-Urgent- Tier 1 Entrepreneur Business Being Acquired

[samigo123321]

Dear All,

I have just got an urgent enquiry to ask :

I am currently on Tier 1 E visa in its first 3 years - and I am due to extend my visa in February 2018. I have invested my money in form of Director Loan in the first 6 months after my visa was approved into an existing business (so I am in the joining an existing business route), where I set up a new line of services to the existing business to work on, which was all hunky dory. However, now the business is drying out of cash, and in order for the business to survive, we are now approached by a different business, which would like to acquire our company 100%. All the partners are happy with the offer but I am not sure how I could still stay complied with Tier 1 E rule if this is going to take place. Do I have to leave the business? (This would be pretty silly as I actually put in a lot of effort into setting up the new line of services - which does not exist before in this company - and had actually invested my money in it) Do I have to become a director in the parent company (if post acquirement then it would become a parent company and subsidiary relationship)? If so, does that mean I have to invest again in the parent company as well?

Please do help as I have to make the decision about whether to be acquired or not. Currently I am thinking the plan is to let the acquirement take place, I will stay as a director in the effectively subsidiary company (original one that I invested in) - but majority of the services will be moved to the parent company apart from the line of services that I set up.

Please please do help out on this. A lot of business stress already in this kind of situation as you can imagine and then on top of it - lots of worry for my Tier 1 E compliance pressure that I cannot find such answers from immigration rules.

Thank you, wholeheartedly -

Eric

[seasky]

Getting acquired is a natural outcome of entrepreneurship. And a good thing. Many times previous entrepreneurs, flush with cash, confidence and experience go on to make bigger and better new businesses.

There is no specific guidance on t1e on acquisition situation here is my opinion: Do not stop a good acquisition for t1e reasons, rather work within the system to make it OK. HO will not be anti, for a good aquisition,

At the core there is no problems as long as you invested the money, and grew the business with new jobs (I am assuming you already have, in full, 2 people for a year each, if not you do have a problem). Make sure you get all the paper work evidence you need now as you might not have access post acquisition.

You also have to be a director at time of extension, technically it can be in any company (you can open samigo Ltd...).

Other issues, DL should not yet be paid back (I think). No reason it cannot continue. staying director of the subsidiary is a good idea and solves another problem, you need two job/1 year post extension. You could continue in this business (you don't own it, ownership is not a t1e criteria...) or will have to start/join another one.

Lastly everything needs to be clearly and positively explained in cover letter (emphasis, this is a good thing, my investment led to aquisition etc...)

[zimba]

Literally from Guidance on application for UK visa as Tier 1 (Entrepreneur):

97. We recognise that, as an entrepreneur, you may have moved on to other activities and no longer be involved in the business in which you initially invested, but we still require this evidence to show that the money was invested.