Proof of origin of funds in business Account
I'm going to apply for a standard visitor visa for my parents. It will be completely sponsored by me, my dad is self-employed and has a sole proprietorship firm. To show their financial situation We are planning to add 6 months of the business statement(current account) for my dad's firm and 6 months personal savings statement. My dad regularly transfers money from the business to a personal savings account and uses that account for day-to-day expenses. His tax returns match the amount shown statements.
- My question is do we need to show proof of origin of funds in the business(current) account also?
- Will invoices from my dad's firm reflecting the same amount on the current account work as proof of funds?
- Do I need to add something else?
P.S: invoices by customers are either paid via cheque (5%), UPI(75%) or cash(20%).
any help with this is highly appreciated.
Best Answer
As to your question #1: Yes, you do need to show proof of provenance of all funds that'll support the trip.
One of the applicant's jobs is to convince the ECO that the funds to be used for the proposed trip were legitimately obtained, whether by the applicant or by the applicant's sponsor(s). Otherwise, the ECO can conclude that the funds were not obtained legally. It's not up to the ECO to prove illegality or impropriety; it's up to the applicant.
As to your question #2: No, business invoices alone are far weaker evidence. I would absolutely not rely solely upon them. The reason is that invoices are wholly under the applicant's control, and what's shown on an invoice may be a complete fabrication. The ECO doesn't know if your parents are truth-tellers or liars; the fact that a number is shown on an invoice will not be persuasive.
For a lengthier discussion, see the section "Provenance of Funds" in answer to this question.
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What is an acceptable form of proof of funds?
Proof of Funds usually comes in the form of a bank, security or custody statement, and can be procured from your bank or financial institution that holds your money. Bank statements are the most common document to use as POF and can typically be found online or at a bank branch.How do you document source of funds?
Documents that can be submitted as proof of source of fundsProof of investment/securities accounts in the span of the last three years, bank statements and stock certificates. Individual's CV, records of education, contracts, licences and reference letters proving employment.How do you show cash as proof of funds?
All you need is a proof of funds letter from your bank. According to Corporate Finance Institute, this document includes the bank's contact information, the combined amount of cash in your checking and savings accounts at the time the letter was processed and the signature of a bank representative.What counts as source of funds?
"Source of Funds refers to the funds that are being used to fund the specific transaction in hand \u2013 i.e., the origin of the funds used for the transactions or activities that occur within the business relationship or occasional transaction.What To Do When Asked For Proof Of Funds? Business Acquisitions
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