better way to invesrt

[Legal83]

Hi

What is better way of investment in an existing company -

1 ).share capital investment (become director & share holder)

2) . Unsecured director loan (become a director - director salary + agreed interest )

Thanks[/list]

[removed user]

Director Loan.

[confused90]

Hi

What is better way of investment in an existing company -

1 ).share capital investment (become director & share holder)

2) . Unsecured director loan (become a director - director salary + agreed interest )

Thanks[/list]

The director's salary won't be counted as investment though

[removed user]

Your director loan cannot be taken back by salary, salary is different to directors loan.

with directors loan, you are simply giving the money to the company and when the company is in profit or whatever the terms are for your loan to company, you can take it back.

[Legal83]

So does this fulfil requirement of investment by UKBA ?

[confused90]

Your director loan cannot be taken back by salary, salary is different to directors loan.

with directors loan, you are simply giving the money to the company and when the company is in profit or whatever the terms are for your loan to company, you can take it back.

What would the 'repayment' timing be approx? 3-months, 6-months, a year, 3 years? UKBA hasn't been clear about this

[removed user]

Yes if you give 50k to company, you've invested in the company and now it is being used by the company. When the company has 50K in profits, you can take it back.

[confused90]

Yes if you give 50k to company, you've invested in the company and now it is being used by the company. When the company has 50K in profits, you can take it back.

Can it be taken out in parts? Like 1st year company made £5K profit, can that be taken back?
or do we have to wait until the whole 50K profit is earned?

[my_friend]

Hi

What is better way of investment in an existing company -

1 ).share capital investment (become director & share holder)

2) . Unsecured director loan (become a director - director salary + agreed interest )

Thanks[/list]

directors salary wont be counted towards investment..but u need to take some salary to show how ur affording your living...the accountant can guide u to the most tax efficient way...obviously for ur personal daily expense u need to draw some income from ur business and UKBA checks in ur NI number for any NI contributions and taxes u have paid....

50 k that u invest in ur business as a directors loan...try not to take it back before your extension....however if your company is doing really well and making lots of profit then no issue if you have an agreement in place with your company about the term of the loan and when you will draw and in what parts....

[confused90]

Hi

What is better way of investment in an existing company -

1 ).share capital investment (become director & share holder)

2) . Unsecured director loan (become a director - director salary + agreed interest )

Thanks[/list]

directors salary wont be counted towards investment..but u need to take some salary to show how ur affording your living...the accountant can guide u to the most tax efficient way...obviously for ur personal daily expense u need to draw some income from ur business and UKBA checkes ur NI number for any NI contributions and taxes u have paid....

50 k that u invest in ur business as a directors loan...try not to take it back before your extension....however if your company is doing really well and making lots of profit then no issue if you have an agreement in place with your company about the term of the loan and when you will draw and in what parts....

my_friend, like always... you are spot on

[confused90]

I would also like to know if we can show 50% of the investment as director's loan and 50% as shares? or do we have to show investment in only one category?

[my_friend]

I would also like to know if we can show 50% of the investment as director's loan and 50% as shares? or do we have to show investment in only one category?

u can show in both...

[samaygrg]

agreed.

Hi

What is better way of investment in an existing company -

1 ).share capital investment (become director & share holder)

2) . Unsecured director loan (become a director - director salary + agreed interest )

Thanks[/list]

directors salary wont be counted towards investment..but u need to take some salary to show how ur affording your living...the accountant can guide u to the most tax efficient way...obviously for ur personal daily expense u need to draw some income from ur business and UKBA checks in ur NI number for any NI contributions and taxes u have paid....

50 k that u invest in ur business as a directors loan...try not to take it back before your extension....however if your company is doing really well and making lots of profit then no issue if you have an agreement in place with your company about the term of the loan and when you will draw and in what parts....

[rahulsingh1]

agreed- have spoken to a top immigration solicitor.
they say the money should not be taken out before renewal, and the contract should show that date, as in the repayment should start after the end of your visa period.

Hi

What is better way of investment in an existing company -

1 ).share capital investment (become director & share holder)

2) . Unsecured director loan (become a director - director salary + agreed interest )

Thanks[/list]

directors salary wont be counted towards investment..but u need to take some salary to show how ur affording your living...the accountant can guide u to the most tax efficient way...obviously for ur personal daily expense u need to draw some income from ur business and UKBA checks in ur NI number for any NI contributions and taxes u have paid....

50 k that u invest in ur business as a directors loan...try not to take it back before your extension....however if your company is doing really well and making lots of profit then no issue if you have an agreement in place with your company about the term of the loan and when you will draw and in what parts....

[MTZ510]

If we charge interest on Directors Loan the question is will this interest expense of a company be considered as investment?

Just like the Directors remuneration paid by company to the director is not considered as investment what will be the status of Interest Expense.

Will appreciate if some one can share the sample of directors loan agreement.

Thanks

agreed- have spoken to a top immigration solicitor.
they say the money should not be taken out before renewal, and the contract should show that date, as in the repayment should start after the end of your visa period.

Hi

What is better way of investment in an existing company -

1 ).share capital investment (become director & share holder)

2) . Unsecured director loan (become a director - director salary + agreed interest )

Thanks[/list]

directors salary wont be counted towards investment..but u need to take some salary to show how ur affording your living...the accountant can guide u to the most tax efficient way...obviously for ur personal daily expense u need to draw some income from ur business and UKBA checks in ur NI number for any NI contributions and taxes u have paid....

50 k that u invest in ur business as a directors loan...try not to take it back before your extension....however if your company is doing really well and making lots of profit then no issue if you have an agreement in place with your company about the term of the loan and when you will draw and in what parts....

[helpingperson]

Hi

If we charge interest on Directors Loan the question is will this interest expense of a company be considered as investment?

Is is mandatory to withdraw the loan only when company is making profit or can we withdraw it any time?

Can it be secured loan or it has to be unsecured?

[hnav]

Any body can explain about this type of investment policy guidance page 40


A19. Direct cash investment
In order to ensure that the money is used by the business, you should provide the accounts of that business for assessment. These accounts must show the investment in money made directly by you, in your own name.

Thanks

[helpingperson]

Hi

Could anyone reply on this please.

If we charge interest on Directors Loan the question is will this interest expense of a company be considered as investment?

Is is mandatory to withdraw the loan only when company is making profit or can we withdraw it any time?

Can it be secured loan or it has to be unsecured?