Seed EIS - Do you qualify?

 

​We're interested in hearing from early-stage, ambitious companies seeking funding to expand their business. Through our strategic network and business alliances, we are well positioned to assist Seed EIS compliant businesses (see below) in helping them secure initial seed funding.

 

If you think your business qualifies then please contact us by email and attach your Business Plan.

 

 

The criteria to be a qualifying company to gain funding under the Seed EIS scheme are as follows:

 

- The company must not have carried on any other trade before it started to carry on the new trade within the last two years;

 

- The company must exist wholly for the purpose of carrying on a qualifying trade;

 

- The company must have a permanent establishment in the UK;

 

- The company must be unquoted, and there be no arrangements in existence for the issuing company to cease to be an unquoted company;

 

- The company must not control or be controlled by any other company;

 

- The company must not be a member of a partnership;

 

- The net assets must not exceed £200,000 immediately before the relevant shares are issued;

 

- The number of employees must be less than 25 when the relevant shares are issued;

 

- The maximum investment must not exceed £150,000

 

 

To gain funding from a Seed EIS fund the following criteria must be met for the investor:

 

- No employee investors – neither the investor nor an associate of the investor may be an employee of the issuing company.

 

- No substantial interest in the issuing company – the investor must not have a substantial interest in the issuing company at any time

 

- No related investment arrangements – the investor must not subscribe for the relevant shares as part of an arrangement which provides for another person to subscribe for shares in another company in which the investor, or any other individual who is party to the arrangement has a substantial interest.

 

- No linked loans – no linked loans are to be made by any person to the investor or an associate of the investor.
No tax avoidance – the relevant shares must be subscribed for by the investor for genuine commercial reasons and not as part of a scheme or arrangement of which the main purpose or one of the main purposes is the avoidance of tax.