Getting EIS certificates to investors is a straightforward process but it can take longer than most investors, and founders, think. The process requires multiple interactions with investors and HMRC and a fair number of forms to be filled in for each investor. Below you’ll find the process outlined and the rough timescale for each step.
The funding round closes and the company takes time to complete all of its legal documents, and issue shares for the round ( approx. 1 week).
Once shares are issued, the company must complete an EIS 1 form for each underlying investor in the round ( approx. 1 week but can take longer if there are many investors in the round).
EIS 1 forms are sent to HMRC who will process them in a period of 6-8 weeks.
If HMRC approves the forms, they will issue the company with an EIS 2 form. This contains the authorisation number needed to complete the EIS 3 certificate template, which they also send to the company( >1 week)
The company provides us with the Unique Investment Reference and we use it to create EIS 3 forms for each underlying investor. ( >1 week )
The digital EIS 3s are stored in our database and are accessible from investor’s dashboards (instant).
In our experience, and given the above, around 80% of EIS forms are uploaded into our system approximately 8 weeks from the close of any funding round.
While we have a team dedicated to sorting out EIS issues with companies and investors, delays to post, high volumes during the tax year end, and other factors can delay this significantly.
The EIS guide for investors
You may have heard about the generous tax reliefs on offer when investing through the Enterprise Investment Scheme, now learn all about them and how they work. In this free EIS guide you will learn:
What are the main benefits of EIS?
What tax reliefs are available through EIS?
What kinds of companies are part of EIS?
Who qualifies for EIS?
How do I claim me EIS relief?
Why an EIS fund may be right for you
The information on this page does not constitute financial advice and is provided on an information basis only, based on research using the following sources: