What to have to hand
None of this is difficult to find, but hunting for it mid-form is what turns fifteen minutes into an afternoon. Worth five minutes gathering it first.
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The company
Registered name, company number and registered office. If there is a group, the same for the parent - EMI options are granted by the company at the top, and a subsidiary cannot grant its own.
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The share capital as it stands
What classes of share exist, how many of each are issued, and who holds them. Your last confirmation statement covers most of this. If there are existing options or a previous scheme, those matter too.
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The people you want to include
Names, roles, and roughly how many hours a week each works. Flag anyone who already holds close to 30% of the company, and anyone who is a contractor rather than an employee - both change what is possible for them.
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What you intend to give away
Either a percentage of the company or a number of shares, and how you want it split. An approximate answer is fine at this stage; the point is the shape rather than the final figure.
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How the options should vest
Whether they build up over time, on hitting targets, only on a sale, or some combination. This is the part clients most often have not thought about, and it is worth deciding rather than defaulting.
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Your accountant's details
The valuation and the tax treatment sit with them, and the exercise price rests on the valuation, so the sooner they are in the loop the sooner the scheme can be granted.
What happens after you send it
I read it and come back to you, normally within a working day, with anything which needs clarifying and a fixed fee for the work. Nothing is chargeable until you have that figure and have agreed it.
From there the sequence is the valuation, then the scheme rules and option agreements, then the board and shareholder paperwork, then the notifications to HMRC. The valuation usually sets the pace, which is why it is worth starting early.
Frequently asked questions
What information do I need to set up an EMI scheme?
The company details and number, the current share capital and who holds it, the employees you want to include with their roles and hours, how much of the company you intend to put into the scheme, how the options should vest, and your accountant's details for the valuation. The list above breaks each of those down.
How long does the questionnaire take?
About fifteen minutes if you have the share register and last confirmation statement to hand, and considerably longer if you are hunting for them as you go. Gathering the six items above first is the difference.
Do I need my accountant involved before I start?
Not to complete the questionnaire, but you will need them shortly afterwards. The valuation and the tax treatment are theirs rather than ours, and the exercise price depends on the valuation, so naming them on the form lets that conversation start in parallel rather than after everything else is drafted.
What if I am not certain EMI is the right scheme?
Then do not start here. The EMI check is ten questions and tells you whether options fit what you are trying to do, whether the company qualifies, and which of the alternatives suits you better if it does not. Far cheaper than discovering it partway through the paperwork.