ESC

Click the "allow" button if you want to receive important news and updates from immigrationboards.com


Immigrationboards.com: Immigration, work visa and work permit discussion board

Welcome to immigrationboards.com!

Login Register Do not show

Regarding extension VC firm problem

Only for UK Tier 1 (Entrepreneur) points system

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

Locked
Legend1
Newly Registered
Posts: 19
Joined: Thu Nov 26, 2020 10:17 pm
Mood:

Regarding extension VC firm problem

Post by Legend1 » Fri Nov 27, 2020 9:20 pm

hi moderators,
i'm a silent user and been learning alot and appreciate the time and efforts you all doing to help the us. may Allah reward you all.

hope this post not annoy you mods and i appologise for that, as im posting in someone else thread.
i have Tier 1 Ent through (Venture capital Route 50K ) last year. i already started business and created jobs and fulfilling all other requirements and started investing my own funds in business as a "Director Loan" .

unfortunaely the VC firm who supposed to invest is not willing any further and it's no longer authorised with FCA. I'm now in a situation wether if i invest my own funds for the investment purposes will that fulfill the requirements for the extension stage, or i must have to show that investment is made through VC route. i have been to many solicitors and discussed that with some accountants as well, i'm not getting the clear answer and mix reponses like( nothing at the extention stage that the investment should be from VC etc etc) .

i was going through this forum . .. but still confused what could be the best course of action i should take ?

i really need your assistance. :cry:
thanks.

User avatar
CR001
Moderator
Posts: 79819
Joined: Thu Mar 08, 2012 10:55 pm
Location: London
Mood:
South Africa

Re: Regarding extension VC firm problem

Post by CR001 » Fri Nov 27, 2020 9:34 pm

Post split to your own topic in the tier 1 entrepreneur sub forum.

Please do not tag onto other people's topics.
Char (CR001 not Casa)
In life you cannot press the Backspace button!!
Please DO NOT send me a PM for immigration advice. I reserve the right to ignore the PM and not respond.

Legend1
Newly Registered
Posts: 19
Joined: Thu Nov 26, 2020 10:17 pm
Mood:

Re: Regarding extension VC firm problem

Post by Legend1 » Sat Nov 28, 2020 12:52 am

@ CR001 Noted , didnt know how to start new post thanks for that .

marcnath
CULLINAN
hope to hear from you soon.

User avatar
marcnath
Moderator
Posts: 6133
Joined: Tue Jul 03, 2012 2:27 pm
Location: Milton Keynes

Re: Regarding extension VC firm problem

Post by marcnath » Sat Nov 28, 2020 9:37 am

Legend1 wrote:
Fri Nov 27, 2020 9:20 pm
hi moderators,
i'm a silent user and been learning alot and appreciate the time and efforts you all doing to help the us. may Allah reward you all.

hope this post not annoy you mods and i appologise for that, as im posting in someone else thread.
i have Tier 1 Ent through (Venture capital Route 50K ) last year. i already started business and created jobs and fulfilling all other requirements and started investing my own funds in business as a "Director Loan" .

unfortunaely the VC firm who supposed to invest is not willing any further and it's no longer authorised with FCA. I'm now in a situation wether if i invest my own funds for the investment purposes will that fulfill the requirements for the extension stage, or i must have to show that investment is made through VC route. i have been to many solicitors and discussed that with some accountants as well, i'm not getting the clear answer and mix reponses like( nothing at the extention stage that the investment should be from VC etc etc) .

i was going through this forum . .. but still confused what could be the best course of action i should take ?

i really need your assistance. :cry:
thanks.
One thing is clear - if 50K is not invested into your business, you will NOT get an extension.

But the advice you have been getting is correct. The immigration rules does not specify a different criteria depending on what basis the application was granted. So, it APPEARS that, as long as 50K is invested and you show all the necessary documentation, your extension should be granted.

Unfortunately, you will not know the answer until you actually go through the application process. You are not the only one who has had this issue in the forum but I haven't seen any of them come back and say whether they got the extension or not.
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.

