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Stephen Crowe answers
your common ESIC questions

General ESIC Questions

ESIC Hub’s list of common misconceptions about being an ESIC.

Misconception No 1. In order for a company to qualify as an ESIC it must have high growth potential.

No.  Once a company meets the early stage test it can qualify as an ESIC if it meets the 100-point innovation test, which is unrelated to its growth potential.  To qualify as an ESIC it is NOT necessary for a company to have high growth potential.

Misconception No 2. You need to be a start-up company to qualify as an ESIC.  

No. An existing company that has been operating for years can be an ESIC. It is okay for the company to have ceased or interrupted its trading in those years too.

Misconception No 3. A company already requires the backing of a private equity or venture capital firm to qualify as an ESIC.   

No.  Investors who are family and friends, as well as the big end of town, can be considered when assessing a company’s ESIC status and benefits.

Misconception No 4. A company founder cannot receive the ESIC tax benefits on their shareholding.

No. If the founder pays for new equity and owns no more than 30% of the company (inclusive of associates), he/she can qualify as an early stage investor and receive the ESIC tax incentives.

Misconception No 5. If I go online and complete the ESIC Predictor my company will be advertised on a public list and available to everyone to see.

No. Any information provided to ESIC Hub is kept confidential, treated securely and managed in a respectful environment governed by professional and ethical rules and obligations of independent professional associations, and the Privacy Act.   We are like doctors and lawyers.

When you are ready to dance on the capital raising stage, we know the routine. In the meantime, our focus is on getting you ESIC Ready and the ESIC Predictor is the shoe that fits.

An Early Stage Innovation Company (“ESIC”) that meets eligibility criteria under Australia’s income tax laws.  A good example is an Australian-private company incorporated in recent years. Your company would generally need to be younger than your teenage children.

ESIC Indicators for your company:

  • a demonstrated innovation (as contained in a patent, R&D tax registration, accelerator program and such); or
  • high-growth potential for a new business offering with the potential to address a broader than local market.  Be bold and think global markets.

An ESIC is an Early Stage Innovation Company. In order for a company to qualify as an ESIC it must have high growth potential, be able to scale, address a broader than local market, and have competitive advantages.

The government has recently 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 Predictor Pre-Assessment to see if you may qualify as an ESIC.

General ESIC Questions

ESIC Hub’s list of common misconceptions about being an ESIC.

Misconception No 1. In order for a company to qualify as an ESIC it must have high growth potential.

No.  Once a company meets the early stage test it can qualify as an ESIC if it meets the 100-point innovation test, which is unrelated to its growth potential.  To qualify as an ESIC it is NOT necessary for a company to have high growth potential.

Misconception No 2. You need to be a start-up company to qualify as an ESIC.  

No. An existing company that has been operating for years can be an ESIC. It is okay for the company to have ceased or interrupted its trading in those years too.

Misconception No 3. A company already requires the backing of a private equity or venture capital firm to qualify as an ESIC.   

No.  Investors who are family and friends, as well as the big end of town, can be considered when assessing a company’s ESIC status and benefits.

Misconception No 4. A company founder cannot receive the ESIC tax benefits on their shareholding.

No. If the founder pays for new equity and owns no more than 30% of the company (inclusive of associates), he/she can qualify as an early stage investor and receive the ESIC tax incentives.

Misconception No 5. If I go online and complete the ESIC Predictor my company will be advertised on a public list and available to everyone to see.

No. Any information provided to ESIC Hub is kept confidential, treated securely and managed in a respectful environment governed by professional and ethical rules and obligations of independent professional associations, and the Privacy Act.   We are like doctors and lawyers.

When you are ready to dance on the capital raising stage, we know the routine. In the meantime, our focus is on getting you ESIC Ready and the ESIC Predictor is the shoe that fits.

An Early Stage Innovation Company (“ESIC”) that meets eligibility criteria under Australia’s income tax laws.  A good example is an Australian-private company incorporated in recent years. Your company would generally need to be younger than your teenage children.

ESIC Indicators for your company:

  • a demonstrated innovation (as contained in a patent, R&D tax registration, accelerator program and such); or
  • high-growth potential for a new business offering with the potential to address a broader than local market.  Be bold and think global markets.

An ESIC is an Early Stage Innovation Company. In order for a company to qualify as an ESIC it must have high growth potential, be able to scale, address a broader than local market, and have competitive advantages.

The government has recently 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 Predictor Pre-Assessment to see if you may qualify as an ESIC.

General ESIC Questions

Early Stage Company

General ESIC Questions

ESIC Hub’s list of common misconceptions about being an ESIC.

Misconception No 1. In order for a company to qualify as an ESIC it must have high growth potential.

No.  Once a company meets the early stage test it can qualify as an ESIC if it meets the 100-point innovation test, which is unrelated to its growth potential.  To qualify as an ESIC it is NOT necessary for a company to have high growth potential.

Misconception No 2. You need to be a start-up company to qualify as an ESIC.  

No. An existing company that has been operating for years can be an ESIC. It is okay for the company to have ceased or interrupted its trading in those years too.

Misconception No 3. A company already requires the backing of a private equity or venture capital firm to qualify as an ESIC.   

No.  Investors who are family and friends, as well as the big end of town, can be considered when assessing a company’s ESIC status and benefits.

Misconception No 4. A company founder cannot receive the ESIC tax benefits on their shareholding.

No. If the founder pays for new equity and owns no more than 30% of the company (inclusive of associates), he/she can qualify as an early stage investor and receive the ESIC tax incentives.

