The Tier 1 Investor visa is ﬂexible: The main applicant and their dependents can work, study and undertake business in the UK without restriction.
In order to apply, applicants must hold £2 million in any country, provided funds can be transferred to the UK once the visa has been granted. Funds need to be invested in UK Government Bonds or ‘active and trading’ UK companies such as an Education Bond programme ‘Lendco’.
Candidates investing (known as the "Main Applicant") can bring spouses and children under 18 into the UK as dependents and they will receive permanent residency at the same time as the main applicant. The Main Applicant must remain in the UK for 180 days per year to satisfy residency requirements - which are likely to do anyway whilst they study.
Your Lendco will initially invest in a ‘Lead Project’ that will be clearly illustrated prior to investment. Thereafter, in order to diversify risk, Lendcos will invest into several projects of similar type and quality, with an average duration of 6-18 months.
If the student is under the age of 18, a parent must be the principal applicant and the child named as a dependent. This child, named as a dependent, will still be entitled to Indeﬁnite Leave to Remain after 5 years.
Dependent children at the date of application who are under 18 will receive permanent residence at the same time as the main applicant, even if those children turn 18 during the Programme.
Yes, you are allowed to invest the full £2m into a Lendco. This is called the ‘Opportunity option’ under which the Bondholder will receive higher return as they will receive 4% interest form the whole £2million, but it does come with a with slightly higher risk proﬁle.
Invested capital and any accrued interest will be repaid, after 5 years when Permanent Residence has been achieved. Money will be transferred directly back to the Bondholder’s nominated bank account in UK or China.
If the student is over 18, the student will be the principal applicant. This student will be entitled to Indeﬁnite Leave to Remain after 5 years.
There is now no ‘top-up’ requirement under Tier 1 Investor visa rules. Set up fees are refundable at the end of the Programme and annual management fees are paid from the proceeds of investments.
The Lendco is an ordinary UK ‘active and trading’ limited company and investment in a Lendco is a qualifying investment under the Tier Investor visa rules. The shareholder of the Lendco is a ‘Purpose Trust’ without rights to the proceeds of the investments. The Purpose Trust is established to protect the interests of stakeholders.
The Bondholder must be the principal applicant for the Tier 1 (Investor) visa, and have full and unconditional control over the funds invested over the 5 year investment period.
As the investors’ funds normally originate from the parent(s), it is critical that they are passed over to the student by way of a ‘deed of gift’ that evidences this transfer of control over the funds.