![]() ![]() The company must satisfy the following additional requirements at the end of each year after the expiry of 48 months from the first date of the issue of VCC shares by the VCC.If, during any year of assessment, after the approval of the Venture Capital Company status, the company fails to comply with the preliminary requirements as listed above.SARS can withdraw the approved VCC status for non-compliance with the following: How do I apply?įor a list of the approved VCC’s with contact details, click here. The VCC regime is subject to a 12 year sunset clause that ends on 30 June 2021. Please note: Persons who intend to or do make investments into a SARS approved VCC in terms of section 12J of the Income Tax, may under no circumstances request a tax directive under paragraph 11 of the Fourth Schedule to the Income Tax Act, in order to reduce his or her tax liability. The company must be licensed in terms of section 8(5) of the Financial Advisory and Intermediary Services Act, 2002. ![]() The company’s tax affairs must be in order and.The sole object of the company must be the management of investments in qualifying companies (i.e.This deduction will not be subject to recoupment if the VCC shares are held for longer than five years.Ī company must meet all of the following preliminary requirements to be able to get a SARS approved VCC status: Meanwhile on the supply side, evolving attitudes to careers and corporate jobs will see more young talent look to establish start-ups to turn their ideas into reality – and they’ll be seeking funding to support the journey.Īll of this explains why we think CVC is set for a global age that will eclipse anything in the past.From 1 January 2009, investors can claim amounts incurred on acquiring VCC shares as a deduction from income. However, from 21 July 2019, investments made by a natural person and trusts will be capped at R2.5 million and for companies, investments will be capped at R5 million. Why? With people living, working, being educated and receiving healthcare in new and more digital ways, and the global economy poised to rebound, the demand for innovation is set to be enormous. The wave of crisis-inspired innovators emerging post-pandemic could be even bigger. It’s noteworthy that the period around the 2008/9 GFC spawned start-ups that became many of today's successful global businesses: just think of Airbnb (2008), Uber (2009), WhatsApp (2009) and Zoom (2011). The overall message? CVC is becoming an ever more important component of the innovation ecosystem – and is poised to play an even bigger role as corporates try to tap into start-up innovation. So the CVC model offers higher potential at much lower risk. It would be challenging to run the same 50 innovation projects in parallel internally. If just two of these ideas come to fruition, then the corporate can double-down on those innovations, leverage its early access to build a competitive edge, and more than justify the investment across the portfolio. A CVC unit might invest in 25 different start-ups, each with a promising idea and powerful entrepreneurial drive to bring it to commercial viability. This has forced corporates to look to the future of their workforces and operations, pushing innovation up the CEO agenda.Īlso, with innovation now becoming an imperative for corporates, CVC presents them with a great way to minimise the risks around it. And while previous crises were essentially financial and economic in nature, the disruption from the pandemic has been societal and cultural, ushering in new ways of working, living and collaborating. For even the biggest of today’s global businesses, the competitive pressure to innovate is intense. The result? Once a CVC unit has been wound down, it’s very difficult to scale it back up – so it’s best to keep it going.Ī further change is that corporates no longer see investments in innovative start-ups as discretionary. Entrepreneurs and start-ups that have seen a corporate withdraw from CVC in the past, will be wary of partnering with it today. For one, corporates have learned a key lesson from previous crises: that cutting back on CVC shows a lack of commitment that destroys market trust. What’s so different this time? Many things. A maturing marketplace – with new dynamics ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |