Part 2 - EIS and the company

In order for its investors to be able to claim, and keep, the EIS tax reliefs relating to their shares, the company which issues the shares has to meet a number of rules regarding the kind of company it is, the amount of money it can raise, how and when that money must be employed for the purposes of the trade, and the trading activities carried on.

The company must satisfy HMRC that it meets these requirements, and is therefore a qualifying company. The process for doing this is set out at 2.5 How a company qualifies.