- FAQ
- Login
- Register
- Call Workpermit.com for a paid service +44 (0)344-991-9222
ESC
Welcome to immigrationboards.com!
Moderators: Casa, Amber, archigabe, batleykhan, ca.funke, ChetanOjha, EUsmileWEallsmile, JAJ, John, Obie, push, geriatrix, vinny, CR001, zimba, meself2
If the owner of Head office is then transferring the money to the previous owner/franchisee, then the portion paid to the previous owner cannot be included in the investment.Hammad Zafar wrote: ↑Sun Feb 17, 2019 11:52 amHello Guys, I am applying for Tier 1 Entrepreneur Visa and need a bit of a clarification.
I have access to £200,000. Recently I was on a Business Visit in the UK and explored several options for the business and finally decided to take over an existing franchise known as Muffin Break? My query is that the owner has already agreed to give me his franchise for £200,000 which includes transferring and purchasing all the employment contracts,stocks, fixtures and fittings, but when I go to the UK, I will be transferring the money to the Head Office of Muffin break and not the owner. Do you think I can do that because I am puzzled as it says in the Policy guidelines that:
I quote: ''buying any business from a previous owner, where the money ultimately goes to that previous owner (irrespective of whether it is received or held directly or indirectly by that previous owner) rather than into the business being purchased (This applies regardless of whether the money is channelled through the business en route to the previous owner, for example by means of the applicant or business purchasing ‘goodwill’ or other assets which were previously part of the business.),
Or do you think I should join the current franchisee business by becoming 50% director under his company name and then invest £200,000 in his current franchise?
Help will be much appreciated.
The immigration rules are very explicit - "funds transferred to previous owner, directly or indirectly, ....." and so on. Obviously, whether HO will figure that out is a different question since the books will only show transfer to the Franchisor. Obviously they can ask for other documents such as your franchise agreement, etc. and if it shows up somewhere then they will discount the amount.Hammad Zafar wrote: ↑Sun Feb 17, 2019 1:56 pmHello Marcnath,
Thanks a lot for your prompt reply. Indeed the head office will transfer the money to the previous owner but do you think that is of my concern? As long as I am not transferring the money directly to the previous owner, don't you think it makes sense?
Furthermore, in order to join the current franchisee into his business, what would I need to write in my business plan? I have already got my business plan ready but it was made in regards to ''taking over'' the current franchise, now do you think where ever I have mentioned ''I will purchase or take over the business'' should replace it with ''join the business as 50% shareholder and director'' and rephrase the sentence accordingly?
You mentioned as long as I get 50% shares in the current business (AS LONG AS THEY ARE NEW SHARES)! Can you kindly explain what do you mean by new shares?
Many thanks once again.
If they ask, it will be as part of your extension application. HO can't just randomly ask you for documents.Hammad Zafar wrote: ↑Sun Feb 17, 2019 5:43 pmAs you have mentioned '' whether HO will figure that out is a different question since the books will only show transfer to the Franchisor. Obviously they can ask for other documents such as your franchise agreement, etc. and if it shows up somewhere then they will discount the amount.''
they can ask for other documents now or will this be asked to me after 3.5 years during extension time? Or is it possible if they can ask me about this during initial phase now during interview as well?
Entirely up to youHammad Zafar wrote: ↑Sun Feb 17, 2019 5:43 pm
Secondly, as you mentioned, ''You don't necessarily have to change your business plan - decisions can change once you actually get your visa. You can even do a totally different business.''
My business plan currently states at a few places that I am purchasing the business and taking over fixtures and fittings and employment contracts from the previous owner. So, my query is that should I remove such sentences and replace them with ''becoming a partner'' or maybe a 50% shareholder something like that?
I can't advice you on how to set up your business - there are many different ways of partnering. If you are not clear about that, please consult a lawyer.Hammad Zafar wrote: ↑Sun Feb 17, 2019 5:43 pm
I will be investing the money into refurbishing the whole store and for that I will change the whole layout of the franchise, buy new coffee machines, buy fixtures and fittings all new. So in order to do that, what the process of getting 50% shares of the franchise? Like once I go to the UK, what's the process I acquire 50% shares and become 50% director of the company in order to invest £200,000 in the current franchise?
