Visa Information on: BUSINESS VISA AS IN AUSTRALIA
Subclass 188 Visa – Business Innovation and Investment (Provisional)
This is a temporary visa valid for 4 years on grant. This visa allows 188 holders time to meet the criteria of, and apply for, a subclass 888 permanent residence visa.
The subclass 188 visa has five types of Eligibility Streams:
- The Business Innovation Stream (points-tested) – for people who want to own and manage a new or existing business in Australia.
- The Investor Stream (points-tested) – for people who want to make a designated investment in an Australia state or territory.
- Significant Investor Visa (SIV) Stream – for people who want to invest at least AUD 5 million into complying investments in Australia.
- Premium Investor (PIV) Stream – for people who want to invest at least AUD 15 million into complying investments in Australia (Note: This visa will be available at the invitation of the Australian Government only, with potential recipients to be nominated by Austrade).
- Entrepreneur Stream – for entrepreneurs with innovative ideas and financial backing from a third party.
(1) STREAM A: BUSINESS INNOVATION
| Criteria | (1) THE BUSINESS INNOVATION STREAM (188 PROVISIONAL) VISA |
| Objective | For people who want to own and manage a new or existing business in Australia. |
| Age | Less than 55 at the time of invitation |
| Points | Score (currently 65 points) on the Innovation Points Test – at the time of invitation. |
| State/Territory Nomination | Nominated by State or Territory Government. |
| Skill Select | Expression of Interest and Invitation by Dept. of Home Affairs to apply. |
| Net Assets (business & personal) | Applicant and/or spouse must have AUD$800,000 legally acquired and can be legally transferred to Australia within 2 years of the visa being granted. |
| Annual Turnover | For at least 2 out of 4 fiscal years before invitation, applicant’s main business/es overseas must have annual turnover of at least AUD$500,000. |
| Ownership Interest overseas | · At least 51%, if the business has turnover of less than AUD400,000 per year
· At least 30% if the business has turnover of AUD400,000 or more per year OR · At least 10% if the business is a publicity-listed company. |
| Successful Business Career | You must have an overall successful business career. |
| Management Role Overseas business | For at least 2 out of 4 fiscal years before invitation, applicant has spent at least 50% of time in management role in business that provides professional, technical or trade services. |
| Genuine Business Commitment | To establish or participate in active management of qualifying business in Australia and maintain substantial ownership interest. |
| Unacceptable Business Activity | Neither applicant nor spouse has history of unacceptable business activities. |
| English | Functional English (IELTS average score of: 4.5 minimum) or pay 2nd Visa Application Charge (VAC) for you & any accompanying family member aged 18 years and above. |
| Validity of visa | If you applied before 1 July 2015 – 4 years
If you applied after 1 July 2015 – 4 years and 3 months 4 years – possible extension if Extension criteria are met. |
(2) STREAM B: INVESTOR
| Criteria | (2) THE INVESTOR STREAM (188 PROVISIONAL) VISA |
| Objective | For people who want to make a designated investment in an Australian state or territory and want to maintain business and investment activity in Australia after the original investment has matured. |
| Age | Less than 55 at the time of invitation. |
| Points Test | Score (currently 65 points) on the Innovation Points Test – at the time of invitation. |
| State/Territory Nomination | Nominated by State of Territory Government. |
| Skill Select | Expression of Interest and Invitation by Dept. of Home Affairs to apply. |
| Management Skill | Overall successful record in relation to eligible investments* or qualifying business activity. |
| Direct Involvement | Have at least 3 years’ experience of direct involvement in managing one or more qualifying businesses/ or eligible investments. |
| Commitment | Have a genuine and realistic commitment to continuing your business and investment has matured. |
| Additional Requirements | For at least one of the 5 fiscal years before invitation, applicant must have directly managed one of the following activities:
· Eligible investments that total at least AUD$1.5 million; or · A qualifying business in which you owned at least 10% of the total value of the business. |
| Net Assets – business and personal | Applicant and/spouse have at least AUD$2.25 million for the 2 fiscal years immediately before the invitation.
