Need Wise Suggestions - Applying Entrepreneur Visa UK

[tier1user1]

Hi,

First of salam to all respected members of this forum. I am a visitor/user of this forum from last 3 4 years and this is something I am gone post first time. Below is the my case in which I need some suggestions.

I am running a software house from last 6 years in Pakistan and have clients from UK/USA etc. Have approx paying 5 - 6 million to my employees a year. I had already two visits in UK on Business visitors visa. I am going to sell a property of worth 30 million (3 crore), which is owned by me and my brother. My brother is happy to give me his portion for the business. Now I have following questions in my mind which are very important to me.

1. Is this is fine to just say in my application that my brother is willing to pay his portion to help me out to get my business set in UK.

2. Is it wise decision to sell a property to get Entrepreneur visa, As per my previous record how many chances are to get the visa.

3. How long does i need to get the 200k in my account before i apply for the visa.

Thanks in advance

[zimba]

It is VERY important that you start by reading the official Tier 1E guide : https://www.gov.uk/government/publicati ... trepreneur

1. Is this is fine to just say in my application that my brother is willing to pay his portion to help me out to get my business set in UK.

Yes, he can be a third party who has to make the money available to you to invest and give you a letter.

2. Is it wise decision to sell a property to get Entrepreneur visa, As per my previous record how many chances are to get the visa.

I cannot answer this question, read the guide and see if that is a risk you are willing to take

3. How long does i need to get the 200k in my account before i apply for the visa.

Min 90 days or else you need a third party letter

[seasky]

Hi,

First of salam to all respected members of this forum. I am a visitor/user of this forum from last 3 4 years and this is something I am gone post first time. Below is the my case in which I need some suggestions.

I am running a software house from last 6 years in Pakistan and have clients from UK/USA etc. Have approx paying 5 - 6 million to my employees a year. I had already two visits in UK on Business visitors visa. I am going to sell a property of worth 30 million (3 crore), which is owned by me and my brother. My brother is happy to give me his portion for the business. Now I have following questions in my mind which are very important to me.

1. Is this is fine to just say in my application that my brother is willing to pay his portion to help me out to get my business set in UK.

2. Is it wise decision to sell a property to get Entrepreneur visa, As per my previous record how many chances are to get the visa.

3. How long does i need to get the 200k in my account before i apply for the visa.

Thanks in advance

I am assuming you are talking about pakistani rupees not GBP (if GBP you would not be in this forum rather have expensive lawyers and can do investor visa...)

30M PKR is £230K so you have enough to invest for visa but would you have enough to live off?
SW engineers are much more expensive in UK than pakistan so why would you want to move here?
What is you motivation to move to UK? (this needs to be strong and clear. Entrepreneur visa is difficult and expensive incl extensions, ILR etc)
Are your customers working with you because you have unique SW or because you are a conduit to cheaper Pakistani SW engineers? if the latter will they keep working with you?

[tier1user1]

The money is in Pak Rupees.

My main intentions are quite clear. Going to setup a software house, Get new customers/business and for that i know i need to hire the Marketing staff and some of the developers, But other will work from the Pakistan office. So this is some sort of franchise we are going to open in UK and moving global.

We give the software development services and this is sure that we are good in it that's why we are planning to go there in IT Business.

[seasky]

The money is in Pak Rupees.

My main intentions are quite clear. Going to setup a software house, Get new customers/business and for that i know i need to hire the Marketing staff and some of the developers, But other will work from the Pakistan office. So this is some sort of franchise we are going to open in UK and moving global.

We give the software development services and this is sure that we are good in it that's why we are planning to go there in IT Business.

That sounds like a reasonable plan (don't know what SW you develop but as you already have business here you are planning to enlarge that)

You do have the option of 'opening an office in UK and doing business' without emigrating. You come and go as a business traveller. If works well then you can emigrate (the issue is if does not work well you have not gone through the hardship and huge expense of moving your family)

[tier1user1]

Can you please tell me about that? what is the name of visa and how can I apply.

[seasky]

Can you please tell me about that? what is the name of visa and how can I apply.

Just a business visitor visa.

[tier1user1]

Hmm. Its actually does not allow you to find any new business and not able to open any company or business account etc. I already got two times this visa and have visited UK

[seasky]

Hmm. Its actually does not allow you to find any new business and not able to open any company or business account etc. I already got two times this visa and have visited UK

I travel around the world doing business, I do not emigrate to all these countries. I do make sure I have the right visa. Some countries separate tourist/businessperson visa some don't.

