--- title: "How long does it take to set up an EMI scheme?" id: "398838" type: "post" slug: "how-long-to-set-up-emi-scheme" published_at: "2023-11-03T15:03:32+00:00" modified_at: "2026-03-31T11:37:55+00:00" url: "https://seedlegals.com/resources/how-long-to-set-up-emi-scheme/" markdown_url: "https://seedlegals.com/resources/how-long-to-set-up-emi-scheme.md" excerpt: "Find out how long each part of the EMI option scheme process takes, and how to balance a future funding round with your EMI scheme setup." taxonomy_category: - "Option Schemes" --- 5 min read Expert reviewed This article has been fact-checked by a SeedLegals subject matter expert. [Meet our experts](https://seedlegals.com/authors-and-experts/) and learn more about our review process and quality assurance in our [editorial policy](https://seedlegals.com/editorial-policy/) . # How long does it take to set up an EMI scheme? Published: Nov 3, 2023 Updated: Mar 31, 2026 Contents [Create your EMI option scheme – one day](#create-your-emi-option-scheme-one-day) [Prepare your EMI valuation – up to one week](#prepare-your-emi-valuation-up-to-one-week) [Wait for HMRC response and approval – about four to six weeks](#wait-for-hmrc-response-and-approval-about-four-to-six-weeks) [Grant EMI options within 90 days](#grant-emi-options-within-90-days) [Planning a funding round? Should you set up your EMI scheme before or after?](#planning-a-funding-round-should-you-set-up-your-emi-scheme-before-or-after) [Talk to the EMI experts](#talk-to-the-emi-experts) [Writer Kirsty MacSween Senior Copywriter](https://seedlegals.com/resources/author/kirsty/) [Expert Contributor Alda Daci Share Options Expert](https://seedlegals.com/resources/author/alda-daci/) [Expert Contributor Anthony Rose Co-Founder and CEO](https://seedlegals.com/resources/author/anthony/) The [EMI share option scheme](https://seedlegals.com/resources/what-is-an-emi-scheme/) is the best, most mutually beneficial way to distribute equity to your UK team members. But it takes time and forward-planning to get your scheme correctly set up and approved by HMRC before you can grant the options. With all the other things on your to-do list, the last thing you want is to dive headfirst into a bureaucratic rabbit hole without knowing how deep it goes. That’s why we’ve written this short guide to the EMI scheme timescales you need to know about. Planning to fundraise at the same time? [Skip down to this section](#funding-round-or-options-first) to find out how taking investment affects your EMI option scheme. ##### Unlimited options ### Keep your options open as you scale UK employees, international team members, consultants, advisors … whoever’s on your team, we make it simple to manage your employee equity. All for one low flat fee of £2,699 a year. [Tell me how](https://seedlegals.com/grow/share-options-scheme/) **Is an EMI scheme right for you?** - [EMI option schemes explained](https://seedlegals.com/resources/what-is-an-emi-scheme/) - [Qualifying conditions for companies and employees](https://seedlegals.com/resources/what-is-an-emi-scheme/#EMI-qualifying-conditions) - [EMI options and tax](https://seedlegals.com/resources/option-schemes-tax-implications/) ## Create your EMI option scheme – one day On SeedLegals, we make it simple to create the structure and choose the rules for your EMI option scheme. The guided workflow takes you through every step in the process – and you can get expert help from our team whenever you need it. With SeedLegals, it’s easy to create, sign and store every document you and your team members need. We’ve provided super-fast, super-affordable [legal support for EMI schemes](https://seedlegals.com/grow/share-options-scheme/emi-option-schemes/) for thousands of companies, so we know what works … and where the potential problems are. After you’ve set the scheme rules, you’ll need to hold a Board meeting to adopt them. The SeedLegals workflow provides a Board Resolution for this. 💡**Read more** - [How to choose the right vesting schedule for your option scheme](https://seedlegals.com/resources/choosing-the-right-vesting-schedule-for-your-share-option-scheme/) - [How to choose the right exercise rules for your option scheme](https://seedlegals.com/resources/vesting-milestone-or-exit-only-which-share-option-scheme-is-best-for-you/#exercise-conditions) - [Options report 2025: find out how other companies structure their schemes](http://@here%20we%20now%20have%20a%20page%20for%20short%20descriptions%20about%20SeedLegals.%20Check%20out%20our%20new%20Boilerplates%20page%20The%20copywriters%20are%20often%20asked%20for%20a%20few%20lines/%20short%20paragraph%20on%20what%20SeedLegals%20does) ## Prepare your EMI valuation – up to one week Before you grant EMI options, you need to agree with HMRC how much shares in your company are worth, and how much of a discount your employees can get on them. You want the lowest [EMI valuation](https://seedlegals.com/grow/share-options-scheme/emi-valuation/) possible, so your employees can benefit from buying at a low exercise price and selling at a (hopefully) much higher price. The SeedLegals workflow will guide you through the information and supporting documentation that HMRC requires. This generally takes one day to complete but sometimes it takes a little longer to gather the supporting documents. Our team reviews your application in two to three working days, and after it’s finalised, you can generate the application documents on our platform to send to HMRC. We suggest allowing one week to prepare your EMI valuation. 