Tier 1 Investor must be involved in transferring investment funds to a managed portfolio of shares and/or corporate bonds issued by carefully selected UK listed companies. However, some investors often prefer to invest in a single or own business rather than in a traditional managed investment portfolio.

Tier 1 initial application does not require demonstration of how investments will be invested, but an extension application requires a portfolio of investments to meet immigration rules to extend a visa as an investor.

Tier 1 investors can invest in a single or own business from a legal perspective and they can be a major shareholder of the business. However, structuring these investments requires careful planning.

Since March 29th 2019, Tier 1 investor must invest £2 million by way of share capital or loan capital in active and trading UK registered companies within the period minimum of three months upon entry. Immigration rule does not prohibit investment in a single or own business. However, investment must be a way of purchasing share or loan capital, and the business must be ‘active and trading.’

The business receiving the investment must be registered with Companies House in the UK, registered with HM Revenue and Customs for corporation tax and PAYE, have accounts and a UK business bank account, both showing regular trading of its own goods or services and have at least two UK-based employees who are not its directors.

You can own a single company or enterprise unless the company that receives the investment is located outside the UK, a funding firm, an investment trust company, or primarily a real estate investment, real estate management or property development.

However, if a Tier 1 investor acts as an intermediary investment or invests in a company that transfers funds elsewhere, the investment in the final destination becomes a qualifying investment in itself.

Tier 1 Investor needs to maintain the level of investment, rather than the market value of the investment fund. What needs to be maintained is not 'value of investment' but 'level (amounts) of investment'.

If part of the investment is sold without reinvesting in the qualifying investment, the investment must be increased further to maintain the investment level. If you invest an appropriate amount in a qualified company or your own company and do not liquidate your own shares or bonds, you will be able to maintain your investment level.

Investments can be made in the form of loans to single or own business. The investment should be directly made into the business bank account. The company must also provide audited accounts or unaudited accounts with an accounts compilation report for the investments made, giving the full details of the applicant’s investment. The accountant must have a valid licence and must be a member of a recognised supervisory body.

In summary, Tier 1 investor can invest in a single or own business rather than in the management portfolio of UK listed companies. However, the company that receives the investment must be a 'practically active' business and not an excluded type of business. Investors must maintain their level of investment, contain specific information about the investment, and reflect it in their investment portfolio reports. All investments through loans must be made directly to the business account and investors must regularly review the investment