If you are a skilled and successful business owner or entrepreneur, you might wish to establish or continue developing your business in Australia. When considering if the provisional business innovation and investment visa (subclass 188) may be the best option for you, it is important to note that there are four streams available:
- business innovation stream;
- investor stream;
- significant investor stream; and
- entrepreneur stream.
This is a provisional temporary stay visa. It allows you to stay and conduct business activity in Australia between four and eight years. Obtaining this visa will allow you to apply for the permanent business innovation and investment visa (subclass 888) at a later time. This article will explain the visa options and legal requirements for acquiring an Australian visa as a business owner.
1. The Business Innovation Stream
The Business Innovation stream requires you to prove that you are providing valuable input to the Australian economy. It is important to note that this is an invitation-only visa. This means that to apply for the visa, you must first submit an expression of interest to show that you meet the 65 point threshold and secure an invitation to apply. To be eligible you must:
- be nominated by an Australian state or territory;
- score at least 65 on the points test;
- have a successful business career;
- have had an ownership stake in 1 or 2 businesses that had at least AUD $750,000 turnover for 2 out of 4 fiscal years immediately before you apply;
- have business and personal assets of AUD $1.25 million;
- have a substantial ownership interest in an Australian business and participate, at a senior level, in the day-to-day management and decision-making of that business; and
- be under 55, unless you prove your business will be of exceptional economic benefit.
It is important to note that you must also have a state or territory nomination. Each state and territory will also have their own set of requirements. For this visa stream, NSW state nomination requires you to have:
- a bachelor's degree (or have 3-5 years of business experience);
- combined business and personal assets of AUD$1.75 million (higher than the Department of Home Affairs' requirements); and
- operate in one of the target sectors.
You may be eligible to apply for an extension under this stream. To be eligible, you must:
- demonstrate a maintained commitment to your business's day-to-day management;
- a new state or territory nomination; and
- hold a 188 visa (business innovation stream) for at least 3 years.
2. The Investor Stream
The Investor stream is appropriate if you are a highly experienced business owner or investor prepared to make a significant investment of AUD $2.5 million in Australia. To be eligible to apply, you must:
- be nominated by an Australian state or territory and demonstrate a genuine commitment to reside in the state or territory;
- score at least 65 on the points test to be invited to apply;
- have at least three years' experience of direct involvement in managing one or more qualifying business activity OR have an eligible investment where the total net value is at least $2.5 million; and
- have a total net assets, or combined net assets with your partner, of at least AUD $2.5 million for the last 2 fiscal years;
- Make a complying significant investment of at least AUD $2.5 million and hold that investment continuously for the duration of the provisional visa. You must invest funds in the following proportions:
- at least $500,000 in venture capital and growth private equity funds, which invest in startups and small private companies;
- at least $750,000 in approved managed funds. The managed funds must invest in emerging companies listed on the Australian Stock Exchange; and
- a ‘balancing investment' of at least $1.25 million in managed funds; and
- be under 55 unless you prove your business will be of exceptional economic benefit.
Similar to the Business Innovation stream, this is an invitation-only visa stream that requires state nomination.
3. Significant Investor Stream
The Significant Investor stream is ideal if you have at least AUD $5 million that you are willing to invest into complying investment funds. This is known as the ‘complying investment framework', for which you must invest:
- at least AUD $1 million (20% of your total investment) in venture capital funds or growth private equity funds that invest in start-ups and small private companies;
- at least AUD $1.5 million (30% of your total investment) in eligible managed funds or Listed Investment Companies that invest in emerging companies listed on the Australian Securities Exchange (ASX);
- the remaining AUD $2.5 million (balancing investment) in managed funds.
Additionally, this stream also requires you to be nominated by an Australian State or Territory. You may also choose to be nominated by AUSTRADE, which is generally an easier process when compared to State or Territory nomination.
You may also qualify to apply for an extension of the Significant Investor Visa, if you already hold this visa and continue to hold your investments per the ‘complying investment framework'. However, you may not apply for an extension if you have held more than one Significant Investor visa.
4. Entrepreneur Stream
The Entrepreneur stream requires you to be:
- under 55 years;
- invited to apply; and
- obtain a state or territory nomination.
Most importantly, you must show that you have (or propose to undertake) a complying entrepreneur activity and genuine intentions to continue the business activity.
A complying entrepreneur activity must relate to an innovative idea that will lead to:
- the commercialisation 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 categories:
- residential real estate;
- labour hire; and
- purchase of an existing enterprise or a franchise in Australia.
In addition to the state or territory nomination, you must also have endorsement from a recognised state or territory body. Each State or Territory will dictate the specific authorised bodies for each region.
What Will The Business Innovation and Investment Visa Allow You to Do?
Once obtained, any of these three streams will allow you to travel in and out of Australia for the extent of your visa. You may also be able to bring your family with you. Upon the expiry of this visa, you may also be eligible to apply for the permanent business innovation and investment visa (subclass 888). You will then be able to become a permanent resident of Australia.
How Can I Apply?
Generally, to apply for the two visas, you will need to:
- submit an expression of interest through the Department of Home Affairs SkillSelect online service;
- be nominated by an Australian state or territory government:
- be invited to apply for the visa.
You will also need to meet certain health, character and English requirements for all of the above visa streams.
Key Takeaways
If you are a business owner or entrepreneur, there are specific pathways for you to move to Australia to conduct business. Under the Business Innovation and Investment visa, you must first apply for a provisional visa valid for a minimum of four years. Then, you can convert to a permanent visa via subclass 888.
