tier 1 entrepreneur 200k route

[eunice100383]

hello,

i have a few question before i start for my investment.

1) UKVI mentioned we have to register as co dir / self employed after 6 months we arrived. I did registered as director of a company. But it not as my business plan. I am doing the other business. Can i claim point on that?
2) as i know we have to invest all the money. I decided to buy a commercial property to start my business. The building is cost us £180 k .So is it consider as investment? Is it the building has to consider as company asset then only consider as investment. Then i plan to buy the building as my company Asset . i will spend 30k as rolling in company account for renovation and staff cost , insurance cost, and furniture. Am i fulfill the requirement.
3) Business might fail or success. I predicted that the worse situation will be :

180k for property
30k for 2 full time employment
20k for furniture

After 1 year if there is loss then i will closing the business and before last 6 months the extension date i will self employed for another small business. So i full fill point based system of
1) 200k investment,
2) 2 full time employment,
3) 90 days before the visa ended register as self employ.

Please correct me if i am wrong.

[zimba]

1) UKVI mentioned we have to register as co dir / self employed after 6 months we arrived. I did registered as director of a company. But it not as my business plan. I am doing the other business. Can i claim point on that?

Yes

2) as i know we have to invest all the money. I decided to buy a commercial property to start my business. The building is cost us £180 k .So is it consider as investment? Is it the building has to consider as company asset then only consider as investment. Then i plan to buy the building as my company Asset . i will spend 30k as rolling in company account for renovation and staff cost , insurance cost, and furniture. Am i fulfill the requirement.

Yes in theory however you need to justify why you need to spend 180K in a commercial property to begin with and leave not much money for the business?

3) Business might fail or success. I predicted that the worse situation will be :

180k for property
30k for 2 full time employment
20k for furniture

After 1 year if there is loss then i will closing the business and before last 6 months the extension date i will self employed for another small business. So i full fill point based system of
1) 200k investment,
2) 2 full time employment,
3) 90 days before the visa ended register as self employ.

Please correct me if i am wrong

It is up to you but why someone would spend 180K to purchase a commercial property just to start a business with 50K ??! If your desire is to keep the 180K safe by investing it in a property and then recover your money back later by selling the place if your venture fails, then this could be viewed as not invested.

[eunice100383]

Hi Zimba,

Thanks for your reply.
Due too higher rent of the building and we expect will be loss due to higher rent. If we buy our own building for another 180 k then will secure our funding in the same time inject another 50k to rolling and start up. The building also consider as company asset not individual asset.

If we rent it and at the starting point for 6 months will be cooling period. We will loss up to 20 k just for the rent. another 50k for start up cost.Is it this consider as investment?

such as starting cost : advertisement, rent, utilities insurances etc. Is it all consider investment?

So the rest of 130k i do know how to spend it to categorized as investment. That y i thinking to buy my own property so i don need to bear higher rent in the future if the business is going concern.Can i explain like this?

Thanks zimba

[marcnath]

hello,

i have a few question before i start for my investment.

1) UKVI mentioned we have to register as co dir / self employed after 6 months we arrived. I did registered as director of a company. But it not as my business plan. I am doing the other business. Can i claim point on that?
2) as i know we have to invest all the money. I decided to buy a commercial property to start my business. The building is cost us £180 k .So is it consider as investment? Is it the building has to consider as company asset then only consider as investment. Then i plan to buy the building as my company Asset . i will spend 30k as rolling in company account for renovation and staff cost , insurance cost, and furniture. Am i fulfill the requirement.
3) Business might fail or success. I predicted that the worse situation will be :

180k for property
30k for 2 full time employment
20k for furniture

After 1 year if there is loss then i will closing the business and before last 6 months the extension date i will self employed for another small business. So i full fill point based system of
1) 200k investment,
2) 2 full time employment,
3) 90 days before the visa ended register as self employ.

Please correct me if i am wrong.

Yes, it appears that you will be able to qualify for the points required for the extension if you do all of the above on one condition - that the building you buy is used entirely for the purposes of your business.

Read the guidance carefully:

investment and business activity does not include investment in any residential accommodation or property development or property management.

