Does my company qualify for the scheme?
Generally speaking, most companies will qualify for SEIS or EIS.
Companies that undertake the following business activities do not qualify:
- Dealing in land, commodities and financial instruments
- Financial activities such as banking, insurance and financing
- Providing legal or accountancy services
- Property development
- Operating or managing hotels or nursing/care homes
It is possible to undertake one of the business activities and still qualify, but the above activity would need to form 20% or less of the combined company's activities.
In order to qualify for SEIS or EIS, companies must tick all of these qualifying criteria:
- Unquoted limited company (AIM listed companies are eligible)
- Less than 25 full-time employees
- Gross assets of less than £200,000
- Must not be controlled by another company
- Subsidiary companies must be qualifying companies
- Carry on a qualifying trade (see list of excluded business activities above)
- Be UK resident or have a permanent establishment in the UK
The following conditions apply to SEIS companies only:
- Any trade carried on by the company must be less than two years old
- Had no investment from a Venture Capital Trust (VCT) or benefited from the EIS scheme