Using Dividend as Director's Loan

[kaps84]

Hi All,

Just wanted to know if I can use dividend from the company as Director's loan?

Background: My IT business is self earning from Day 1. I take salary from the company. Now I am planning to take Dividend from the company as a director and would like to invest it back into the company as unsecured Director's loan.

I believe this should be allowed. However, any second thoughts please?


Regards,
Kaps

[zimba]

You are expected to invest the money you originally showed in your initial application in your business. Losing access to that money is against the rules. If you have lost access to your original money and now you have to simply rely on your business profits, then you are breaking the immigration rules.

If you still have access to the money, then you can invest it without any issues as there will be no difference between the money you held and dividends earned.