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say for example u r transferring 20000 from yr personal account to business acc(ltd com acc), then u must make a loan agreement with the company in presence of other directors by keeping a munite( a deed among all the directors regarding the loan agreement and signed by all). so that will be yr director's loan account. to reflect director's loan account u have to prepare a management account preferably by a chartered accountant( according to policy guidance) where in the balance sheet 20000 pounds will be shown as a loan by yr name. thats allhnav wrote:Helpingperson
I read you all post i could not understand about this type of investment. We need a director loan agreement in this type of investment as well ?
Please explain me how its work ?
Direct cash investment
In order to ensure that the money is used by the business, you should provide the accounts of that business for assessment. These accounts must show the investment in money made directly by you, in your own name.
Thanks
helping person already answered this question. yes still u need to keep a minute and make a loan agreementhnav wrote:Tanvir1985
Ok. If company have sole director and sole shareholder. I means to say only one person who is company director, share holder, investor and owner of the company. That only person who run the company. All the investment his own investment and he invest through company bank accounts
In this case that sole director transfer from personal account to company account and invest in business.
We still need director loan agreement ?
Thanks
this is a confusion for me as well. as per my understanding its talking about cash deposit in the business account and then investment made from that account. i would say everybody should avoid this complexity and should transfer money from personal ac to business ac. but if money has already been invested in this way then follow the same procedure i.e. keep a minute and create a director loan and mention in that agreement that loan is given by cash to business. but then source of the money should be shown as well as per my understandinghnav wrote:Any idea about this type of investment in business its in policy guidance
Direct cash investment
In order to ensure that the money is used by the business, you should provide the accounts of that business for assessment. These accounts must show the investment in money made directly by you, in your own name
Thanks
its a very simple thing. any kind of investment in the company in yr name must need a loan agreement as i told u before. unaudited account means a management account which is pretty much profit & loss account and balance sheet prepared by a chartered account where yr loan will be shown. thats ithnav wrote:Can anybody explain me second point of investment how its work
In this case also required director's loan agreement as well ?
ii) Unaudited accounts and an accountant’s certificate of confirmation
Money that has been invested in business
103. You should use this for initial applications under sections a; b; c and d (see the attributes
table for initial applicants) or for section A of your extension application if applicable. Evidence to show how much has been invested
104. You must provide all the appropriate specified documents needed to establish the amount you have already invested from the following list.
i) Audited accounts
Registered companies that are required to produce audited accounts must do so. For information on who needs to produce these accounts please refer to the Companies House website on http://www.companieshouse.gov.uk/about/ ... gba3.shtml.
ii) Unaudited accounts and an accountant’s certificate of confirmation
Businesses that are not required to produce audited accounts must provide unaudited accounts, sometimes called management accounts, together with a certificate of confirmation from a suitably regulated accountant (see below).
Audited or unaudited accounts must clearly show the investment in money made directly by you, in your own name, or on your behalf and showing your name. You should indicate where this
is shown on your evidence. If you have invested by way of share capital the business accounts must show the shareholders, the amount and value of the shares (on the date of purchase) in your name as it appears on your application. If the value of your share capital is not shown in the accounts, then share certificates should be submitted in addition to the accounts as documentary evidence.
The accounts should clearly show the name of the accountant and the date the accounts
were produced. The accountant must be a member of a recognised UK supervisory body (see glossary); if not, we will not accept this evidence. The accounts must show how much you have invested in the business.
iii) Director’s loan
If you have made the investment in the form of a director’s loan, it must be shown in the relevant set of accounts provided, and you must also provide a legal agreement, between you (in the name that appears on the application) and the company.
This agreement should show:
• the terms of the loan;
• any interest that is payable;
• the period of the loan; and
• that the loan is unsecured and subordinated in favour of third-party creditors.
If it is not clear from the information provided that the loan is unsecured and subordinated in favour of third-party creditors, we will not accept the loan for the award of points.
i believe direct cash is intended for self employment and share capital means when u buy share in a company which in most cases we don't coz almost all the applicants are forming their own company therefore no reason of buying shares.hnav wrote:Tanvir 1985
You are right according to accounting point of view, it should be loan agreement. In other hand if you see in policy guidance it does not say clearly in first two types of investments ( direct cash and share capital ) to made loan agreement. It just saying accounts clearly shown and accountant certificate to confirm that investment made by applicant in his name or behalf his name.
