The Business Innovation and Investment (Provisional) visa (subclass 188) is a visa category designed for individuals who wish to invest or start a new business in Australia. This visa is a pathway to permanent residency and offers a range of options for entrepreneurs, investors, and business owners to explore opportunities and contribute to the Australian economy. With a strong focus on innovation and investment, this visa category provides a platform for skilled individuals to make a meaningful impact on Australia's business landscape. The visa offers a range of streams, each with its own eligibility criteria and requirements, catering to a diverse range of investment and business interests. The subclass 188 visa is a vital component of Australia's economic growth strategy and a key driver of innovation and job creation in the country.
What is the Business Innovation and Investment (Provisional) visa (subclass 188)?
The Business Innovation and Investment (Provisional) visa (subclass 188) is a temporary visa that allows individuals to establish, develop, or manage a business or make an investment in Australia. There are five streams under this visa subclass, including the Business Innovation stream, Investor stream, Significant Investor stream, Premium Investor stream, and Entrepreneur stream. Successful applicants can stay in Australia for up to five years and may be eligible to apply for permanent residency.
The Business Innovation and Investment (Provisional) visa (subclass 188) is not a work visa or a permanent residency visa. It is a temporary visa that requires applicants to meet certain eligibility criteria related to age, English language proficiency, health, character, and financial capacity. Applicants must also be nominated by a state or territory government agency or be invited to apply by the Australian government. This visa does not guarantee permanent residency, but successful applicants may be eligible to apply for it after meeting certain requirements.
Benefits of the Business Innovation and Investment visa
The Business Innovation and Investment (Provisional) visa (subclass 188) offers a multitude of benefits to individuals who are looking to invest or start a business in Australia. One of the most significant advantages of the visa is that it provides a pathway to permanent residency, which allows successful applicants to apply for a subclass 888 visa after meeting certain criteria. This visa category also provides a range of streams that cater to various investment and business interests, allowing entrepreneurs, investors, and business owners to explore a wide range of opportunities to contribute to the Australian economy.
In addition, holders of subclass 188 visas and their families can access Australia's world-class healthcare and education systems. They can also sponsor their eligible family members to join them in Australia. Moreover, they can travel in and out of Australia as many times as they wish while their visa is valid.
Apart from these benefits, Australia is known for its high quality of life, with a robust economy, an excellent healthcare and education system, and a diverse and welcoming culture. These factors make the country an attractive destination for those who are looking to make a meaningful impact on the economy while enjoying a high quality of life.
Eligibility for the Business Innovation and Investment visa
The eligibility requirements for the Business Innovation and Investment (Provisional) visa (subclass 188) are designed to ensure that only suitable applicants who are likely to make a positive contribution to the Australian economy and society are granted the visa. To be eligible, you must be invited to apply, meet the age, English language, health and character requirements, and have a successful business or investment career with no involvement in unacceptable business or investment activities. Additionally, you must meet the requirements of the specific stream under which you are applying, such as the amount of investment required and the type of business you propose to establish or invest in.
Business Innovation stream
To be eligible for the Business Innovation stream of the subclass 188 visa, there are several requirements that you must meet. Firstly, you must submit an Expression of Interest (EOI) and receive an invitation to apply for the visa. You must then be nominated by an Australian State or Territory government agency, which must not withdraw their nomination after you apply.
In terms of business ownership, you must have had an ownership stake in one or two businesses for at least two out of the four fiscal years immediately before receiving the invitation to apply. The businesses must have had a turnover of at least AUD500,000 (if you were invited before 1 July 2021) or AUD750,000 (if you were invited on or after 1 July 2021), and you must own at least 51% of the total value of the business if it has a turnover of less than AUD400,000 per year.
You must also have total net business and personal assets of at least AUD1.25 million (if invited to apply on or after 1 July 2021) or AUD800,000 (if invited before 1 July 2021), and score at least 65 on the points test. Points are awarded based on factors such as age, English language ability, qualifications, business experience, net personal and business assets, business turnover
Additionally, you must have a successful business career and a genuine desire to continuously own and manage a business in Australia, be under 55 years old at the time of the invitation, and have no history of involvement in business or investment activities that are not generally acceptable in Australia. You and any family members who apply for the visa with you must meet the health and character requirements, and if you and your family members are 18 years of age or older at the time of application, you must also sign an Australian Values Statement confirming that you will respect the Australian way of life and obey Australian laws.
Finally, you must have no debt to the Australian Government and must not have had a visa cancelled or a previous application refused while in Australia.
Investor stream
The Investor Stream of the Business Innovation and Investment (Provisional) visa (subclass 188) is a visa that allows individuals who have managed a qualifying business or eligible investments to live and work in Australia permanently. To be eligible for this visa, you must first submit an Expression of Interest (EOI), which must be accepted and nominated by an Australian State or Territory government agency.
