Investing in existing business started by another Tier 1 Visa holder

[jacquou]

Hi all,

I am planning on applying for a Tier 1 Entrepreneur visa via the route of investing £200k+ into an existing business.

The business in question is a relatively new venture started by two directors who obtained a Tier 1 Entrepreneur visa only a few months ago having applied as joint entrepreneurs.

My question is the following: is it permissible to apply for a tier 1 visa by investing in a business that is being run by tier 1 visa holders? Are there any restrictions about the number of Tier 1 applications for a single business?

I am hoping someone can offer some insight on this. I did have a look around but unfortunately have not managed to find any relevant information on this - happy to be referred to the relevant thread, if there is one!


Many thanks for your help in advance!

[marcnath]

Hi all,

I am planning on applying for a Tier 1 Entrepreneur visa via the route of investing £200k+ into an existing business.

The business in question is a relatively new venture started by two directors who obtained a Tier 1 Entrepreneur visa only a few months ago having applied as joint entrepreneurs.

My question is the following: is it permissible to apply for a tier 1 visa by investing in a business that is being run by tier 1 visa holders? Are there any restrictions about the number of Tier 1 applications for a single business?

I am hoping someone can offer some insight on this. I did have a look around but unfortunately have not managed to find any relevant information on this - happy to be referred to the relevant thread, if there is one!


Many thanks for your help in advance!

There is no restriction on your joining another business - it does not matter if the business you join is run by other Tier 1 entrepreneurs or not. In fact, the extension application does ask if there are other Directors who are T1E holders, so the HO has catered for that.
Obviously, you cannot share investment or jobs - i.e. you need to invest 200K on your own and have to create two jobs that can be attributed to you (in the extension application, you will have to state which employees are being attributed to which T1E entrepreneurs)

[PeterLove2008]

Hi all,

I am planning on applying for a Tier 1 Entrepreneur visa via the route of investing £200k+ into an existing business.

The business in question is a relatively new venture started by two directors who obtained a Tier 1 Entrepreneur visa only a few months ago having applied as joint entrepreneurs.

My question is the following: is it permissible to apply for a tier 1 visa by investing in a business that is being run by tier 1 visa holders? Are there any restrictions about the number of Tier 1 applications for a single business?

I am hoping someone can offer some insight on this. I did have a look around but unfortunately have not managed to find any relevant information on this - happy to be referred to the relevant thread, if there is one!


Many thanks for your help in advance!

My understanding of the immigration rules is that you can't use the same 2 full-time jobs for the existing entrepreneur team (T1E visa holders) and for yourself. Correct me if I am wrong.

In light of this, I see risks, especially for creating jobs. It means the same business/company must create at least 4 jobs, in order to allocate 2 full-time jobs for the existing entrepreneur team for their visa extension, and another 2 full-time jobs for your own visa extension. It really depends on the business or the business plan (whether it is capable to create those at least 4 jobs).

Another concern is that whether the business needs 200K x 2 = 400K investment? Again it depends on what type of business it is, and how you are planning to spend the funds.

[jacquou]

Thank you both for the replies - very helpful!

On the point around job creation, I do understand that those additional 2 roles on top of the 2 roles the existing directors would have to create would have to be created as a result of the investment from myself (or myself and an associate as a team of entrepreneurs) to meet the requirements for the extension.

On the necessity of another £200k investment in the business - when the directors originally applied for their visa, their business plan was obviously fully costed and demonstrated that their investment was sufficient for the business to operate.

This additional injection of another £200k would not be a necessity for the business to operate in its current form (i.e. the form as intended at the time of the original application by existing directors) but is intended to fund growth and expansion. Do you think there may be any challenges on this front or is my assumption that the HO usually appreciative of evolving business needs a valid one?

Is there anything else in terms of additional considerations (beyond the usual requirements for T1E) that the scenario of investing in a business run by other T1 entrepreneurs? Would I be creating any additional burden and restrictions on the existing directors by joining the business at all?