Legend1
Newly Registered
Posts: 19
Joined: Thu Nov 26, 2020 10:17 pm
Mood:

Re: Regarding extension VC firm problem

Post by Legend1 » Sat Nov 28, 2020 6:37 pm

marcnath wrote:
Sat Nov 28, 2020 9:37 am
Legend1 wrote:
Fri Nov 27, 2020 9:20 pm
hi moderators,
i'm a silent user and been learning alot and appreciate the time and efforts you all doing to help the us. may Allah reward you all.

hope this post not annoy you mods and i appologise for that, as im posting in someone else thread.
i have Tier 1 Ent through (Venture capital Route 50K ) last year. i already started business and created jobs and fulfilling all other requirements and started investing my own funds in business as a "Director Loan" .

unfortunaely the VC firm who supposed to invest is not willing any further and it's no longer authorised with FCA. I'm now in a situation wether if i invest my own funds for the investment purposes will that fulfill the requirements for the extension stage, or i must have to show that investment is made through VC route. i have been to many solicitors and discussed that with some accountants as well, i'm not getting the clear answer and mix reponses like( nothing at the extention stage that the investment should be from VC etc etc) .

i was going through this forum . .. but still confused what could be the best course of action i should take ?

i really need your assistance. :cry:
thanks.
One thing is clear - if 50K is not invested into your business, you will NOT get an extension.

But the advice you have been getting is correct. The immigration rules does not specify a different criteria depending on what basis the application was granted. So, it APPEARS that, as long as 50K is invested and you show all the necessary documentation, your extension should be granted.

Unfortunately, you will not know the answer until you actually go through the application process. You are not the only one who has had this issue in the forum but I haven't seen any of them come back and say whether they got the extension or not.
Thank you so much Marcnath for assistance ,

As i already started investment in the form of Director Loan to the business and i'm still looking for VC firm which can further help with 50K investment.
Now for extension which category relate to me according to Table D attribute of 20 points

Table D: Extension applications points table

1 You have invested, or have caused investment to be made by one or more
third parties, at least £200,000 (or £50,000 if you were awarded points for
£50,000 funding or investment in your last grant of leave) in cash directly into
one or more UK businesses.
You do not need to provide evidence of this investment if you were awarded
points under this table in your last grant of entry clearance or leave to remain
as a Tier 1 (Entrepreneur) migrant.

Investment: specified documents

(g) If you are claiming points for investment of £50,000 from a Venture Capital firm, you must also
provide an original dated letter from the Venture Capital firm on its headed paper, confirming:
(i) your name,
(ii) the date(s) the money was transferred to you or invested in your business, and
(iii) that the Venture Capital firm was registered with the Financial Conduct Authority on the
date(s) in (ii) above.

(h) If you are claiming points for investing £50,000 from a Seed Funding Competition, UK or
Devolved Government Department or Venture Capital firm, and have not been awarded points for
those funds in a previous application, you must also provide the specified evidence in the Table C:
Available Money as evidence of the source of the funds. As the money may have been invested up
to 12 months ago the letters do not need to be dated within the three months immediately before the
date of the application.

from the above points of g,h .... when i applied for initial application i have provided the above letters ;
funding manager, accountant, strategy , structure, terms of agreement with VC, due deligance etc
1_lets say if i dont have invetments from VC do i still need to submit this papers again for extension stage ?

2_ the point 'g' in above immigration rule asked for letter which i can't provided will that result a possible refusal for extension ? (as i ll not be claiming the investment from VC but my own 50K)

i was reading on the forum i found that some of the members (Haider munch + BK14) who were on VC route when they applied for entension, they have been asked for VC letter by caseworkers, suppose at the time of extension if i only show my own investment and not showing the investment from VC , there is still a possibility for the point 'g' applicable to my application ?
(as initially application was approved on VC funding basis)

3_ if the VC is not investing and applicant left in a situation asked the for help from HO for alternative investment option, will that result a possible curtailment ? what could be the remedy to it ?

Kind regards ,

User avatar
marcnath
Moderator
Posts: 6133
Joined: Tue Jul 03, 2012 2:27 pm
Location: Milton Keynes

Re: Regarding extension VC firm problem

Post by marcnath » Mon Nov 30, 2020 9:32 pm

As mentioned before, the immigration rule is unclear here.

The condition to get points for investment only states:

"The applicant has invested, or had invested on their behalf, not less than £200,000 (or £50,000 if, in their last grant of leave, they were awarded points for funds of £50,000) in cash directly into one or more businesses in the UK."

It does not differentiate whether the £50K route is due to VC or otherwise.

The section (g) you listed, on the other hand, is only applicable if you are claiming points for investment from a VC. It does not say it is applicable if the ORIGINAL application showed investment from a VC. So, a strict reading says you do not need to provide this if you are not claiming investment by a VC during extension.

In my personal opinion, it is an oversight by whoever drafted the rules.

On the other hand, things can change and it would be unfair to penalise an applicant for something that is not in their control. Again, in my personal opinion, HO should have specified that the applicant can switch to the £200K route in that case. But that is not the case, either.

