Early Stage Innovation Company (ESIC)

An Early Stage Innovation Company provides tax incentives to investors after issuing shares as a result of meeting the early stage test requirements. Because raising capital through equity investment is hard, the Australian Government incentivises early stage or angel investors by offering them generous tax breaks for their investment.
A 20% tax offset (capped at $200,000)
No GCT for capital gains on shares held for 1-10 years
A market value cost base from the 10th year onwards

For companies looking to become a Early Stage Innovation Company

If you are looking for angel investment, knowing your company qualifies for ESIC incentives is a deal sweetener in the saturated VC market. Better yet – your friends and family investors could be eligible for these tax breaks too.

BlueRock’s professional advice will give you the confidence to claim ESIC investment eligibility during your pitch.

For investors looking to invest in an Early Stage Innovation Company

ESIC investments have a 10-year outlook. What evidence will you have in 2030 when you exit and the ATO comes knocking?

Advice from our experienced team of tax and incentives experts can confirm the ESIC eligibility of your investment, providing the documentation you’ll rely on years down the track.

Here are a few key questions to ask yourself prior to applying for Early Stage Innovation Company status.
Is the company truly ‘early stage’?
Does it meet the innovation test criteria?
Are the shares new equity interests?
Is the company widely held?
How will you deal with sophisticated vs. unsophisticated investors?
What are the annual thresholds?
Will you consider employee share schemes?
Do you qualify as a founder?
What is the maximum eligible investment and holding?
Is the investor an affiliate?
Do I need to be an Australian resident?
What are the rules for trusts and super funds?
What documentation do I need to make and keep?
Can I cash out or carry forward the tax offset?
Whether you are a company or an investor, BlueRock’s ESIC advisors can unlock these generous tax incentives for you.

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Did you know?
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Does that mean we didn’t make the ‘A-Team’? Far from it; landing a ‘B’ in this case is an affirmation of our commitment to being “a force for good” in the corporate arena.