buying a business of 250k - Does it qualify ?

[prisingh]

Hi,

I am new to this forum and it seems really helpfull in the t1 e queries.
But there is below confusion:

I keep reading that t1 E 50k route own money. Now i have 50k but on the home office site it says it has to be via some VC , or UKTI seed funding .
so is it possbile to apply for tier 1 e with 50k funding of own money while in country ???



thanks

[Mrchaany]

no

[prisingh]

thanks for the reply .

ok what are the ways to get in touch with this VC or Seed funding ? Is there any forum or any platform where we can present the business plan to the VC ?

another query is for the 200k funding - i have read to much for third party funding and all.. it will take time but can be arranged..
so at the extention if all that amount has to be invested in the business ?? what all documents are required for the third party funding ?


thanks

[Mrchaany]

For extension perspective
Application can transfer all funds via director loan to business bank account (transactions will be from personal
To business by applicant) not third party.
After initial visa third party need to transfer all funds to applicant personal account.

Note only 200k

[prisingh]

so the third party amount needs to be in UK bank account of third party or my own personal account
?
plus for extension that 200k should be placed in business account as director loan

[Mrchaany]

Initial and extension different from certain aspect,
Third party can be from any where but for extension applicant need to transfer third party funds to his/her personal
Bank account for director loan agreement, because ukvi now looking for annual accounts and business bank statement for investment purposes.

[zimba]

Why don't you start by reading the guide ???? All your questions are covered THERE !

https://www.gov.uk/government/publicati ... trepreneur

[prisingh]

Hi,

I have gone through the guidance and also lot of threads on this here. But still i am unable to get a clear cut confusion cleared:
1 - I am on Tier 2 ICT visa - Main applicant -
so can i switch to Tier 1 Ent in country ? from what i read i think yes.
2 - If i invest in an existing business for 50k cash ? Can i go through 50k route ?-
I am not buying an existing one . I am investing an already running business.
3- If the answer is no to above. Then according to the new business defination. I can start a business and invest 50k in it. Run it as director (allowed 20 hrs per week under my Tier 2 ICT leave).
Can i go for the 50k T1 e route on this ?

I know 50k route is mainly under strict condition but the below line is the base of above queries :

You can also apply if you’ve already invested £50,000 in a UK business. You must have invested the funds less than 12 months before you apply.

https://www.gov.uk/tier-1-entrepreneur/ ... ment-funds

So is it like if you have got the funding of 50k from the sources mentioned on above link and invested that in last 12month but not applied for T1 e .. you can apply so ?

I am just =unable to get my head around on this.

thanks

[prisingh]

oh.. i am coming in circle with this ... sorry for this..

[CR001]

oh.. i am coming in circle with this ... sorry for this..

I merged your topics. See Multiple Topics (click)

[zimba]

1 - I am on Tier 2 ICT visa - Main applicant -
so can i switch to Tier 1 Ent in country ? from what i read i think yes.

Correct

2 - If i invest in an existing business for 50k cash ? Can i go through 50k route ?-
I am not buying an existing one . I am investing an already running business.

No. You CANNOT use your own money under the 50K route. You need to get the funds either from the government body, UKTI or a VC.

3- If the answer is no to above. Then according to the new business defination. I can start a business and invest 50k in it. Run it as director (allowed 20 hrs per week under my Tier 2 ICT leave).
Can i go for the 50k T1 e route on this ?

Sure but CANNOT use your own money under the 50K route.

So is it like if you have got the funding of 50k from the sources mentioned on above link and invested that in last 12month but not applied for T1 e .. you can apply so ?

Yes but this condition applies to ALL tier 1E initial applications who want to rely on previous investments

[prisingh]

Hi All,

I am looking to buy an existing business which is around 250k. It is a children play park which includes all the equipment along with the first year lease.

The questions are :
- Does it qualify for the Tier 1 ent visa ?
- If not can i show the amount for the equipment/ rent as part of 200k route and rest of money in bank and apply for t1e ?


Thanks

[CR001]

See Multiple Topics (click)

[marcnath]

Reply made in your original thread

[prisingh]

Hi ,

Q: So is it like if you have got the funding of 50k from the sources mentioned on above link and invested that in last 12month but not applied for T1 e .. you can apply so ?
A: Yes but this condition applies to ALL tier 1E initial applications who want to rely on previous investments


Thanks for the above answer.
But does it mean that if i have invested 200k in an exiting business or buy one in last 12 months .. can i and my partner apply for t1e 200k route ?

Sorry i have opened another thread for this as didnt see this response.

[marcnath]

Ok CR001 did the topic merge

Hi All,

I am looking to buy an existing business which is around 250k. It is a children play park which includes all the equipment along with the first year lease.

The questions are :
- Does it qualify for the Tier 1 ent visa ?
- If not can i show the amount for the equipment/ rent as part of 200k route and rest of money in bank and apply for t1e ?


Thanks

Your question is ambiguous - Tier 1 Ent visa has no restrictions on what kind of business you do.

If the question is whether the 250K used to buy the business will be considered part of the 200K investment needed, the answer is no. Invested money, for T1E purposes, has to be money that goes into the business, not to the previous owner.

[marcnath]

Hi ,

Q: So is it like if you have got the funding of 50k from the sources mentioned on above link and invested that in last 12month but not applied for T1 e .. you can apply so ?
A: Yes but this condition applies to ALL tier 1E initial applications who want to rely on previous investments


Thanks for the above answer.
But does it mean that if i have invested 200k in an exiting business or buy one in last 12 months .. can i and my partner apply for t1e 200k route ?

Sorry i have opened another thread for this as didnt see this response.

Again, you mix up questions.
1. Yes if you have invested 200K into an existing business in the past 12 months, that can be used for the funds required
2. If you buy one, that is a different matter as addressed in my other reply
3. If you are the only one investing, then only you can apply. Not your partner.

[prisingh]

aah.. thanks for the clarification.
Correct i am mixing up lot of queries around

so , the money should be ready to be used in any business and the amount which goes to previous owner is not counted. i am planning on the below path

1 -- buy a business .. whatever amount. while in uk..
2 -- let the business run and i can work 20hrs under my t2ict visa.
3 -- get the 200k ready for visa along with a partner (can i show the rental which is already going in of 63 k in per annum in this ?)
4 -- apply t1e under the same business as this will b within 12 months period..

if the above path is possible ?
thanks

[CR001]

You cannot work for your business if it is not the same SOC and job role you perform under your ICT visa and you work 20 hours pw on PAYE.

do a second job in the same profession and at the same level as your main job for up to 20 hours per week

[marcnath]

aah.. thanks for the clarification.
Correct i am mixing up lot of queries around

so , the money should be ready to be used in any business and the amount which goes to previous owner is not counted. i am planning on the below path

1 -- buy a business .. whatever amount. while in uk..
2 -- let the business run and i can work 20hrs under my t2ict visa.
3 -- get the 200k ready for visa along with a partner (can i show the rental which is already going in of 63 k in per annum in this ?)
4 -- apply t1e under the same business as this will b within 12 months period..

if the above path is possible ?
thanks

@CR001 has already answered the issue of working on the business under ICT.

can i show the rental which is already going in of 63 k in per annum in this ?

You need to invest 200K of cash into the business. Rent is an expense out of the business and has nothing to do with investment which is money into the business.

But otherwise it should be ok