Can some1 please explain it

[legalkhan]

There are two companies say
company.A (own byTier1 entrepreneur/directors)
Company.B (own by non-entrepreneur director)

Company B was holding a project which they couldn't complete due to lack of finance, but in the mean while company.A comes forward and takes on the same project in partnership with Company B by transferring the required fund to Company B''s account, in order for them to resume the project together. The employees who were made redundant due to lack of funds in the 1st place were re-employed by company B and their salary was paid from the fund given to them by Company.A. Some of the fund was also used in rent for Company.A, as they are using the premises and office/resources of Company B during the lifetime of project. Please note that the employees assigned/re-employed were paid the salary from company B account for this project out of the fund provided by company A.

Now my questions are( 1) " Are these employees can be called companyA employees as long as the project is alive"? though they were not paid directly from company A account, will it counts toward creation of employment at the time of extension?
(2) " does this investment looks all-right according to the policy guidance


I know there are some gurus in this forum who can easily answer these questions of mine. I specially request to the experienced members of the forum to share their thoughts on this situation if possible.

Your help is always appreciated.

thanks.

[Princess of Ammi]

''but in the mean while company.A comes forward and takes on the same project in partnership with Company B by transferring the required fund to Company B''s account, in order for them to resume the project together''

above line that you wrote attracts a question
how did these two fall in partnership(nature of partnership)?
transferring the fund if you have not joined company B as a board member you have simply lent company B in order for them to get going on with their projects that company B undertook. as you said it was stuck having insufficient funds.

employees at company B are company B's employees you if you fit in above scenario you simply lent company B your money and the project undertaken by company B having no involvement of you as board member stays their project.

it is neither an investment(counted for visa purposes) nor fit in any of those helping elements that could help you in extension Job creation etc. unless you join company B as a board member or your company takes over company B as a whole.

I may not be 100% right you should wait more people to make comments.

[legalkhan]

@ Princess of Ammi,
Thanks for such a prompt response, and really appreciate your detail explanation of the questions asked.
Both the companies are providing consultancy to businesses but company A is specialized in retail consultancy. As company B has already in consultancy business for a long time and have lot of retail clients. some of the contract/project they have taken in the retail sector was now stopped due unavailability of funds. here Company A jumps in and carry on the contract for company B by using their resources and already experienced staff. Actually the salary is given to them out of company A funds. Being the retail consultants the director of company A are actively involved in providing their services to the clients. In other words company A is taking opportunity to take advantage of company B experience and clients. Company B invoices the clients and give company A its share of the revenue.

[attahaas]

If the Entrepreneur of Company A is not a Director in Company B, then whatever you do doesn't matter. It also doesn't matter if the funds are going from Company A, what matters is which company is actually issuing the invoices and issuing the payslips to the employees. If company B is doing both, then Company A gets nothing to support for extension (Exception is the Ent of A being a Director in Company B).

Otherwise, as Princess of Ammi said A would just be lending money to B, and that's not going to qualify for extension.

[Princess of Ammi]

now situation is less blurry !!

to put things in right prospective you should have a contract with company B if you are providing services to Company B's clients on company b's behalf.
it then depends how busy it goes or going you can recruit employees for your business needs and to meet extension criteria.