Mastering the Deal Types: Your Roadmap to Compliant Crowdfunding
Diving into early-stage investments can feel like navigating a maze. You’ve got the Seed Enterprise Investment Scheme (SEIS), the Enterprise Investment Scheme (EIS) and plain equity (non-eligible). Each route offers different perks—and different paperwork. Grasping the nuances makes all the difference. Plus, staying on top of crowdfunding compliance UK rules will save headaches down the line. Revolutionizing crowdfunding compliance UK experiences helps you pick the right path without the jargon.
In this guide, we’ll break down the three deal types. You’ll see what makes a startup qualify. We’ll explore tax reliefs, investment caps and ongoing compliance. And we’ll compare big-name platforms with Oriel IPO’s commission-free model. By the end, you’ll know exactly where to invest, and how to keep everything above board.
Breaking Down SEIS, EIS and Non-Eligible Deals
Understanding the differences is key. Think of SEIS as the sprint. It’s for very early-stage startups. EIS is the marathon—growth companies with more runway. Non-eligible deals? A straightforward equity play, no tax relief attached.
Seed Enterprise Investment Scheme (SEIS)
- Stage: Startups under three years old.
- Employees: Fewer than 25.
- Assets: Under £350k.
- Lifetime Cap: £250,000.
- Tax Relief: 50% income tax relief.
- Risk Profile: High rewards, high risk.
SEIS attracts first-time backers and micro-funds. They crave the hefty 50% relief but must hold shares for at least three years. Miss that window, and you lose the benefit.
Enterprise Investment Scheme (EIS)
- Stage: Companies up to seven years old (ten for knowledge-intensive).
- Employees: Up to 250 (500 for KICs).
- Assets: Up to £15 million.
- Annual Cap: £5 million (lifetime £12 million).
- Tax Relief: 30% income relief + CGT deferral.
EIS is the middle ground. It’s still early-stage, but companies have a track record. Investors get decent relief without the extreme risk of seed deals.
Non-Eligible Deals
No special tax breaks. Just ordinary shares. Ideal for:
- Established businesses missing SEIS/EIS criteria.
- Corporate or non-UK investors.
- Those betting on traction over tax incentives.
Non-eligible deals simplify compliance—no HMRC filings or holding-period tracking. But they lack the lure of government-backed relief.
Why Compliance Matters on a Commission-Free Platform
Compliance isn’t an optional extra. It’s the backbone of crowdfunding compliance UK. SEIS and EIS come with strict rules:
- Eligibility checks before launch.
- HMRC Advance Assurance support.
- SEIS1/EIS1 and SEIS3/EIS3 certification.
- Three-year holding-period tracking.
Skipping any step risks investors losing relief—and brings HMRC headaches.
Platforms with a commission model might nickel-and-dime you for every form or alert. That adds up. Oriel IPO’s commission-free platform uses clear subscription fees instead. You get full compliance tools baked in:
- Automated HMRC application workflows.
- Certificate generation and delivery.
- Holding-period alerts to protect relief.
No hidden charges. No sudden bills after a successful round. And a team of experts on hand to guide you through every step.
Platform Showdown: Competitor Strengths and Gaps
You’ve probably heard of Seedrs or Crowdcube. They’re big names. They support SEIS and EIS workflows end-to-end. But they also take a commission on funds raised—often 6% or more. That cuts into your pool of capital.
InvestingZone and Crowd for Angels also tick the SEIS/EIS boxes. But their focus tends to be narrower—either investor side or debt instruments. You might need multiple accounts to cover every deal type.
Here’s how Oriel IPO fills the gaps:
- Commission-free model: Keep more capital or returns.
- Curated access: Only vetted, tax-eligible opportunities.
- Educational toolkit: Guides, webinars and insights on SEIS/EIS.
- Transparent subscription: One predictable fee, all-in.
Oriel IPO combines the best of both worlds: robust compliance workflows and a commission-free approach that keeps your costs down.
Explore how Oriel IPO supports crowdfunding compliance UK seamlessly
Operational Checklist: Running a Smooth Campaign
Whether you’re a founder or an investor, here’s your cheat sheet for compliant deals:
- Pre-launch due diligence
– Verify company age, employee count, assets.
– Submit HMRC Advance Assurance. - Document management
– Generate SEIS1/EIS1 forms.
– Issue SEIS3/EIS3 certificates post-close. - Investor onboarding
– Confirm tax residency and eligibility.
– Provide clear holding-period notices. - Funds allocation
– Restrict use to scheme rules (e.g., R&D, trading activities).
– Regularly audit spending. - Post-close reporting
– Deliver certificates.
– Track shareholding durations.
Oriel IPO automates steps 2–5 within its commission-free platform. You get peace of mind, plus more time to focus on growth.
Real-World Benefits: Why Founders and Angels Choose Oriel IPO
By ditching commissions and adding compliance features, Oriel IPO transforms how you raise and deploy capital.
- Startups keep 100% of raised funds.
- Investors access top-tier SEIS/EIS deals with full HMRC support.
- Everyone gets tailored educational resources to make informed choices.
Platforms that charge commission often obscure these processes behind extra fees or manual interventions. Oriel IPO’s transparent approach cuts through the complexity.
Testimonials
“Working with Oriel IPO felt like a breath of fresh air. Their compliance tools kept our SEIS round on track, and we didn’t lose a penny to commission.”
— Emma Clarke, Founder
“As an angel, I appreciate clear HMRC guidance. Oriel IPO’s platform took care of the paperwork so I could focus on due diligence.”
— Raj Patel, Angel Investor
“I switched to Oriel IPO for their no-commission promise. The subscription fee is minimal compared to the savings—and the compliance dashboard is brilliant.”
— Sophie Ng, Growth Entrepreneur
Ready to Elevate Your Crowdfunding Game?
Compliance doesn’t have to be a headache. Choose Oriel IPO’s commission-free platform and unlock streamlined SEIS, EIS and non-eligible workflows. All under one transparent subscription. All backed by expert guidance.
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