EIS: income tax relief: the issuing company: issuing company requirements: overview
This part of the manual deals with the rules applying to the investee company - that is, the company issuing the shares. Guidance on investor requirements is at VCM11000+ and general requirements is at VCM12000+.
The issuing company must be a ‘qualifying company’. To be a qualifying company it must satisfy certain conditions, and most of those conditions apply throughout a period that starts with the issue of the shares and ends immediately before the termination date (VCM10540).
It follows that it cannot be known for certain whether a company qualifies in relation to a given share issue until the termination date related to that issue. This applies in respect of both income tax relief and deferral relief (VCM23000+).
The issuing company must meet requirements pertaining to:
* UK permanent establishment (see [VCM13020](https://www.gov.uk/hmrc-internal-manuals/venture-capital-schemes-manual/vcm13020)), * Financial health (see [VCM13040](https://www.gov.uk/hmrc-internal-manuals/venture-capital-schemes-manual/vcm13040)), * Trading (see [VCM13050](https://www.gov.uk/hmrc-internal-manuals/venture-capital-schemes-manual/vcm13050)), * Carrying on a qualifying business activity (see [VCM13060](https://www.gov.uk/hmrc-internal-manuals/venture-capital-schemes-manual/vcm13060) and for excluded activities see VCM3000+), * Unquoted status (see [VCM13090](https://www.gov.uk/hmrc-internal-manuals/venture-capital-schemes-manual/vcm13090)), * Control and independence (see [VCM13100](https://www.gov.uk/hmrc-internal-manuals/venture-capital-schemes-manual/vcm13100)), * Gross assets (see [VCM13110](https://www.gov.uk/hmrc-internal-manuals/venture-capital-schemes-manual/vcm13110)), * Number of employees (see [VCM13120](https://www.gov.uk/hmrc-internal-manuals/venture-capital-schemes-manual/vcm13120)), * Qualifying subsidiaries (see [VCM13130](https://www.gov.uk/hmrc-internal-manuals/venture-capital-schemes-manual/vcm13130)), * Property managing subsidiaries (see [VCM13140](https://www.gov.uk/hmrc-internal-manuals/venture-capital-schemes-manual/vcm13140)).