Start-ups supported by new laws in WA

Innovation and tech start-ups will be encouraged under new laws covering venture capital limited partnerships in WA.

These laws will come into effect on 1 February 2017, modernising the regulation of limited partnerships and allowing for companies that develop entrepreneurial ideas into new products and services to become eligible for tax concessions.

“Limited partnerships are the preferred vehicles for use by venture capital investors and are a commonly used structure especially in the innovative industries such as biotechnology and information technology,” said David Hillyard, acting commissioner for Consumer Protection.

“The new laws will allow for a corporate structure that will foster greater industry innovation and diversity and promote economic development in Western Australia in the area of emerging technologies.”

The laws will:

• introduce a contemporary, streamlined and modern best practice regulatory approach to the formation, membership and registration of limited partnerships;
• provide much-needed clarification of the nature and extent of the protection from liability offered to limited partners in these enterprises;
• ensure members of the public can identify the partnership and obtain information about its partners in their dealings with them; and
• introduce a new form of statutory partnership, the incorporated limited partnership, for exclusive use by entities eligible for Commonwealth venture capital taxation concessions.

“It’s essential that our laws are keeping pace with the modern economy and the proposed changes are intended to remove any roadblocks and forge a smoother path for venture capital investment to flow into WA,” said Hillyard.

“These changes are needed to open up investment opportunities while protecting investors from liability through a sound corporate structure. The changes will enable WA to compete more effectively with other states, as well as internationally, when vying for venture capital.”

More information on the new laws can be found on the Consumer Protection website.

Image credit: ©Denisismagilov/Dollar Photo Club

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