The ESS BIZTOOLS’ Early Stage Innovation Company (ESIC) Product will assist accountants/business advisers to offer a comprehensive service to clients who believe they can qualify as an ESIC.
Early Stage Innovation Companies – a great opportunity for young innovative companies.
The government expects a large number of companies will attempt to be classified as an “Early Stage Innovation Company” (ESIC) to assist in capital raising.
Early Stage Innovation Company Capital Raising – Eligibility Requirements
Early Stage Innovation Companies are not restrained by S708 of the Corporations Code (restricts capital raising to $2M from up to 20 investors each 12 months) and investors can be eligible for a significant bonus:
A key component of the legislation is that companies can “self-assess“.
It’s expected that investors will wish to closely review the basis for self-assessment prior to making an investment in a company.
If the “self-assessment” process is conducted with strong professionalism, this should substantially assist a company being able to raise capital at an earlier time than waiting for a self-assessment application being made to the Australian Taxation Office/AusIndustry.
Most of these companies will be keen to get started on the capital raising at the earliest opportunity.
The ESS BIZTOOLS Product Package for “Early Stage Innovation Companies” has been designed to assist accountants/advisors to use the ESS ESIC Calculator to answer each question and to ensure that satisfactory supporting evidence has been procured and filed to substantiate the answers submitted.
This process will facilitate negotiations with potential investors and ultimately the Australian Taxation Office when the taxation return is lodged after the capital has been raised.
Subscribers automatically are sent any edited or new material produced for Early Stage Innovation Company Product Package in the next 12 months.