Enterprise Investment Scheme or EIS has emerged as one of the most appealing investment schemes for the investors which are beneficial for them in a number of ways. The investors make investments in small companies, firms or start-ups so as to provide them the funds required for their smoother operations. In return for this, they get a series of tax reliefs which act as a great incentive for them. Small businesses or firms also benefit as they get the investment or the funding needed for their survival and success. In simple words, it is equally beneficial for the investors as well as the smaller companies or the start-ups as both earn something worthwhile. We are giving below our ultimate guide to making EIS investment so as to get benefited to the maximum extent:-
Check Your Eligibility Before Making Investment
In order to make an investment in EIS shares, first of all, you need to know if you are actually eligible for making the investment. For this, you need to fulfil some conditions such as your interest in the given company should not exceed more than 30%. Likewise, you or any of your associates should not have any interests in the company. Only then you are eligible for EIS investment.
Choose The Right Company For Investment Purpose
To start making EIS investment, you must choose the right and the best suited small company. You may look around for different options and then decide on one that has great growth potential or that may offer you maximum tax relief. By making an investment in such a company, you may expect huge profits.
Check Eligibility Of The Given Company For EIS
Again it is important to check the eligibility of the given company for EIS investment. It means the concerned company must also be eligible to get investments from the investors. You need to check numbers of points about the company before you actually make any investment. As an instance, you must check if the given company is permanently established. Also it should not be listed in stock exchange and so on.
Know About Tax-Reliefs Well-In-Advance
Finally, you must know about various tax-reliefs that you will actually get by making investments in EIS shares. You may check about income tax relief, exemption from the capital gains tax, EIS loss relief and so on. After all, such tax reliefs are a great source of monetary benefits to you. You may calculate how much you can actually gain by getting various types of tax-reliefs and then move ahead with making EIS investment.
By following this absolute guide about EIS investment, you may make investments in the best manner possible and hence look forward to great profit returns in near future.