Tier 1 (Entrepreneur) queries

[DangerousWolf]

I have gone through Tier 1 guide on UKBA number of time, couldn't read anything mentioning like "third party funds has to be in liquid cash form".

My query is, If I apply for personal loan on my brother's name overseas and get a bank's loan sanction letter drafted the way UKBA wants, would that be considered as a valid document towards access to funds ? There is no money in account, Bank is just saying - if you need we can provide in near future.

Any comments are welcome and appreciated.

[Lucapooka]

That (the promise of a loan to your Brother) won't work. There needs to be money in your Brother's account and at your disposal in accordance with the various letters and papers detailed in the guidance.

[DangerousWolf]

Thanks for the quick response.

But if Bank is ready to offer a letter upon sanction of personal loan saying -

1.
"we are confirming that Mr. Abc has got access to £50,000 funds whenever he want and can be disposable in UK for Mr. xyz's Business."

Mr Abc's declaration -
2.
"I have no obligation to offer allocated funds to Mr. xyz towards his business"

3. Sign Verification Certificate


then wouldn't that satisfy condition, Irrespective of disposal of money. This is what I got from UKBA's guide. It doesn't say, the money needs to be in liquid cash form. Does it? I think all matters to UKBA is letters in format. Please correct me if this is not the case.

[Lucapooka]

The money needs to be available from the account holder's own funds that are held in the financial institution. If the account holder is a third party then the need for the money to be the personal funds of the account holder still applies. Please read the paras 99 - 103 et al of guidance!

What you are describing, where funds don't exist but are available on request from FI in the form or a loan is only accepted under the circumstances for venture capital or Govt. seed funding, which does apply to you in your circumstances.

[DangerousWolf]

That's very valuable info, Sir! That means I was chasing wrong direction. Thanks.

[rajm2012]

This is different situation. Third party funds means you are showing funds under someone else account.

If your uncle has transferred funds to your account then no more declaration required.

Hi, the other topic that you started has been locked by the moderators. So I'm replying to your post here.

Please read the following, especially the bits in red.


Evidence of the amount of money available to invest
97.You should use this evidence of funds available to invest for your initial application under
sections a; b; c and d (see the attributes table for initial applicants).
98.You must provide one or more of the following documents
• A letter from a financial institution;
• For money held in the UK only, an account statement;
• For money from a Venture capital firm, seed funding competition or UK
Government Department only, a letter from an authorised accountant.

100. For money held in the UK only, a recent personal bank or building society statement from
the UK financial institution holding the funds, which confirms the amount of money available
to you or your entrepreneurial team.
The total amount of available money must be either at least £200,000; or at least £50,000, as
applicable. If the money is held in several financial institutions, you must supply a statement from
each institution.
• The statements must be original documents and not a copy.
• The bank or building society holding the money must be based in the UK and regulated by
the FSA;
• The money must be in cash in the account. We will not accept ISA accounts or assets
such as stocks and shares;
• 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; • Each bank or building society statement must be on the institution’s official stationary and
confirm each of the following details:
o Your name; or your name and your entrepreneurial team member’s name,
o The account number
o The date of the statement
o The financial institution’s name and logo;

Source: Source: http://www.ukba.homeoffice.gov.uk/sitec ... dance1.pdf

Now you see why I am confused? On one hand, they're allowing third party funding. On the other hand, they're saying you cannot show money in a third party's name if the funds are in the UK. So I've got all the funds transferred to my personal account from my uncle's account, who is a British citizen. But now the question is do I still need a third party declaration?

[DangerousWolf]

If you are saying you got all money in UK bank account transferred from yours uncle's - then there is no concept of third party applicable for you. UKBA doesn't care from where you are bringing in the money.

Third party concept applicable only when you do not have money under your named bank account. You would have required declaration from your Uncle only if the money is in his account and you want to show it for yourself.

Hope it make sense.

My query was, whether 3rd party concept is applicable when you want to show money within UK or it is limited for international funds.

[rajm2012]

If you are saying you got all money in UK bank account transferred from yours uncle's - then there is no concept of third party applicable for you. UKBA doesn't care from where you are bringing in the money.

Third party concept applicable only when you do not have money under your named bank account. You would have required declaration from your Uncle only if the money is in his account and you want to show it for yourself.

Hope it make sense.

My query was, whether 3rd party concept is applicable when you want to show money within UK or it is limited for international funds.

