Directors Loan Agreement

[nidtier1]

Hello,
I arrived in UK on Tier 1 Ent (200K) visa. I have just formed the Ltd company and would like to transfer the funds to the ltd. company.
My questions are as follows:
1) Can I transfer the total 200K into four different transactions over the period of next 3 years from my Uk personal account to my Ltd company bank account. Is it O.K with the visa officer?
2) I have printed some directors loan agreement for unsecured loan. Does this agreement has to be registered with Company House or any other Authority?
3) If I do not need to send the Loan Agreement to the company house OR any other Authority, I just sign the Agreement in my individual capacity (as lender) and Director capacity (as I am the sole director of the Ltd company) and keep it myself. (Well, having one witness to sign the agreement). Or I will have to have it counter signed by the solicitor as well?

Any reply is highly appreciated.

[zimba]

1) Can I transfer the total 200K into four different transactions over the period of next 3 years from my Uk personal account to my Ltd company bank account. Is it O.K with the visa officer?

Yes you can. However it depends on the method you want to invest you money. If you want to invest in the form of director's loan, you should draft your gareemnet before hand and the terms of your loan agreement must cover how the loan is being given to the company, etc.

2) I have printed some directors loan agreement for unsecured loan. Does this agreement has to be registered with Company House or any other Authority?

Not really. You really do not need to tell any authority. However I personally recommend against copying a loan agreement off the internet.

3) If I do not need to send the Loan Agreement to the company house OR any other Authority, I just sign the Agreement in my individual capacity (as lender) and Director capacity (as I am the sole director of the Ltd company) and keep it myself. (Well, having one witness to sign the agreement). Or I will have to have it counter signed by the solicitor as well?

You do not need to tell an authority and you do not need a solicitor. However I suggest you consult a business lawyer before drafting the loan.

[nidtier1]

1) Can I transfer the total 200K into four different transactions over the period of next 3 years from my Uk personal account to my Ltd company bank account. Is it O.K with the visa officer?

Yes you can. However it depends on the method you want to invest you money. If you want to invest in the form of director's loan, you should draft your gareemnet before hand and the terms of your loan agreement must cover how the loan is being given to the company, etc.

2) I have printed some directors loan agreement for unsecured loan. Does this agreement has to be registered with Company House or any other Authority?

Not really. You really do not need to tell any authority. However I personally recommend against copying a loan agreement off the internet.

3) If I do not need to send the Loan Agreement to the company house OR any other Authority, I just sign the Agreement in my individual capacity (as lender) and Director capacity (as I am the sole director of the Ltd company) and keep it myself. (Well, having one witness to sign the agreement). Or I will have to have it counter signed by the solicitor as well?

You do not need to tell an authority and you do not need a solicitor. However I suggest you consult a business lawyer before drafting the loan.

Thanks your valuable advise Zimba88

[Tire1Questions]

Interesting. But don't you think this can be abused. Say for example, I invested my funds into the company but did not have any contract signed at the time of transfering the funds into the company.

But now, I can just have the contract drafted by a solicitor and just sign it backdated (as I am the lender and director of company taking loan)?

Am I right in thinking?

[zimba]

Interesting. But don't you think this can be abused. Say for example, I invested my funds into the company but did not have any contract signed at the time of transfering the funds into the company.

But now, I can just have the contract drafted by a solicitor and just sign it backdated (as I am the lender and director of company taking loan)?

Am I right in thinking?

Technically you should not do it but no one can stop you always better do the things right from the beginning.

[moongesture]

A Director Loan can be signed at any later date (even after trasnfer of money) if "both" parties can sign and agree.

Logically, the point for signing this loan letter before you transferred any amount to company account are;

1) Usually "before" loaning any amount Lender and Borrower must be having an agreement with each other on terms and condition, here take an example for you taking loan from a bank so before they release a loan or any schedule payment they ask you to sign term and condition for borrowing.

2) In this case the loan is strictly subordinate to third party, so how can you tell someone after certain time that I gave you money for restricted use only.

3) "While" and "before" investing or transferring funds you must define the reason and type of any investment.

4) Both Parties should agree on terms before loaning and/or borrowing, this is essential because if one has to raise an objection it must be before transaction.

5) All legal agreements should acknowledged before proceeding