Thats means policy guidance make confuse
i already answered this. investment by share means u buy share in a company and that must show in a share transfer certificate. direct cash probably means investment in self employment( but i am not sure)hnav wrote:Tanvir 1985
I could not get your answer please explain what direct cash and share capital ?
Tanvirtanvir1985th wrote:i believe direct cash is intended for self employment and share capital means when u buy share in a company which in most cases we don't coz almost all the applicants are forming their own company therefore no reason of buying shares.hnav wrote:Tanvir 1985
You are right according to accounting point of view, it should be loan agreement. In other hand if you see in policy guidance it does not say clearly in first two types of investments ( direct cash and share capital ) to made loan agreement. It just saying accounts clearly shown and accountant certificate to confirm that investment made by applicant in his name or behalf his name.
Thats means policy guidance make confuse
Thnx for yr reply.helpingperson wrote:Hi
Did you show investment by transferring funds of £200K from personal account to business account?
Or Did you actually spend whole £200k and that you showed as your investment?
Please some information on how you did investment.
Can you please give me your contact number? Thanksshanybaba1974 wrote:Thnx for yr reply.helpingperson wrote:Hi
Did you show investment by transferring funds of £200K from personal account to business account?
Or Did you actually spend whole £200k and that you showed as your investment?
Please some information on how you did investment.
Yes I submitted both bank statements, personal + business, along with table in excell sheet showing all transactions.
Yes i invested all the funds. I am a trading concern, buy goods and export, mostly funds are occupied in the shape of creditors & debtors. Funds spent on purchasing stocks, business assets such as car, office equipments, furniture etc & expenditures such as salary, bills etc. I am working fm home so there is no office premises.
Just to confirm whether your unaudited financial statements also included the cash flow statement?shanybaba1974 wrote:Tanvirtanvir1985th wrote:i believe direct cash is intended for self employment and share capital means when u buy share in a company which in most cases we don't coz almost all the applicants are forming their own company therefore no reason of buying shares.hnav wrote:Tanvir 1985
You are right according to accounting point of view, it should be loan agreement. In other hand if you see in policy guidance it does not say clearly in first two types of investments ( direct cash and share capital ) to made loan agreement. It just saying accounts clearly shown and accountant certificate to confirm that investment made by applicant in his name or behalf his name.
Thats means policy guidance make confuse
I hv been refused my extension application (200k cat), need urgent reply as I need to appeal & time is short.
My case is:
I am a self employed with a sole trading concern and separate business bank account. I transferred my investment funds fm my personal bank a/c. to business bank a/c. and carried out business activities fm tht a/c.
I managed to secure all the points except tht according to HO, I did not provide enough evidence to prove investment in money has been made.
Evidence Submitted;
-unaudited accounts
-accountant certificate of confirmation (that was a routine certificate usually accompanied by the financial statements issued by accountants confirming such as "In accordance with instructions given to us we have prepared and approved without carrying out an audit the annexed financial statements (Profit & Loss account and Balance sheet) from the accounting records of Mr. ABC T/A XYZ Consultants and from information and explanations supplied to us by him"........the certificate was not a confirmation certificate for investment made.
Grounds of Refusal:
-the unaudited accounts & accountant's certificate of confirmation do not clearly show that investment made directly by you in your own name,
-You hv not provided Director's loan agreeement or any share certificates
How can somebody running a sole trading concern provide Director's loan agreement or share certificates.
.
shanybaba1974 wrote:@MTZ510
No, it did not include any cash flow statement. However it did include bank statements, both personal & business along with a table showing date-wise transactions of investment made fm personal to business.
shanybaba1974 wrote:Hello,
I am main applicant of Tier 1 Entrepreneur (200k catagory) and have already got visa extension for further 2 years. Soon my dependents visa is also expiring and will have to apply for their visa extension. Can anybody guide me what is usually the processing time for visa extension of dependents in my category. Any ideas or experiences please!!!!