Bottom line - I do not know how HO will handle this. Personally, I think there is enough uncertainty for any refusal to be challenged in court. Solicitors will be able to tell you if such a case has ever been taken up and how the court has decided before.

On the other hand, you really don't have much options. If you can't find a VC, you have to make the 50K investment, supply the documents based on personal investment and apply.
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.

Legend1
Newly Registered
Posts: 19
Joined: Thu Nov 26, 2020 10:17 pm
Mood:

Re: Regarding extension VC firm problem

Post by Legend1 » Tue Dec 01, 2020 2:30 pm

Dear Marcnath ,
your detailed reply helping me alot and its really directing me what next to do. In 6 months time i ll be completing the investment as a "Director Loan " . Meanwhile i ll look for VC as well.

one more question
i was reading in forum about the " Share capital " as well as you mentioned is required less documentation than Director's Loan.
as my understanding about the direcror loan is clear it's the money from the Direcotr (applicant) to the business account transfer.
but i dont know what Share Capital is and how this type of investment process done in business ?

thanks once agin for being so patient and volunteering your valued time for us.

kind reagards :D

User avatar
marcnath
Moderator
Posts: 6133
Joined: Tue Jul 03, 2012 2:27 pm
Location: Milton Keynes

Re: Regarding extension VC firm problem

Post by marcnath » Tue Dec 01, 2020 5:36 pm

Legend1 wrote:
Tue Dec 01, 2020 2:30 pm
Dear Marcnath ,
your detailed reply helping me alot and its really directing me what next to do. In 6 months time i ll be completing the investment as a "Director Loan " . Meanwhile i ll look for VC as well.

one more question
i was reading in forum about the " Share capital " as well as you mentioned is required less documentation than Director's Loan.
as my understanding about the direcror loan is clear it's the money from the Direcotr (applicant) to the business account transfer.
but i dont know what Share Capital is and how this type of investment process done in business ?

thanks once agin for being so patient and volunteering your valued time for us.

kind reagards :D
Talk to your accountant for the details. Essentially, Share capital is just buying the shares of your company. Both Director's loans and Share capital is money from the applicant to the business. Your accountant will be able to record it in the accounts however you want it.

Share capital needs to be updated to Companies House, which you or your account can do very easily online.
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.

Legend1
Newly Registered
Posts: 19
Joined: Thu Nov 26, 2020 10:17 pm
Mood:

Re: Regarding extension VC firm problem

Post by Legend1 » Fri Dec 04, 2020 11:03 pm

Hi Marcnath Sir,

I'm really impressed with your knowledge and experience, and appreciate your resonse.

Ireign
Newly Registered
Posts: 14
Joined: Wed Jun 13, 2018 5:06 pm
India

Re: Regarding extension VC firm problem

Post by Ireign » Mon Dec 07, 2020 8:01 pm

Hi Legend1,I am in a similar situation where my initial approval was based on the VC funding of £50000 route and now i am wondering if i invest my own £50 k will i be granted points for investment,wondering if you have had any clarity on this from Solicitors or here,My extension is due in Feb 2022 so any advice will be appreciated.

Legend1
Newly Registered
Posts: 19
Joined: Thu Nov 26, 2020 10:17 pm
Mood:

Re: Regarding extension VC firm problem

Post by Legend1 » Wed Dec 09, 2020 9:34 pm

Ireign wrote:
Mon Dec 07, 2020 8:01 pm
Hi Legend1,I am in a similar situation where my initial approval was based on the VC funding of £50000 route and now i am wondering if i invest my own £50 k will i be granted points for investment,wondering if you have had any clarity on this from Solicitors or here,My extension is due in Feb 2022 so any advice will be appreciated.
HI IREIGN,
pls read this post from begining you ll have clear understanding. i'll still be looking for VC , meanwhile i have already started my own funding, as Macnath mentioned above if you don't invest 50K, no extension is possible. .... hope that ll help :)

Ireign
Newly Registered
Posts: 14
Joined: Wed Jun 13, 2018 5:06 pm
India

Re: Regarding extension VC firm problem

Post by Ireign » Sat Dec 12, 2020 11:51 pm

Thank you legend1 ,i ll be looking for the funding too and simultaneously try and prepare for the £200k investment .as one of the solicitor form have updated that if the £50 k is personal investment then it contradicts with the £200k route.as marcnath kindly mentioned that this has not been addressed in the rules anywhere so quite unclear.good luck with your preparation and application,hope it works out for us.

Locked
cron