To be eligible for nomination, you must have managed a qualifying business or eligible investment for at least one of the five fiscal years immediately before being invited to apply. You must also have required business and personal assets with a net value of at least AUD2.5 million if invited to apply on or after 1 July 2021, or AUD2.25 million if invited before 1 July 2021. These assets must have been lawfully acquired and be available for transfer to Australia within two years of the visa being granted.
If invited to apply on or after 1 July 2021, you must make a complying significant investment of at least AUD2.5 million. This investment must be made 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 AUD750,000 in approved managed funds that invest in emerging companies listed on the Australian Stock Exchange, and a 'balancing investment' of at least AUD1.25 million in managed funds. The managed funds can invest in a range of assets, but direct investment in residential real estate is prohibited.
You must also have at least three years' experience managing one or more qualifying businesses or eligible investments, a successful record of eligible investment or qualifying business activity, and demonstrated a high level of management skill in relation to the eligible investment or qualifying business activity. You must score at least 65 points on the points test, and have a genuine intention to live for at least two years in the State or Territory in which you have made the investment application. Additionally, you must be under 55 years of age, unless the State or Territory government agency has determined your investment will be of exceptional economic benefit.
Finally, you and your family members must meet the health and character requirements, and sign the Australian values statement if you are 18 years of age or older at the time of application.
Significant Investor stream
The Significant Investor stream is a visa pathway for those who want to invest a significant amount of money in Australia. To be eligible for this visa, you must first submit an Expression of Interest (EOI). If an Australian State or Territory government agency accepts your EOI and nominates you, you will be invited to apply for this visa.
You must be nominated by an Australian State or Territory government agency or Austrade before being invited to apply for this visa, and the agency or Austrade must not withdraw their nomination after you apply.
If you were invited to apply on or after July 1st, 2021, you must invest at least AUD5 million in a complying significant investment. This must be invested in the following proportions: at least AUD1 million 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 that invest in emerging companies listed on the Australian Stock Exchange, and a balancing investment of at least AUD2.5 million in managed funds. Direct investment in residential real estate is prohibited, and indirect investment in residential property through managed funds is strictly limited. You must not use investments as security or collateral for a loan.
If you were invited to apply before July 1st, 2021, you must invest at least AUD5 million in a complying significant investment 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 that invest in emerging companies listed on the Australian Stock Exchange, and a balancing investment of at least AUD3 million in managed funds. Direct investment in residential real estate is prohibited, and indirect investment in residential property through managed funds is strictly limited. You must not use investments as security or collateral for a loan.
In addition to meeting the investment requirement, you and your partner must have had no history of involvement in business or investment activities that are of a nature that is not generally acceptable in Australia. All applicants aged 18 or over at the time of application must either have at least functional English or pay the second installment of the visa application charge.
You and any family members who apply for the visa with you must meet the health and character requirements, and if you and your family members are 18 years of age or older at the time of application, you must sign an Australian Values Statement that confirms you will respect the Australian way of life and obey Australian laws. You must have no debt to the Australian government, and if you or any family members owe the Australian Government money, you or they must have paid it back or have an approved arrangement in place to pay it back.
You might not be eligible for this visa if you have had a visa cancelled or refused while you were in Australia. It is important to check if visa cancellation affects your eligibility.
Premium Investor stream
The Entrepreneur stream is a category of visa that allows entrepreneurs who have a funding agreement from a third party to develop their ideas and business in Australia. The Premium Investor visa is a pathway for high net worth individuals to obtain Australian permanent residency by investing at least AUD 15 million in complying premium investments in Australia. To be eligible, you must first be nominated by Austrade and receive an invitation to apply for the visa after submitting an Expression of Interest (EOI).
Once nominated, you must make a complying premium investment of at least AUD 15 million, which could be in the form of Australian listed assets, Australian government or corporate bonds, Australian proprietary limited companies that operate qualifying businesses, real property in Australia excluding residential property, deferred annuities issued by Australian registered life companies, or state or territory government approved philanthropic contribution.
It is important to note that you must not make your complying premium investment before submitting a visa application. You must also have net assets of at least AUD 15 million, legally acquired, unencumbered, and available to make the investment in Australia.
To be eligible, you and your partner must not have a history of involvement in business or investment activities that are not generally acceptable in Australia, and you must agree not to bring any action against the Commonwealth for any loss relating to your complying premium investment. Additionally, you must have at least functional English and meet the health and character requirements.
