The Enterprise Investment Scheme (EIS) is designed to help smaller higher-risk trading companies to raise finance by offering a range of tax reliefs to investors who purchase new shares in those companies.
The Seed Enterprise Investment Scheme (SEIS) is designed to help small, early-stage companies raise equity finance by offering tax reliefs to individual investors who purchase new shares in those companies. It complements the existing Enterprise Investment Scheme (EIS) which offers tax reliefs to investors in higher-risk small companies. SEIS is intended to recognise the particular difficulties which very early stage companies face in attracting investment, by offering tax relief at a higher rate.
If you are looking for Crowdfunding, investors will be looking for your business to have Advance Assurance from HMRC for SEIS or EIS.
In order to get advance assurance your will need..
The key rules for SEIS:
- Maximum of 25 Employees
- Maximum of £200k Gross Assets
- Maximum SEIS £150k
- Any trade being carried on by the company at the date of issue of the relevant shares, must be less than 2 years old at that date
- The company must not be controlled by another company or another company and any person connected with it, and there must be no arrangements in place for it to be controlled by another company
You can get advance assurance for HMRC by clicking here