T1E more than 1 business and questions about job creation

[kenyaken]

Hi all, I've recently been granted T1E visa and am thinking of starting my business in the UK soon. I will register a new company which I'll be the sole director. I'm going to start a small business later this year before considering branching out.
Here are some questions about having multiple businesses and job creation. Please kindly advise.

1) Before starting my own business, I'm invited to start a new salon with my friends (UK citizens) in London. I'll have 20% share in the salon. Is it advisable to join the partnership with my company rather than individual? I'll only be an investor instead of operating the salon, but I suppose it counts as part of my £200K business investment even if I'm not one of the directors in the salon, correct?

2) I and 4 partners will start the salon together and employe a few full time workers. Can I claim all the newly created jobs in my future T1E visa extension application (I'm thinking of creating 10 jobs for fast track)? Or do I just claim in proportion of investment (e.g. 1/5 share means I can claim only 1 job creation if there're 5 newly created jobs in the salon)?

3) One further questions about creating 10 jobs over multiple businesses for 3 year fast track to ILR (let me know if I should start a new topic for this question). Is it possible to claim 10 job creation over multiple businesses for ILR application? Should the 10 posts exist/existed all during the SAME 12 months period? As I know, they can be any 12 months period and are ceased to be existing by the time of application for T1E extension, correct? But is it necessary that they exist/have existed in the same time?

Long post. Thank you for reading and thanks in advance for any advice.

[zimba]

1) Before starting my own business, I'm invited to start a new salon with my friends (UK citizens) in London. I'll have 20% share in the salon. Is it advisable to join the partnership with my company rather than individual? I'll only be an investor instead of operating the salon, but I suppose it counts as part of my £200K business investment even if I'm not one of the directors in the salon, correct?

Investment points are only awarded if you invest the 200K in a business(es) where you are a director.

2) I and 4 partners will start the salon together and employe a few full time workers. Can I claim all the newly created jobs in my future T1E visa extension application (I'm thinking of creating 10 jobs for fast track)? Or do I just claim in proportion of investment (e.g. 1/5 share means I can claim only 1 job creation if there're 5 newly created jobs in the salon)?

You can claim all the jobs if you start a new business. Job creation and investment criteria have no connection

3)Is it possible to claim 10 job creation over multiple businesses for ILR application?

Yes

Should the 10 posts exist/existed all during the SAME 12 months period?

No

As I know, they can be any 12 months period and are ceased to be existing by the time of application for T1E extension, correct?

Correct

But is it necessary that they exist/have existed in the same time?

No


I highly suggest to read the official Tier 1E guide where your questions are all answered: https://www.gov.uk/government/publicati ... trepreneur

[kenyaken]

Thank you, Zimba, for your explanation. You are really helpful. I did check the document, but need to reconfirm with gurus like you. I don't want to make silly mistakes and ruin everything after 3 years of hard working.

Just one more question about the worse case scenario about going after the fast track. Please kindly advise.

I'm going to be one of the directors in the salon I mentioned above, which creates 4 new jobs; and I will also start 2 new businesses (sole proprietor) and create 6 new jobs in total. I plan to apply for ILR after 3 years with the 10 jobs created (different posts each lasted more than 12 months) in the 3 businesses. My concern is: what if one/some of the businesses closed down after 1 or 2 years due to a loss of money or proved to be unsustainable? Will there be any concern in passing the genuine entrepreneur test?

Lastly, are there any special things for people who intent to go through the 3 years fast track to take note?

Thanks again in advance for any comment and advice.

[zimba]

I'm going to be one of the directors in the salon I mentioned above, which creates 4 new jobs; and I will also start 2 new businesses (sole proprietor) and create 6 new jobs in total. I plan to apply for ILR after 3 years with the 10 jobs created (different posts each lasted more than 12 months) in the 3 businesses. My concern is: what if one/some of the businesses closed down after 1 or 2 years due to a loss of money or proved to be unsustainable? Will there be any concern in passing the genuine entrepreneur test?

No. Closing down a business in not on its own a disqualifier. The rules will change in April that will require you to explain the duties of your employees for each role that was created (see the post on top of the forum)

Lastly, are there any special things for people who intent to go through the 3 years fast track to take note?

Not really. You simply need to fulfil the criteria and not have long absences from the UK

[kenyaken]

Thank you, Zimba. Kudos to you!

[kenyaken]

Dear Zimba and all, following the previous questions, I checked the latest Policy Guidance and still have one point to clarify about claiming of new job creation. Please kindly advise.

In the "Job creation: specified documents" section of the Policy Guidance (p. 32), it states "(f) If you were a director of a UK company or member of a UK partnership at the time the settled worker was employed by your business, a printout from Companies House of the company’s filing history page and of your personal appointments history, showing this."
Does it mean I don't have to be the director of the partnership company to claim the job creation? Is my understanding correct?

Thank you in advance and best wishes.

[marcnath]

Dear Zimba and all, following the previous questions, I checked the latest Policy Guidance and still have one point to clarify about claiming of new job creation. Please kindly advise.

