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Share investment and registered Address for extension

Only for UK Tier 1 (Entrepreneur) points system

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thutmose
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Joined: Sun Jan 31, 2016 8:47 pm
Bangladesh

Share investment and registered Address for extension

Post by thutmose » Sun Jan 31, 2016 9:08 pm

Hi everyone,

I am a regular follower of this forum. You guys help each other a lot. I had 3 questions, hope someone can help on those.

1) My extension (50K) is due in 4 months. Before my initial application my accountant opened my company with 50000 ordinary share capital £1 each. And I am the director and 100% shareholder. However, I have transferred around 75k from my personal account to the business account over past 2 and half years. What will be the best way to show my investment (share certificate, director's loan, both) ?

2) My company registered address has always been my home address. But I worked from a different address. The reason I decided to keep my home address as my company registered address is, I didn't want any post to get lost because it's a shared office. Shall I change the address to the operational address? Are they gonna think something fishy for the last minute address change?

3) HO wants to see statements as a proof of investment. 3 years business bank statement with money in from my name, will that fulfil that requirement or I need to send them personal account statements too to show the other side of the transection?

If the questions have already been answered before in this forum please give me a link.

Thanks

rajrea
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Re: Share investment and registered Address for extension

Post by rajrea » Mon Feb 01, 2016 2:23 am

Hi everyone,

I am a regular follower of this forum. You guys help each other a lot. I had 3 questions, hope someone can help on those.

1) My extension (50K) is due in 4 months. Before my initial application my accountant opened my company with 50000 ordinary share capital £1 each. And I am the director and 100% shareholder. However, I have transferred around 75k from my personal account to the business account over past 2 and half years. What will be the best way to show my investment (share certificate, director's loan, both) ?

2) My company registered address has always been my home address. But I worked from a different address. The reason I decided to keep my home address as my company registered address is, I didn't want any post to get lost because it's a shared office. Shall I change the address to the operational address? Are they gonna think something fishy for the last minute address change?

3) HO wants to see statements as a proof of investment. 3 years business bank statement with money in from my name, will that fulfil that requirement or I need to send them personal account statements too to show the other side of the transection?

If the questions have already been answered before in this forum please give me a link.

Thanks
Hi Thutmose,
Here is my opinion for the queries you have asked

1.
A) If you have transferred £75k from your personal account to business account as a Directors Loan - You need to provide the Director's Loan Agreement which is unsecured and in favour of 3rd party Creditors.
B) Also the Director's loan should be displayed in your Company Accounts showing company has £ xx amount of liabilities to pay.
C) Most important thing here is that you need to show the transferred money £ 75k is really invested in your business
D) You've mentioned that company shares worth £50k. If it is share capital you need to show that you are the shareholder of that £50k Worth shares along with value and amount of shares owned by you.

If you have done all the above then you can show in the form of Director's loan along with Share Capital


2. Coming to business address - Most of the companies will have registered address and Trading address. You can keep the registered address same and you can submit the proof of Lease Agreement for your trading address and if there are any other proofs that your company is trading from that address like Utility bills , any email conversations from the shared office reception ....You can attach them

3.Coming to Investment - If you want to send the bank statements fro all 3 years that is up to you but please bear in mind that simply showing that money has been transferred from personal to business account doesn't prove that money has been invested in your business.

All the above suggestions are as per knowledge if you want more reliable info please consult experts. Hope this helps. I personally suggest please go through the Policy Guidance and try to understand what exactly it says so that you can understand more about requirements

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Zimba
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Re: Share investment and registered Address for extension

Post by Zimba » Mon Feb 01, 2016 11:28 am

thutmose wrote:Hi everyone,

I am a regular follower of this forum. You guys help each other a lot. I had 3 questions, hope someone can help on those.

1) My extension (50K) is due in 4 months. Before my initial application my accountant opened my company with 50000 ordinary share capital £1 each. And I am the director and 100% shareholder. However, I have transferred around 75k from my personal account to the business account over past 2 and half years. What will be the best way to show my investment (share certificate, director's loan, both) ?

2) My company registered address has always been my home address. But I worked from a different address. The reason I decided to keep my home address as my company registered address is, I didn't want any post to get lost because it's a shared office. Shall I change the address to the operational address? Are they gonna think something fishy for the last minute address change?