Furthermore, if you and your family members who have applied for the visa are 18 years of age or older at the time of application, you must sign an Australian Values Statement that confirms you will respect the Australian way of life and obey Australian laws. You or any family members must not owe any debt to the Australian Government, and you may not be eligible for this visa if you have had a visa cancelled or refused while in Australia.
Entrepreneur stream
To be eligible for the Australian Entrepreneur visa, you must fulfill several requirements. Firstly, you need to submit an Expression of Interest (EOI), which must be accepted and nominated by a State or Territory government agency. If nominated, you will receive an invitation to apply for the visa.
You must be under 55 years of age at the time of invitation, unless the State or Territory government agency has determined your proposed entrepreneur activity will be of exceptional economic benefit.
You must undertake, or propose to undertake, a complying entrepreneur activity in Australia, which must be related to an innovative idea that will lead to the commercialization of a product or service, or the development of an enterprise or business in Australia. The activity cannot relate to residential real estate, labor hire, or the purchase of an existing enterprise or franchise in Australia.
If you were invited to apply for the visa on or after 1 July 2021, you must be endorsed by a recognized body. Otherwise, if you were invited to apply before 1 July 2021, you must have one or more legally enforceable agreements to receive funding with a total of at least AUD200,000 from a Commonwealth or State/Territory government agency, publicly funded research or innovation organization, higher education provider specified as a Table A or Table B provider, or an investor registered as an Australian Venture Capital Limited Partnership or Early Stage Venture Capital Limited Partnership. The entrepreneurial entity must be an individual, a company, or a partnership, and you must personally hold at least 30% interest in your entrepreneurial entity when you enter into the agreement.
You must also have a business plan for the entrepreneurial entity, which should outline how your innovative idea will lead to the commercialization of a product or service, or the development of an enterprise or business in Australia.
You and your partner must not have a history of involvement in business or investment activities that are not generally acceptable in Australia, and you must have at least competent English language proficiency. You and your family members who apply for the visa with you must also meet the health and character requirements.
You and your family members who have applied for the visa and are 18 years of age or older must read, or have explained to them, the Life in Australia information and sign the Australian Values Statement, confirming that you will respect the Australian way of life and obey Australian laws.
You or any family members must not owe money to the Australian government, and you might not be eligible for this visa if you have had a visa cancelled or refused while you were in Australia.
How to apply for the subclass 188 visa?
To apply for a Business Innovation and Investment (Provisional) visa (subclass 188), you will need to follow these steps:
- Determine if you are eligible: You must meet the eligibility criteria, including the ability to make a significant investment or run a business in Australia. You will also need to meet the points test and health and character requirements. If you are unsure about your eligibility, you may consider consulting with a registered migration agent who can provide guidance and advice.
- Prepare your documents: You will need to gather a range of documents, including your passport, proof of English proficiency, evidence of your business or investment experience, and proof of financial capacity. You may also need to provide evidence of your health and character.
- Submit an Expression of Interest (EOI): Submit your EOI through SkillSelect, providing details of your skills, experience, and business or investment plans in Australia. Make sure that your EOI accurately reflects your qualifications, experience, and intentions.
- Wait for an invitation to apply: After submitting your EOI, you will need to wait for an invitation to apply for the visa. The Department of Home Affairs will review your EOI and assess your eligibility for the visa. If you meet the criteria, you will receive an invitation to apply.
- Lodge your visa application: Once you have received your invitation, you will need to lodge your visa application with the Department of Home Affairs. Pay the visa application fee and ensure that your application is complete and accurate. Any incomplete or incorrect information can delay your application or result in a rejection.
- Wait for a decision: After submitting your application, you will need to wait for the Department of Home Affairs to assess your application. The processing time can vary, and it's essential to be patient during this time. It's advisable to avoid making any travel plans until you receive a decision on your visa application.
If you are unsure about any aspect of the application process, consider seeking the services of a registered migration agent who can guide you through the process and help you avoid any common mistakes.
Final thought
In conclusion, applying for a Business Innovation and Investment (Provisional) visa (subclass 188) can be a complex and challenging process. It requires careful planning, preparation, and attention to detail to ensure that your application meets the eligibility criteria and is processed successfully.
To improve your chances of success, it's important to seek professional advice, thoroughly review the Department of Home Affairs' website, and carefully gather and submit all the required documentation. Staying patient, positive, and following up on your application can also help you navigate the process effectively.
Additionally, it's essential to plan ahead and start the application process early to avoid any last-minute complications or delays. Remember, if your visa application is successful, it can provide you with significant opportunities to invest, start a business, and live and work in Australia.
Overall, with careful preparation, attention to detail, and the right guidance, you can successfully apply for a Business Innovation and Investment (Provisional) visa and enjoy the many benefits that come with living and working in Australia.
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