That's where the contradiction lies. You are allowed to have a third party in the UK but then at the same time, they are saying that you cannot have money in a third party's name if the funds are in the uk.

[Lucapooka]

There is no contradiction. Please re-read the guidance.

Para 98 the guidance states the evidence of the money held by the FI can be in the form of a bank statement or a letter (as detailed in the guidance). You can choose which is best for your situation. However, if the money is not in the UK, a bank statement is not acceptable. Or, in other words, money held outside the UK can't be evidenced with bank statement.

The guidance in para 100 then goes on to elaborate the conditions if you are choosing to provide a bank statement (and clearly this will be with exclusive regard to money inside the UK).

In addition to this, third parties must obey the additional evidence rules in para 102

[ARSH]

I am totally agreed with Rajm 2012 regarding the Contradiction. It is clearly a contradiction when they allowing to use third party funding but at the same time saying in Para 100

"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;"

[Lucapooka]

So, that's a problem with your ability to understand written texts and I can't help you with that.

[ARSH]

It is clear, who has problem with understanding the written text.

[DangerousWolf]

Sorry Lucapooka.. I didn't read your comments under this topic and asked the same sort of things under another thread.

Guys, what Lucapooka is saying make sense to me.

Access to £50,000 -

1) If you have money in your UK bank account - can show bank statement.
2) If you know someone, who's got the money in UK bank account - Then Bank letter, declaration and sign verification will be required.
3) If you have money in overseas bank account or if you know anyone who's got money in overseas bank account - then again Bank letter, declaration and sign verification will be required.

All the above 3 routes can be added together in case to show prove £50,000 access.

[DangerousWolf]

I know, It's mentioned in para 103 that the third party could be anyone family, investors or corporate body.

What I was thinking to do is to get my client to draft bank letter showing cash in their company bank account. But my concern is, who I should ask to write declaration then ?

[rajm2012]

Sorry Lucapooka.. I didn't read your comments under this topic and asked the same sort of things under another thread.

Guys, what Lucapooka is saying make sense to me.

Access to £50,000 -

1) If you have money in your UK bank account - can show bank statement.
2) If you know someone, who's got the money in UK bank account - Then Bank letter, declaration and sign verification will be required.
3) If you have money in overseas bank account or if you know anyone who's got money in overseas bank account - then again Bank letter, declaration and sign verification will be required.

All the above 3 routes can be added together in case to show prove £50,000 access.

Okay, so I can just show my own bank statements as my uncle has already transferred money into my UK, and that will all I need?

[rajm2012]

So regardless of the country you are showing the money in, bank statements will NOT be accepted as evidence of funds if you are showing third party funding??

If you are showing third party funding, you HAVE to provide a bank letter..it doesn't matter if you are showing the money in the UK or overseas. Bank statements on their own can only be counted as evidence of funds if you have the money in your own name in the UK.

Am I getting this right??

[Lucapooka]

So regardless of the country you are showing the money in, bank statements will NOT be accepted as evidence of funds if you are showing third party funding?? ?

No, that's not what was discussed. Bank statements from overseas in any circumstances, even when the money is held by the applicant, are not accepted. In such cases a letter from the FI is necessary. Only bank statements from the UK meet the requirements without the need for a letter and you only need one or the other rather than both. Please read para 98 of the guidance.

[rajm2012]

So regardless of the country you are showing the money in, bank statements will NOT be accepted as evidence of funds if you are showing third party funding?? ?

No, that's not what was discussed. Bank statements from overseas in any circumstances, even when the money is held by the applicant, are not accepted. In such cases a letter from the FI is necessary. Only bank statements from the UK meet the requirements without the need for a letter and you only need one or the other rather than both. Please read para 98 of the guidance.

I'm sorry but I don't seem to understand what you're trying to say. Please read my quote again. I wrote regardless of the country you are showing money in, bank statements are not accepted as evidence of funds if you are showing third party funding. You confirmed a part of it by saying bank statements from overseas in any circumstances are not accepted, even if it is held by the applicant. Now comes the showing money in the UK part. If you have money in the UK, bank statements are only accepted as evidence if the money is in your own name. Am I correct? Bank statements won't be accepted as evidence of funds if the money is in third party's name in the UK, right? So if you're showing money in third party's name in the UK, you will need to get a bank letter. Please correct me if I'm wrong.

[daYZman]

This whole third-party funding issue is confusing me too.

Para 103i says:

"A declaration from every third party that they have made the money available for you to
invest in a business in the United Kingdom."

