Enterprise Investment Scheme Subscription Application Letter for Shares
EIS shares must be subscribed for, meaning they must be newly issued shares and not shares sold by an existing shareholder. The subscription for shares under the Enterprise Investment Scheme will require a degree of formality and it is therefore usual for the parties to enter into a subscription agreement. However for some smaller companies or investors who want to make a speedy investment, it may be more appropriate to have an application letter as an alternative.
This subscription letter is an application from the proposed investor(s) to the issuing company. It will not have the terms in it or level of detail that would be expected in a subscription agreement; however it sets out the basic terms of the subscription, including the number of shares to be subscribed for, the price to be paid and that it is proposed that they qualify for EIS tax relief.
The letter also authorises the subscriber’s name to be added to the company’s register of members once the subscription monies have been paid and received.
It is strongly recommended that independent legal and tax advice is sought for companies or investors considering EIS investment.
HMRC requires sight of the subscription or shareholders agreement (if there is one) when the company completes its EIS1 compliance statement. This is likely to include sight of a subscription application letter in place of a subscription agreement.
The document is in open format. Fields should be completed. Wording in square brackets is optional and can be deleted or retained according to requirements.
Once you have subscribed to the appropriate document folder click on the “Download Document” button below. You will be asked what you want to do with the file. It is recommended that you save the document to a location of your choice prior to viewing.