These assets are lawfully acquired and available for transfer to Australia within 2 years after the grant of this visa. |
| Designated Investment | After entering Australia, you must maintain your designated investment for at least 4 years. |
| Source of Funds (for Designated Investment) | 1. Unencumbered; and
2. Accumulated from applicant’s and/or spouse: · Qualifying business/es; and or · Eligible investment activities/ |
| Unacceptable Business Activity | Neither applicant nor spouse has history of unacceptable business activities. |
| Business Obligations after visa grant | After entering Australia, you must maintain your designated investment in state bonds for at least 4 years. |
| English | Functional English (IELTS 4.5) or pay 2nd Visa Application Charge (VAC) for you & any accompanying family member aged 18 years and above. |
| Residence Requirement | Applicant must reside for at least 2 years in the nominating State. |
| Validity of visa | 4 years and 3 months
No extension is available. |
* ‘Eligible Investment’ that you had been involved with must be producing a return in the form of Income or Capital Gain, and not for personal use. (own residential cannot be counted)
Eligible investments include ownership:
- In a business, or
- Cash on deposit, or
- Stock or bond, or
- Real estate (not family home), or
- Gold or silver bullion, or
- Loan to a business if a person makes it for the purpose of producing an income or capital gain.
‘Designated Investment’ is investment in State or Territory government issued bonds.
(3) STREAM C: SIV (SIGNIFICANT INVESTOR STREAM)
| Criteria | (3) THE SIGNIFICANT INVESTOR STREAM (SIV 188 PROVISIONAL) VISA |
| Objective | For those who want to invest at least AUD$5 million into complying investments in Australia |
| Age | No age limit |
| Points | Not applicable |
| State/Territory Nomination | Nominated by State or Territory Government OR Austrade. |
| SkillSelect | Expression of Interest and Invitation by Dept. of Home Affairs to apply. |
| Investment | Must invest AUD$5 million in Complying Investments in Australia. |
| Commitment | Committed to hold Complying Investments for 4 years. |
| Source of Funds | · Applicant and/spouse have assets of at least AUD$5 million that:
· Have been legally acquired, · Are unencumbered, · And are available to be used to make the ‘Complying Investment’ in Australia. |
| Special forms | 1412 and 1423 must be signed |
| Unacceptable Business Activity | Neither applicant nor spouse has history of unacceptable business activities. |
| English | Functional English (IELTS 4.5) or pay 2nd Visa Application Charge (VAC) for you & any accompanying family member aged 18 years and above. |
| Residence Requirement | Applicant must live in Australia for at least 40 days per year (160 days calculated cumulatively over 4 years), OR your spouse must live for at least 180 days (720 days calculated cumulatively over 4 years). |
| Validity of visa | If you applied before 1 July 2015 – years
If you applied after 1 July 2015 – 4 years and 3 months Possible extension if Extension criteria are met |
A subclass 188 SIV holder may be able to apply for up to two extensions if the below criteria can be met.
Complying Investment for SIV:
You must make a complying significant investment of at least AUD 5 million over four years in the following proportions distributed across with:
- 10% – min. AUD 500,000 million in venture capital with growth private equity funds which invest in start-ups and small private companies.
- 30% – min. AUD 1.5 million in approved managed funds investing in emerging companies listed on the Australian Stock Exchange.
- 60% – min. a ‘balancing investment’ of at least AUD 3 million in managed funds that may be invested in a range of assets, including ASX-listed companies, Australian corporate bonds or notes, annuities and commercial real estate.
Advantages of the SIV 188 visa:
- No upper age limit,
- No English Language requirement,
- No Points Tests
- Provides for at least 2 Extensions – of 2 years each (if extension requirements are met)
- Lower residence requirement (40 days per year for main applicant or 180 days for spouse) to apply for the 888 Permanent visa.
