Business Innovation and Investment (Provisional) visa (subclass 188)

Business Innovation and Investment Stream (Provisional) visa (subclass 188)

The provisional Business Innovation and Investment visa forms an important part part of the Australian Business Innovation and Investment visa Program.

You must submit an Expression of Interest through SkillSelect and then wait to be invited to apply for this visa.

The visa has the following four streams:

The Business Innovation stream is for people who want to establish, develop and manage a new or existing business in Australia.  The visa applicant must meet a number of visa requirements, which will include the following::

  • be nominated by an Australian State or Territory government;
  • be under 55 years of age (exceptions apply)
  • score at least 65 on the points test. (see below)
  • have an ownership interest in an established business or businesses that had at turnover of at least AUD 500 000 for two out of the four fiscal years immediately before you are invited to apply for this visa:
  • own at least one of the following percentage of your nominated main business:
    • 51 per cent, if the business has a turnover of less than AUD 400 000 per year
    • 30 per cent, if the business has a turnover of AUD 400 000 or more per year
    • 10 per cent, if the business is a publicly listed company
  • have an overall successful business career
  • have a genuine desire to continuously own and maintain a management role in a business in Australia.
  • If your nominated main business provides professional, technical or trade services, you must have spent no more than half your time providing those services, as opposed to general management of the business:

At the time of invitation, you, your partner, or you and your partner combined must have total net business and personal assets of at least AUD800 000 that are lawfully acquired and available for legal transfer to Australia within two years of the visa being granted. You and your partner must have had no involvement in unacceptable business or investment activities.

You and your family family members must meet the Australian government’s health and character requirements.

The Investor stream is 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. The visa applicant must meet a number of visa requirements, which will include the following:

  • be under 55 years of age (exceptions apply):
  • score at least 65 on the points test (see below);
  • have a high level of management skill in relation to the eligible investment or qualifying business activity
  • have at least three years’ experience of direct involvement in managing one or more qualifying businesses or eligible investments
  • have an overall successful record of eligible investment or qualifying business activity
  • have a genuine and realistic commitment to continuing your business and investment activity in Australia after the original investment has matured
  • have a genuine intention to live for at least two years in the state or territory in which you have made a designated investment.

You, your partner, or you and your partner combined must:

  • for at least one of the five fiscal years immediately before you are invited to apply, have directly managed one of the following:
    • a qualifying business in which you, your partner or you and your partner combined had at least 10 per cent ownership interest, or
    • eligible investments owned by you, your partner or you and your partner combined of at least AUD1.5million.
  • during the two fiscal years immediately before you are invited to apply, have legally acquired net business, investment and personal assets of at least AUD2.25 million that are available for legal transfer to Australia within two years of the visa being granted
  • make a designated investment of at least AUD1.5 million in a state or territory government security using unencumbered funds accumulated from qualifying businesses or eligible investments and be prepared to hold that investment for at least four years from date of issue in your nominating state or territory
  • have had no involvement in unacceptable activities

You and your family family members must meet the Australian government’s health and character requirements.

Income that you earn from your designated investment in Australia is subject to tax under Australian taxation law.

The Significant Investor stream is for people who are willing to invest at least AUD 5 million into complying investments in Australia and want to maintain business and investment activity in Australia after the original investment has matured.

The visa applicant must meet a number of visa requirements, which will include the following::

  • reside in the state or territory whose government agency nominated you
  • continue your business and investment activity in Australia after the conclusion of your provisional visa
  • live in Australia for at least 40 days per year (calculated cumulatively) for the duration of your provisional visa, or your spouse to live for at least 180 days per year (calculated cumulatively) for the duration of your provisional visa.

You, your partner, or you and your partner combined must have net assets of at least AUD5 million that are legally acquired, unencumbered, and available to be used to make the complying investment in Australia. Our team will discuss with you discuss what constitutes a qualifying investment.

You and your partner must not have been involved in unacceptable business or investment activities.

You, members of your family unit aged at least 18 must agree not to bring any action against the Commonwealth for any loss relating to your complying investment.

Income that you earn from your complying investment in Australia is subject to tax under Australian taxation law.

You must also make a complying investment or a complying significant investment of at least AUD 5 million over four years.

Please note that:

    For applications made after July 2015 you must make a complying significant investment of at least AUD5 million over four years in the following proportions:
  • At least AUD500 000 in venture capital and growth private equity funds which invest in start-ups and small private companies.
  • At least AUD1.5 million in approved managed funds investing in emerging companies listed on the Australian Stock Exchange.
  • A ‘balancing investment’ of at least AUD3 million in managed funds that may invest in a range of assets, including ASX-listed companies, Australian corporate bonds or notes, annuities and commercial real estate.

Direct investment in residential real estate continues to be prohibited and indirect investment in residential property through managed funds is now strictly limited.

Investments must not be used as security or collateral for a loan.

You and your family family members must meet the Australian government’s health and character requirements.