I hire people in these countries. If it is too difficult to open a company to hire people use a local agent (like I do in China and India) but for all factual purposes (infront of customers...) they are your employees with your company's logo, email and business cards. You have business in UK and USA, so why UK? All I am saying you can start 'slowly' before moving your life and family and see if it works out. Because you don't seem to have a lot of reserves over the £200K

You can open a UK company without being a resident.

[zamaha]

Can you please tell me about that? what is the name of visa and how can I apply.

Hi
If you are looking to open a branch in the UK, read about "sole representative visa" as well. It allows you to open a branch and send a senior manager of the company here to run the office. Please read it yourself.
It is not In the PBS system.

[tier1user1]

Hi Friends,

Its a good news that I have investors now , 1 (in Pakistan) is happy to invest 50% (100k) and 2nd (in UK) is ready to invest 25% (50k) , for remaining 25% i have to manage that.

I will make them share holder in this business and they will not get more then 40% of that.

Here are the questions I have in my mind.

1) Does my case seems fine? Do you guys see any complications in that? As money is coming from three places

2) Do you guys think we have to put all the money in one account? in Pakistan or in UK, If yes does it must be in my name ?

3) Any other suggestions if any please. Related my case?

[zimba]

Third party funding does NOT mean third party investors !!!! A third party is the one that is WILLING to give you money (like friends & family) to invest in your own company under your OWN NAME. This is a VERY important requirement for the visa extension and claiming investment points in future.
You can only get investment from seed funds, venture capitals or UKTI.
Also if the money is at someone else's disposal like in the UK, that will complicate things much further as you need a UK issued and legalised third party letter which means you must come here to sign the letter and sort things out. This is explained in detail in the guide, so you need to read the official Tier 1E visa guide as previously advised above (which it seems you did not read at all)

The best solution is to keep the money yourself in an account under your name for 90 days so you can claim the money simply as your own, however I am not sue how your third parties feel about that.

Also as I said above and legally speaking, you must personally have inject 200K cash UNDER HIS OWN NAME in the company, either via Director's loan or as 200K worth of shares. So you cannot own only 50K worth of shares and your funders the other 150K. That only means you invested 50K which does not allow you to extend your visa.

[seasky]

It is very typical in tech to bring external investors to finance Your company. This is what I did, I did not invest my own cash into company. Some call it sweat equity.

I showed this investment at extension ( many multiples of £200k). Now for ILR I have had much more investment since and mentioned in cover letter (did not show evidence though as it is ILR)

[tier1user1]

@zimba88

So you mean this will be a trouble in the time of extension after 3 years? and not on the time of applying for First time.

Also i have already read the document and don't find anywhere that a third party(s) can not be a investor or will get some benefit from the money they are giving. Please tell me if i missed this.

Thats true it will be difficult to get all the money in account without doing the contracts with them. and making them share holder in company.

@ seasky

So you mean showing them as a investor is not a problem at all?

[zimba]

Yes. Money MUST be invested UNDER YOUR NAME either as Director's loan or as Shares allocated. I repeated this several times. This is an issue I see you will face in your visa extension. I did not say you cannot bring third party money or investors in but you get NO points for any investment if the funds are NOT invested UNDER YOUR NAME. Third parties must make the funds available to YOU to invest. As I said above third parties can get shares in return, but 200k MUST BE invested under your name.
That is why I suggested the funds to be transferred all to you for visa. You then get the visa, come here and invest all the money via Director's loan under your name in your business. In return, you allocate shares to all third parties in your company and issue them share certificates as agreed.

[seasky]

Companies that intend to grow by continuous investment ('rounds of investment') are a good thing (think tech startups. but of course can be many industries)

they don't do DLs (I guess that is typical of small business)

No serious investor hands over the money to the founders bank account, they sign shareholders agreement, subscription agreement (and agree on the articles of association) and when there is closing wire money to companies bank account. Then company issues shares to them.

EIS/SEIS is a strong side of UK investment scene and I doubt it could be done with wiring through a founders bank account.

Also all these investors would usually be happy to sign something like "we are investing under the name of founder" whatever that means. In fact, founders visa is an important part of DD/risk. And of course if they did not have deep belief and trust in the founder they would not invest.

I don't remember exactly what I did at extension, maybe my solicitor wrote something in the cover letter or asked my accountant to write something in the accounts

The guidance says for points for extension "A. You have invested, or had invested on your behalf, not less than £200,000 (or £50,000 if, in your last grant of leave, you were awarded points for funds of £50,000) directly into one or more businesses in the UK.

"on your behalf" needs to be defined. I assure you there are many tech entrepreneurs with T1e's even if they don't seem to frequent this forum.