Tier 1 Enterpreneur extension investment question

[amit8910]

Hi all,

I have one question regarding investment.

My company projection for first three years

1st year) Did £2500 profit
2nd year) sales 25k and expenses 55k of the company

so company is in loss for 30k
3rd year)sales 25k and expenses 45k

so loss is 20k so invested 50k like this before visa.

is it acceptable by ukba?

If I don't do loss than my 50k will be in company only after 3 years as my company is doing sales near about £30k every year.

[BlackBirdSSG]

The word UKVI have used in Policy Guidance as eligibility criteria is "invested". Company could be making profits ... or could be going in loss. It all comes down to "How Much" have you "invested" ... not how much profit you have made.

Money deposited in bank account (whether it's in business bank account or personal bank account) is NOT considered to be an investment. That money, can be used IN business for growth, expansion, offer services, selling products, or for various other reasons. You have to INVEST that money in your business

All funds spent on the business like, wages (except director's remunerations), stationery, adverts, office rent e.t.c are counted as business expenses and are classed as investment funds. You must spend the whole 50k on the business in order to meet the investment criteria for extension of the visa. (Source)

[amit8910]

thanks for reply.

Is it mean that if I am transferring money from my personal account to business account which can fullfill requirement?

take a example :50k transfer to business account +90 k three years sales

spent 50k form account except director salary so some balance will be left after three years.

is that fullfill requirement?

I am confuse as some people say you need to spend 50k investment.It means you need to take 90k as director salary and then you need to spend 50k in expenses then yr company will be in loss for 50k then and then you can dispose 50k invetsment and end of the three year you don't have any balance.