How does investing work?
If you invest in a business, you will become a direct shareholder in that company. The amount you invest, and the equity issued by the company in exchange for your investment, will affect your percentage of ownership in the business. Once your investment has been processed, you will be sent a Share Certificate and appear on the business' share register at Companies House.
What is EIS Tax relief and do you have it?
Yes. We have our advanced assurance for the EIS tax relief.
The Enterprise Investment Scheme is designed to help smaller, higher-risk companies raise finance by offering tax relief on new shares in those companies that qualify. For the investor, it’s a tax efficient way to invest in small companies.
People can invest up to £1,000,000 in any tax year and receive 30% tax relief. However, they are locked into the scheme for a minimum of three years.
What makes it even more attractive is the 'carry back' facility where investments can be applied to the preceding tax year.
More than 20 years later, those “considerable difficulties” in raising small amounts of capital are still a pertinent feature of the business landscape.
If I invest am I a shareholder?
Yes. We are operating a nominee structure. Rather than issuing the shares to you directly, the shares are instead issued to a nominee company: Crowdcube Nominees Limited. The nominee is named in the company’s register of shareholders and will be the legal holder of the shares. The company will communicate directly with the nominee and will also send you updates directly.
The nominee will hold the shares on trust for you, the beneficial owner, and Crowdcube will administer the holding on the terms set out in the Investor Terms to safeguard your rights and entitlements.
You should read the legal review which will be attached to the email you are sent after the pitch closes to investment and the Investor Terms, which apply to every investment.
What happens if the company is sold or pays a dividend?
Returns on your shares (e.g. dividends or the proceeds of any sale) would be transferred to you by the nominee, Crowdcube Nominees Limited. In these circumstances, you would be asked to confirm your bank details.
Can I sell my shares after I have bought them?
Yes. However you will have to offer them to the other StrongHer shareholders first who have a right to first refusal. If they do not want to buy them, you will need to find a buyer to sell them to, and inform Crowdcube.