In the "Job creation: specified documents" section of the Policy Guidance (p. 32), it states "(f) If you were a director of a UK company or member of a UK partnership at the time the settled worker was employed by your business, a printout from Companies House of the company’s filing history page and of your personal appointments history, showing this."
Does it mean I don't have to be the director of the partnership company to claim the job creation? Is my understanding correct?

Thank you in advance and best wishes.

It says Director of a UK company OR member ....

It is an OR, not an AND

[kenyaken]

Thanks, marcnath, for your reply.

I was trying to clarify that I don't have to be a director (but only a member) in a share capital partnership company to be qualified to claim the job creation. Seems you have affirmed that. Thank you.

Please also do you suggest if there is any differences for me to join the partnership (with 4 other UK citizens) as an individual (in my own name) or as a company (that I'm going to set up within 6 months after visa approval)?

Million thanks for any comment.

[marcnath]

Thanks, marcnath, for your reply.

I was trying to clarify that I don't have to be a director (but only a member) in a share capital partnership company to be qualified to claim the job creation. Seems you have affirmed that. Thank you.

Please also do you suggest if there is any differences for me to join the partnership (with 4 other UK citizens) as an individual (in my own name) or as a company (that I'm going to set up within 6 months after visa approval)?

Million thanks for any comment.

If you join a partnership as a company, I can't see how you will meet the requirements for job creation, for example (or even investment).

[kenyaken]

Dear marcnath, please do you mind explain a bit further on why it's not possible to claim job creation or meet investment requirement in joining a partnership company through my company? Isn't the money invested through my own company in the partnership company count as part of my £200k investment?

[marcnath]

Dear marcnath, please do you mind explain a bit further on why it's not possible to claim job creation or meet investment requirement in joining a partnership company through my company? Isn't the money invested through my own company in the partnership company count as part of my £200k investment?

You can only claim points if you are a Director or member. If you invest through a limited company, it is the company that is partner, not you.

[kenyaken]

I got it now! Thank you, marcnath, for the reply.

[kenyaken]

Hi all,

I have further questions about joining a partnership in the UK.
As mentioned above, I'm planning to start a partnership company with 4 UK citizens to open a salon. The salon will create at least two full time jobs that I will claim for job creation. However, my partners found a salon business with a good price recently and are thinking of buying the business.

As I know, the money for buying business and go into the previous business owner will not count as part of my £200K investment. In this case, it's the partnership (that I'm a member) which buy the business. Does my investment in the partnership count as part of my £200K investment? Can I claim the job creation in the salon in this case?

Any advice is appreciated. Thank you in advance.

[marcnath]

Hi all,

I have further questions about joining a partnership in the UK.
As mentioned above, I'm planning to start a partnership company with 4 UK citizens to open a salon. The salon will create at least two full time jobs that I will claim for job creation. However, my partners found a salon business with a good price recently and are thinking of buying the business.

As I know, the money for buying business and go into the previous business owner will not count as part of my £200K investment. In this case, it's the partnership (that I'm a member) which buy the business. Does my investment in the partnership count as part of my £200K investment? Can I claim the job creation in the salon in this case?

Any advice is appreciated. Thank you in advance.

No, you can't. Otherwise, all someone needs to do is set up a company and have the company buy a business.

The intent is clear - investment should be into the business not to give to anyone. It is not going to change if you do that directly or through a chain of companies.

If the money you invest is used to buy another company, then that investment will only count if you are Director/owner of that business (the salon in this case)

[kenyaken]

Thanks marcnath, for the reply.
Sorry I need some further clarification. In this case, five of us are going to set up a new partnership company and I'll be one of the directors. We are going to buy a salon business, refurb the premise and hire new employees to run the business.

If the money you invest is used to buy another company, then that investment will only count if you are Director/owner of that business (the salon in this case)

1. I'll be ONE OF the directors and our share investment will be used to buy a salon from its previous owner and run the business afterward. Can I claim my investment in the salon as part of my £200K investment?

2. Can I claim the job creations in the salon (even if I can't claim the investment)?

[marcnath]

Thanks marcnath, for the reply.
Sorry I need some further clarification. In this case, five of us are going to set up a new partnership company and I'll be one of the directors. We are going to buy a salon business, refurb the premise and hire new employees to run the business.

If the money you invest is used to buy another company, then that investment will only count if you are Director/owner of that business (the salon in this case)

1. I'll be ONE OF the directors and our share investment will be used to buy a salon from its previous owner and run the business afterward. Can I claim my investment in the salon as part of my £200K investment?

2. Can I claim the job creations in the salon (even if I can't claim the investment)?

This is very confusing.

How can a partnership company have Directors ? They have partners or members, not Directors.
1. No. As repeated many times, money that goes to the previous owner is not counted towards investment - period.
2. Yes, but they would need to be additional to those when you join. So, if they have 5 jobs now, it would have to 7 jobs for you to claim 2 new job creation