Tier 1 Entrepeneur Investor UK

[Fusion Global]

Hi,

We entered the UK April 2018 under the Tier 1 Entrepreneur Investor Program.

We are considering investing in a national organisation whom are leaders within the block management sector (income is earned through the accumulation of and management of property maintenance contracts)

We will have no earned income from nor will we be investing in rental property nor will we be buying and selling property. Taking note of the Home Office guidance (February 2019) In all cases you cannot score points for funds in any of the points tables from any of the following: section (4) ii) As follows:

(4) Investment in any residential accommodation, property development or property management meaning:
i) Any development of property owned by the applicant or their business to increase the value of the property with a view to earning a return either through rent or a future sale or both
or
ii) Management of property (whether or not it is owned by the applicant or their business) for the purpose of renting it out or resale.

Our question is: "Would you agree that our business is qualifying and will score points as we are not operating within the language laid out above (4) ii)"


Please advise.


Thank you

[zimba]

First of all, the Tier 1 Entrepreneur route is not suited for investors but it is rather intended for entrepreneurs, startups and small businesses. This is why there is requirement for applicants to submit a business plan and then they will be interviewed to evaluate their business plan and proposed work. There is a separate route for people who merely want to invest in the UK, under the Tier 1 Investor route.

Secondly, the Tier 1E route is not suitable for investment in property business except for people who want to be involved in property constructionn. As you have seen, money invested in a business that is involved in property management will not count for award of points. The wording of 4(ii) in my opinion is intended to make it clear that property management in general will not be accepted.If you pay attention, you see that the wording emphasis that by mentioning 'whether or not it [the property] is owned by the applicant or their business'.

[Fusion Global]

Thank you very much for your response.

To clarify:

(we are under the entrepreneur program) we deposited £200,000 in our business bank account and formed our company as per our submitted business plan at application stage 2018. We successfully entered the UK under this program.

Regarding the business opportunity (maintenance contracts) with no connection whatsoever (to the ownership/rental income/buying/selling sector of the industry) we are specifically contract consultants within a professional capacity. Earning income as a consultancy.

The Home Office section makes no mention as regards non qualifying if we proceed with this.

Maybe The Home Office are intentionally vague on this point so that a lawyer is appointed to support our application in the months leading up to 2021 visa review date ?


Perhaps we should appoint a specialist Tier 1 Entrepeneur immigration lawyer immediately ?

Please share with us your opinion

Thank you

[marcnath]

Thank you very much for your response.

To clarify:

(we are under the entrepreneur program) we deposited £200,000 in our business bank account and formed our company as per our submitted business plan at application stage 2018. We successfully entered the UK under this program.

Regarding the business opportunity (maintenance contracts) with no connection whatsoever (to the ownership/rental income/buying/selling sector of the industry) we are specifically contract consultants within a professional capacity. Earning income as a consultancy.

The Home Office section makes no mention as regards non qualifying if we proceed with this.

Maybe The Home Office are intentionally vague on this point so that a lawyer is appointed to support our application in the months leading up to 2021 visa review date ?


Perhaps we should appoint a specialist Tier 1 Entrepeneur immigration lawyer immediately ?

Please share with us your opinion

Thank you

Did you submit this investment as the business plan for your initial application ?

If the business is what you state above (maintenance contracts), it should (in my opinion) be ok. The rule you quoted continues to state what the objective is.

But more importantly, you mentioned you are planning to investing in a national organisation. What will your roles be in the organisation after the investment ?

[Fusion Global]

Thank you very much indeed for sharing with us your insightful guidance.

As regards the business plan submitted at initial application stage 2017/2018 (it was for a different sector) the sector being HR Recruitment of English teachers and executive consultancy.

We shall be back in touch in the near future

Very Best Regards

[Frontier Mole]

The opportunity you are describing is doing the rounds at the moment. It is a franchise agreement where the franchiser gives you properties to manage as a third party maintenance operator.

From what I have seen of this scheme so far it is a dubious business model and seems to be aggressively marketed as a get rich, you cannot fail to make money business.

A number of Tier 1 Ent posts are out there about this opportunity.

[Fusion Global]

Thank you for your thoughtful and respectful opinions (however we are on completely different stratospheres of corporate understanding and assumptions)

The organisation we are negotiating with (does not do what you describe) They do not give any properties to manage as a third party maintenance operator (have you invented this terminology) ? with respect I am here looking for evidence based insightful advice (not assumptions based on guesswork etc)

We earn money through inventive corporate introductions within this sector.

[CR001]

Believe me, user 'FrontierMole' does not base advice on 'guesswork' at all, being one of the most knowledgeable users we have on all PBS route visas.

I would 100% heed the advice given by FrontierMole.

[Fusion Global]

Thank you

However, the business model is: (residents management companies - point of contact for all communal issues for example: light bulbs, communal doors, floors etc) any issues with these communal facilities (we are the point of contact between the resident and the electrician, joiner, carpet & upholster)

Not a single shred of our business is related to (collection of rent or the collection of money from buying / selling properties)

I hope this clarification assists in my search for informed guidance

[Frontier Mole]

I am totally unconcerned about wither you get your money sucked out of you from a scam or not. It is of zero consequence to me.
The business models I have seen being proposed by other Tier 1 Ents is very similar to the one you are considering as an investment project.

There is a sudden rash of theses “opportunities” and an apparent targeting to Tier 1 Ent so hence the concern. When there is an easy option to free people of money so they can meet the increasingly difficult requirements for that route there is always some bright spark ready to rip people off.

So on your model do you have to pay a franchise fee? If you do - What do you get for your fee and how do you generate income- do you get a fixed agency/ management company fee from the tennents or property management company a month plus additional % for work undertaken?

If there is a franchise fee - be wary as it is not always an allowable expenditure for Tier 1 Ent purposes.

As a complete aside - why are you not investing in your original business plan / idea?

[zimba]

I also want to stress that the wording in the rules makes it possible to be interpreted as 'not allowing' any form of property management whether any rent is generated or not