--- title: "What types of companies are eligible for SEIS & EIS?" id: "18242" type: "post" slug: "seis-eis-company-eligibility-criteria" published_at: "2019-02-01T12:15:56+00:00" modified_at: "2019-02-01T13:15:56+00:00" url: "https://seedlegals.com/ie/resources/seis-eis-company-eligibility-criteria/" markdown_url: "https://seedlegals.com/ie/resources/seis-eis-company-eligibility-criteria.md" excerpt: "There are a number of eligibility criteria listed here which must be satisfied before you can confidently offer your investors SEIS or EIS." taxonomy_category: - "SEIS EIS" --- 2 min read # What types of companies are eligible for SEIS & EIS? Published: Feb 1, 2019 Read Next [What are SEIS & EIS? The essential guide for UK startups](https://seedlegals.com/ie/resources/what-is-seis-eis-an-essential-read-for-uk-startups/) [What types of companies are eligible for SEIS & EIS?](https://seedlegals.com/ie/resources/seis-eis-company-eligibility-criteria/) [SEIS investment funds: 32 active UK funds in 2026](https://seedlegals.com/ie/resources/most-active-seis-investment-funds-in-the-uk/) [Gabriella Richardson](https://seedlegals.com/ie/resources/author/garbriella-richardson/) Most trades do qualify for SEIS and EIS funding, but a number are excluded from the schemes entirely. Excluded trades include those dealing in land or commodities, those involved with banking, insurance or money-lending, those providing legal or accountancy services, those involved in property development and those generating and exporting electricity. Although HMRC have provided an exhaustive [list of excluded activities](https://www.gov.uk/hmrc-internal-manuals/venture-capital-schemes-manual/vcm3010) , not all businesses fit perfectly into each category – there will inevitably be some grey areas that may need further analysis. A useful point to note is that companies are only excluded from raising money under SEIS and EIS, if a ‘substantial’ element (+20%) of their trade activity consists of the excluded activity. There are also [a number of eligibility criteria](https://www.gov.uk/guidance/venture-capital-schemes-apply-to-use-the-seed-enterprise-investment-scheme#companies-that-can-use-the-scheme) listed below which must be satisfied before you can confidently offer your investors SEIS or EIS. In addition to these, check out a number of [lesser known ways companies can qualify for SEIS/EIS](https://seedlegals.com/blog/seis-eis-tax-relief-facts?utm_medium=email&utm_source=seedlegals&utm_campaign=newsletter) . ‍ ### **SEIS & EIS Eligibility Criteria** **The Gross Assets Test** A company looking to secure SEIS investment must have [under £200,000 in gross assets pre-money](https://help.seedlegals.com/seis-and-eis/checking-you-meet-the-seis-200k-gross-assets-requirement) , whilst those looking to secure EIS investment must have less than £15 million in gross assets pre-money. **The Number of Employees Test** A company looking to secure SEIS investment must have no more than 25 employees, whilst those looking to secure EIS investment must have no more than 250 employees. **The Trading Time Test** To be eligible for SEIS funding, a company must have been trading for less than 2 years. It should be noted that the date when a company starts trading is different to the date of incorporation detailed on Companies House. When establishing whether this test has been satisfied, HMRC will review the company’s profit and loss accounts rather than the date of incorporation. **UK Permanent Establishment Test** In order to raise funds under SEIS and EIS, a company does not necessarily need be a UK company in order to qualify. A foreign company can have a permanent establishment in the UK, through which a substantial part of the company’s business is conducted. In certain circumstances, having an employee based in the UK may satisfy the permanent establishment test although this should be assessed on a case by case basis. **The Partnership Test** The company looking to raise funds under SEIS or EIS must not be a member of a partnership with another company, as this will be flagged by HMRC. — **Still not sure if your business qualifies?** If you’re still unsure whether your company qualifies, hit the chat button to talk to one SeedLegals SEIS/EIS experts. ‍ ### **Useful links on SEIS/EIS:** **Pre-funding:** - [Apply for SEIS/EIS online](https://seedlegals.com/features#Get-SEIS-Assurance) - [Find SEIS/EIS investors](https://seedlegals.com/blog-category/investor-directory) - [Best networking events to meet SEIS/EIS investors](https://seedlegals.com/blog/best-events-to-meet-investors-in-london) - [Important Advance Assurance Rules Change 2018](https://seedlegals.com/blog/seis-eis-advance-assurance-rules-change) - [Contact details for HMRC Advance Assurance applications](https://help.seedlegals.com/seis-and-eis/how-do-i-contact-hmrc-for-my-seiseis) - [What level of business plan is needed for Advance Assurance applications?](https://help.seedlegals.com/seis-and-eis/what-level-of-business-plan-do-i-need-for-my-seis-advance-assurance-application) [‍](https://seedlegals.com/seed-fast) - [SEIS/EIS compatible ‘convertible note’ style agreement for UK startups](https://seedlegals.com/seed-fast) [‍](https://seedlegals.com/blog/seis-eis-tax-relief-facts) - [8 Things You Didn’t Know About SEIS/EIS Tax Relief](https://seedlegals.com/blog/seis-eis-tax-relief-facts) **Post-funding:** - [Issuing Share Certificates](https://help.seedlegals.com/shares-options-and-vesting/how-do-i-issue-share-certificates) - [Post-funding SEIS / EIS Compliance](https://help.seedlegals.com/seis-and-eis/how-to-do-your-seiseis-compliance-on-seedlegals) ‍ Next up in [SeedLegals Academy](https://seedlegals.com/seedlegals-academy/) [SEIS investment funds: 32 active UK funds in 2026](https://seedlegals.com/ie/resources/most-active-seis-investment-funds-in-the-uk/) ## Related posts [3 min read How Irish business can use the SEIS and EIS to attract investors If you're looking for UK investors, make your Irish startups more attractive with SEIS and EIS Advance Assurance from HM... Michael McDowell](https://seedlegals.com/ie/resources/seis-ireland/) [9 min read EIS explained: the UK startup’s guide to the Enterprise Investment Scheme Get investment-ready with this EIS guide. Find out what EIS is, what types of companies qualify and why it makes attract... Zlatina Trifonova](https://seedlegals.com/ie/resources/eis-scheme/) [7 min read What are SEIS & EIS? The essential guide for UK startups The Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS) give investors a significant tax... Gabriella Richardson](https://seedlegals.com/ie/resources/what-is-seis-eis-an-essential-read-for-uk-startups/)