The Premium Investor stream is for people who are willing to invest at least AUD15million into complying premium investments in Australia and want to maintain business and investment activity in Australia.  The visa applicant must meet a number of visa requirements, which will include the following:

The Premium Investor stream is by nomination of Austrade on behalf of the Australian government only. You must make a complying investment of at least AUD15 million in any of the following options:

  • Australian securities exchange listed assets.
  • Australian government or semi-government bonds or notes.
  • Corporate bonds or notes issued by an Australian exchange listed entity (or wholly owned subsidiary of the Australian listed entity) or investment grade rated Australian corporate bonds or notes rated by an AFS licensed debt rating agency.
  • Australian proprietary limited companies.
  • Real property in Australia excluding residential property.
  • Deferred annuities issued by Australian registered life companies.
  • State or territory government approved philanthropic contribution.

Income that you earn from your complying investment in Australia is subject to tax under Australian taxation law.

You must also have a genuine and realistic commitment to continue your business and investment activity in Australia after the conclusion of your provisional visa.

You, your partner (spouse or de facto), or you and your partner combined must have net assets of at least AUD15 million that are legally acquired, unencumbered, and available to be used to make the complying investment in Australia.

You and your partner must not have been involved in unacceptable business or investment activities.

You, your partner and other family members aged at least 18 must agree not to bring any action against the Commonwealth for any loss relating to your complying investment.

You and your family family members must meet the Australian government’s health and character requirements.

The Entrepreneur Stream is for people who have a funding agreement from a third party for at least AUD200 000 to undertake a complying entrepreneur activity that is proposed to lead to either the commercialisation of a product or service in Australia or the development of a business in Australia. Applicants must be nominated by a state or territory government.

The visa applicant must meet a number of visa requirements, which will include the following:

  • be under 55 years of age, although a state or territory can waive this requirement if your proposed complying entrepreneur activity will be of exceptional economic benefit to the nominating state or territory
  • have competent English and be able to provide evidence of this at the time you are invited to apply for the visa
  • be undertaking or proposing to undertake a complying entrepreneur activity in Australia and have a genuine intention to continue this activity

A Complying Entrepreneur Activity is an activity that relates 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 excluded categories:
  • Residential real estate
  • Labour hire
  • Purchase of an existing enterprise or a franchise in Australia.
    An activity is a complying entrepreneur activity if all of the following requirements are met:

  • you have one or more legally enforceable agreements to receive funding with a total of at least AUD200 000 from one of the following entities:
    • Commonwealth Government agency
    • State or Territory Government
    • Publicly Funded Research Organisation
    • Investor registered as an Australian Venture Capital Limited Partnership or Early State Venture Capital Limited Partnership
    • Specified Higher Education Provider
  • under the agreement at least 10 per cent 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 per cent interest 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 commercialisation of a product or service in Australia, or the development of an enterprise or business in Australia.

You and your family family members must meet the Australian government’s health and character requirements.

The Visa Application Process

These are particularly complex, multiple staged applications that require a high level of technical expertise. Our team is able to provide the high level technical expertise required to manage these complex applications. 

The Points Test 
FACTOR DESCRIPTION POINTS
Age 18–24 years 20
25–32 years 30
33–39 years 25
40–44 years 20
45–54 years 15
55 and over 0
English language ability Vocational English 5
Proficient English 10
Qualifications Australian trade certificate, diploma or bachelor degree by an Australian education institute

or a bachelor qualification recognised by an education institution of a recognised standard

5
Bachelor degree in business, science or technology by an Australian institution; or a bachelor qualification by an education institution of a recognised standard 10
Special endorsement The nominating state or territory government agency could decide that your proposed business is of unique and important benefit to the state or territory where the nominating government agency is located 10
Financial assets Net business and personal assets of you, your partner or you and your partner combined in each of the preceding two years of at least:
AUD 800 000 5
AUD 1.3 million 15
AUD 1.8 million 25
AUD 2.25 million 35
Business turnover Annual turnover in your main business during a period of at least 2 years of the preceding 4 fiscal years of at least:
AUD 500 000 5
AUD 1 million 15
AUD 1.5 million 25
AUD 2.25 million  35
Business Innovation Stream only You have held one or more businesses before you were invited to apply for the visa for:
Not less than 4 years within the preceding five years 10
Not less than 7 years within the preceding eight years 15
Business Investment Stream only Investor stream: a minimum of AUD 100 000 in eligible investments for:
at least the preceding 4 years 10
at least the preceding 7 years 15
The Permanent Residence Stage – Subclass 888 visa

In order to be eligible to apply for permanent residence under the Business Innovation and Investor visa program a number of stringent visa requirements must be met. Business Innovation and Investor visa are granted with conditions attached and those conditions must be adhered to.

We are in the process of building a new webpage (with flow charts) that map the pathways to permanent residence for subclass 188 visa holders. We hope to have the new page live very soon!

 

Contact Us now to find out more

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