early stage innovation company grant

Our client is a proudly Australian owned and operated cannabis cultivation company aiming to drive the evolution of ‘smart farming’. Being in an industry that requires intensive working capital to get off the ground, our client wanted to position itself favourably for any investors that wanted to come onboard the journey.

Working closely with our client and having already assisted in completing its R&D Tax Incentive claims, BridgePoint Group Government Grants & Incentives team identified the opportunity for our client to achieve Early-Stage Innovation Company (ESIC) status.

This would result in any new investors in our client receiving two key tax benefits – the first being a tax offset of 20% of their investment amount, and the second not having to pay capital gains tax on increases in share value, if the shares are held for more than 12 months.

We assisted our client by preparing and lodging a private ruling request with the Australian Taxation Office stating the client’s prima-facie eligibility to receive Early-Stage Innovation Company status under the Principles-Based Innovation Test. We then worked closely with the ATO, explained to them the business model, marketing strategy, and rationale as to how our client meets the legislative criteria for being classified as an Early-Stage Innovation Company.

As a result, the ATO issued a private ruling to our client stating that it had received Early-Stage Innovation Company status. This enhanced the company’s attractiveness as an investment opportunity due to the two key benefits noted earlier.

If you would like to engage an Early-Stage Innovation Company specialist to determine whether or not your company qualifies for the ESIC then please reach out to Alan Baghdasarayan, Government Grants & Incentives Director who will provide a free 30-minute consultation.

Talk To
Alan Baghdasarayan
Subscribe to our newsletter

Get informed about our business all the time, whatever you are. Read whenever you want.