Misconception No 5. If I go online and complete the ESIC Predictor my company will be advertised on a public list and available to everyone to see.

No. Any information provided to ESIC Hub is kept confidential, treated securely and managed in a respectful environment governed by professional and ethical rules and obligations of independent professional associations, and the Privacy Act.   We are like doctors and lawyers.

When you are ready to dance on the capital raising stage, we know the routine. In the meantime, our focus is on getting you ESIC Ready and the ESIC Predictor is the shoe that fits.

An Early Stage Innovation Company (“ESIC”) that meets eligibility criteria under Australia’s income tax laws.  A good example is an Australian-private company incorporated in recent years. Your company would generally need to be younger than your teenage children.

ESIC Indicators for your company:

  • a demonstrated innovation (as contained in a patent, R&D tax registration, accelerator program and such); or
  • high-growth potential for a new business offering with the potential to address a broader than local market.  Be bold and think global markets.

An ESIC is an Early Stage Innovation Company. In order for a company to qualify as an ESIC it must have high growth potential, be able to scale, address a broader than local market, and have competitive advantages.

The government has recently 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 Predictor Pre-Assessment to see if you may qualify as an ESIC.

Early Stage Investor

General ESIC Questions

ESIC Hub’s list of common misconceptions about being an ESIC.

Misconception No 1. In order for a company to qualify as an ESIC it must have high growth potential.

No.  Once a company meets the early stage test it can qualify as an ESIC if it meets the 100-point innovation test, which is unrelated to its growth potential.  To qualify as an ESIC it is NOT necessary for a company to have high growth potential.

Misconception No 2. You need to be a start-up company to qualify as an ESIC.  

No. An existing company that has been operating for years can be an ESIC. It is okay for the company to have ceased or interrupted its trading in those years too.

Misconception No 3. A company already requires the backing of a private equity or venture capital firm to qualify as an ESIC.   

No.  Investors who are family and friends, as well as the big end of town, can be considered when assessing a company’s ESIC status and benefits.

Misconception No 4. A company founder cannot receive the ESIC tax benefits on their shareholding.

No. If the founder pays for new equity and owns no more than 30% of the company (inclusive of associates), he/she can qualify as an early stage investor and receive the ESIC tax incentives.

Misconception No 5. If I go online and complete the ESIC Predictor my company will be advertised on a public list and available to everyone to see.

No. Any information provided to ESIC Hub is kept confidential, treated securely and managed in a respectful environment governed by professional and ethical rules and obligations of independent professional associations, and the Privacy Act.   We are like doctors and lawyers.

When you are ready to dance on the capital raising stage, we know the routine. In the meantime, our focus is on getting you ESIC Ready and the ESIC Predictor is the shoe that fits.

An Early Stage Innovation Company (“ESIC”) that meets eligibility criteria under Australia’s income tax laws.  A good example is an Australian-private company incorporated in recent years. Your company would generally need to be younger than your teenage children.

ESIC Indicators for your company:

  • a demonstrated innovation (as contained in a patent, R&D tax registration, accelerator program and such); or
  • high-growth potential for a new business offering with the potential to address a broader than local market.  Be bold and think global markets.

An ESIC is an Early Stage Innovation Company. In order for a company to qualify as an ESIC it must have high growth potential, be able to scale, address a broader than local market, and have competitive advantages.

The government has recently 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 Predictor Pre-Assessment to see if you may qualify as an ESIC.

Adviser

General ESIC Questions

ESIC Hub’s list of common misconceptions about being an ESIC.

Misconception No 1. In order for a company to qualify as an ESIC it must have high growth potential.

No.  Once a company meets the early stage test it can qualify as an ESIC if it meets the 100-point innovation test, which is unrelated to its growth potential.  To qualify as an ESIC it is NOT necessary for a company to have high growth potential.

Misconception No 2. You need to be a start-up company to qualify as an ESIC.  

No. An existing company that has been operating for years can be an ESIC. It is okay for the company to have ceased or interrupted its trading in those years too.

Misconception No 3. A company already requires the backing of a private equity or venture capital firm to qualify as an ESIC.   

No.  Investors who are family and friends, as well as the big end of town, can be considered when assessing a company’s ESIC status and benefits.

Misconception No 4. A company founder cannot receive the ESIC tax benefits on their shareholding.

No. If the founder pays for new equity and owns no more than 30% of the company (inclusive of associates), he/she can qualify as an early stage investor and receive the ESIC tax incentives.

Misconception No 5. If I go online and complete the ESIC Predictor my company will be advertised on a public list and available to everyone to see.

No. Any information provided to ESIC Hub is kept confidential, treated securely and managed in a respectful environment governed by professional and ethical rules and obligations of independent professional associations, and the Privacy Act.   We are like doctors and lawyers.

When you are ready to dance on the capital raising stage, we know the routine. In the meantime, our focus is on getting you ESIC Ready and the ESIC Predictor is the shoe that fits.

An Early Stage Innovation Company (“ESIC”) that meets eligibility criteria under Australia’s income tax laws.  A good example is an Australian-private company incorporated in recent years. Your company would generally need to be younger than your teenage children.

ESIC Indicators for your company:

  • a demonstrated innovation (as contained in a patent, R&D tax registration, accelerator program and such); or
  • high-growth potential for a new business offering with the potential to address a broader than local market.  Be bold and think global markets.

An ESIC is an Early Stage Innovation Company. In order for a company to qualify as an ESIC it must have high growth potential, be able to scale, address a broader than local market, and have competitive advantages.

The government has recently 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 Predictor Pre-Assessment to see if you may qualify as an ESIC.