We define property development as any development of property (real estate) owned by the applicant or his business to increase the value of this property with a view to earning a return either through rent or a future sale, or both.

You run the risk of triggering that.

Also, do pay close attention to the catch all " Genuine Entrepreneur" requirements.

Any such undertaking as described above that appears to have designed just to meet the criteria would potentially flag a deeper look. And that is a criteria where the HO has a very wide leeway.

[marcnath]

Hi Zimba,

Thanks for your reply.
Due too higher rent of the building and we expect will be loss due to higher rent. If we buy our own building for another 180 k then will secure our funding in the same time inject another 50k to rolling and start up. The building also consider as company asset not individual asset.

If we rent it and at the starting point for 6 months will be cooling period. We will loss up to 20 k just for the rent. another 50k for start up cost.Is it this consider as investment?

such as starting cost : advertisement, rent, utilities insurances etc. Is it all consider investment?

So the rest of 130k i do know how to spend it to categorized as investment. That y i thinking to buy my own property so i don need to bear higher rent in the future if the business is going concern.Can i explain like this?

Thanks zimba

You appear to be confused. Investment referred to here is the money you put into the business. Once the business has the money, it can spend it anyway it needs with a few exceptions listed in the guidance (your salary, residential property, etc.) There is no requirement that you spend all the money either. If the business does not need to use it immediately, it can be left there for the future.

As I replied earlier, if you can convince the HO that it is a genuine business (for example, regular business activity of income and spend) this will be less of a problem. If this is the major activity the business has done, then you will face more of a challenge

[eunice100383]

Thank both senior.

Yes now i understand i do not need to 'spend' all the money.

If let say, the property we buy for 180k and invest for 60k to start up. Bank left 0 balance. BUt we can maintain the income and cost during my 3 years Nursery business. Do you both think i fulfill the genuine entrepreneur test? I don think to rent out the property but the business just able to maintain or loss for estimate 20k per annum. So i try to figure out another 60k to keep my business going on untill i grant the extension for another two years?

Thanks both.

[marcnath]

Thank both senior.

Yes now i understand i do not need to 'spend' all the money.

If let say, the property we buy for 180k and invest for 60k to start up. Bank left 0 balance. BUt we can maintain the income and cost during my 3 years Nursery business. Do you both think i fulfill the genuine entrepreneur test? I don think to rent out the property but the business just able to maintain or loss for estimate 20k per annum. So i try to figure out another 60k to keep my business going on untill i grant the extension for another two years?

Thanks both.

I cannot say for sure whether you will meet the genuine entrepreneur test - there are no objective criteria so the CW has a lot of leeway.

But, I think if you buy the building for the purposes of having your nursery business there, it should qualify for investment points - at least you will have a strong argument that there is nothing the regulations that prevent you from doing that.

This may just be a language issue from your end but when I see phrases like

keep my business going on untill i grant the extension for another two years

, there is always a question mark.

As a genuine entrepreneur, you should be more worried about making your business a success rather than just doing enough to qualify for an extension.

But that is my personal opinion and has nothing to do with the rules for T1E visa or extension.

[eunice100383]

Thanks for your reply.

In such case there would be the risk to pass genuine test.

If let say i put all the money to the nursery business. But I spend half to wages and equipment and set up . The other half i keep it in the company account by the time i wish to apply extension.

Option 2:
If we rent it now and buy it after a year later through loan application. So my investment would be 100k for the initial cost wages, insurance, renovation. 100k for deposit for the property that we opened the nursery. Is it consider investment?

[marcnath]

Thanks for your reply.

In such case there would be the risk to pass genuine test.

If let say i put all the money to the nursery business. But I spend half to wages and equipment and set up . The other half i keep it in the company account by the time i wish to apply extension.

Option 2:
If we rent it now and buy it after a year later through loan application. So my investment would be 100k for the initial cost wages, insurance, renovation. 100k for deposit for the property that we opened the nursery. Is it consider investment?

You are overthinking it.

Do what is best to make your business successful. If you have a genuine business, you will pass the genuine test. If they do have concerns, they will interview you and you will have the opportunity to convince them.

Then you need to meet the criteria for your points, which does not prevent you from spending money on property as long as it is not for property management, as described earlier.