Tier 1 Entrepreneur ILR application

[Noushad]

Dear respected Members,

Please can you answer my below query..

Currently I am on my Tier 1 extended Visa and I will be eligible for ILR soon, but due some unfortunate circumstances the company credentials which were submitted to HO for the extension application is dissolved.

1. Can I use the dissolved company credentials to apply for the ILR?
2. Do I need to apply for a new company and transfer my employees to the new company and apply for the ILR on the new company details?
3. What shall be the possibilities to apply for ILR on my previous company details?

I will appreciate your response and help.

Many Thanks,

[zimba]

You may use any evidence from a previously trading company. However, you must be engaged in business when you apply for ILR and pass the genuineness test. If you do not have a functioning business, then you may not be able to get ILR

[Noushad]

Dear Zumba,

Many thanks for your reply.

It does makes the things easier.

[Frontier Mole]

You will not readily be able to use the dissolved business accounts or details to support your ILR. Simply put the company being dissolved in essence cancels the legal entity and therefore the books, records and any activity the company performed is basically null and void.

[Noushad]

Dear,

To make it simple to understand, is it like wise that I can't submit my dissolved company details for ILR application?? If I can't then please guide me what to do?

Do I need to open a new company and transfer the trading on new company name and transfer all the employees on the new company payroll??

Or do I need to call the Company House to reinstate my dissolved company if there is a chance??

Kindly provide me the options as what shall be the best can I do and which I can follow and submit my ILR application as soon as the time comes.

Many Thanks

[Frontier Mole]

Without knowing more details it is difficult to say what your options are.

Most companies are dissolved because they have not submitted accounts, if that is the case you are already failing to manage your business and that points the Home Office down a very negative route.

Hand in hand with non-submission of accounts is usually non-submission of taxation returns. If the above is accurate and this point too then there is little to be gained by trying to reinstate the company. No doubt you would have to show that your accounts and taxation have been brought up to date and show good cause as to why or how the company become dissolved. It would be for the Company Registrar to decide if you would be able to reinstate the company. I am unaware of any timescales that apply after the dissolution for a request for the dissolution to be overturned, nor the costs or legal consequences. I would seek advice from an appropriate professional.

As for transfer of staff - there is nothing to transfer them from - the legal entity is dissolved, it has no existence in law. You could set up another new company and offer new employment. This assumes you are not employing any sponsored workers.

As for business assets, funds and goods - legally they belong to the Official Receiver. Rarely is there an attempt to recover those but in your case it would be obvious that the original company ceased before the new company existed and that opens even more questions to be answered.

How long did the company trade for? And what impact would be the loss of that period on your potential ILR? These are the two questions you have ask yourself and decide on the likelihood of it having an impact of your ILR

[zimba]

You will not readily be able to use the dissolved business accounts or details to support your ILR. Simply put the company being dissolved in essence cancels the legal entity and therefore the books, records and any activity the company performed is basically null and void.

That is not a problem under Tier 1E rules. Applicants can rely on investment or jobs created in a previously trading company to score points

[Frontier Mole]

Sorry Zimba but my experience of dissolved T1Ent businesses suggests it is very much an issue as the non submission of accounts and taxation returns creates issues. Investment and job creation has to to be proven through the submission of verified documents.

A formally closed business or ceased to trade businesses where all the documentation was submitted to the appropriate authorities is very different from the OP’s circumstances.

It is also about credibility - which immediately comes under scrutiny where a business that is allegedly trading and meeting the visa requirements is dissolved.

[Noushad]

Dearest Frontier Mole and very respectful Zimba,

I am very thankful for your very valuable thoughts and advice. These are certainly most helpful I may have. Tomorrow I have meetings with my accountant and the solicitor as well and I will submit your response as well to them. I will definitely update accordingly.

Many Thanks

[zimba]

Sorry Zimba but my experience of dissolved T1Ent businesses suggests it is very much an issue as the non submission of accounts and taxation returns creates issues. Investment and job creation has to to be proven through the submission of verified documents.

A formally closed business or ceased to trade businesses where all the documentation was submitted to the appropriate authorities is very different from the OP’s circumstances.

It is also about credibility - which immediately comes under scrutiny where a business that is allegedly trading and meeting the visa requirements is dissolved.

I am speaking in general terms. Scoring points for job creation or investment and the genuine test as an entrepreneur are two separate issues as per the rules. If you closed down a previous business (e.g. you sold it off), you can still score points for job creation and investment in that business. The Tier 1E guide makes this very clear. That is all I commented on

[Frontier Mole]

So with no accounts, no taxation returns or verification because the legal entity no longer does exists - how would you suggest that an ILR application is going to be able to demonstrate and verify anything that happened in the proceeding period prior to dissolution for anything they intend to rely on?

I distinguished the difference between closing or selling a business as opposed to a dissolved company. I am not making assumptions I have clearly set out the circumstances I have given my opinion on.

The point of note - the OP has not actually said why the company was dissolved. So without that information we are all making assumptions.

[zimba]

Your points are all valid. I am assuming that the dissolved business entity was legitimate, has submitted company accounts and was operating a PAYE payroll