💡 **Read more** - [Step by step guide to preparing your EMI valuation](https://help.seedlegals.com/en/4185492-step-by-step-guide-to-your-emi-valuation) - [The legal documents you need for your EMI option scheme](https://seedlegals.com/resources/emi-share-option-scheme-legal-documents/) > We’ve automated the EMI Valuation process and made it possible for you to generate a sophisticated EMI report within minutes. You answer a straightforward questionnaire, and from that our advanced algorithm builds your EMI Valuation report based on your company’s financials, last price per share paid, and other factors. > > [Alda Daci](https://seedlegals.com/resources/author/alda-daci/) > Options expert, > > [SeedLegals](https://seedlegals.com/) ## Wait for HMRC response and approval – about four to six weeks Typically, HMRC takes between four and six weeks to respond to EMI valuations. After you receive their response, you’ll have a set time to agree or negotiate with HMRC’s decision. The exact timeline you get here depends on each HMRC valuer – some will give you a month and others around two to three weeks. Your dedicated SeedLegals EMI expert will be on hand to help you defend the valuation you submitted if needed. ## Grant EMI options within 90 days After you have confirmed the EMI valuation with HMRC, it only remains valid for 90 days so you need to grant options to your employees within that time frame. It’s important that you grant your options *before* any term sheets or changes in your share capital are made as these can invalidate your valuation. **Other important EMI timeframes to remember** 🖊️ Employees have 7 or 14 days to sign their option agreement after the company signs (check your scheme rules) 🛎️ Register your scheme with HMRC (usually takes one day but if you haven’t registered for PAYE online already, it takes HMRC up to 14 days to send a code) 📢 Notify HMRC of each option grant by 6 July following the tax year the grants were made in ☀️ Complete an online end-of-year EMI return before 6 July for your EMI scheme ## Planning a funding round? Should you set up your EMI scheme before or after? Issuing new shares (to, say, an investor) can *invalidate* an EMI valuation you’ve agreed with HMRC if you have not disclosed your plans to issue shares or take in investment in your EMI valuation. This means that if you’re planning a [funding round](https://seedlegals.com/raise/raise-a-round/) at the same or similar time as setting up an option scheme, you need to time things carefully or be willing to submit another EMI valuation before granting options. This means you have two courses of action open to you: ### 1. Grant options, then do a funding round - Create EMI option scheme (can be done in as little as a **day**) - Prepare your EMI valuation application to agree a low strike price for your employees with HMRC (takes up to a **week**) > It is important that you disclose any upcoming ASA investments or conversions in your EMI Valuation application as these are significant events and can impact your valuation. We generally recommend you action these before you submit your valuation or after your options have been granted. > > [Alda Daci](https://seedlegals.com/resources/author/alda-daci/) > Options expert, > > [SeedLegals](https://seedlegals.com/) - File EMI valuation request with HMRC, wait for them to respond (allow **4-6 weeks**, but this could be longer if they request additional information) - Grant options to team members, at the HMRC-agreed, hopefully low EMI valuation exercise price - Complete the funding round, issue shares to the investors ### 2. Do funding round, sort options later - Complete your funding round, issue shares to the investors - Create your EMI option scheme (this can be done in as little as a **day**) - Prepare your EMI valuation application to agree a low strike price for your employees with HMRC (takes up to a **week**) - File EMI valuation request with HMRC and wait for them to respond (allow **4-6 weeks**, although it could be longer if they request additional information) - Grant options to team members at the EMI valuation exercise price ### So, which is best for you? > My advice would be that if you reckon it’s at least 6 weeks until you’re ready to wrap up your round, you might want to go with the first option above, to get the lowest possible EMI valuation. > > If it turns out your round closes faster than you imagined, or HMRC takes longer than you want, in the worst case you’ll need to do another EMI valuation, which isn’t such a big deal in terms of the admin. > > [Anthony Rose](https://seedlegals.com/resources/author/anthony/) > Co-founder and CEO, > > [SeedLegals](https://seedlegals.com/) > > - [https://www.linkedin.com/in/anrose/](https://www.linkedin.com/in/anrose/) **Your EMI valuation will be higher after a funding round** Read more: [When is the right time to put an option scheme in place?](https://seedlegals.com/resources/when-is-the-right-time-to-put-an-emi-scheme-in-place/) Watch: [What should I do first, funding round or EMI scheme?](https://seedlegals.com/resources/emi-options-and-fundraising-how-to-get-the-timing-right/) ## Talk to the EMI experts Ready to get started on your EMI option scheme? Or need to talk to a specialist about how to time your option scheme and funding round? Book a call with an equity and funding strategist to get your questions answered. Our team of experts is here to help Bring all your questions – we’ve got the answers! We’ll match you with the right specialist. [Pick a time](https://seedlegals.com/talk-to-an-expert/) ## Related posts [11 min read Share options explained: the essential guide for UK startups Want to offer your team equity in your company? Our guide covers the facts about share options: how and when to set up a... Kaylin Sullivan](https://seedlegals.com/resources/share-options-explained/) [6 min read EMI or Unapproved Share Option Scheme – which is best? Tax advantaged EMI scheme, or a more flexible Unapproved scheme? We explain the differences and how to decide which is r... Tommy Hackley](https://seedlegals.com/resources/emi-or-unapproved-share-option-scheme-which-is-best-for-you/) [5 min read When is the right time to set up an EMI option scheme? How well developed does a startup need to be to consider an EMI scheme? Most founders understand the power of offering ... Tommy Hackley](https://seedlegals.com/resources/when-is-the-right-time-to-put-an-emi-scheme-in-place/)