Buying existing business and 2 jobs

silverdelt · Post by **silverdelt** » Tue Jul 02, 2013 5:18 pm

My question to the experts on this forum is:

If i am planning to purchase an existing running business for sale in UK e.g. someone wants to sell it to get retired etc. If this business already has 2 jobs, do I need to still create 2 more jobs meaning a total of 4 jobs? Or will the first 2 jobs who are transferred to me along with the business be OK?

Thanks and awaiting the correct reply

educators · Post by **educators** » Tue Jul 02, 2013 5:56 pm

silverdelt wrote:My question to the experts on this forum is:

If i am planning to purchase an existing running business for sale in UK e.g. someone wants to sell it to get retired etc. If this business already has 2 jobs, do I need to still create 2 more jobs meaning a total of 4 jobs? Or will the first 2 jobs who are transferred to me along with the business be OK?

Thanks and awaiting the correct reply

you have to create two more jobs after you joined existing business

Darvesh · Post by **Darvesh** » Tue Jul 02, 2013 6:06 pm

i dont think u need to create another 2 jobs as u buying it altogether and will be new owner.
u need to create extra 2 jobs when u join an existing business as partner.

wait for more expert advice.

silverdelt · Post by **silverdelt** » Tue Jul 02, 2013 6:58 pm

Darvesh wrote:i dont think u need to create another 2 jobs as u buying it altogether and will be new owner.
u need to create extra 2 jobs when u join an existing business as partner.

wait for more expert advice.

Thank you both for responding.

I think what Darvesh has said is quite logical and makes sense. I am not joining a business or investing in a business - i am becoming the new 100% owner of the existing business that has been sold to me.

However I will need more concrete and definite responses to be really sure.

rehan01 · Post by **rehan01** » Tue Jul 02, 2013 8:37 pm

Read policy guidance in details ..... If you buy or takeover a business still you will need to create 2 job from the day u take over ....... Anyone already working for that business before u took over will not be counted as job creation.

Regards

Entrepreneur9 · Post by **Entrepreneur9** » Tue Jul 02, 2013 9:30 pm

I agree with rehan.

rehan01 wrote:Read policy guidance in details ..... If you buy or takeover a business still you will need to create 2 job from the day u take over ....... Anyone already working for that business before u took over will not be counted as job creation.

Regards

silverdelt · Post by **silverdelt** » Wed Jul 03, 2013 5:16 am

rehan01 wrote:Read policy guidance in details ..... If you buy or takeover a business still you will need to create 2 job from the day u take over ....... Anyone already working for that business before u took over will not be counted as job creation.

Regards

Thanks for clarifying. So let's take a simple example that I purchase a convenience store that already employs 2 persons, I need to employ 4 in total? How ridiculous...what are 4 people going to do in a store?

The same applies to a business like restaurants etc. If they are already running with maximum employees needed and you purchase them (i.e. the business changes ownership from the seller to you) then what's the point of pushing 2 more employees!

silverdelt · Post by **silverdelt** » Wed Jul 03, 2013 5:23 am

I also checked the policy guidance and yes the fact is that even when taking over an existing business you need to create 2 more jobs in addition to those existing.

While I understand the reason for this (so you not just purchase but also grow an existing business), in cases I have mentioned above this is not possible to do.

Time to review other options

cappachino · Post by **cappachino** » Wed Jul 03, 2013 12:25 pm

What if the business is a new business but your investment is 40 percent with your partner investing 60 percent ( partner is a citizen)
Total number of employees is 2 is this sufficient for extention

Darvesh · Post by **Darvesh** » Wed Jul 03, 2013 3:49 pm

it may not have been a condition of keeping all staff whilst taking over an existing business. so u can fire un-necessery staff and cud also re hire them in last 12 months of ur visa. so ukba requirement of 2 jobs fulfilled.

lets say someone buy an existing business which employed few people however due to some reason u think u can afford all that staff anymore and wud have to fire all or few of them... u can do that its own discretion of the owner.

however within couple of years of taking over that business u need to hire some staff so this will satisfy ukba requirement of creating new jbs...
wudnt it????

so i dont think if u will buy a business outright then u need to hire 2 more ppl in addition to existing staff because when u buy a business it wont mention how many ppl working for this business..

Darvesh · Post by **Darvesh** » Wed Jul 03, 2013 3:51 pm

@ cappachino....i think if u will spend 200k in that business and be director of that business then it shud be ok...

wait for more expert advice.

cappachino · Post by **cappachino** » Wed Jul 03, 2013 4:06 pm

Thanks Darvesh
What about the patnership where the British national who is investing 300000 pounds andthe tier 1 applicant is investing 200000 pounds bbut the British national is borrowing part of the 300000 pounds from the bank
Would this cause complications at the time of extention

Darvesh · Post by **Darvesh** » Wed Jul 03, 2013 4:16 pm

i dont think there is any issue with borrowed money as ukba accept third part funding...

Legal83 · Post by **Legal83** » Fri Jul 05, 2013 6:29 pm

you have to show that the jobs created after your investment, as far as if you can prove this at the time of extension, its fine.

silverdelt · Post by **silverdelt** » Fri Jul 05, 2013 7:41 pm

Legal83 wrote:you have to show that the jobs created after your investment, as far as if you can prove this at the time of extension, its fine.

Thanks for clarifying!

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Buying existing business and 2 jobs

Buying existing business and 2 jobs

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