Proof of investment for Tier 1 Extension

[karthik73]

Hi,

We set up a company in 2013 with help from two private investors. In return for their investment, we provided 15% shares in the company (£150 K). The total share capital for the company was 1000. Out of them 150 preferential were issues to the investors at a value of £1000 per share. The rest of the shares 850 were ordinary shares worth £1 each.

Subsequently they invested again late last year and took their total shareholding to 26% for an additional investment of £150 K . We issued them more premium shares to take the total investment to £300K.

Now, the investment was made in our company by the investors and we have used the money from the investment and revenue earned to use it for our expenses (Salary of settled workers, office expenses, marketing expenses, patenting expenses etc).

Now the accounts for the last two years don't show my name as listed in the Tier1 guidance - listed below for reference

"Audited or unaudited accounts must be prepared and signed off in accordance with
statutory requirements and must clearly show the investment in money made directly by
you, in your own name, or on your behalf and showing your name. You should indicate
where this is shown on your evidence. If you have invested by way of share capital the
business accounts must show the shareholders, the amount and value of the shares (on the
date of purchase) in your name as it appears on your application. If the value of your share
capital is not shown in the accounts, then share certificates should be submitted in addition
to the accounts as documentary evidence."

We have incurred expenses in the business for the last two years. But it doesn't state my name (other than as a Director who signs the management accounts). How can I prove that I have invested the 200K. Any thoughts on this would be much appreciated.

[whiteroses]

For the purpose of extension, you only need to show the amount that you have injected into the business as share capital or unsecured director's loan as investment. I don't think you need to show investment in the form of each and every expense, as an applicant cannot clearly attribute the amount spent on expenses to have come from revenue or the investment.