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Some Question

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

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arash_uk
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Joined: Tue Apr 24, 2012 3:23 pm

Some Question

Post by arash_uk » Fri Nov 25, 2016 3:13 pm

Hi,

I have some questions about the Tier 1 E:
1-is a business plan for a branch of a franchise could be accepted?
2-is it possible that someone in this route has established a couple of businesses in the UK during the initial period of grant? If yes, as one of the requirements for the extension is to register a director of a company within the first six months, does it apply to all of his companies (he should register all of then within the first 6 months) or just one of them is fine?
3-about the job creation if he is allowed to establish different companies is it possible to combine job in different companies? For example, he has an employee as a Receptionist in company A for 4 months and another one in company B as a receptionist for another 8 months. Is he able to combine them?

Thank you in advance.

noajthan
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Posts: 14911
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Location: UK

Re: Some Question

Post by noajthan » Fri Nov 25, 2016 3:17 pm

arash_uk wrote:Hi,

I have some questions about the Tier 1 E:
1-is a business plan for a branch of a franchise could be accepted?
2-is it possible that someone in this route has established a couple of businesses in the UK during the initial period of grant? If yes, as one of the requirements for the extension is to register a director of a company within the first six months, does it apply to all of his companies (he should register all of then within the first 6 months) or just one of them is fine?
3-about the job creation if he is allowed to establish different companies is it possible to combine job in different companies? For example, he has an employee as a Receptionist in company A for 4 months and another one in company B as a receptionist for another 8 months. Is he able to combine them?

Thank you in advance.
1) No. Read guidance.

2) My understanding, one.

3) Not sure UK economy needs more receptionist jobs.
All that is gold does not glitter; Not all those who wander are lost. E&OE.

arash_uk
Junior Member
Posts: 60
Joined: Tue Apr 24, 2012 3:23 pm

Re: Some Question

Post by arash_uk » Fri Nov 25, 2016 3:20 pm

1) I checked the guidance as you said and it seems that the franchise is accepted:

A26. Businesses that are set up as franchises can be accepted for the award of points. You will
either be self-employed or employed, depending on how you decide to structure the franchise
business and should provide the appropriate evidence.


2)thank you then he has to register just for one company within 6 months.

3)still waiting for reply if anyone could help.

thank you

noajthan
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Posts: 14911
Joined: Sat Oct 25, 2014 12:31 pm
Location: UK

Re: Some Question

Post by noajthan » Fri Nov 25, 2016 3:30 pm

arash_uk wrote:1) I checked the guidance as you said and it seems that the franchise is accepted:

A26. Businesses that are set up as franchises can be accepted for the award of points. You will
either be self-employed or employed, depending on how you decide to structure the franchise
business and should provide the appropriate evidence.


2)thank you then he has to register just for one company within 6 months.

3)still waiting for reply if anyone could help.

thank you
1) As long as no goodwill purchase is involved.
All that is gold does not glitter; Not all those who wander are lost. E&OE.

arash_uk
Junior Member
Posts: 60
Joined: Tue Apr 24, 2012 3:23 pm

Re: Some Question

Post by arash_uk » Fri Nov 25, 2016 4:26 pm

What is the goodwill purchase?

He wants to open a new branch of a franchise. Is it goodwill purchase?

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zimba
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Re: Some Question

Post by zimba » Fri Nov 25, 2016 4:40 pm

1-is a business plan for a branch of a franchise could be accepted?
It could however you cannot use your money to buy a franchise from a previous owner
2-is it possible that someone in this route has established a couple of businesses in the UK during the initial period of grant? If yes, as one of the requirements for the extension is to register a director of a company within the first six months, does it apply to all of his companies (he should register all of then within the first 6 months) or just one of them is fine?
Just one is enough
3-about the job creation if he is allowed to establish different companies is it possible to combine job in different companies? For example, he has an employee as a Receptionist in company A for 4 months and another one in company B as a receptionist for another 8 months. Is he able to combine them?
No, any job/role must exist for at least 12 months to be accepted
arash_uk wrote:What is the goodwill purchase?
He wants to open a new branch of a franchise. Is it goodwill purchase?
Paying the previous owner. If the money goes to the previous owners, your investment will not count.
Your money must be invested in a business you own, not to purchase or acquire a business
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice

arash_uk
Junior Member
Posts: 60
Joined: Tue Apr 24, 2012 3:23 pm

Re: Some Question

Post by arash_uk » Fri Nov 25, 2016 4:46 pm

Thank you. I am still a bit confused:
1-he is not going to buy an existing branch of franchise. He is going to open a new branch and so pay a franchise fee to the franchisor company. So he is not going to pay any individual but just a franchise fee to a company. I assume it should be accepted. He will definitely invest in the fixture and furniture for the new branch.
2-About combining the jobs, I did not get your point. Guidance said the job should be existed for at least 12 months and it was the case but the job existed among two different companies, 4 months in one and 8 months in the another. So, again their cannot be combined? they should be in one company? I am confused because of the following:
If you have established new businesses, those businesses must have, between them,
created the equivalent of 2 extra full-time paid jobs for at least 2 people who are settled in the
UK and those jobs must have existed for at least 12 months each.

Could you please clarify?

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zimba
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Re: Some Question

Post by zimba » Fri Nov 25, 2016 4:52 pm

1-he is not going to buy an existing branch of franchise. He is going to open a new branch and so pay a franchise fee to the franchisor company. So he is not going to pay any individual but just a franchise fee to a company. I assume it should be accepted. He will definitely invest in the fixture and furniture for the new branch.
Business fees and other expenses are acceptable. Paying a previous owner or previous company which owned the place, NO.
2-About combining the jobs, I did not get your point. Guidance said the job should be existed for at least 12 months and it was the case but the job existed among two different companies, 4 months in one and 8 months in the another. So, again their cannot be combined? they should be in one company? I am confused because of the following:
If you have established new businesses, those businesses must have, between them,
created the equivalent of 2 extra full-time paid jobs for at least 2 people who are settled in the
UK and those jobs must have existed for at least 12 months each.

Could you please clarify?
It should be in one company because a role/position/job is tied to a SINGLE company. However you can create a 12 month role/position in one company and another 12 month role/position in the 2nd company BUT combining time on two separate roles to make one 12 month full time role is NOT ALLOWED (unless you are covered by transitional arrangements pre-April 2014)
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice

arash_uk
Junior Member
Posts: 60
Joined: Tue Apr 24, 2012 3:23 pm

Re: Some Question

Post by arash_uk » Fri Nov 25, 2016 4:59 pm

Thank you very much,
1-no one owned the place as it is not existed! He is going to pay a franchise fee and then establish the business as a franchise. As I understand, it is allowed as there is no previous business.
2-thank you for your clarification

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