I would't want to pay the current business owner, just need to become his 50% partner so what will be the procedure I have to follow to become the partner?
At any application stage, whether initial or extension, HO can ask any questions they want to. If you already have the agreements with Franchisor now, they can ask you for that. But if you don't, then they can only ask you for those at extension.Hammad Zafar wrote: ↑Sun Feb 17, 2019 8:11 pmAs you said, ''If they ask, it will be as part of your extension application. HO can't just randomly ask you for documents.''
-This means that if I apply now and show that I will be transferring money to the Head office of Muffin Break and not the franchisee, then they can question me now as to whether the current franchisee will get the money or not? What you are trying to say is that this question will arise after 3.5 years and will not be part of my initial application now including the interview?
The best chances of getting a visa is by doing what is best for your business.Hammad Zafar wrote: ↑Sun Feb 17, 2019 8:11 pm
What do you think is a better option in my case? Whether to go in partnership with the current franchisee and invest £200,000 in the business or just take over the business from the current franchisee by transferring the money from by business account to the Head Office account once I am in the UK? Which option will be favorable for me to get through this initial phase of getting the visa?
The highlighted partHammad Zafar wrote: ↑Sun Feb 17, 2019 8:11 pm
Also, I have money kept by myself for less than 90 consecutive days in my account. I have had the money kept in Pakistani Rupee for 8 months in my Rupee Account and now just 10 days ago I transferred them from my Rupee Account to GBP Account- both accounts in the same bank.
--My Query is: it says in the Policy Guidelines for Tier 1 Entrepreneur VIsa Table C- Row 4 that, ''Money held by your for less than 90 consecutive days, ending no earlier than 31 days before the date of application.
''ENDING NO EARLIER THAN 31 BEFORE THE DATE OF APPLICATION''. Does this bold sentence means I have to keep money in the account for 31 days before making the application or does it mean I have to produce a bank statement of £200,000 within 31 days before the date of application?
Many thanks
I repeat, I cannot guess what questions HO may ask. They can issue visas without any interview or they can ask all sort of questions.Hammad Zafar wrote: ↑Mon Feb 18, 2019 6:20 amAs you mentioned ''At any application stage, whether initial or extension, HO can ask any questions they want to. If you already have the agreements with Franchisor now, they can ask you for that. But if you don't, then they can only ask you for those at extension.
So, yes, they can ask you whether the current franchisee will get the money. But I have no idea if they will ask that question.''
Query in regards to above: I haven't had any written agreement with the head office or the current franchisee. I just had a meeting at the head office of Muffin Break where the current franchisee was present and we just had a verbal agreement and the Head Office approved me to become a prospective franchisee on receipt of getting the Tier 1 Entrepreneur Visa. I have mentioned this in my business plan that I just have had a verbal agreement and no written agreement with the head office who have approved me to take over the franchise on receipt of getting the visa.
Do you think by mentioning this in my business plan, they will not ask me this question as to who will receive the money and whether the head office will transfer this money to the current franchisee or not? Bcz as you mentioned in your previous reply that if I haven't had any agreement with the franchisor, chances are they won't ask me at this initial stage during interview and raise any concern?
I am not aware of any trend. And I am not sure if anyone here would know. Remember that only a small fraction of the immigrants use this forum and that is mostly when they have problems or questions.Hammad Zafar wrote: ↑Mon Feb 18, 2019 6:20 am
Secondly, as you mentioned, ''The best chances of getting a visa is by doing what is best for your business''.
Query: Just want to ask what is mostly people doing? Do they become a partner of 50% when they join an existing franchise business in tier 1 Entrepreneur visa or do mostly people take over the business. What's the common trend?
You will need to show that you had the money for the entire 90 days and that you are continuing to have the money. So, you will have to submit evidence of both your Rupee account and GBP account. If the money has been in your personal account for 90 days, there is no need to provide evidence of source of funds.Hammad Zafar wrote: ↑Mon Feb 18, 2019 6:20 am
Thirdly, ''ENDING NO EARLIER THAN 31 BEFORE THE DATE OF APPLICATION''. Does this bold sentence means I have to keep money in the account for 31 days before making the application or does it mean I have to produce a bank statement of £200,000 within 31 days before the date of application?
