Pixel

Use The Enterprise Investment Scheme (EIS) To Raise Money For Your Company

Gary Green
Gary Green
April 23, 2019

The process for a company to get approved to issue EIS shares involves a fair degree of work. However, the process itself is relatively straightforward once the company meets the necessary qualifying conditions.

There are a number of conditions that a company must meet in order to be confident of Enterprise Investment Scheme qualifying status. This includes ensuring that the money raised is used for a qualifying business activity. The money raised must be spent within 2 years of the investment or the date the business started trading. The money must be used to grow or develop the business and cannot be used to buy all or part of another business.

Under the EIS scheme, a company can raise up to £5 million each year, and a maximum of £12 million in the company’s lifetime. This includes amounts received from other venture capital schemes. The company must also receive the investment within 7 years of making their first commercial sale.

A number of changes to the Enterprise Investment Scheme were announced as part of the Autumn 2017 Budget measures.

The main changes were;

  • The introduction of different rules for knowledge-intensive companies that carry out a significant amount of research, development, and innovation. These rules allow you to raise up to £20 million (rather than £12 million) in the company’s lifetime. They also increase the 7 year limit for the first commercial sale to 10 years.

If you are looking to raise money using the EIS, we can help.

We are very experienced in ensuring that the process runs smoothly with the right structures are in place. This is to ensure the scheme in question is compliant with the legislation and HMRC’s rules, thus helping your company to raise investment and offering investors a valuable investment opportunity.

Contact us today via this contact form.

Interested in our services?
Fill in your details and a member of our experienced team will be in touch shortly to discuss your needs.
Contact Form Demo (#1)
We adhere to strict GDPR rules and do not reveal or sell your data to any third-parties. For more, please read our Privacy Policy.
Latest Insights
October 23, 2023
PAYE Investigations

Dive into the world of PAYE investigations. Uncover the facts, implications, and insights in this informative blog

September 29, 2023
London-based accountancy business acquired by Key Business Consultants

Exciting Merger Alert: London's Reed Taylor Benedict & Benedict Leff Accountants Acquired by Key Business Consultants.

September 18, 2023
Tax Tribunals – An Overview

Dive into the realm of Tax Tribunals: A comprehensive overview shedding light on this crucial aspect of taxation.

September 2, 2023
What Is A COP8?

Learn about COP8, a tax-related Code of Practice issued by HMRC for suspected tax avoidance cases. Discover when COP8s are used and the penalties associated with them.

August 20, 2023
HMRC Compliance Checks

Navigate the complexities of HMRC compliance checks confidently. Our comprehensive guide covers everything you need to know about handling tax inspections and more.

August 6, 2023
Tax Evasion and Tax Fraud

Untangling the complexities of tax evasion and fraud. Delve into our comprehensive guide to understand the differences, consequences, and preventive measures.

June 18, 2023
Which Jobs In The UK Have The Best Salary Growth Potential?

Explore the top UK jobs with the highest salary growth potential. Uncover promising career paths and industries that offer substantial earning potential.

May 23, 2023
How To File Dormant Accounts Through Companies House

Learn the step-by-step process of filing dormant accounts through Companies House with our comprehensive guide.

May 19, 2023
Customs Declaration Service (CDS) and VAT

Discover how the Customs Declaration Service (CDS) and VAT intertwine in this insightful blog article.

View Our latest insights »
Get the latest UK tax & business news and guidance delivered straight to your inbox
Newsletter Form (#2)
We care about the protection of your data. No spam. Unsubscribe anytime.
Copyright © 2022 Key Business Consultants LLP. Reg: E&W OC389322
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram