To qualify for EIS relief you must subscribe for shares and not purchase them from a person or another business. The company must be trading and you must have at least 5% of the company’s ordinary shares.
You must not be connected with the company or EIS relief will be lost. Connected means a paid employee or director, but you can be an unpaid director. You must not own directly or indirectly 30% of the company’s ordinary shares capital, it’s voting rights or rights to assets on winding up.
It is recommended that the shares should be subscribed for before the individual is appointed as a director, but remain unpaid for the 3 years after the shares were acquired or trade commences, which ever is the later.