Q&As

Where an entrepreneurial team invests in a business via a director’s loan after 19 November 2015, is it acceptable for the transfer of funds to the business to be evidenced as a transaction on the business bank account statement of only one member of the entrepreneurial team?

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Produced in partnership with Gillian McCall of Richmond Chambers
Published on LexisPSL on 20/08/2018

The following Immigration Q&A produced in partnership with Gillian McCall of Richmond Chambers provides comprehensive and up to date legal information covering:

  • Where an entrepreneurial team invests in a business via a director’s loan after 19 November 2015, is it acceptable for the transfer of funds to the business to be evidenced as a transaction on the business bank account statement of only one member of the entrepreneurial team?
  • Entrepreneur teams and director’s loan agreements

Where an entrepreneurial team invests in a business via a director’s loan after 19 November 2015, is it acceptable for the transfer of funds to the business to be evidenced as a transaction on the business bank account statement of only one member of the entrepreneurial team?

Entrepreneur teams and director’s loan agreements

Prior to 19 November 2015, entrepreneur applicants were not required to evidence the transfer of funds to their business bank accounts. The Statement of Changes HC535 dated 29 October 2015 brought in stricter requirements to prove investment by director’s loan, but it was not until the rule change on 15 January 2018 (Statement of Changes HC309) that the Home Office clarified that these rules would only apply to investments made after 19 November 2015, regardless of the date that the entrepreneur entered the category.

Paragraph 45(d)(ii) of the Appendix A to the Immigration Rules, states that an applicant must provide:

‘…where the investment was made after 19 November 2015, the investment must be shown through readily identifiable transactions in the applicant’s business bank statements,

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