What is the application process?

📘Overview

The Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) are administered by HMRC’s Small Company Enterprise Centre (SCEC).

The SCEC determines whether a company qualifies under the scheme and issues the relevant approval forms once all conditions are met.

While advance assurance is not mandatory, it is highly recommended, as it provides potential investors with confidence that their investment will qualify for tax relief.

✅ Step-by-Step Process

Step 1: Apply for Advance Assurance (Optional but Recommended)

Before issuing shares, you can apply to the SCEC for advance assurance.

This allows HMRC to confirm that your company is likely to qualify under SEIS or EIS rules.

💡 Advance assurance is particularly valuable for early-stage companies raising their first round of investment, as it reassures investors that their tax relief will be valid.

• Where to apply: Submit your application via HMRC’s online portal.
• Processing time: Typically 4 to 6 weeks.

🔗 Apply for SEIS/EIS Advance Assurance on GOV.UK

Step 2: Issue the Shares

Once advance assurance is received (or if you choose to proceed without it), you can issue shares to your investors.

After the shares are issued, you must wait until:

• The company has been trading for at least four months, or
• Has spent at least 70% of the money raised through the share issue.

Only after meeting one of these conditions can you move to the next step.

Step 3: Submit the SEIS1 or EIS1 Form

The company (or its advisors) must complete and submit an SEIS1 (or EIS1) form to the SCEC.

This form provides HMRC with details of:

• The company’s activities
• The share issue
• How the investment funds have been used

💡 The SCEC generally takes 4 to 6 weeks to process this application.

🔗 Download SEIS1 and EIS1 Forms – GOV.UK

Step 4: Receive SEIS2 (or EIS2) and SEIS3 (or EIS3) Forms

If HMRC approves the application, they will issue:

• SEIS2 / EIS2 form – the approval certificate for the company.
• SEIS3 / EIS3 forms – to be distributed to investors.

These forms confirm that the investment qualifies under the scheme and allow investors to claim their tax relief.

Step 5: Investor Tax Relief

Investors can claim their SEIS or EIS tax relief in one of two ways:

1. By including the details from the SEIS3/EIS3 form in their Self Assessment tax return, or
2. By completing the SEIS3/EIS3 form and sending it directly to HMRC.

💡 Timing note: Investors can only claim their relief once they’ve received the SEIS3/EIS3 certificate, not before.

🔍 EIS vs SEIS – Process Comparison

The EIS application process is identical to SEIS, except for the limits and qualifying conditions.

Both follow the same sequence:

1. Optional advance assurance
2. Share issue
3. SEIS1/EIS1 submission
4. SCEC approval and issue of SEIS2/EIS2 and SEIS3/EIS3 forms
5. Investor tax claim

✅ Summary