What legal documents do I get to evidence my investment?
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John Li
June 21, 2023
We use a nominee structure for your shareholdings which is typical of large syndicates. This basically means that the shares in the startup are held by a company, known as a nominee. The actual share certificates will be held securely by a trusted and regulated third-party firm whom we work with. The nominee will then in turn provide you with a document which certifies your individual shareholding in the startup. This is known as beneficial ownership.
This is very standard and ensures that the startup has less administration to deal with as there is technically only one shareholder. HMRC also recognises this structure as being consistent with claiming SEIS and EIS so you don’t need to worry about that.