ESIC Targets SMEs, Inventors, Young Companies
The Early Stage Innovation Company legislation which commenced operation on the 1st July 2016 gives small/medium enterprise operators, inventors and young companies that have been involved in research and development, have been a participant in Accelerating Commercialisation Grant Program, have already received capital investment from arms-length investors of $50,000 or more; or if you've already registered a patent, a plant patent, an innovation patent or a registered design, or you are a business that has developed a new product, process, service, marketing or organisational methodology. So that's a very broad aspect of business operations.
If you've been involved in any of those things, then you are potentially an organisation that could be deemed to be an Early Stage Innovation Company.
If you're not currently a company, but you've carried out all of the research and ready now to try to develop the commercialisation program for this business.. don't worry, you can form a company now and potentially become registered as an Early Stage Innovation Company, because the legislation has got a particular clause which is called "Principle Based Test" which applies to very new companies that have developed new products, processes, services etc.
There are going to be some accountants who will be marketing services to you who are users of our products and services and they'll be well prepared to assist you on your journey because; first of all you have to go through the process to determine whether you are an Early Stage Innovation Company and then you need to get yourself "innovation prepared" and that means you've summarised your intellectual property, if you're going to make a patent application, it's an opportune time to do so and then you're going to go to the "investment readiness" phase. This phase is what type of documents are you going to submit to investors to satisfy themselves about investing in your company? It's not only just going to be that you're an ESIC, you then have to satisfy investors that you have a marketing plan, a market research document, a business plan, budgets and cashflow forecasts and an information memorandum.
You then need to be able to stand up and make an investment pitch to a room full of potential investors at which you'll normally be allocated between 7 and 10 minutes to be able to make that presentation. It's very important that you have received appropriate professional advice on this entire journey.
Accountants/Advisors can Assist
Accountants who have subscribed to our products will be able to assist you in achieving this.
If you'd like to make contact with an accountant who is committed to assisting small/medium enterprises on your ESIC journey, whilst you're on the ESS Small Business website, click on "Find an Accountant/Advisor". All you have to do is insert your postcode and the system will identify accountants/advisors in, or near, your postcode who are prepared to assist you on your ESIC journey.