T1 Ent Extension Approved, Whats Next?

[warks87]

Hi there
I have received T1 Ext 50K route in February 2017.

I made investment in the form of Director Loan

Initial Visa granted: Nov 2013
Extension Application Lodged on Nov 2016
Extension Approved on: Feb 2017

I have 50K in the company business Account.

There is an investment opportunity where I would like to Invest about 10K. Basically, I will be joining someone's existing business by buying shares. I think it makes perfect sense to utilise my money which is sitting in my limited company account.

However, I am not sure how will H/O will see this as I have already given this money to my company and formed Director Loan Agreement which means I can not legally withdraw until the the agreement is expired which is about another 2 years from now on (Approximately Mar 2019)

The question is how do I legally use my existing fund for new Venture?

I spoke to an accountant and he advised me about "corporate investment" where my company will invest in another company by buying its shares.Is this right? Also if there are any other ways please advise.

another question....do I still need to maintain 2 employees until I apply for ILR. If I need to maintain 2 employees then would that be under post April or Pre April April 2014.Please note, I got extension under transitional arrangement.

Few additional Points:
I qualify for ILR under 10 yrs Long residency in Aug 2018
I qualify for ILR under 5 years on Tier 1 Ent route in Nov 2018
Curent Visa Expires in Feb 2019.

Thank you

[zimba]

There is an investment opportunity where I would like to Invest about 10K. Basically, I will be joining someone's existing business by buying shares. I think it makes perfect sense to utilise my money which is sitting in my limited company account.However, I am not sure how will H/O will see this as I have already given this money to my company and formed Director Loan Agreement which means I can not legally withdraw until the the agreement is expired which is about another 2 years from now on (Approximately Mar 2019)
The question is how do I legally use my existing fund for new Venture? I spoke to an accountant and he advised me about "corporate investment" where my company will invest in another company by buying its shares.Is this right? Also if there are any other ways please advise.

The agreement is between you and your company. You can pass a resolution and amend the DL agreement. However HO can question you on the subject and demand that you prove the investment has been done in the company during ILR as you claimed during extension. If your claims do not match up, you can be accused of using deception to acquire a visa extension.

another question....do I still need to maintain 2 employees until I apply for ILR. If I need to maintain 2 employees then would that be under post April or Pre April April 2014.Please note, I got extension under transitional arrangement.

Yes, read the guide. The job creation criteria applies to your extension period too. Given that you entered the route before 6 April 210, the transitional arrangements apply to you during 5 year ILR.

Few additional Points:
I qualify for ILR under 10 yrs Long residency in Aug 2018
I qualify for ILR under 5 years on Tier 1 Ent route in Nov 2018
Curent Visa Expires in Feb 2019.

You also have the option of applying under SET(LR) based on 10 years of private life in 2018. For that you do not need to show job creation requirements.

[Ali272]

Hi Zimba,

You mentioned long residency and I have a quick question. I am currently on Tier 1 E which expires in November 2019. I will reach my 10 year residency on January 2019. I was wondering if you think there is chance 10 year rule being abolished in the next 18 months or so? I realize you wouldn’t know but just wanted to know your opinion(guess). Also, government recently announced they are delaying human rights act repeal until next parliament so was wondering if 10 year rule is related in anyway to human rights act and delay in repealing it would mean 10 year would be around until at least 2020?

Thanks very much.

[CR001]

Hi Zimba,

You mentioned long residency and I have a quick question. I am currently on Tier 1 E which expires in November 2019. I will reach my 10 year residency on January 2019. I was wondering if you think there is chance 10 year rule being abolished in the next 18 months or so? I realize you wouldn’t know but just wanted to know your opinion(guess). Also, government recently announced they are delaying human rights act repeal until next parliament so was wondering if 10 year rule is related in anyway to human rights act and delay in repealing it would mean 10 year would be around until at least 2020?

Thanks very much.

Your post has no relevance to the OP's topic. There are no plans by HO to abolish ILR LR and no one can 'guess' what HO will do, there hasn't even been a mention of such a change.

[warks87]

The agreement is between you and your company. You can pass a resolution and amend the DL agreement. However HO can question you on the subject and demand that you prove the investment has been done in the company during ILR as you claimed during extension. If your claims do not match up, you can be accused of using deception to acquire a visa extension.

Dear Zimba
I appreciate your response. I am sorry but do not understand this part of the response.when you said I have to prove that investment has been done in the company, are you referring to my own company or the company where I am planning to invest?

Also what in your opinion would be ideal way to use the fund to invest in a different business.

Also is there any limitation on what business can I invest money in? Say for example If i buy a freehold property under my company which will generate rental income..would that be acceptable.

please accept my apology for asking too many questions...

[zimba]

I appreciate your response. I am sorry but do not understand this part of the response.when you said I have to prove that investment has been done in the company, are you referring to my own company or the company where I am planning to invest?

You MADE the claim that you already INVESTED money in your company during your extension. You could be questioned again regarding your investments during your ILR.

Also what in your opinion would be ideal way to use the fund to invest in a different business.

Under Tier 1E rules, you are REQUIRED to invest the money in businesses you are director of. You also MADE an investment claim based on which your extension was granted. Removing money from your company now means you did NOT invest as you proclaimed during extension and this could be viewed as disingenuous/deceptive if this is investigated during ILR.

Also is there any limitation on what business can I invest money in? Say for example If i buy a freehold property under my company which will generate rental income..would that be acceptable.

No, you are not allowed to be involved in property development. The guide says:

We define property development as any development of property (real estate) owned by the applicant or his business to increase the value of this property with a view to earning a return either through rent or a future sale, or both

[samaygrg]

I second what Zimba has explained above.

[nish_patel7]

Hi Zimba, could you please help me understand that does it count as investment by transferring the money from your personal bank account to business account even if you have not spend the entire money? For an example I have invested so far around 40K into my business which is also spent on various things like salaries, stock, bills, rents and services. I now have to invest 10K into my business as required. What if I only transfer that money to my business account and could not spend it before my extention which is due in July 2017. I am asking this because this guy just mentioned that he got his extention visa successfully without spending £50K.

[zimba]

Hi Zimba, could you please help me understand that does it count as investment by transferring the money from your personal bank account to business account even if you have not spend the entire money? For an example I have invested so far around 40K into my business which is also spent on various things like salaries, stock, bills, rents and services. I now have to invest 10K into my business as required. What if I only transfer that money to my business account and could not spend it before my extention which is due in July 2017. I am asking this because this guy just mentioned that he got his extention visa successfully without spending £50K.

There is NO requirement to spend the money. You invest the money and keep it there until it is spent in your business. That is all