Evidencing the investment - per Guidance

[kaps84]

Hi Gurus / Seniors / Moderators,

I need an opinion on the documentation (specially contracts) that needs to be shared with HO.

1) Is it necessary to share the business contracts with HO for extension purposes ?

2) What if the contract has two parts (1 explaining the relationship terms and general terms of the contract (master agreement) & 2nd makes the work order explaining the actual piece of work and payment terms). Do I need to share the business confidential 'work order' part as well ?

please let me know if any further information is required.

Kind Regards,

Kaps84

[manu2017]

Hi Gurus / Seniors / Moderators,

I need an opinion on the documentation (specially contracts) that needs to be shared with HO.

1) Is it necessary to share the business contracts with HO for extension purposes ? NO

2) What if the contract has two parts (1 explaining the relationship terms and general terms of the contract (master agreement) & 2nd makes the work order explaining the actual piece of work and payment terms). Do I need to share the business confidential 'work order' part as well ? Business, general and payment terms should be mentioned in the business contract.

please let me know if any further information is required.

Kind Regards,

Kaps84

Above are in my opinion, rest Gurus can advise further. Thanks

[zimba]

Stick strictly to the Tier 1E guidance and send documents as required only. Sending extra documents could even work against your case

[kaps84]

Stick strictly to the Tier 1E guidance and send documents as required only. Sending extra documents could even work against your case

I know, but how will I prove the business genuineness with least number of documents? What bare minimum documents are enough to prove the business genuineness ?

I plan to send:

1) Only the last business bank statement (doesn't show my investment (done earlier via share capital, have no employees in the last month - so no employee payments).
2) No business contract.

All employee related salary documents (RTI, Salary slips, P60, P45, P11, P32, etc (for 2 jobs for 12 months) + identity documents necessary (only passport, ILR where applicable)

and business registration documents (VAT, company registration, CAR (having filing history), accounts (3 years + management) - Not sure if I need to send management accounts for Feb 2018 since my visa is due by march end.

[zimba]

You are not required to prove the business genuineness. If the HO has doubts, they ask you for more documents or an interview.

[kaps84]

Hi Gurus / Experts,

I am a bit confused. while reading through the 'Immigration Rules part 6A: the points-based system'' from T1E extension perspective.

My background: T1 200K route, extension due soon. (post April 2014)

Ref URL: https://www.gov.uk/guidance/immigration ... sed-system

Down to point, 245DD. Requirements for leave to remain

sub-point (h)
Where the applicant is being assessed under Table 4 of Appendix A, the Secretary of State must be satisfied that:

Why will table 4 apply during the extension application? Shouldn't be just table 5?

[kaps84]

As per my knowledge Table 4 is for initial grant and Table 5 is for extension.

Please note that I was NOT on PSW or switched from any other category when applied for T1E initial application.

[kaps84]

Another question:

In continuation of the previous comments:
after point (h), next point is also confusing

(i) The applicant must provide a business plan, setting out his proposed business activities in the UK and how he expects to make his business succeed.

Am I supposed to provide the business plan again during extension?

[zimba]

No. The immigration rules Appendix A paragraph 37 makes it clear that the points in table 5 apply during extension:

37. Available points are shown in Table 5 for an applicant who:
(a) has had entry clearance, leave to enter or leave to remain as a Tier 1 (Entrepreneur) Migrant in the 12 months immediately before the date of application, or
(b) is applying for leave to remain and has, or was last granted, entry clearance, leave to enter or leave to remain as a Tier 1 (Entrepreneur) Migrant.

[marcnath]

Hi Gurus / Experts,

I am a bit confused. while reading through the 'Immigration Rules part 6A: the points-based system'' from T1E extension perspective.

My background: T1 200K route, extension due soon. (post April 2014)

Ref URL: https://www.gov.uk/guidance/immigration ... sed-system

Down to point, 245DD. Requirements for leave to remain

sub-point (h)
Where the applicant is being assessed under Table 4 of Appendix A, the Secretary of State must be satisfied that:

Why will table 4 apply during the extension application? Shouldn't be just table 5?

