Business Partnership with British National

[MTZ510]

I want to know whether an Entrepreneur team can form a limited company with a British National having equal share holding and invest in a business. The Share holding Pattern will be 34+33=67% for team members and 33% for British National, will the investment made in this business be counted as investment for extension purpose. All 3 will be the directors.

[ishfaqsangra]

I think you r sorting things out for commercial mortgage.
I have not heard anything regarding directors limit or share but one thing which I understand is if you both have shares of about 67 % then investment requirement will be more because say company invested £100 with equal contribution by directors then your investment will be £67.
with only 67% share,company overall investment should be more than 50,000 for extension Thats what I think wait for other 's comments.

[MTZ510]

One of the reason is commercial mortgage but at the same time i am looking in to a business which is basically owned by a British national and he want to expand this business but do not have enough equity.

As far as i know the guide mentions that one should be director in a business but its not necessary to have 100% share holding right? because we can do more than one business and we can split our investment in different businesses , at the time of extension two things matter; 1- you should be director 2- how much money you invested in that business.

I will invest money in form of directors loan so even if the team members shareholding is 67% our investment will be around 100K which will reflect in the accounts as Directors Loan.

Will appreciate if senior members can share their opinion on this.

Thanks

I think you r sorting things out for commercial mortgage.
I have not heard anything regarding directors limit or share but one thing which I understand is if you both have shares of about 67 % then investment requirement will be more because say company invested £100 with equal contribution by directors then your investment will be £67.
with only 67% share,company overall investment should be more than 50,000 for extension Thats what I think wait for other 's comments.

[ishfaqsangra]

Yes that looks fine to me(dont know about others) but if you are putting equity in somebody's business then I hope it will be at level 4 (if it applies to you)
I hope you will be absolutely ok £100k as directors loan will be enough even if you have 675 share and yes 100% share is not required but still to put in equity you need some percentage .
Please keep updated I am also thinking on the same lines as on Tier1 E status(with no partner) it is difficult to get mortagage