--- title: "Is my company eligible for SEIS or EIS? SEIS/EIS criteria explained" id: "1903" type: "post" slug: "seis-eis-company-eligibility-criteria" published_at: "2019-02-01T12:15:56+00:00" modified_at: "2025-04-11T14:00:00+00:00" url: "https://seedlegals.com/resources/seis-eis-company-eligibility-criteria/" markdown_url: "https://seedlegals.com/resources/seis-eis-company-eligibility-criteria.md" excerpt: "Wondering if your business qualifies for SEIS or EIS? Learn the SEIS/EIS eligibility rules and excluded trades to secure Advance Assurance in 2025." taxonomy_category: - "SEIS EIS" --- 3 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/) . # Is my company eligible for SEIS or EIS? SEIS/EIS criteria explained Published: Feb 1, 2019 Updated: Apr 11, 2025 Contents [Which trades are excluded from SEIS/EIS?](#which-trades-are-excluded-from-seiseis) [SEIS and EIS eligibility checklist](#seis-and-eis-eligibility-checklist) [Still unsure if your company is eligible for SEIS or EIS?](#still-unsure-if-your-company-is-eligible-for-seis-or-eis) Read Next [What are SEIS & EIS? The essential guide for UK startups](https://seedlegals.com/resources/what-is-seis-eis-an-essential-read-for-uk-startups/) [Is my company eligible for SEIS or EIS? SEIS/EIS criteria explained](https://seedlegals.com/resources/seis-eis-company-eligibility-criteria/) [Checklist - S/EIS Advance Assurance](https://seedlegals.com/checklists/checklist-s-eis-advance-assurance/) [SEIS investment funds: 32 active UK funds in 2026](https://seedlegals.com/resources/most-active-seis-investment-funds-in-the-uk/) [EIS investment funds: 50 active UK funds in 2025](https://seedlegals.com/resources/most-active-eis-investment-funds-in-the-uk/) [Kirsty MacSween](https://seedlegals.com/resources/author/kirsty/) SEIS and EIS are powerful UK government schemes that offer tax relief to investors in early-stage companies. But is your startup eligible? In this guide, we break down the SEIS/EIS rules, including qualifying trades, excluded activities and the key eligibility criteria. **Essential SEIS/EIS reading** - [SEIS explained: Guide for UK startups](https://seedlegals.com/resources/seis/) - [EIS explained: Guide for UK startups](https://seedlegals.com/resources/eis-scheme/) - [How to apply for SEIS/EIS Advance Assurance](https://seedlegals.com/resources/apply-for-seis-eis-advance-assurance-online/) ### How much could my investors claim in SEIS/EIS tax relief? [Use calculator](https://seedlegals.com/seis-eis-tax-relief-calculator/) ## Which trades are excluded from SEIS/EIS? Not every type of business qualifies for SEIS or EIS. HMRC maintains a list of excluded activities – trades that are considered ineligible for investment under these schemes. If your company’s trade includes any of these activities, and they make up a ‘substantial’ part (more than 20%) of your business operations, you won’t be eligible for SEIS or EIS tax relief. Here are some of the key excluded activities under SEIS and EIS: - dealing in land, commodities or shares - banking, insurance or money-lending - providing legal or accountancy services - property development - operating hotels, nursing homes or residential care homes - managing investments or financial assets - leasing or letting assets on hire - generating and exporting electricity ⚠️ **Important**: Even if your company is involved in one of these trades, you can still qualify if that activity is only a minor part of your business (less than 20% of trade activity). Because the rules can be complex, and many businesses operate in a grey area, HMRC treats each case individually. If you’re not sure how these exclusions apply to your company, it’s worth [seeking guidance](https://seedlegals.com/talk-to-an-expert/) or applying for [Advance Assurance](https://seedlegals.com/start/seis-eis/) to get clarity. **SEIS/EIS rules for investors** It's not just the companies that need to follow rules to qualify for SEIS/EIS. Investors need to fit some criteria too: - [SEIS investor rules](https://seedlegals.com/resources/seis-rules-investors/) - [EIS investor rules](https://seedlegals.com/resources/eis-rules-investors/) ## **SEIS and EIS eligibility checklist** To qualify for SEIS or EIS, your