What are the common misconceptions about ESIC®?
Here are a few misconceptions about ESIC® or Early Stage Innovation Company:
- 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.
This is most useful for all kinds of companies in various sectors to avail tax incentives. Moreover, as these incentives are not confined to companies in any particular category or criterion such as growth potential, it is leading to the equal growth of companies in all sectors.
- 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. By opting for ESIC® status the companies are easily multiplying investors and expanding their ventures for better returns. It is becoming proven that tax rebates are among the top incentives attracting investors to raise their capital. They also are promptly multiplying their business ventures and planning large businesses while ESIC® companies are providing them tax incentives on their capital investments.
However, it is also true that start-up companies can also qualify for ESIC® status while using the ESIC® Hub, Australia’s foremost online platform connecting innovation and investment.
- 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, employees can be considered when assessing a company’s ESIC® status and benefits. This is truly beneficial for the organisations to avail tax savings without legal complications or elaborate documentation processes. ESIC® Hub is increasing the convenience of companies to attain the ESIC® status with its tools such ESIC® Predictor, and its ESIC® experts.
- 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.
Simply seek the timely guidance of the experts at ESIC® Hub to simplify your ESIC® investment plan and also avail the plenty of benefits provided by the government’s tax savings policy established on 1 July 2016.
- 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 experts in preparing you for the tax incentives in complete privacy and you can easily get an edge over your competitors without their slightest knowledge. We are committed to serving our clients in top confidentiality and we never breach their trust. ESIC® Hub also connects investors to the innovators so is a complete end to end solution.
ESIC® Hub in spotlight
ESIC® Hub is Australia’s first and pre-eminent online platform committed to serving the requirements of Early stage innovation companies and investors. This useful platform is already enlightening investors the benefits of attaining ESIC® status and deriving the benefits. Now companies across Australia can avail better investments from the investors.
You and Us working together
ESIC® Hub is Australia’s first and only online platform dedicated to serving the needs of the early-stage community. We offer you an effective pathway to efficiently allocate resources by utilising our deep technical knowledge and expertise to ensure client-centric outcomes are achieved.
We look forward to working with you.
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200 Queen St, MELBOURNE VIC 3000
P: PO Box 905 WOOLLAHRA NSW 1350