In order to obtain the initial Entry Clearance, you need to show that you have £200,000 funds either in cash in a bank account, or available to your business of which you are a Director. If you have invested part of the funds in the UK business within 12 months of the date of application, the part invested can be counted towards £200,000. The funds of £200,000 need to be fully invested in the business before your extension application, which is within the 3 years and 4 months of the initial period of leave. You don't have to deploy the full amount at once. However, you need to show that you have £200,000 available to you throughout the initial period of leave. For example, if you have invested £50,000 in the first month, you need to show another £150,000 available to you. If the business only spent £150,000 at the time of extension application, the outstanding amount of £50,000 must be either invested in the business by cash, or share capital, or unsecured and subordinated director's loan. I suggest you seek legal advice before or immediately after obtaining the Entry Clearance application to ensure that you have maintained and spent the funds as required by the Home Office.
What capital deployment schedules are allowed for the UK tier 1 Visa?
I would like to open a restaurant in Liverpool to qualify for the Tier 1 visa. I only need 150,000 pounds to open the restaurant. Does the capital need to be deployed all at once? Can I use the remaining 50,000 pounds as operating reserves? How long do I have to deploy the remaining capital?
You need to have properly invested the 200,000 pounds by the extension stage, i.e., in the first three years, by either cash investment where it is "properly spent" share capital or by way of a director's loan (unsecured and subordinated in favour of third party creditors). If investing by way of simple cash investment, any cash sitting in the account at extension stage would not be counted toward the investment, so you shouldn't invest in this manner. The funds need to remain available to you until they are invested in the business.
You are required to invest at least 200,000 pounds in a business within the first three years of the visa.