Table 4 does not apply for extension. For extension the applicable clause is 245DD (k).

(h) applies for those who are switching from another Visa to T1E (it is still a leave to remain application)

[kaps84]

Thanks Marcnath !

I think there should be a lesson / class on how to read guidance. I could mostly do it but not completely!

[kaps84]

Hi Gurus,

For the purpose of T1E extension, I have read in the guidance that we have to provide the current appointment report (CAR) and the filing history page both:
1) to establish that the company was registered within 6 months, actively trading and that I was the director at that time. - I do not have this (didn't knew of CAR at that time)
2) and, to establish the current registration, within 3 months of making the application to show the companies activity status and my registration has director.

Question 1:
As per point 1) above, I do NOT have CAR when I registered the company, as the requirement also says that CAR should not be older than 8 months of the specified date (date of initial entry to UK).
> However, I have company 'Incorporation Certificate' (for business registration) and 'Company Summary' document showing myself as the director (along with another director - who eventually resigned after a year ) and the share holding of 1 share by both the directors (share eventually transferred to me earlier this year).
-- I believe I will have to send both the 'Incorporation Certificate' and 'Company Summary' document to satisfy this condition.

Sub question 1a) - Do you think that I need to fill the other director's detail anywhere in the extension application form. As, at the time of application (and as on date today), I am the only director and shareholder of the company.

Question 2: Every time they talk about CAR in the guidance the subsequent point talks about the 'filing history' page. I have noticed that CAR also carries the 'Recent Filling History' (on last page). And this 'Recent Filing History' on CAR is slightly different from the 'Filing History' page of what is available on https://beta.companieshouse.gov.uk/

Do you think I should take a printout of the 'Filing History' page from https://beta.companieshouse.gov.uk/ as well and send it along with CAR, which already has 'Recent Filing History' page ?

[marcnath]

The CAR with the recent filing history meets both requirements.

The filing history will show that you registered as Director within 6 months.

The 8 month is more for self employed registration for those who are not Directors.

You don't need to fill in the other Director anywhere

[zimba]

Current Appointment Repoint is about what is CURRENTLY held on your company file. The date of appointment should be within 6 months of entring the route. You need to get it here: http://wck2.companieshouse.gov.uk//wcfr ... ompanyInfo

[kaps84]

Hi Gurus,

Tier 1 guidance, page 47, point 146 "When evidencing the investment":

Point (1) - Unaudited accounts,(4) - Share Capital & (5) - elaborated below => are applicable to me

Point (5):
" The accounts must clearly show the name of the accountant, the date the accounts
were produced, and how much you have invested in the business. The accounts must be
prepared and signed off by the accountant, who is not you (the applicant), in accordance
with statutory requirements. "

Question 1 - Name of the accountant : Do HO needs the name of the person (the accountant on behalf of accountancy firm) or the name of the accountancy firm or both ?

Question 2 - accounts must be prepared and signed off by the accountant : Individual or accountancy firm or both ? (similar to question 1)

Share Capital:
"
(4) 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 a printout of the company’s register of members from Companies
House must be provided.
"
Snippet from my company accounts:

Share Capital Clause

share capital.png (16.43 KiB) Viewed 2781 times

Question 3: I am more worried about the on the date of purchase clause. Should the accounts show the date of purchase of shares as well? or the above snippet looks sufficient ?

[CR001]

Let's stick to the forum rules regarding multiple topics/posts (click)

[marcnath]

Accountant refers to either the firm or individual. Does not have to be both.

The snippet you showed only shows the value of the shares at year end, so it is not clear if that was the value of the shares at the time of investment.

So, the accounts need to show that what the value was when you made the investment. That is more crucial than the actual date of investment.

[kaps84]

Thanks CR001 ! Noted.

@marcnath, Do you mean that I should either:

1) Amend the accounts now ? (which are already amended once to include the 'share capital' clause).
- If this is the only and mandatory option as per guidance.

2) Include the share certificates. Sample:

Share Certificate

share certificate.jpg (47.59 KiB) Viewed 2740 times

3) include, "Statement of capital following an allotment of shares" from the filing history. - This shows:

Another question, should my accounts also show (other than the snippet in my previous post) that how much money as a director I have invested into the business ?

