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by Undo Capital
December 15, 2025
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What Is a Knowledge-Intensive Company?

A knowledge-intensive company is a business that primarily creates value through research, development and intellectual property, and that meets specific HMRC criteria on R&D spend, skilled employees and innovation for enhanced EIS treatment.

Knowledge-Intensive Company Meaning

In SEIS/EIS, the knowledge-intensive company's meaning focuses on how the business grows. To define a knowledge-intensive company, HMRC looks at whether the company is developing its own IP, expects that IP to drive most of its future revenue, employs a high proportion of highly qualified staff and spends a significant share of its costs on R&D. A clear knowledge-intensive company definition helps show that the business is genuinely innovation-led, not a passive or asset-heavy operation.

Why Knowledge-Intensive Company Status Matters?

Knowledge-intensive company status stands for greater flexibility under EIS, including higher fundraising limits and extended time to raise capital. 

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Disclaimer: Our services are designed to assist startups and businesses with company formation, legal agreements, and funding-related documentation. We do not provide investment advice, financial advice, or tax advice, nor are we regulated by the Financial Conduct Authority (FCA). Participating in startups and early-stage enterprises carries inherent risks, including limited liquidity, absence of dividends, potential loss of investment, and dilution. Any decisions regarding investments should be made independently by the investor as part of a well-diversified portfolio.