Setting up a company in the name of the spouse

Kibria · Post by **Kibria** » Sat Jan 14, 2006 5:31 pm

I have a UK work permit and my wife has got a work permit dependent visa and she is free to work anywhere..

can she create a company of her own in UK?

Secondly can she then hire me on the payroll of her company. I know it seems like a loop but just wondering if it is possible

Post by **John** » Sat Jan 14, 2006 7:17 pm

can she create a company of her own in UK?

Yes, no problem at all. Indeed you could create a company. No legal permission to do that is required. For example, non-residents are totally entitled to form a company in the UK, even if they have never set foot in the UK, and even if they never intend to.

Can a company, whoever owns it, employ you? Not without a Work Permit! And there is the problem! A brand-new company with no track record might well struggle to get such a Work Permit. And unless your occupation is on the shortage list, the company would need to advertise its vacancy not only in the UK but also elsewhere in the EEA! Only if it fails to find a suitable candidate might it have a chance of getting the WP.

Now if you had HSMP it would all be so different!

vin123 · Post by **vin123** » Wed Jan 25, 2006 12:39 am

Kibria wrote: Secondly can she then hire me on the payroll of her company. I know it seems like a loop but just wondering if it is possible

Basically, the restriction are applicable and untowards you, so you wont be able to take up any employment unless approved by the workpermit office for the employing company in writing.

olisun · Post by **olisun** » Wed Jan 25, 2006 3:21 pm

my wife has got a work permit dependent visa and she is free to work anywhere.. <== how can a dependant visa holder employ the main applicant as a employee of his / her company?

Post by **John** » Wed Jan 25, 2006 3:33 pm

As already indicated ..... with a work permit!

Chris · Post by **Chris** » Thu Jan 26, 2006 8:57 am

This is confusing.

A. (work permit holder) workin for company X
A has B as dependant in UK.
B opens up his own company Company Y => fine agreed so far.
A get work permit as an employee Company Y => This does not sound logical.

How can a work permit holder get employed in the company owned by his/her own dependant considering the fact that dependant's visa has always to be in sync with the primary applicant.

Chris

Post by **John** » Thu Jan 26, 2006 9:09 am

Chris wrote:How can a work permit holder get employed in the company owned by his/her own dependant

Chris I think you are overlooking the point that whilst the plan might work in theory, in practice it will be almost impossible for company Y to get a WP for A.

Also, in theory, A could set up company Y, or A & B could do that jointly. But again in practice the chance of company Y getting a WP for A is remote.

Now if A has £200K or more to spare :-

Guidance - Setting up in business (INF 10)

olisun · Post by **olisun** » Thu Jan 26, 2006 10:33 am

Then what is the status of B if he / she employs A in her company assume if B manages to get a WP for A

Post by **John** » Thu Jan 26, 2006 11:22 am

No change, she is still his dependant.

olisun · Post by **olisun** » Thu Jan 26, 2006 2:20 pm

A WP is invalidated once you get a new WP so hence the moment the person switches to a different wp, the dependant visa also get invalidated....

and when the dependant visa get's invalidated then how come the company formed by the holder of the dependant visa exist?

Post by **John** » Thu Jan 26, 2006 2:33 pm

Limited companies don't suddenly cease to exist because of a change of visa status!

Under UK company law there is no compulsion for the owners of the shares, or the directors, to be resident in the UK. Or even if resident here, to have any particular immigration status.

vin123 · Post by **vin123** » Fri Jan 27, 2006 5:30 pm

Olisun

I think you are confused between :

a) - Forming (or incorporating) the company &
b) - Approval or Permission to undertake work ( or get employed).

If you are a dependent, you have permission for both a) and b) provided the visa status is valid.

If you are work permit holder, you do have permission for a) and DONOT have permission for b) unless approved and authorized by the home office. Thats why employers check the eligibilty before offering work to someone.

Any citizen can incorporate a Ltd company in UK as long as they comply with the companies house/ DWP set of norms. But incorporating simply does not give anyone permission to "do work". Thats why we have workpermit offices.

olisun wrote:A WP is invalidated once you get a new WP so hence the moment the person switches to a different wp, the dependant visa also get invalidated....

and when the dependant visa get's invalidated then how come the company formed by the holder of the dependant visa exist?

Post by **John** » Fri Jan 27, 2006 6:42 pm

Vin123 I agree with all of that but just emphasise that as regards "incorporating simply does not give anyone permission to "do work" ", it might be better to add "in the UK" so that it reads "incorporating simply does not give anyone permission to "do work in the UK" ".

That is, anyone in the world can form a UK company, as long as UK company law is complied with, and of course UK immigration and WP regulations don't stop people working for that company outside the UK.

But working in the UK requires legal permission to do so.

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Setting up a company in the name of the spouse

Setting up a company in the name of the spouse

Re: Setting up a company in the name of the spouse