Conversion of director's loan to share capital investment

[rajbhanu300]

Dear Members,

I have a question regarding conversion of director's loan into share capital investment. Has anyone on this forum got an extension while filing their accounts according to director's loan and finally in management accounts they have shown as share capital investment? It can be full director's loan or part of it, converted to share capital after all the accounts done according to director's loan.

If somebody had already done so before and got an extension, could you pl direct me to that link? Your help is much appreciated.


Thanks

[rad2017]

dear zimba88,

Would you be kind enough to shed light on this matter? Whats the best solution in this case?

Thanks

[zimba]

This is an ACCOUNTING matter not an immigration one. As long as you invested by either director's loan or share capital and have the evidence for it, you should be fine. To see how to exchange the loaned money to shares, talk to your accountant.

[spikky]

Hi Yes. I have done this. 3 years ago when starting the company I allotted myself 25000 shares at £1. As I invested 50k end of 3 years some £25k was the actual spend on business which was netted off against the Share Capital and the remaining £25k+ is owed to me by the company as it is in the form of Directors loan or company can issue me 50000 shares at 0.50. My Accountant issued a Share Certificate.

Director's Loan is not good from Investor/Shareholder's perspective. It's a liability, a burden on the company and the valuation of the company will be low with £50k of director's loan if you're not making profits yet.

Hope that helps.

[rajbhanu300]

Hi Spikky,

Thanks for your reply. Could you pl let me know if you have extended your visa? If you have, then were there any queries during extension?

[hsbits]

Hi Yes. I have done this. 3 years ago when starting the company I allotted myself 25000 shares at £1. As I invested 50k end of 3 years some £25k was the actual spend on business which was netted off against the Share Capital and the remaining £25k+ is owed to me by the company as it is in the form of Directors loan or company can issue me 50000 shares at 0.50. My Accountant issued a Share Certificate.

Director's Loan is not good from Investor/Shareholder's perspective. It's a liability, a burden on the company and the valuation of the company will be low with £50k of director's loan if you're not making profits yet.

Hope that helps.

Hi Spikky,
same is the case with me. my 3 years accounts been submitted on DL. Now I want to convert to share capital.
Did you send business bank statements for share capital method?

[zimba]

Do not bump an old thread and demand answers
Stick to your OWN thread: uk-tier-1-entrepreneur-visas/director-l ... 35655.html