Does an Early Stage Innovation Company (“ESIC”) need to be a high-risk investment to qualify?
No. Being ESIC ready is open to all innovators, business creators and those looking to grow their existing business, not just your neighbour who spends each week dreaming up the next big game changer and telling you about its high growth potential.
An existing company selling products and/or services to customers, earning an income and even making a profit can qualify as an ESIC.
It is essential an Early Stage Innovation Company (“ESIC”) meets eligibility criteria under Australian tax laws. A company that satisfies the early-stage test and either the 100-point innovation test or principles based test will qualify as an ESIC.
The concept of investment risk is not used to qualify an ESIC.
ESIC benefits can flow to those who have spent time building a business from scratch, testing it in the market, saving costs wherever they can and eking out a living. ESIC benefits are open to all sectors of the economy, not only those with high-growth potential.