To satisfy investment requirement

[sky_rise]

Hi everyone,
Please advise:

Got the visa, got 50k in uk bank account. Need to invest them in operations now.

How do we prove that 50k invested is our money? Do we simply transfer it to the uk business bank account from our current personal a/c?

I heard of director's loan etc?


What is the right way to do to later prove that is was my money and they got properly invested?

Thanks!

[Olasunkanmi]

@ sky_rise,

Investing the 50k fund is not just transferring it into your business bank account only, rather it is spending the money on your business and this could include; business running costs, staff salary (Director salary excluded) e.t.c.

If you initially transfer the funds into your business bank account before spending it, it is better to have a director's loan agreement between you and your business and the agreement should be attest to by a legal representative.

Since you have got your visa already, the source of the money might not be an issue as long as you have all the documents of what you used the money for in the business. But its better you also keep the source of the money for future reference, but the source wont be required during extension except if HO want to do some random check.

[Dasistfact]

Just a small amendment. Loan agreement doesn't need to be signed by anybody else but director(you). If an accountant or any legal representative signs it- it's fine, if not- it shouldn't be a problem.

[Olasunkanmi]

Just a small amendment. Loan agreement doesn't need to be signed by anybody else but director(you). If an accountant or any legal representative signs it- it's fine, if not- it shouldn't be a problem.

Evidence to show how much has been invested

Paragraph 104 of the policy guidance;

iii) Director’s loan
If you have made the investment in the form of a director’s loan, it must be shown in the relevant set of accounts provided, and you must also provide a legal agreement, between you (in the name that appears on the application) and the company.
This agreement should 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.
If it is not clear from the information provided that the loan is unsecured and subordinated in
favour of third-party creditors, we will not accept the loan for the award of points.

Legal agreement is an agreement between two or more parties, so the director cannot sign alone with Home Office requirement without the attestation of either a lawyer or an accountant. But the best person to attest should be a lawyer.

[Dasistfact]

What kind of lawyer should sign the contract: immigration, corporate or a professional in employment law?
If you mean to say that agreement is something signed by two parties, that means that 1 party offers something, while the other accepts it. Therefore a lawyer should accept your loan on behalf of your company, right?
Someone has posted here a loan agreement with only one director's signature.
IMHO loan agreement could be in form of board meeting minutes or directors resolution, where all the loan terms are stipulated.
Something like director X has decided to give a loan to his company Y so it can improve in Z components on following terms. Signature.

By the way, Olasunkanmi are you a professional immigration lawyer or just an ordinary member-applicant? You give dozens, very often good advice on a daily basis from early morning till late evening here.

[MTZ510]

Legal agreement is an agreement between two or more parties, so the director cannot sign alone with Home Office requirement without the attestation of either a lawyer or an accountant. But the best person to attest should be a lawyer.

Directors Subordinated Loan Agreement is always between company and the director giving the loan. So director will sign on behalf of the company ( in capacity of authorized company officer) as well as on behalf of the Director (in personal capacity).

The agreement can be signed in presence of a lawyer to prove its legality.

[Dasistfact]

Directors Subordinated Loan Agreement is always between company and the director giving the loan. So director will sign on behalf of the company ( in capacity of authorized company officer) as well as on behalf of the Director (in personal capacity).

The agreement can be signed in presence of a lawyer to prove its legality.

Hi. In presence of what lawyer the agreement should be signed? If it's signed in presence of an accountant, is it ok?
Legally contracts are signed in someone's presence only if parties decide so, if there's lack of trust for example. This is not our case I believe)))
However if there's an additional signature it will look better, however it's not a requirement.

[Olasunkanmi]

@ Dasistfact, most lawyers are able perform the task of document legalisation. Their task is to confirm that the signature on the Director's loan agreement is genuine to make it legal.

[sky_rise]

Many thanks for your detailed comment, much appreciated.

So, I can not simply transfer the money from personal current account into business and then show the transactions?

re. directors loan: is it a better option? or not?

Many thanks

SR

@ sky_rise,

Investing the 50k fund is not just transferring it into your business bank account only, rather it is spending the money on your business and this could include; business running costs, staff salary (Director salary excluded) e.t.c.

If you initially transfer the funds into your business bank account before spending it, it is better to have a director's loan agreement between you and your business and the agreement should be attest to by a legal representative.

Since you have got your visa already, the source of the money might not be an issue as long as you have all the documents of what you used the money for in the business. But its better you also keep the source of the money for future reference, but the source wont be required during extension except if HO want to do some random check.