S.L. 123.213 Art. 3Applicability and eligibility.

(1) These rules shall apply to qualifying investors who subscribe to fully paid up equity shares at par in a qualifying company on their own behalf.

(2) Any company wishing to obtain the status of a qualifying company shall submit an application to the competent entity for a formal determination and for issue of the relative compliance certificate in terms of these rules, which application shall be made on such form and in such manner as the competent entity may require and shall contain the information and documents therein requested:

Provided that investments made in a qualifying company and qualifying in terms of these rules shall, in aggregate, not exceed seven hundred and fifty thousand euro (€750,000) per qualifying company.

(3) Any natural person wishing to obtain the status of a qualifying investor in relation to an investment in a qualifying company shall submit an application to the competent entity for a formal determination and for issue of the relative compliance certificate in terms of these rules, which application shall be made on such form or in such manner as the competent entity may require and shall contain the information and documents therein requested:

Provided that in order to qualify as being eligible for benefits in accordance with these rules, and until to the satisfaction of the competent entity in this respect, a qualifying investor shall:

(a) continue to hold this investment in the qualifying company for a period of not less than three (3) years subsequent to the subscription by the qualifying investor to such equity shares; and

(b) not be connected to the qualifying company prior to the subscription to the equity shares.

(4) A qualifying investor shall invest in the qualifying company within a period of two (2) years from when the qualifying company is first issued with a compliance certificate for the status of a qualifying company by the competent entity. Any subscription of shares made in a qualifying company subsequent to this date shall not entitle the investor for benefits in terms of these rules:

Provided that these rules shall not prohibit an investment in a qualifying company from being made in instalments over a period of more than one (1) year, as long as the commitment to invest, subject to the achievement of defined targets or criteria, is made within the two (2) year period referred to above. In such case, the qualifying investor shall avail of the tax benefits under these rules as soon as the investment, or part thereof is made.