3) HO wants to see statements as a proof of investment. 3 years business bank statement with money in from my name, will that fulfil that requirement or I need to send them personal account statements too to show the other side of the transection?

If the questions have already been answered before in this forum please give me a link.

Thanks
1. You need to make it clear how you invested, cash or share capital ! If cash, then you need director's loan agreement (unsecured and subordinated in favour of 3rd party creditors) and you need to show this in your accounts. For shares, you have to provide your accounts, shares certificates, the value of each share and the money that was paid for each share. Guide is quite clear on what you need to send.

2. Changing an address is not a big issue. I suggest not to change it until you have your extension given that your current address is on your statements, etc.

3. You have to show only statements which show £50k+ was transferred from you to your business (both personal and business) particularly if you invested in the form of directors loan.
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice

thutmose
Junior Member
Posts: 99
Joined: Sun Jan 31, 2016 8:47 pm
Bangladesh

Re: Share investment and registered Address for extension

Post by thutmose » Mon Feb 01, 2016 12:47 pm

Hi rajrea and zimba88,

Thanks for replying.

I have submitted 2 years accounts so far to companies house. There are no significant creditors or mention of director's loan.

However, ordinary share capital is shown as £50000 on the accounts. What proofs do I need to send to show that? I am the director and 100% shareholder of that business.

And also I have transferred different amounts totaling over 75K over the past few year as I mentioned above. They were not actually share holders loan. I transferred them when the business needed fund.

As for spending I have paid my employees over 50k during that time period. I am under the impression that employee payments will be counted towards acceptable investment. And I have proof of rent and other office equipment cost.

I would really appreciate if you could make any suggestion or comments.

Thanks

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Zimba
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Re: Share investment and registered Address for extension

Post by Zimba » Mon Feb 01, 2016 1:00 pm

thutmose wrote:Hi rajrea and zimba88,

Thanks for replying.

I have submitted 2 years accounts so far to companies house. There are no significant creditors or mention of director's loan.

However, ordinary share capital is shown as £50000 on the accounts. What proofs do I need to send to show that? I am the director and 100% shareholder of that business.

And also I have transferred different amounts totaling over 75K over the past few year as I mentioned above. They were not actually share holders loan. I transferred them when the business needed fund.

As for spending I have paid my employees over 50k during that time period. I am under the impression that employee payments will be counted towards acceptable investment. And I have proof of rent and other office equipment cost.

I would really appreciate if you could make any suggestion or comments.

Thanks
You transferred money in multiple steps which makes it difficult to show your investment in a straightforward way. If your accounts show that you purchased 50K worth of shares, you better issue share certificates to be on the safe side.
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice

thutmose
Junior Member
Posts: 99
Joined: Sun Jan 31, 2016 8:47 pm
Bangladesh

Re: Share investment and registered Address for extension

Post by thutmose » Mon Feb 01, 2016 2:35 pm

Hi zimba88,

Yes it was a big mistake I guess.

Which one do you think would be a good idea? Issuing one share certificate with all 50000 £1 shares or separate certificates for every time I have transferred money into the business account (at least 25 in that case)

Thanks

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Zimba
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Re: Share investment and registered Address for extension

Post by Zimba » Mon Feb 01, 2016 5:17 pm

thutmose wrote:Hi zimba88,

Yes it was a big mistake I guess.

Which one do you think would be a good idea? Issuing one share certificate with all 50000 £1 shares or separate certificates for every time I have transferred money into the business account (at least 25 in that case)

Thanks
I think issuing share certificates worth of 50K under you name will be better, given that HO does not want to see the transaction of money
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice

thutmose
Junior Member
Posts: 99
Joined: Sun Jan 31, 2016 8:47 pm
Bangladesh

Re: Share investment and registered Address for extension

Post by thutmose » Wed Feb 03, 2016 6:36 pm

If I send a share certificate dated Feb 2013 (when they were issued) do I need to send the business bank statements too?

Do you think if I send statements to them anyways, they gonna ask for explanations for the money I have transferred to my business over the years?

My understanding from the guidance is, if I show share investment (share certificate) and proofs of money (50K) spent in business activities (salary, rent etc) it will fulfil the investment requirements.

Bank statements are for director's loan investment only.

Not sure if I understood it correctly.

Any suggestion will be highly appreciated.

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