(4) STREAM D: PREMIUM INVESTORS STREAM (PIV)
| Criteria | (4) THE PREMIUM INVESTOR STREAM (PIV 188 PROVISIONAL) VISA |
| Objective | For people who want to invest at least AUD 15 million into complying investments in Australia |
| Age | No age limit |
| Points | Not applicable |
| State/Territory Nomination | Nominated by Austrade only. |
| Investment | Must invest AUD$15 million in Complying Investments in Australia. |
| Commitment | Committed to hold Complying Investments for 12 months. |
| Source of Funds | · Applicant and/spouse have assets of at least AUD$15 million that:
· Have been legally acquired, · Are unencumbered, · And are available to be used to make the ‘Complying Investment’ in Australia. |
| Special forms | 1412 and 1423 must be signed |
| Unacceptable Business Activity | Neither applicant nor spouse has history of unacceptable business activities. |
| English | Functional English (IELTS 4.5) or pay 2nd Visa Application Charge (VAC) for you & any accompanying family member aged 18 years and above. |
| Validity of visa | 4 years and 3 months, no extension available |
Advantages of PIV 188 visa:
- No residence requirement
- Fast-track 12 months pathway to permanent residency
(5) STREAM E: ENTREPRENEUR
| Criteria | (5) THE ENTREPRENEUR STREAM (188 PROVISIONAL) VISA |
| Objective | For entrepreneur with innovative ideas and financial backing from a third party. |
| Age | Less than 55 at the time of invitation |
| Points | Not applicable. |
| State/Territory Nomination | Nominated by State or Territory Government. |
| SkillSelect | Expression of Interest and Invitation by Dept. of Home Affairs to apply. |
| Commitment | Be undertaking or proposing to undertake a ‘complying entrepreneur activity’ (see below) in Australia and have a genuine intention to continue this activity. |
| Complying entrepreneur activity | A complying entrepreneur activity is an activity that relates to an innovative idea that will lead that will lead to the commercialization of a product or service in Australia, or the development of an enterprise or business in Australia.
This activity must NOT relate to any of the following excluded categories: · Residential real estate · Labour hire · Purchase of an existing enterprise or a franchise in Australia. All of the following requirements must be met: · You have one or more legally enforceable agreements to receive funding with a total of at least AUD 200,000 from one of the following entitles: a) Commonwealth Government agency b) State or Territory Government c) Publicly Funded Research Organisation d) Investor registered as an Australian Venture Capital Limited Partnership or Early State Venture Capital Limited Partnership (AVCAL type membership) e) Specified Higher Education Provider · Under the agreement at least 10% of the funding must be payable to the entrepreneurial entity within 12 months of the day the activity starts to be undertaken in Australia; · You held at least 30% share ownership in your entrepreneurial entity when you entered into the agreement. · You have a business plan for the entrepreneurial entity noting how your innovative idea will lead to the commercialization of a product or service in Australia, or the development of an enterprise or business in Australia. |
| English | Competent level (minimum IELTS score 6.0 for each of the 4 bands;
OR passport from Ireland, UK, USA, Canada, NZ) |
| Validity of visa | 4 years and 3 months |
Key Issues to note:
- How best to manage the Expression of Interest (Eol) application process;
- How to seek State Nomination – given that each State/Territory governments have their own nomination criteria, and invitation by DIBP to apply for this visa is contingent upon State/Territory government nomination.
- How to prove that source of funds for investments
- Have been lawfully acquired.
- Are unencumbered , and
- How to provide documentary evidence regarding the source of these funds.
- How quickly the funds for investments can be transferred to Australia when requested by Dept. of Home Affairs prior to the 188 visa grant – when currency restrictions are in place for sme countries.
- How best to manage your investments in Australia so that you continue to meet the various investment criteria for the entire period of at least 4 years whilst holding your 188 visa and before you apply for your 888 Permanent Visa.
In summary:
The Business Innovation and Investor visas are highly complex visa categories. In the case of the Significant Investor Visa (SIV) and premium Investor Visa (PIV) Streams – both the 188 and 888 stages involve many third-party stake holders – including the States/Territory governments, Austrade, migration and financial advisors as well as the Department of Immigration. The challenge is for potential applicants to carefully identify experienced and ethical professionals who are able to plan and manage your visa applications and your Australian investments in a holistic manner in order to achieve the best outcome – i.e. permanent residence status in Australia and strong financial returns from your investments.
The reverse could be that you fail to obtain permanent residency and suffer financial losses at the end of 4 years (or 12 months, in the case of the PIV)! For these reason, we recommend that only expert registered Australian migration professionals and financial advisors should be used to safeguard your interests.
