The Venture Capital Limited Partnership program offers tax benefits to fund managers and eligible foreign investors to help stimulate venture capital investment. Benefits include an exemption for eligible foreign investors from capital gains tax on their share of a fund’s returns from eligible venture capital investments. Show
Application detail: You can apply at any time using the online application form. What you get?Partnership registration to get tax benefits for both fund managers and eligible foreign investors. Who is this for?Fund managers of a new partnership seeking to raise investment of over $10 million. OverviewThe Venture Capital Limited Partnership (VCLP) program aims to stimulate Australia's venture capital sector. The program:
There is no 'early stage' test for investments as there is with Early Stage Venture Capital Limited Partnerships. Fund managers can apply to Innovation and Science Australia to register a partnership as a VCLP. The Department of Industry, Science, Energy and Resources and the Australian Taxation Office (ATO) jointly administer the program on behalf of the Australian Government. How it worksA VCLP must be a new partnership rather than a restructured existing partnership. Applicants must apply to Innovation and Science Australia for registration under the Venture Capital Act 2002 (VCA). Innovation and Science Australia has delegated its decision-making powers for VCLPs to authorised delegates. A delegate will register a partnership as a VCLP if it meets certain eligibility criteria. If registered, a VCLP can then make venture capital investments in companies or unit trusts with total assets of not more than $250 million. The investments must also meet other criteria and be held for a minimum of 12 months. A VCLP must meet ongoing registration and reporting requirements under the VCA to maintain its registration. Once registered both eligible foreign investors and fund managers can claim tax benefits. VCLP tax benefits differ for eligible foreign investors and fund managers. Open all button toggle all accordions Tax benefits for investorsTax benefits for fund managersEligibilityWhat are the eligibility criteria?You can apply to register if you are:
You must have:
In addition, you must have a qualifying partnership agreement that:
All information should be read in conjunction with the relevant legislation:
ApplyingHow do you apply?If you would like to apply for registration as an VCLP, complete and submit the online application form. You’ll need to include the following documents.
The partnership deed must include the following clauses (use the wording below):
The delegate may request further information, documents or evidence relating to the application for registration. Conditional registrationApply for VCLP registration nowIf you’re confident you’re eligible, you can apply using our online application form below. Make sure you:
What happens next?Customer storiesMany successful Australian businesses have accessed venture capital to help them develop their innovations and achieve commercial success. Venture capital funds have also been able to grow and prosper as a result of government venture capital initiatives. Partnerships, statistics and other help for investors and investeesView a list of partnerships that have capital and are registered with Innovation and Science Australia. List of Venture Capital Partnerships Find out more about seeking venture capital investment Pitch for venture capital Learn more about investing in Australia's venture capital market Find out about our venture capital statistics Department of Industry, Innovation and Science
See published statistics and research on the Australian venture capital industry The Australian Investment Council Guides, information papers and statementCustomer information guideJourney mapFintech – Private finding application guidanceInformation Paper – Approved formsInformation Paper – A partnership's committed capitalInformation Paper – Extension of application timeframeInformation Paper – Registered partnership’s failure to reportExpectation and compliance statementExamples of combined investments in foreign companiesExample 1Example 2Example 3Example 4Which of the following is the best description of a limited partnership quizlet?Which of the following is the best description of a limited partnership? Limited partnerships (LPs) are investment opportunities that permit the economic consequences of a business to flow or pass through to investors (limited partners).
Which of the following is not generally associated with an existing real estate DPP?Which of the following is NOT generally associated with an existing real estate DPP? Appreciation potential is generally not associated with existing real estate programs because most appreciation occurs in the earliest years for real estate assets.
Which of the following is true regarding general partners in a limited partnership?Which of the following is TRUE regarding general partners (GPs) in a limited partnership? They should participate in the day-to-day management of the partnership.
Which of the following documents would describe the roles of the general and limited partners in a limited partnership offering?Which of the following documents would describe the roles of the general and limited partners in a limited partnership offering? The partnership agreement describes the roles of the general partners (GPs) and the limited partners (LPs).
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