You said about this sentence ''Ending no earlier than 31 days before the date of application means I have to produce a statement of £200,000 in my account within 31 days before the date of application and according to you it doesn't mean that I have to keep the money in my account for 31 days before the date of application right?
Query: As I transferred funds recently from my Rupee account where they were kept for 8 months and now I have transferred them to my GBP account but they have just been kept for 10 days. So do you think I can make the application on just providing a bank statement of funds showing £200,000 in my GBP Account for only 10 days? I am providing all the evidence of where the funds came from such as Gift certificate from my parents who gifted me the money, letter from the First Class Magistrate validating the authenticity of the signatures of my parents on the Gift Certificate who gifted the money and myself who received it. And also I will be showing bank statements of my GBP account where the money is now present from the past 10 days and also will show bank statement of Rupee account where the money was initially transferred to me from parents who gifted it and it is the same account where i kept the money for 8 months initially and then recently transferred it into my GBP Account.
Yes, that should be fine.Hammad Zafar wrote: ↑Mon Feb 18, 2019 1:30 pmIn continuation to my previous reply, as I am not maintaining the money in my GBP Account where the money was transferred 15 days ago, but I will be providing evidence of my Rupee account from where I transferred money to this GBP account, will it be fine? Like would this be considered that I have held the money for 90 days? But this 90 days was kept in Rupee account, now in this GBP account where I have the money for 15 days now.
Hammad Zafar wrote: ↑Tue Feb 19, 2019 4:17 pmWell I am going to tell the case worker that I am purchasing the business from the head office and not the owner. I had a meeting with the head office of the franchise and they have agreed for me to take over the current franchise and once I go to the UK, will be transferring the money to the head office. So do you think this will be fine for me as no where it will be stated that the money is going to the previous owner?
According to the guidelines it says that any payment towards the previous owner will not be counted towards your investment. In this case you are paying the head office who is acting as the current owner of the business. It is a very tricky situation where the CW will also think the same way so to clear it out they will want to see the agreement or the paperwork that you sign and what it says as this documentation will have the name of who is selling the business to you and if you are signing this document with the franchisor then they will be technically classified as the seller and they will then look at what assets the company had and calculate how much goodwill you paid to the previous owner
Also, don't you think this question of whether the money will now go to the head office or previous owner will be asked to me after 3.5 years when I apply for the extension? How can the CW with assurance reject my application now as he won't have any proof now during the interview as to whether I will be transferring the money to the head office or to the previous owner? Because after 3.5 years, they can then ask for legal documents and purchase agreement to see whether the money was transferred to the head office or to the previous owner?
I agree but are you just buying this business with the aim or running it for 3 years only? Are you not thinking about visa extension or ILR? if not then its fine as then it is your call. When I decided on what to do I was clear that I need to run it for at least 5 years and there should not be any hicups when I have to file for extension. But still they can ask for initial acceptance letter from the business showing the terms at what they have agreed and this will be the make or break document. They will not just issue the visa if you say in the plan that I have approched and the franchisor has agreed. This is what I think can happen as the HO are not taking things lying down they want proof
What are your views on this?
Hammad Zafar wrote: ↑Tue Feb 19, 2019 4:19 pmAlso, did you get the visa? and if yes then what way did you apply? Did you take over the existing franchise or did you join the current franchisee and became 50% director/shareholder and then invested £200,000 in that companies accounts?
Yes by the Grace of God my visa was approved and I joined a business as a director and invested 200K in the company as director loan as the company was in loss when I joined, so it required the funds to boost the business.
The head office can only sell the business to you for 175K if they own it. So, paying them is paying the existing owner.Hammad Zafar wrote: ↑Fri Feb 22, 2019 10:31 amMany thanks for your reply.
My query is that as now I am purchasing the business from the head office for £175,000 which includes all the current agreements of lease, fixtures and fittings and stocks, does this money count towards 'INVESTED MONEY''? I will be showing the rest £25,000 as marketing and refurbishment of the current franchise and the total will then be £200,000 investment in the business. Do you think this is right? Or the purchases that I am making for £175,000 from the head office won't be counted as investment?
I will be taking over the company that's running the current franchise so technically, the purchase of the business for £175,000, money will be going in the business account. So do you think this £175,000 will be counted as investment and I can quote this to the interviewer at the initial stage once I apply for the visa that I am doing like this?