The Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS) are very effective ways for start-up companies to attract private investment through the offering of tax incentives to investors.
There are conditions a company must meet to qualify for the schemes, some of which are well known to both entrepreneurs and investors. For example, the age requirement condition requires a SEIS company to be trading for less than two years; for EIS, the company cannot be trading for longer than seven years.
However, from my experience working with many companies seeking SEIS/EIS, there are some fundamental conditions that are equally important but not as well known. Here are the ones that I see many entrepreneurs unaware of, which has led to problems with availing of the schemes: