completing 3 year and 3 months). So we can submit our extension request any day before of BRP expiry like first of October or during first week of October 22 , OR it has to be exactly after 3rd years.
Thanks for your advise.

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marcnath
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Location: Milton Keynes

Re: Nature of Business under Tier-1 Enterprenure visa

Post by marcnath » Fri May 15, 2020 8:39 pm

Taleem99 wrote:
Thu May 14, 2020 10:25 pm
Thanks marcnath for your honest and kind advise.

Here I have one confusion, like which company to buy the share (to avoid individual to buy) like my original company which I had open on my arrival or the new company which I planned to buy with 50% share? Can I pay from the business account of my original company to prove that 50% of share has been bought by my original company.?

At the time of buying and being a 2nd director of new company, should I transfer some amount either from my personal account or from my original company business account to the new company account and at same time will ask accountant to increase the number of share as currently the company has not enough share. So when the original/first director resigned, will be paid his share from the original company bank account to prove that the share of first director was paid from the company and share belongs to company only?

Here I am not sure that which company to buy the 50% share , new company or original company?
After few weeks, all amount will be transferred from new company account to my original company bank account considering the merger of activity under one company but will operate the business under same trade name.( new company business name). if my understanding is correct ?

• I feel the above scenario looks very weird to bring the paid account into investment category to avoid goodwill and paying directly to the previous business owner but your kind advise always helped and support me to get some work around.
• Another question, my BRP will expire on 12 Oct 22 (will be completing 3 year and 3 months). So we can submit our extension request any day before of BRP expiry like first of October or during first week of October 22 , OR it has to be exactly after 3rd years.
Thanks for your advise.
This is too confusing for me to give any sensible answer - you need to consult a suitable lawyer on how to structure these.

As I mentioned earlier, irrespective of how you do it, if the money goes to the previous owner of the business, you will always be running a risk. It will not avoid it.
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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