Investing funds

[Satinder25]

PostPosted: Tue Nov 19, 2013 7:14 pm Post subject: Investing funds Reply with quote Edit/Delete this post
All the gurus I need ur assistance as in what kind of investment is relevant to our business. I am running an event management company which provides all services like conferences, wedding planners etc. I got my visa based on that basis so was thinking any link you can suggest that will guide me. Any help appreciated.[/list]

[Lucapooka]

You have your visa and that would be the purpose of contacting this forum. Now you need advice on your business.

[Satinder25]

Hi Lucapooka,

I am not new to this forum as most of the help for my visa was from this forum. I just needed the proper link where it specifies certain criteria and in terms of Rules we have to play it safe rather than messing it up. Anyways thanks for your reply.....

[rahulsingh1]

Hi Satinder, dont worry too much about lucapooka. hes a very helpful person but sometmes his response is not what you want and is many a times demeaning and demotivating. so you gotta ignore him for that moment and move on

Here comes the part of the investment:

You just have to transfer money from your personal bank account into your business account.-> that will satisfy the term investment for the purposes of the visa.

After this you spend it completely or not is not part of the terms of the visa. Ofcourse you need to spend something, or it will show that something is smelly.

[Olasunkanmi]

Hi Satinder, dont worry too much about lucapooka. hes a very helpful person but sometmes his response is not what you want and is many a times demeaning and demotivating. so you gotta ignore him for that moment and move on

Here comes the part of the investment:

You just have to transfer money from your personal bank account into your business account.-> that will satisfy the term investment for the purposes of the visa.

After this you spend it completely or not is not part of the terms of the visa. Ofcourse you need to spend something, or it will show that something is smelly.

He need to spend the whole 50k funds on his business within the first 3yrs of the visa or else he wont qualify for extension.

You cant just keep money in business account and assume its invested. It has to be spent on the business.

[Satinder25]

Thanks for your reply Rahul and Olasunkanmi. Also Rahul I didn't bothered much about lucapucca, anyways the reason I asked this question was that no one is active on the extension forum. I think we should share something on that forum as well, anyways lets share some knowledge which can benefit all.....Cheers

[rahulsingh1]

First thing -
During initial in country applications for 50K investment criteria -> For people who have already started the company and invested -> UKBA asks for proof of investment AS money being transferred to business bank account / Not whether it is spent from the business bank account or not. Correct ? - Show me if I am wrong here.


Can you show me what you are saying , Where is this present in the guidance ?

Second thing - I have got this confirmed in writing from UKBA on email.

Hi Satinder, dont worry too much about lucapooka. hes a very helpful person but sometmes his response is not what you want and is many a times demeaning and demotivating. so you gotta ignore him for that moment and move on

Here comes the part of the investment:

You just have to transfer money from your personal bank account into your business account.-> that will satisfy the term investment for the purposes of the visa.

After this you spend it completely or not is not part of the terms of the visa. Ofcourse you need to spend something, or it will show that something is smelly.

He need to spend the whole 50k funds on his business within the first 3yrs of the visa or else he wont qualify for extension.

You cant just keep money in business account and assume its invested. It has to be spent on the business.

[Olasunkanmi]

Check page 41 of policy guidance;

''Money deposited in a bank account, even if it is in a United Kingdom business bank account, is not counted as investment in business. The money should be used in the business to encourage growth or expansion, to improve services or products and to ensure the business is profitable.’’

[rahulsingh1]

You have directed us to the right page but you have not read it completely:

This sentence in the guidance is only for people who intend to use the money in property businesses: read the full text of point A20 on page 41 below :

-----------

Property development and property management are excluded from the types of investment accepted for the award of points Investment in property development and management will not be taken into account for the award of points.
This is because it is not the intention of this category to allow you to set up as a landlord and let properties in the United Kingdom. The intention is to promote United Kingdom competitiveness in business and to focus the investment on promoting business beneficial to the United Kingdom economy
.
A person involved inproperty development makes improvements of some kind to immovable property (real estate), which increases its value. A person involved in property management is charged with operating immovable property (real estate) for a fee, on behalf of the owner.

The restrictions on investment in property development and property management are intended to ensure that the Entrepreneur route is used to promote United Kingdom competitiveness in business.

There is no objection, however, to you investing in companies that are mainly involved inconstruction.
Money should be fully used in the business and not held in the business bank account in order to qualify for the award of points
Money deposited in a bank account, even if it is in a United Kingdom business bank account, is not counted as investment in business. The money should be used in the business to encourage growth or expansion, to improve services or products and to ensure the business is profitable.
---------

Check page 41 of policy guidance;

''Money deposited in a bank account, even if it is in a United Kingdom business bank account, is not counted as investment in business. The money should be used in the business to encourage growth or expansion, to improve services or products and to ensure the business is profitable.’’

