Everything You Need To Know About EIS Shares!

Introduction

In the business world, the role played by the investors as well as investees is of equal importance. It is because the firms, companies or the industries that need financial aid to look around for the investors that may be interested in making handsome investments and in turn get benefited by way of profit sharing or tax reliefs and so on. Owing to the same fact, the Enterprise Investment Scheme or EIS is opted for by large numbers of investors as well as investees. It is a type of giving and take system wherein both parties get benefited in some of the most amazing ways. Let us now discuss some important factors about such shares and the relevant investments.

What EIS Is

As already stated, EIS or enterprise investment scheme is basically an investment process wherein the smaller firms or companies look around for the investors that may be interested to make an investment in them and in turn get benefited. The smaller companies or firms ask for the funds they need and in turn, offer EIS shares to the investors. It is a great way of making the shares of the smaller companies attractive for the investors so that they may readily come forward to make investments.

Benefits For The Investors

Surely, the Enterprise Investment Scheme proves to be greatly beneficial for the investors that supply funds to the smaller firms or companies. The investors get a number of tax reliefs by being a part of EIS. As an instance, they get tax relief on income tax, exemption from capital tax gains, federal tax relief and so on. It means this scheme allows the investors to save lots of money that are otherwise paid in the form of heavy taxes. At the same time, they also share profits with the companies being invested in. Even if there are losses in the companies or firms that they have invested in, their losses are compensated by the tax reliefs they get.

Benefits For The Investees

Of course, EIS is really beneficial for the investees. It is because they get the funds raised quite quickly and easily by way of EIS. This in turn allows them to carry on with smoother business operations and look forward to success and growth in the long run.

Eligibility Is Important

As far as EIS sharesare concerned, the investors, as well as investees, need to be eligible for the same. There are certain criteria that they need to fulfil in order to be eligible for EIS.

Conclusion

After getting to know about Enterprise Investment Scheme in a detailed manner, you may also wish to become part of the same. Whether you are an investor or an investee, you may always look forward to getting benefited through this scheme.