Need some clarification regarding second business

[uzzal13]

Dear seniors and Gurus,
I am going through a critical situation. i applied for extension (50k) May 17 and still waiting for result. I run a restaurant and same time do Event and catering. Coz of event i hired a quite large establishment with stage and dance floor which are inside my restaurant. But my business is not gong good. 2ed and 3rd year was on loss and now even going through more loss. I can't afford any more loss. Company is VAT registered. So top of my loss i am paying VAT as well. its totally waste of money and time. I have decided to close this business. i have few question and confusion about closing my business.

can i close my current business but not company and wait few month then de VAT registered my company and open a small restaurant and carry on my employment?
can i close my company and business and join with a existing company where my friend is a sole director and i would join as a second director and carry on the employment? Here i could take my current employees (three part time settle worker) who will join this company’s payroll.
can i close my company and business and open a fresh company and open a small restaurant and carry on my employment? my current employment would move in to new one.
if i take any one of the above action do i need to inform home office?

[marcnath]

Dear seniors and Gurus,
I am going through a critical situation. i applied for extension (50k) May 17 and still waiting for result. I run a restaurant and same time do Event and catering. Coz of event i hired a quite large establishment with stage and dance floor which are inside my restaurant. But my business is not gong good. 2ed and 3rd year was on loss and now even going through more loss. I can't afford any more loss. Company is VAT registered. So top of my loss i am paying VAT as well. its totally waste of money and time. I have decided to close this business. i have few question and confusion about closing my business.

can i close my current business but not company and wait few month then de VAT registered my company and open a small restaurant and carry on my employment?==> no impact on your T1E

can i close my company and business and join with a existing company where my friend is a sole director and i would join as a second director and carry on the employment?==> no impact on your T1E

Here i could take my current employees (three part time settle worker) who will join this company’s payroll. ==> for your next extension/settlement application, you will need to show two ADDITIONAL employees, so if these are in addition to existing employees in the business no issues

can i close my company and business and open a fresh company and open a small restaurant and carry on my employment? my current employment would move in to new one.==> no impact on your T1E

if i take any one of the above action do i need to inform home office?==> no

[uzzal13]

Thanks a lot Marcnath for your reply. One more question regarding my case. When I move one company to another company my trading would be paused for few days. As I am waiting for waiting for extension distinction how low long can I pause my trading? My plan is as soon as I get extension I would bring some money from my home and start something fresh till my ILR. Mean the time I could close my business but not company and carry on employment.

[marcnath]

Sure, don't see why that would be an issue

[Dytto]

Hi,
Are you uk graduate?

[uzzal13]

Yes mate

[uzzal13]

Sure, don't see why that would be an issue

So can I close my current restaurant and Pause trading for 3/4 months or till get extension approved? If I do so and if home office take any interview - it would give any issue?

[marcnath]

Sure, don't see why that would be an issue

So can I close my current restaurant and Pause trading for 3/4 months or till get extension approved? If I do so and if home office take any interview - it would give any issue?

All I can say is that the immigration rules do not prohibit you from doing that. If you do have an interview, you need to be able to explain why you have done that and what your plans are. Pausing the business does not on its own mean you are not a genuine entrepreneur but as there are no objective criteria it will depend on how well you can explain and clarify any doubts if they have.

[uzzal13]

Dear Zimba88 and Marcnath and other Gurus, my Entrepreneur visa ( 50k post April 2014) is under process. Last week got interview to my business and it went well. Last week got my partial IHS refund as well. Just waiting for decision. Now the problem is we are going to close our business or company by next month coz of loss and partner problem.Partner got ILR already. now i need some clarification:

1. if i take over a running restaurant with a brand new company and employee the previous company's staff- it would give me any trouble when i go for my next extension or ILR?

2. if i join with a running restaurant as the second director of the existing company and take my current stuff as extra employment- would it work for extension?

3.last 8 month, (after my extension application till now)3 part time (all 24 Hours) have been working my company. can i use these 8 month employment for next extension and do i need to add another part time of to my employment to fulfil the requirement?
4. will i get any trouble from HO if i close my business but not company before the decision?

[CR001]

Topics Merged (click)

[marcnath]

1. if i take over a running restaurant with a brand new company and employee the previous company's staff- it would give me any trouble when i go for my next extension or ILR?

Nothing in the immigration rules prevents you from doing that.

2. if i join with a running restaurant as the second director of the existing company and take my current stuff as extra employment- would it work for extension?

Yes

3.last 8 month, (after my extension application till now)3 part time (all 24 Hours) have been working my company. can i use these 8 month employment for next extension and do i need to add another part time of to my employment to fulfil the requirement?

Jobs need to have been created in the extension period, so these 8 months cannot be used.

4. will i get any trouble from HO if i close my business but not company before the decision?

Nothing in the immigration rules prevents you from doing that.

[uzzal13]

Thanks a lot Marcnath. Could u pls tell me another answer-
if i join with a running restaurant/business as the second director of the existing company, how much minimum Share I have to keep? Someone offering fe 15% share. Will it work?

[marcnath]

Thanks a lot Marcnath. Could u pls tell me another answer-
if i join with a running restaurant/business as the second director of the existing company, how much minimum Share I have to keep? Someone offering fe 15% share. Will it work?

There are no minimums. You can be a Director even without any shares for the purposes of the immigration rules.

[uzzal13]

Thanks a lot Marcnuth. just finished a business meeting. Decision is :
Gonna open a new company and with this company taking over a existing Restaurant where six part timer are working on payroll. and these 6 part timers are gonna be my new companies employee. i think i would able to do my next extension/settlement application with these employment after one year . Pls Marcnath give your thought.

[marcnath]

Thanks a lot Marcnuth. just finished a business meeting. Decision is :
Gonna open a new company and with this company taking over a existing Restaurant where six part timer are working on payroll. and these 6 part timers are gonna be my new companies employee. i think i would able to do my next extension/settlement application with these employment after one year . Pls Marcnath give your thought.

There is a chance that HO could still consider this as a taking over a business. I do understand that it is a new company and there are no specific rules about a new business taking over an existing one.
It would definitely be safer to go for two additional jobs over the part timers.

[uzzal13]

Thanks a lot Marcnuth. just finished a business meeting. Decision is :
Gonna open a new company and with this company taking over a existing Restaurant where six part timer are working on payroll. and these 6 part timers are gonna be my new companies employee. i think i would able to do my next extension/settlement application with these employment after one year . Pls Marcnath give your thought.

There is a chance that HO could still consider this as a taking over a business. I do understand that it is a new company and there are no specific rules about a new business taking over an existing one.
It would definitely be safer to go for two additional jobs over the part timers.

Marcnath thnks for your time.
in this case i am gonna take my two part time employees( who r working in my current business) to new company. so one employment would be sorted .
I am moving from Birmingham to Manchester. two current part timers who would join to new companies their address on pay slip would be birmingham, as their family live in Birmingham. would it give me harm when i go for next extension/settlement ? and if i keep this two on my payroll next 24 month can i claim 2 full time additional employment? I got my initial visa post april 2014.

[marcnath]

Address in Birmingham should not cause a problem on its own. If you are interviewed you have an explanation.
Part time rules are a bit unclear. But in general I would think that for Post 2014 cases each Job has to last 12 months. For full time, it is clear. It has to be different jobs.
For part time it is not clearly defined but I interpret that you will need 4 jobs of 12 months each.