Tier 4 Child visa to potential ilr

[Ruppy]

Hi all,

I’m new here, hopefully somebody can help.

About 5 years ago I set up a company in uk as an Indian citizen/resident. The company was dormant at the time and no trading occurred for at least a few years. However while my daughter was in uk on a tier 4 child visa about 3 years ago, I included her as one of the shareholders along other family members and myself, with me having the largest share. I’m aware that tier 4 child visa holders shouldn’t engage in business activities but as it was a “none traded company”, wasn’t trading at before and when I included, will she have been in breach of her visa and will this affect a potential future ilr application?

[zimba]

There is no restriction on being a shareholder of a company regardless of your visa. The restrictions apply when you have no working rights as per your visa conditions like being on the payroll of a company, being a director or being self employed.

[Ruppy]

Hi Zimba,

Thank you for your reply.

Apologies I don’t fully understand, so being a shareholder does not count as engaging in a business activity or being self employed?

Could you kindly clarify what these points mean, as they refer to shares too:
• setting up a business as a sole trader or under a partnership arrangement and that business is either trading or establishing a trading presence;
• being employed by a company in which you hold shares of 10% or more (including where the shares are held in a trust for you); or
• working for a company where you also hold a statutory role, such as a director.

[zimba]

so being a shareholder does not count as engaging in a business activity or being self employed?

No. How do then foreign nationals buy shares of UK companies without any issues ??! Having shares of a business on its own is not engagement in that business.

You will be considered to be engaging in business activity where you are working for a business in which you have a financial or other significant beneficial interest in a capacity other than as an employee.

• setting up a business as a sole trader or under a partnership arrangement and that business is either trading or establishing a trading presence;
• being employed by a company in which you hold shares of 10% or more (including where the shares are held in a trust for you); or
• working for a company where you also hold a statutory role, such as a director.

I highlighted the terms that are important. Setting up a business as a director and having significant control over it, being self employed or being an employee is certainly different than merely holding some shares in a company.

[Ruppy]

Thanks a lot for clarifying. One more thing to clear up, if she becomes a director but doesn’t directly work for the company as you highlighted, is she in breach of her visa or not?

[zimba]

Thanks a lot for clarifying. One more thing to clear up, if she becomes a director but doesn’t directly work for the company as you highlighted, is she in breach of her visa or not?

I advise against it. There is no need for someone to become the director of a company unless they want to run it. Obviously dormant companies are not doing any business so you are not engaging in business but why become a director in the first place ?

[Ruppy]

Okay thank you, I wouldn’t. I was just thinking ahead as I’m not permanently resident in uk and my daughter may eventually be. Thank you again

[Casa]

Okay thank you, I wouldn’t. I was just thinking ahead as I’m not permanently resident in uk and my daughter may eventually be. Thank you again

Are you aware that a Tier 4 child visa doesn't lead to settlement (ILR) How old is your daughter and when does her course finish?

[Ruppy]

Hi yes. She’s is currently 19 and finishes her course 2021 as she’s currently on a tier 4 visa. She is looking to possibly go down the 10 year route. Am I right in saying all types of visa counts even if it is the same visa for most of her stay or through out?

[Casa]

It does, but as a Tier 4 Child Student visa for an under 16 applicant is 6 years and this can only be extended for a maximum of 2 years 11 months, how will she make up the shortfall of 13 months required to reach the 10 years long residence?

Has she held another visa under a different category and for how long ?

[Ruppy]

Sorry I haven’t fully understood you. Is the 6 years and a further 2 years 11 months in reference to the 8 year limit on student visa? I was under the impression that leave under tier 4 child do not count towards the limit so she still has the options of switching to any of the following tier 2, tier 4 general and tier 1?

She was on a visit visa for about 4 months earlier on, which was valid for about two years. This counts as well

[Casa]

Is your daughter studying at a University or a College of Further Education

[Ruppy]

She’s is in University

[Casa]

She’s is in University

May be possible. See sections 17-19 in the link below:
https://assets.publishing.service.gov.u ... 3_2019.pdf

By Tier 1, I assume you mean Tier 1 Entrepreneur as Tier 1 General was closed in July 2019.

Tier 1 Ent by the way is now closed to new applicants
https://www.gov.uk/tier-1-entrepreneur

Also bear in mind that although your daughter's visitor visa was valid for 2 years, only the 4 months she spent in the UK as a visitor will qualify for the 10 years long residence.

[Ruppy]

Okay yes meant the tier 1 entrepreneur. Thanks a lot. This has been really helpful

[Casa]

She’s is in University

Tier 1 Ent by the way is now closed to new applicants
https://www.gov.uk/tier-1-entrepreneur

[Ruppy]

Oh thanks a lot