Thanks again!

[Faheemryk]

Hi all,

I am planning on applying for a Tier 1 Entrepreneur visa via the route of investing £200k+ into an existing business.

The business in question is a relatively new venture started by two directors who obtained a Tier 1 Entrepreneur visa only a few months ago having applied as joint entrepreneurs.

My question is the following: is it permissible to apply for a tier 1 visa by investing in a business that is being run by tier 1 visa holders? Are there any restrictions about the number of Tier 1 applications for a single business?

I am hoping someone can offer some insight on this. I did have a look around but unfortunately have not managed to find any relevant information on this - happy to be referred to the relevant thread, if there is one!


Many thanks for your help in advance!

My understanding of the immigration rules is that you can't use the same 2 full-time jobs for the existing entrepreneur team (T1E visa holders) and for yourself. Correct me if I am wrong.

In light of this, I see risks, especially for creating jobs. It means the same business/company must create at least 4 jobs, in order to allocate 2 full-time jobs for the existing entrepreneur team for their visa extension, and another 2 full-time jobs for your own visa extension. It really depends on the business or the business plan (whether it is capable to create those at least 4 jobs).

Another concern is that whether the business needs 200K x 2 = 400K investment? Again it depends on what type of business it is, and how you are planning to spend the funds.

I don’t think you are right. Investment of £200,000 and two jobs are fine for two applicants who got tier 1 visa together applying as a team. I e they are directors of the business.

However, OP s question is different. I think he can invest in an existing business but he must create two new jobs,these are additional two jobs. Accountant letter with other pieces of evidence will be necessary in that case

[marcnath]

Thank you both for the replies - very helpful!

On the point around job creation, I do understand that those additional 2 roles on top of the 2 roles the existing directors would have to create would have to be created as a result of the investment from myself (or myself and an associate as a team of entrepreneurs) to meet the requirements for the extension.

On the necessity of another £200k investment in the business - when the directors originally applied for their visa, their business plan was obviously fully costed and demonstrated that their investment was sufficient for the business to operate.

This additional injection of another £200k would not be a necessity for the business to operate in its current form (i.e. the form as intended at the time of the original application by existing directors) but is intended to fund growth and expansion. Do you think there may be any challenges on this front or is my assumption that the HO usually appreciative of evolving business needs a valid one?

Is there anything else in terms of additional considerations (beyond the usual requirements for T1E) that the scenario of investing in a business run by other T1 entrepreneurs? Would I be creating any additional burden and restrictions on the existing directors by joining the business at all?



Thanks again!

I have no idea if HO will be appreciative or not.
But they do have to follow the rules as they have set out.
The T1E visa is intended to create new jobs and bring new investment into the country. If you satisfy those, you will be awarded points for those criteria.

[PeterLove2008]

Thank you both for the replies - very helpful!

On the point around job creation, I do understand that those additional 2 roles on top of the 2 roles the existing directors would have to create would have to be created as a result of the investment from myself (or myself and an associate as a team of entrepreneurs) to meet the requirements for the extension.

On the necessity of another £200k investment in the business - when the directors originally applied for their visa, their business plan was obviously fully costed and demonstrated that their investment was sufficient for the business to operate.

This additional injection of another £200k would not be a necessity for the business to operate in its current form (i.e. the form as intended at the time of the original application by existing directors) but is intended to fund growth and expansion. Do you think there may be any challenges on this front or is my assumption that the HO usually appreciative of evolving business needs a valid one?

Is there anything else in terms of additional considerations (beyond the usual requirements for T1E) that the scenario of investing in a business run by other T1 entrepreneurs? Would I be creating any additional burden and restrictions on the existing directors by joining the business at all?



Thanks again!

If you understand the above points (job creation should be 2 on top of 2, and the necessity of additional 200k fund), then consider the possibilities to pass the entrepreneur genuine test, because the visa officer may ask around these points. Good luck!