WHAT IS AN ESIC?
An ESIC is an Early Stage Innovation Company. In order for a company to qualify as an ESIC through the principals based assessment system the company must have high growth potential, be able to scale, address a broader than local market, and have competitive advantages. Points based assessment does not require an additional objective assessment of the early stage company’s innovation, and instead relies upon independent assessment via government, commercial or other established measure.
It can be argued that points based ESIC’s are not subject to the same level of assessment as principals based assessment undertaken by the ATO in a private ruling, however the opposite can also be asserted (saying that the commercial hurdles are better). Such assessment must be made by the investor, and in either event, a correctly assessed ESIC is able to offer the tax concession to eligible investors.
In 2015 the Australian government passed legislation that provides tax incentives for investments in ESICs. Investments in ESICs may be eligible for a 20% tax offset, and gains on the sale of an ESIC investment may be CGT free if shares are held for between 1 to 10 years.
As a business, ESIC status makes you a more attractive investment and lets investors know you are a promising new company. Take our ESIC Pre-Assessment here to see if you may qualify as an ESIC.
Some say that ideas are easy and its all in the execution, others spend 100's of thousands to protect an innovation before seeking to commercialise, either may hold true in some markets and not in others, though either-way we are here to help.
ESIC Directory provides early stage innovation companies with the platform you need to advance your company via the newly available classification (ESIC). We think of it as a new type of company, though you will not go to the company regulator to become one. For that matter, you don't need us either, though you will most likely need costly expert advice so these pages should be considered a valuable first point of call.
Around now, you might be thinking I can read this later or print some brochure when I need it, which again is true, though ESIC Directory is run by qualified experts who are happy to help, and on the off chance your enquire is a curly one, you will of course be offered a full fee paying option, under no obligation.
Why not read more about ESIC's and then try before you by with our online form?
Just how innovative is my company?
Early Stage Companies Pre-assessment
This pre-assessment will help you determine if you are likely to qualify as an Eligible Early Stage Innovation Company, i.e. a company that meets both the Early Stage Test and either the 100 point Innovation Test or the Principles-based Innovation Test. Failing these tests, the company may request a taxation ruling from the Australian Tax Office.