Remember that still the things are in hand and my extension is due after a few months. Should I get the accounts re-amended or include the above stated, share certificates and statement of capital following an allotment of shares.?

[marcnath]

As you posted before, the alternative to having the invested amount in the accounts is set out in the rules as below:

If the value of your share capital is not shown in the accounts, then a printout of the company’s register of members from Companies House must be provided.

While it appears that you can have the company's register of members kept by the Companies House, I am not clear about how exactly it can be done. (https://www.gov.uk/government/publicati ... -registers) But if you can figure that out, then a printout of that is your alternate evidence.

There was one applicant here who had submitted this register of members. He/she got the accountant to handle it so was not clear about process personally.

I doubt if share certificate is an acceptable evidence - you can essentially print out any share certificate. Some of the other documents such as CS01 etc may be accepted, but it is always safer to follow the rules exactly.

So, amend your accounts or figure out the register of members.

[kaps84]

Hi @marcnath, Guru's,


I couldn't find much details about 'register of members'. However, I think if I send them the accounts with the snippet of share capital (which clearly says, what's the value of each share, total number of shares and the aggregate value of the shares and to whom it is assigned), along with the share certificates, I think it should be enough.

With all due respect and regards, I believe this should be enough. Why to get into 'register of members', which seems to a complex solution as compared to account amendment (if required) ?

Or, can you suggest me (pleaseee), how should the 'share capital' section needs to be re-written in the accounts, if I have to amend it?

will the below be sufficient: (changes highlighted)
"
The total share capital of the company at the year-end was £1,002. There are 1,002 ordinary
shares of £1 (value as on the date of purchase) each issued in the company. All of the shares in the company is issued to its director Mr XXXXXXXXX. He owns 100% share in the company with total aggregate value of £1,002.
"

[marcnath]

Hi @marcnath, Guru's,


I couldn't find much details about 'register of members'. However, I think if I send them the accounts with the snippet of share capital (which clearly says, what's the value of each share, total number of shares and the aggregate value of the shares and to whom it is assigned), along with the share certificates, I think it should be enough.

With all due respect and regards, I believe this should be enough. Why to get into 'register of members', which seems to a complex solution as compared to account amendment (if required) ?

Or, can you suggest me (pleaseee), how should the 'share capital' section needs to be re-written in the accounts, if I have to amend it?

will the below be sufficient: (changes highlighted)
"
The total share capital of the company at the year-end was £1,002. There are 1,002 ordinary
shares of £1 (value as on the date of purchase) each issued in the company. All of the shares in the company is issued to its director Mr XXXXXXXXX. He owns 100% share in the company with total aggregate value of £1,002.
"

Agree that amending the accounts is the best way of doing it. Your statement "- If this is the only and mandatory option as per guidance." seemed to indicate you wanted other options.

Your accountant would be the better person to suggest the wording, but I would think it should be something along the lines of "all the shares (at £1 per share) were paid up in full on _____ by ______"

[kaps84]

Do I have to fill the table 3b1 of the form even if I have invested by way of share capital?

If yes, than as per column "Business Bank account*"

where * is defined as: *which you are a signatory of and showing transactions, and where applicable showing the transfer of director's loan funds from the applicant to the business.

- Isn't it that I have to send the business bank statements here? even if I invested via share capital ? - Just to be double sure.

[marcnath]

There is no need to provide bank statements as evidence for investment in case of investment by shares

[kaps84]

Thanks @marcnath ! and for value of shares on accounts (from previous question in the same thread), I am going to ask Companies house on Monday if they have or can provide the 'register of members'.

[kaps84]

Gurus, I called up the companies house today and asked them about the register of members and CAR.

They said, they do not maintain the register of members and that it should be maintained by the company itself. They also said that, if I am looking for the share holding details, that's available in confirmation statement.

About CAR, they said that its available online for free. And if I request and pay for the CAR from companies house, it will still be the same report.


I am not worried about the CAR but about the 'Register of Members' that as per the guidance should come from the companies house ????? Has anyone else faced the same problem?