Can Director/ Shareholders settled status be Employee to get point Tier 1 entrepreneur visa

[businessmen aces]

Hi ,

I have a question. I came in Uk as a tier 1 entrepreneur team member on 28th March 2013 with my other team member ( my dad ) . We both applied for 1st extension in June 2016 which was approved after 9 months March 2017. Then in July 2018 I applied for ILR with my 4 dependents ( my wife and 3 kids ) but my dad who was a entrepreneur team member with me did not apply for ILR along with his dependent ( my mother) as he was falling short of 180 days each year needed for ILR . We received our ILR in less than 5 weeks in August 2018. My dad then applied for his 2nd entrepreneur visa extension in Jan 2019 and he received extension in March 2019. We both had invested £ 250,000 as share capital in the company in March 2013 . The company was in profit till 2018 with annual turnover of close to million GBP but in 2018 - 2019 business suffered downturn and company suffered loss of £ 655,000 and all share value got eroded and company had negative equity . My father resigned from this company on 31st March as a director but he is still a shareholder in this company. I am still director of this loss making company but this company has stopped trading on 31st March 2019 and we had 5 employees all were sacked on 31st March when company stopped trading. Soon our company will go to liquidators as company has some payee and business rates debt and also other debts.

Now in October 2018 we floated another company which does similar business and that company started full time trading from January 2019. We invested new share capital of £ 50,000 into new company . In the new company we are 3 directors myself ( ILR holder ) my wife ( ILR holder ) and my dad ( tier 1 entrepreneur visa holder with 2 extensions and was my tier 1 partner in March 2013 ).
Now our new company has a monthly turnover of about £ 25,000 so our projected annual turnover is about £ 300,000 and company is in profit. My dad wants to apply for ILR in oct / nov 2020 using the new company as a director and in the new company we have 1 full time employee who works for about 170 hours a month , 1 part time employee who works 64 hours a month and my wife ( ILR holder applying BC this month ) who is also a director in the company working part time 92 hours a month and myself ( ILR holder applying BC this month) working 93 hours a month ( I am also director)
When my Dad applies for his ILR can he use our 1 full time employee for 1st job and for 2nd job use our part time employee working 64 hours a month and my wife working ( 92 hours a month who is director and shareholder in the company) . All our staff are paid minimum £ 12 an hour plus holiday pay , pensions etc .

The main confusion is that can a Director/ shareholder who is a settled worker be considered as an employee for getting points and as we have already invested £ 250,000 in old company and visa was extended 2 times on the basis of that investment now after losses and resigning from old company do we need to reinvest another £ 200,000 in this new business . New business is in profit we have learnt lesson from our mistakes after £ 655000 loss in previous business.
Do you think my dad will have problem in ILR should be invest £ 200,000 again and keep another full time employee or can director be an employee ?

Sorry for the long post I hope it makes sense any advice from gurus will be appreciated.

I was not sure which forum to post so I posted in both ILR and Tier 1 entrepreneur you can merge or lock the wrong post please

[marcnath]

1) As long as the director's have been on regular payroll with minimum wage met, they can be counted towards the job creation. Shareholding or directorship has no relevance.
2) no need to invest again

[businessmen aces]

Thanks a lot for clearing my doubts cheers