Have you heard of the Enterprise Investment Scheme? The EIS is a UK Government initiative designed to help you raise money and grow your business, by offering tax reliefs to investors who buy new shares in your company. So, as someone planning to launch your business into the UK, it’s something you should be paying attention to.
Limitations on investments raised
Under EIS, there are limitations on the amount you can raise each year and the total amount you can raise in your company’s lifetime.
The great news is that foreign companies can apply for an EIS, but your company must meet the criteria set out by HMRC in order to qualify. Normal requirements still stand, such as types of trade, the age of your company and the number of employees. But foreign companies must also meet at least one of two additional requirements:
- Either your company must have a permanent establishment in the UK, or
- You must have an agent based in the UK with the authority to act on your company’s behalf.
Even before you apply for an EIS, you can ask HMRC if they agree that your company is eligible for EIS. This is called Advanced Assurance and you can use this to show potential investors that the investment you’re asking them to make will qualify for a scheme and therefore tax concessions.
So the EIS could be a very useful tool in your arsenal! Goodwille can advise on if you qualify and support you with setting up an Enterprise Investment Scheme. Read more about how Goodwille can help you make the most out of the EIS and contact us today for support with setting up the scheme.