Taking Over a Convenience Store L/H or F/H

[syedibrahim2002]

Hi Admins.

I'm a Total Newbie here please dont be offended by the new thread. As i'm new i dont know where to post this topic. This may have been discussed, but i'm in need of ur advice's.

I have Access to 200k pounds in India, Where that amount is readily available to transferred to the United Kingdom. The plan is to Take over a Convenience Store..
All i need to know is If i buy an existing "C" Store from a retiring Owner, Say for 1.90K and the stocks for 25K, Will this be considered as an investment by the HO?

Please Suggest me what to do and how to take over the business which home office approves as a legal investment.
I'm very confused.. If i buy a existing running business, the money used to buy that goes to the owner which is not considered as a investment..
Please Admins suggest me how to take over the business and show it as a legible Investment.

P.S : I have gone through the T1 Entrepreneur Visa Guidelines.. But a bit confused about the investment clause. Please dont get angry about my post.. I just need a viable advice from experts like u guys to apply for the Visa.

Thanks in Advance.

[marcnath]

You seem to be well aware of the rules.
You are right that if you buy a business and the money goes to the owner that will not be considered towards the 200k that you are expected to invest under the t1e visa. Only money that goes into the business to further grow and develop the business is counted towards the investment evidence .
There are no restrictions on type of business other than that investment into property development again will not be counted towards investment evidence.
To emphasise again, the T1e visa does not prevent you from paying the owner or doing property development- just that the money used for that has to be in addition to the 200k investment expected

[syedibrahim2002]

You seem to be well aware of the rules.
You are right that if you buy a business and the money goes to the owner that will not be considered towards the 200k that you are expected to invest under the t1e visa. Only money that goes into the business to further grow and develop the business is counted towards the investment evidence .
There are no restrictions on type of business other than that investment into property development again will not be counted towards investment evidence.
To emphasise again, the T1e visa does not prevent you from paying the owner or doing property development- just that the money used for that has to be in addition to the 200k investment expected

Thanks For the Reply @marcnath

If i buy the business and register my name under the old owner's company name? will it be considered as a investment? I'm just Struck in this part. Dont know what to do. Thing is i have access to funds. Business plan, Market Research .. all Done.! but dont know what to do next.. i mean.. how to acquire the business? Please Help me.. do i need a solicitor for the next step.?

How to acquire the C store to show as a HO approved Investment.

Thanks in Advance.

[marcnath]

You seem to be well aware of the rules.
You are right that if you buy a business and the money goes to the owner that will not be considered towards the 200k that you are expected to invest under the t1e visa. Only money that goes into the business to further grow and develop the business is counted towards the investment evidence .
There are no restrictions on type of business other than that investment into property development again will not be counted towards investment evidence.
To emphasise again, the T1e visa does not prevent you from paying the owner or doing property development- just that the money used for that has to be in addition to the 200k investment expected

Thanks For the Reply @marcnath

If i buy the business and register my name under the old owner's company name? will it be considered as a investment? I'm just Struck in this part. Dont know what to do. Thing is i have access to funds. Business plan, Market Research .. all Done.! but dont know what to do next.. i mean.. how to acquire the business? Please Help me.. do i need a solicitor for the next step.?

How to acquire the C store to show as a HO approved Investment.

Thanks in Advance.

It does not matter - if the money goes to the previous owner it cannot be counted towards the investment.
You can issue additional shares in the company and invest into the company - that would be valid. You can inject money into the company as a Director loan also. But, of course, there is no incentive for the owner to allow you to do either unless you can convince him he will get returns back in the future.
And , of course, you can start a new convenience store

[syedibrahim2002]

Thank u so much for the reply mcarth. Will plan according to the suggestions.

Thanks.

[syedibrahim2002]

@marcnath

I have a query regarding this Director's Loan. Say if i open a business bank account in uk after the visa approval, I transfer the money from Indian Account to the UK business account and spend it to buy the C Store.. Can i show it as a DL?

Please explain me how much is the maximum for DL and can i show the DL as a investment which is approved by HO.

Thing is.. 200k i'm planning to Take over the business and inject 50k in stocks..
Please Shed some Light on how can i use the DL to show it as a investment.

[marcnath]

@marcnath

I have a query regarding this Director's Loan. Say if i open a business bank account in uk after the visa approval, I transfer the money from Indian Account to the UK business account and spend it to buy the C Store.. Can i show it as a DL?

Please explain me how much is the maximum for DL and can i show the DL as a investment which is approved by HO.

Thing is.. 200k i'm planning to Take over the business and inject 50k in stocks..
Please Shed some Light on how can i use the DL to show it as a investment.

Yes, you can show all your investment as DL - there are no minimums or maximums.
But nothing changes the fact that any money spent to buy the C Store by paying its current owner would not be considered as investment money for the purposes of immigration rules.
The guidance clearly sets out the evidence you need to show in order to show your investment as a DL

[syedibrahim2002]

Thank u so much for the reply marcnath.

I just need some more info to get a clear headed decision.. Please list me what all the type of expenses i can show it as a legible investment? ( From UK business Account)

example. if i pay for furniture and fixtures.. store's display racks.. stocks for my C store, Wages etc..

a bit confused for what can be shown and what not as investments which are spent for business. End of the day after getting the approval and spending whole hours into the business.. when the time of Extension comes.. i dont wanna hang there and think what to do.. just need a clear vision before i take the leap step ahead.

Thanks for prominent Replies.

[marcnath]

Thank u so much for the reply marcnath.

I just need some more info to get a clear headed decision.. Please list me what all the type of expenses i can show it as a legible investment? ( From UK business Account)

example. if i pay for furniture and fixtures.. store's display racks.. stocks for my C store, Wages etc..

a bit confused for what can be shown and what not as investments which are spent for business. End of the day after getting the approval and spending whole hours into the business.. when the time of Extension comes.. i dont wanna hang there and think what to do.. just need a clear vision before i take the leap step ahead.

Thanks for prominent Replies.

Read the guidance.

Specifically Pg 10 and Pg 55.

Previous guidance had the following exclusions also:

‘Spent’ by your business’ excludes spending on all of the following:
(1) your own remuneration,
(2) buying the business from a previous owner, where the money goes to that previous
owner rather than into the business,
(3) investing in other businesses, and
(4) any spending which is not directly for the purpose of establishing or running your own
business or businesses.


This seems to have been removed in the latest guidance but it would be good to try and avoid these.

[syedibrahim2002]

@marcnath

Just a One last Question..

is it mandatory to buy the C store in Freehold? or the rules are okay for me to leasehold the C store?

there is no such article which is clear in saying which one is mandatory. Please shed some light in this topic.

Thanks

[marcnath]

@marcnath

Just a One last Question..

is it mandatory to buy the C store in Freehold? or the rules are okay for me to leasehold the C store?

there is no such article which is clear in saying which one is mandatory. Please shed some light in this topic.

Thanks

No such requirement