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yes if you want to prove that its your investment into the business and not just a directors current account.hnav wrote:If investment of director put in liability side in company annual accounts than in this case we need director loan agreement between director and company
For direct investment it should be in form of share capital, i have no idea how your accountant treated your investment in the business, so i can't comment. What is your share capital appearing in annual account? for investment through Shares Capital you have to comply with companies house statutory requirements.hnav wrote:If company have sole director and who is only shareholder and owner of the company as well and he transfer from personal account to company account and invest in business at same time. In this case company accounts. In this case what we call this type of investment it could be direct investment or director loan investment?
I can understand that you are trying to make sure that you do the right things but there is no need to have nil stock. Actually UKBA does not need investment which will be withdrawn after getting the visa. This is the reason why they ask to spend your made investment. But the key thing is that you have to spend what your business genuinely requires. A small part of your investment can remain in your business bank account as working capital.MTZ510 wrote:PROOF OF INVESTMENT AT THE TIME OF EXTENSION
I am not clear how to prove that 200K was invested in last 3 years to get the extension. I have read some posts which say that money should not sit in your business account but should be used in the business; i have also read that director’s salary will not be treated as investment. But in accounting term the moment one transfer money into a business either through Share Capital or through Directors Loan the investment is made......Is UKBA going to hire some chartered accountant to find out actual cash flow activities? And if that’s the case then to make investment of 200K one has to do some big business because if average inventory turnover is 3 months then the purchases plus expenses during one year should be 800K.
educators wrote:I can understand that you are trying to make sure that you do the right things but there is no need to have nil stock. Actually UKBA does not need investment which will be withdrawn after getting the visa. This is the reason why they ask to spend your made investment. But the key thing is that you have to spend what your business genuinely requires. A small part of your investment can remain in your business bank account as working capital.MTZ510 wrote:PROOF OF INVESTMENT AT THE TIME OF EXTENSION
I am not clear how to prove that 200K was invested in last 3 years to get the extension. I have read some posts which say that money should not sit in your business account but should be used in the business; i have also read that director’s salary will not be treated as investment. But in accounting term the moment one transfer money into a business either through Share Capital or through Directors Loan the investment is made......Is UKBA going to hire some chartered accountant to find out actual cash flow activities? And if that’s the case then to make investment of 200K one has to do some big business because if average inventory turnover is 3 months then the purchases plus expenses during one year should be 800K.
What you need to do is the following:
Invest £200k in the form of shares capital or director's loan
Purchase assets what you need for your business through this investment
Purchase stock what you need for your business through this investment
Hire 2 settled workers
Start making sales and profit will follow
For yourself try to take dividends rather than salary as it will not be counted - What I think they will do is if you have spent £100k in expenses and these expenses include your salary taken for the amount of £20k, then they will consider only £80k has been invested.
Show your shares certificate/director's loan agreement and financial accounts to UKBA at the end of 3 years in order to demonstrate that you have invested £200k and have been genuinely trading....Thats it really !!!
Hope it is clear to you.
bubbly123 wrote:Hello
For my business I buy raw materials from India and design and manufacture the final product in uk so my question is the money used to buy raw materials in India will be considered as investment or the home office wants us to do the purchase in uk or eu which works out really expensive for my business.
Also please tell me what are the acceptable and unacceptable investments by ukba
Thank you very much
Hi John,JohnOhn wrote:Hello,
I've spent £170,000 using funds I deposited into my business bank account, so I know that counts as an investment of £170k.
I also spent another £40k on business expenses for the same company, but I paid for those expenses directly from my personal bank account. However, again, it was for valid business expenses relating to my company--I just paid from my personal account instead of my business account.
My question is, will the money I used to pay for my business expenses (the company expenses) from my personal bank account be counted as "investment in the company" even though I never moved that money into my business bank account? Or am I f*cked?