[shan101]

Hi rahulsingh1
Can you please explain a bit your statement regarding investment "You just have to transfer money from your personal bank account into your business account.-> that will satisfy the term investment for the purposes of the visa".

What if we dont transfer all the 50K at once into the business account Rather we do transfer in parts like,5k, 10k or 15 k during a course of time. Will it still satisfy the condition "investment" of our visa.[/quote]

[Dasistfact]

I think that it's possible to invest funds in parts. According to guidance, the whole amount should be invested by the time of extension. However I will also be glad to read opinions of forum members.

[rahulsingh1]

you can invest in parts - there is no restriction regarding this:

guys- before asking the questions would it not be wise, but common sense to take a look at the visa renewal form ??

In the form it clearly has a table where it asks the applicant to entry the dates and details when each time the money has been invested.

No one expects you to invest 200k at once..

[noumanomer]

@rahulsingh1: It seems that we can spend around 15k and 35k deposit business account at the time of extension we have 35k in our business account. It will work able or not?

[rahulsingh1]

whatever you do(spend or not spend)

Money should first be deposited in business account, you can then spend whatever you need from that business account..

@rahulsingh1: It seems that we can spend around 15k and 35k deposit business account at the time of extension we have 35k in our business account. It will work able or not?

[noumanomer]

If we will not spend all of money and money in the business account so at the time of extension does ukba will consider this money as a investment which is in business account ?

[noumanomer]

Example: If my company will spend half of investment means 25 does spend and rest 25 k still in company account with in three years.. At extension time can we show 25k has been spend by company and 25k still at company account ?

[Princess of Ammi]

you can not !! answering to last post !!

to claim the required points at the time of extension as stipulated in policy/guidance you need to have your funds invested along other requirements. having half of funds available in business bank account can not be called an investment but ready to invest will not let you score the points.

where to invest when there is no room in your business to invest is something you should get a professional's help on,

Thanks,

[rahulsingh1]

princess of ammi - where did u arrive at that conclusion from ??

does it say in the guidance anywhere ?

dont post the same stuff which has been posted above from the guidance..

you can not !! answering to last post !!

to claim the required points at the time of extension as stipulated in policy/guidance you need to have your funds invested along other requirements. having half of funds available in business bank account can not be called an investment but ready to invest will not let you score the points.

where to invest when there is no room in your business to invest is something you should get a professional's help on,

Thanks,

[rahulsingh1]

you only have to say that 50k has been invested - put in the companys bank acount..- nothing else.

How the company wishes to use/spend this money is not the business of the ukba.

I have got this confirmed in written from the ukba..

Example: If my company will spend half of investment means 25 does spend and rest 25 k still in company account with in three years.. At extension time can we show 25k has been spend by company and 25k still at company account ?

[maverick_76]

Agree with Rahul on this.

Guys when you transfer money to your business account, the money belongs to business and not you. This is an act of investment. The only grey area is when you invest as directors loan and not as share capital then it can be argued you have not invested completely into business as business owes that money back to you. I think this is the reason why UKBA wants to see directors agreement.

I hope I have added something here rather than making it more complex

[rahulsingh1]

exactly..

[cappachino]

What if the money u showed at the time of appliction - a portion of that money is sent back to your home country to be returned latter at the time of investment n the complete amount is returned back into the busniess account and then invested within 3 years would this caue any issues at the time of extension

[MTZ510]

you only have to say that 50k has been invested - put in the companys bank acount..- nothing else.

How the company wishes to use/spend this money is not the business of the ukba.

I have got this confirmed in written from the ukba..

If this is true then after getting entry clearance one has to establish a business on paper and have the funds deposited in the business bank account and that's it. The only problem is Job creation and i am sure the accountants can handle this too. I don't think its that simple..

Can you share the written confirmation from UKBA for the benefit of forum members?

[maverick_76]

What if the money u showed at the time of appliction - a portion of that money is sent back to your home country to be returned latter at the time of investment n the complete amount is returned back into the busniess account and then invested within 3 years would this caue any issues at the time of extension

The money doesn't belong to you at this stage, it will be owned by your business. How would you plan to take it off from business? Do you intend to invoice the money from your home country? If yes, then you are liable to pay tax on that money in your home country.

[cappachino]

What if the money u showed at the time of appliction - a portion of that money is sent back to your home country to be returned latter at the time of investment n the complete amount is returned back into the busniess account and then invested within 3 years would this caue any issues at the time of extension

The money doesn't belong to you at this stage, it will be owned by your business. How would you plan to take it off from business? Do you intend to invoice the money from your home country? If yes, then you are liable to pay tax on that money in your home country.

The money is in my personal account a small portion as per requirement has been transfered into the business account
The remaining is being transfered to my account back home n will be transfered back when required
Obviously the complete amount will be transfered n invested in the businesd before the 3 years r up