How to invest 50K...the right methods !

[abhikant]

I have taken a lot from this forum...its my turn to help people who are still stuck with ideas on how to invest the 50K in UK business..

INVESTING MONEY....its a two step process..

1. you need to give the partial/full money to the business you want to invest in....into company's business account...business can issue you share capital for the amount you invested...You should have a share certificate to show to UKBA for this. they will verify it from HMRC.

2. you need to give the partial/full money to the business you want to invest in....into company's business account...business can take this as a directors loan... You should have a loan agreement made between you and the business with proper legal attestation. make sure you know what rate you would be charging for this loan is as per market standards and less than business loans from banks (Logic : why will a company borrow from you if you are charging higher interest than banks ) .....also make sure you give this term for long-term 3-5 years.

UKBA will not accept any documents if you show you bought business property from 50K money also..as far as i am aware

Eventually we all have to invest this 50K (startup money for business) ..... into a UK business(of which we are a director)..as 1st criteria when we go for an extension 3 years later after getting T1 ENTP. VISA ....


I am not an expert but over this journy ...did so much research and found so much that i am happy to share my findings
HAPPY TO HELP.... HOPE THE BEST FOR ALL..

[sanjay1]

hello man,
I have received my entrepreneur visa in the end of october 2013 and later i sent money to my parents without tranferring them into my business account. so is there any particular time period like with in 6 months we need to invest 50k in uk or within 6 months we need to tranfer the 50k into our business bank account?
please help me

[WK87]

Can this loan be deposited into the personal bank account (in case you haven't got the business bank a/c), where you are holding the remaining fund and in return get the share certificate?

[confused90]

is it necessary for the director's loan to be upto 2-3 years? Any idea where is that given in the policy guidance?

[Khan_3_5]

Thanks Abhikant for such a helpful post.
Just a quick question, is this investment taxable?

I have taken a lot from this forum...its my turn to help people who are still stuck with ideas on how to invest the 50K in UK business..

INVESTING MONEY....its a two step process..

1. you need to give the partial/full money to the business you want to invest in....into company's business account...business can issue you share capital for the amount you invested...You should have a share certificate to show to UKBA for this. they will verify it from HMRC.

2. you need to give the partial/full money to the business you want to invest in....into company's business account...business can take this as a directors loan... You should have a loan agreement made between you and the business with proper legal attestation. make sure you know what rate you would be charging for this loan is as per market standards and less than business loans from banks (Logic : why will a company borrow from you if you are charging higher interest than banks ) .....also make sure you give this term for long-term 3-5 years.

UKBA will not accept any documents if you show you bought business property from 50K money also..as far as i am aware

Eventually we all have to invest this 50K (startup money for business) ..... into a UK business(of which we are a director)..as 1st criteria when we go for an extension 3 years later after getting T1 ENTP. VISA ....


I am not an expert but over this journy ...did so much research and found so much that i am happy to share my findings
HAPPY TO HELP.... HOPE THE BEST FOR ALL..

[confused90]

can anyone please shed some light on this?

[whiteroses]

Does anyone have a sample of a Director's Loan contract? Thank you.