What does it actually mean by "mak[ing] the money available for you to invest in a business..."? Does that mean if I use that money to buy shares in my own company, the shares would have to be in my own name? What if the external investors want the investment to become their own asset?

Thanks

[Gorgeous_Worrier]

Dear Friends,

I am applying for initial application. Since last 7 months, I am director of my existing company. I am bit confused regarding following para. in Guidance Policy;
-----------------------------------------------------------------------------------
"112. If you were a director of a new or existing company you must provide the following:
Current Appointment Report from Companies House: This will list the Directors of a company and
the dates of their appointment. Even if you are no longer a Director of the same company, we
require the Current Appointment Report for the date that you became a Director of that company.
If the date on the Current Appointment Report was more than 8 months after your specified date
we will not award any points for this section."
-------------------------------------------------------------------------------------

Here, I am not sure this Para is applicable to me for initial application. If it is for initial application, than I am bit worried about Sentence in Bold. when I submit my application I would finish 9 months duration of director of my company.

I would Like to request senior members to Clarify my doubts.

Thanks in Advance!

[nickb]

Dear Friends,

I am applying for initial application. Since last 7 months, I am director of my existing company. I am bit confused regarding following para. in Guidance Policy;
-----------------------------------------------------------------------------------
"112. If you were a director of a new or existing company you must provide the following:
Current Appointment Report from Companies House: This will list the Directors of a company and
the dates of their appointment. Even if you are no longer a Director of the same company, we
require the Current Appointment Report for the date that you became a Director of that company.
If the date on the Current Appointment Report was more than 8 months after your specified date
we will not award any points for this section."
-------------------------------------------------------------------------------------

Here, I am not sure this Para is applicable to me for initial application. If it is for initial application, than I am bit worried about Sentence in Bold. when I submit my application I would finish 9 months duration of director of my company.

I would Like to request senior members to Clarify my doubts.

Thanks in Advance!

Its clearly mentioned in the policy guidance that for initial applications, you need to be registered as a director within 3 months from the date of application. So in your case, you won't be able to apply with the company that you have been a director as its more than 3 months.

[getTier12011]

I am on tier1General ,switched from tier 1 PSW in 2011 last year,can i switch into tier1 enterpreneur category next year with the 50000 funding?

[nickb]

I am on tier1General ,switched from tier 1 PSW in 2011 last year,can i switch into tier1 enterpreneur category next year with the 50000 funding?

No. The 50000 funding route is only applicable for those under PSW category.

[MILI]

Hi

you can apply with ur existing company even if ur comapny is 7or 12 months old...

All that UKBA need is a Current Appointment Report which is new..

To be more specific:-u are the director of the company for 1 yr.......and when u started ur company u got a Current Appointment Report from ur accountant.....so now ur Current Appointment Report was printed 1 yr back.....The UKBA will not accept this(since it is 12 months old report)

All u need to do is print a new copy of the Current Appointment Report.

I am very sure about this since i got my visa last week





[quote="nickb"][quote="Gorgeous_Worrier"]Dear Friends,

I am applying for initial application. Since last 7 months, I am director of my existing company. I am bit confused regarding following para. in Guidance Policy;
-----------------------------------------------------------------------------------
"112. If you were a director of a new or existing company you must provide the following:
Current Appointment Report from Companies House: This will list the Directors of a company and
the dates of their appointment. Even if you are no longer a Director of the same company, we
require the Current Appointment Report for the date that you became a Director of that company.
[b]If the date on the Current Appointment Report was more than 8 months after your specified date
we will not award any points for this section.[/b]"
-------------------------------------------------------------------------------------

Here, I am not sure this Para is applicable to me for initial application. If it is for initial application, than I am bit worried about Sentence in Bold. when I submit my application I would finish 9 months duration of director of my company.

I would Like to request senior members to Clarify my doubts.

Thanks in Advance![/quote]

Its clearly mentioned in the policy guidance that for initial applications, you need to be registered as a director within 3 months from the date of application. So in your case, you won't be able to apply with the company that you have been a director as its more than 3 months.[/quote]

[Gorgeous_Worrier]

Hi MILI,

Congratulations for getting the VISA!!

And Thanks for confirming about 3 months issue...

It would be much helpful if you answer my following Questions....

• Which kind of business did you mentioned in your application?

Did you show trading through the company that you opened before 3 months of application?

THANKS IN ADVANCE!