company must meet a specific set of criteria defined by HMRC. These rules help determine whether a business is early-stage and high-risk enough to justify tax relief for investors. Here’s a quick overview of the main SEIS and EIS eligibility criteria in 2025: | Criteria | SEIS | EIS | | --- | --- | --- | | Gross assets (pre-money) | ≤ £350,000 | ≤ £30 million | | Employees | ≤ 25 | ≤ 250 | | Trading time | < 3 years | < 7 years (<10 knowledge-intensive companies) | | UK permanent establishment | Required | Required | | Not part of a partnership | ✔ | ✔ | | No excluded trade activity (>20%) | ✔ | ✔ | ### **The gross assets test** To raise funding under SEIS, your company must have no more than £350,000 in [gross assets](https://help.seedlegals.com/en/2142732-how-to-check-you-meet-the-seis-eis-gross-assets-requirement) immediately before the investment (this limit was previously £200,000 before April 2023). For EIS, the threshold is £30 million pre-money. ### **The number of employees test** Your business must have 25 or fewer employees to qualify for SEIS, or 250 or fewer to qualify for EIS. These figures refer to full-time equivalents (FTEs). ### **The trading time test** To be eligible for SEIS, your company must have been [trading](https://help.seedlegals.com/en/2747873-what-is-trading-for-seis-or-eis) for less than 3 years (previously 2 years). For EIS, the standard limit is less than 7 years, with certain extensions for [knowledge-intensive companies](https://seedlegals.com/resources/what-is-a-knowledge-intensive-company-the-criteria/) . ⚠️ Note: HMRC uses the date your company started trading – not the date of incorporation. This is usually based on when your company first generated revenue or incurred expenses, not just when it was registered with Companies House. ### **UK permanent establishment test** Your company must have a permanent establishment in the UK. This doesn’t necessarily mean being incorporated in the UK – a foreign company might still qualify if it has a meaningful UK presence, such as an office or employees working from the UK. **How to apply for SEIS/EIS as a non-UK company** - [SEIS/EIS for foreign companies](https://seedlegals.com/resources/seis-eis-for-foreign-companies/) - [How US company Holme & Hadfield qualified for EIS](https://seedlegals.com/customers/holme-and-hadfield/) ### **The partnership test** Your company must not be part of a partnership with another business entity. If it is, HMRC might view your company as ineligible for tax relief under SEIS/EIS. ## Still unsure if your company is eligible for SEIS or EIS? Book a call with a SEIS/EIS specialist or get started with Advance Assurance today. - Article Sources [HMRC Venture Capital Schemes Manual – VCM3010 – Excluded activities: meaning of ‘excluded activities’](https://www.gov.uk/hmrc-internal-manuals/venture-capital-schemes-manual/vcm3010) – (last accessed 11/04/2025) Next up in [SeedLegals Academy](https://seedlegals.com/seedlegals-academy/) [Checklist - S/EIS Advance Assurance](https://seedlegals.com/checklists/checklist-s-eis-advance-assurance/) Get the free funding playbook Get the latest insights from our funding experts, the steps to follow and how to take cash quickly with agile funding. Related articles [– SeedLegals vs Carta: which platform to choose for cap table, SEIS/EIS, funding and options](https://seedlegals.com/resources/seedlegals-vs-carta/) [– EIS explained: the UK startup’s guide to the Enterprise Investment Scheme](https://seedlegals.com/resources/eis-scheme/) [– SEIS investment funds: 32 active UK funds in 2026](https://seedlegals.com/resources/most-active-seis-investment-funds-in-the-uk/) ## Related posts [3 min readNew: AI Health Check for SEIS/EIS Advance Assurance applications🎉 Introducing the AI Health Check – a smart, 2-minute step that helps you get your SEIS/EIS Advance Assurance applicatio... Kirsty MacSween](https://seedlegals.com/resources/ai-health-check-seis/) [4 min readSeedLegals vs Vestd: smarter equity management with unlimited options and supportThe SeedLegals all-inclusive options plan costs just £2,699/ year, with unlimited schemes, grants and support. Check out... 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