Team application

[Team27]

Hi everyone, I am new on this forum, I am planning to apply entrepreneur visa as a team but I have some confusions, if u guys help me it would be a great help.

1) can me and my team mate invest directly 25k each from our own individual current accounts to business account or we need to open a joint account and then invest all 50k to business account.

Please note we are planning to invest in an existing IT business and we are investing in the form of director loan.(under funds already invested in 12 months)

2) In this case do We need to summit any type of declaration from each other with visa application ?

Many Thanks!

[Team27]

Guys please give me your expert advice.

[KickAss]

Since you have the money in ur own accounts.
Why dont you setup ur own company and apply for visa.
This way case will be simple and after you get visa you can decide to invest in another business.

I am not sure if something is wrong in this ! wait for others to comment but as far as I remember ukba guidelines as an Entrepreneur you can try many business not necessary the one you applied with.

Above comes with an exception for PSW that any business you do must be > nfq 4

[smart_gem]

The best way is to open a business account and transfer the funds in it. Otherwise if you both will keep 25,000 in your respective accounts then you both have to make 1 declaration each (must be notarized) and both will need legal letter from other team member's solicitor. This is not only complex but also you have to pay 2 solicitors and for 2 declarations.

It will also put the case worker in confusion as your documents will be more and complex. The best, easy , cheap and fast way is to open up a mutual business bank account and invest. that is how you wont need any additional declaration. Get an accountant to make some documents / shares to show you both are the owner of the company

[searoze]

The best way is to open a business account and transfer the funds in it. Otherwise if you both will keep 25,000 in your respective accounts then you both have to make 1 declaration each (must be notarized) and both will need legal letter from other team member's solicitor. This is not only complex but also you have to pay 2 solicitors and for 2 declarations.

Sorry smart_gem
If some one is applying under cat D (PSW to Entrepreneur) then funds MUST NOT be in business account.
Tier 1 Entrepreneur policy guidance page 22
"The account must be in your own name only (or both names for an entrepreneurial team)
only. Accounts in the name of a business or third party will not be accepted;"

If you have fresh 50K to invest and 50K is in personal account of urself and your team member then you both need to prove access over the money that is pretty much confusing and requires many documents. So best way is to get a joint account and transfer all funds into that joint account.
Director's Loan
Following applies

A20. A loan to the business will not be accepted The investment should not be in the form of
a Director’s loan, unless it is unsecured and subordinated in favour of third-party creditors. We will use any legal agreement between you and the company to assess this. If no legal agreement is provided or if the investment appears to be in the form of a loan which does not meet these
conditions, no points will be awarded for this investment.

You will need to prove it by providing all the audited accounts maintained by the approved accountant along with an agreement between you and company that must show
• the terms of the loan;
• any interest that is payable;
• the period of the loan; and
• that the loan is unsecured and subordinated in favour of third-party creditors

Please correct me if wrong

[Dayyurite]

@ Seazone,
Third party sponsor is acceptable for car PSW to Entr.

Don't confuse people in this forum. You need a good interpretation of guidance.

[Lola22]

I agree with KickAss.

If you have the whole amount of money, it is much more better if you register your own company because of UKBA challenges.

They request for things that are generally not needed from people with no visa restrictions, so sometimes, it takes the person that is in the same category to understand what you really need and go extra mile to help you.

You can only go ahead with the coy only if you are sure that the coy will be able to support you with all UKBA requirement for the next 5years.

As a team, it is better to have a joint account but since you want go thru the route of already invested route, then the money has to be reflected in the business bank account as unsecured loan and submit all necessary document from your accountant.

If you still have time, put the money in a joint account first before you transfer it to the business account as director's loan.

I hope those that used this method and got their visa will comment so that you get a clearer understanding of how it works. If you got the money from a third party, you will still need a declaration and all necessary document.

Good luck.

[searoze]

@ Seazone,
Third party sponsor is acceptable for car PSW to Entr.

Don't confuse people in this forum. You need a good interpretation of guidance.

Hi Dayyurite

This statement is taken from Tier 1 Entrepreneur Policy guidance page 19

"The account must be in your own name only (or both names for an entrepreneurial team) only. Accounts in the name of a business or third party will not be accepted"
Can some one rely on third party funding if money is in UK ?


Please correct me if wrong

[Lola22]

Hello Searoze,

Yes, you can rely on third party funds from any where in d world. You just have to provide the required third party documents.
However, this option should be used as a last resort if u cannot ve d money in your account cos UKBA picks a lot of error from third party funding.

It is more better and safer if d money is in your own account.

Apology Dayyurite for commenting before u did. Hope it is ok. Pls let me know if u ve a different view.

Thank u.

[smart_gem]

The best way is to open a business account and transfer the funds in it. Otherwise if you both will keep 25,000 in your respective accounts then you both have to make 1 declaration each (must be notarized) and both will need legal letter from other team member's solicitor. This is not only complex but also you have to pay 2 solicitors and for 2 declarations.

Sorry smart_gem
If some one is applying under cat D (PSW to Entrepreneur) then funds MUST NOT be in business account.
Tier 1 Entrepreneur policy guidance page 22
"The account must be in your own name only (or both names for an entrepreneurial team)
only. Accounts in the name of a business or third party will not be accepted;"

If you have fresh 50K to invest and 50K is in personal account of urself and your team member then you both need to prove access over the money that is pretty much confusing and requires many documents. So best way is to get a joint account and transfer all funds into that joint account.
Director's Loan
Following applies

A20. A loan to the business will not be accepted The investment should not be in the form of
a Director’s loan, unless it is unsecured and subordinated in favour of third-party creditors. We will use any legal agreement between you and the company to assess this. If no legal agreement is provided or if the investment appears to be in the form of a loan which does not meet these
conditions, no points will be awarded for this investment.

You will need to prove it by providing all the audited accounts maintained by the approved accountant along with an agreement between you and company that must show
• the terms of the loan;
• any interest that is payable;
• the period of the loan; and
• that the loan is unsecured and subordinated in favour of third-party creditors

Please correct me if wrong

Dear Searoze
The best way is to refer to immigration laws rather than the guide book. There are discrepancies in guide book. Yes if the team has already formed and money is in business account then it is permissible as per law. Please note that the immigration laws do not make HMRC laws null and void. The bottom line is yes team members can form a business and start trading before the lodging of application. I can give you more details if you need.

[rsrameshsunil]

Hi everyone, I am new on this forum, I am planning to apply entrepreneur visa as a team but I have some confusions, if u guys help me it would be a great help.

1) can me and my team mate invest directly 25k each from our own individual current accounts to business account or we need to open a joint account and then invest all 50k to business account.

Please note we are planning to invest in an existing IT business and we are investing in the form of director loan.(under funds already invested in 12 months)

2) In this case do We need to summit any type of declaration from each other with visa application ?

Many Thanks!

if you have 25k each already, the best way is to open a joint account and place 50k in that account and obtain a bank letter. Since it is a joint accouht, Both your names will be automatically printed in the bank letter and you would not have any problems relating to bank policy restrictions etc. This is the most straight forward way of all. However if you plan to show individual accounts it will be difficult to obtain required letters from bank.

If you have already invested and do not have the cash anymore, in that case you can obtain audited accounts and letters from your accountant confirming both your names and both of your investment amounts. It need not be from join account in that case, it could be from individual accounts. You just need to prove that money has been injected into business and spent completely.