The Immigration Rules state how the required £200,000 investment may be shown. In the Sajid case, the transfer of almost £500,000 into the company was not deemed enough. One way the investment can be shown is with a director’s loan. In order to rely on this, a director’s loan agreement must be supplied, which was not done in the test case.
The Secretary of State has argued that the only permissible methods of investing funds for Tier 1 (Entrepreneur) migrants are:
Direct cash investment
The applicant must provide accounts of the business, and they must show the investment made by the applicant directly, in their own name.
Share capital
The business accounts must show the amount and value of the shares in the applicant’s name.
Director’s loan
A director’s loan to the company will be considered as long as it is unsecured and subordinated in favour of third-party creditors.
Although the bench did not give a conclusive view on the Secretary of State’s submissions, it seemed to agree broadly. Following this judgment, and in the absence of clarification from the Home Office, it is advisable for Tier 1 (Entrepreneur) migrants to avoid injection funds by ‘direct cash investment’ and to instead invest through a director’s loan or issuing share.
Scarsdale Solicitors – Manchester, Oldham and Rochdale
For Entrepreneur Visa Court of Appeal advice on this or any other issues about immigration from local experts, call Scarsdale Solicitors Manchester, Scarsdale Solicitors Oldham & Scarsdale Solicitors Rochdale. We are proud to serve clients in the Manchester, Rochdale and Oldham areas. We combine our expertise in legal matters with a level of customer service that is to the highest standard. If you need help from Manchester Immigration solicitors, Rochdale immigration solicitors or Oldham immigration solicitors, call us today on 0161 660 6050.
