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188 Visa

Work visas

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The Subclass 188A Business Innovation Visa is designed for entrepreneurs and investors looking to establish, manage, or invest in a business within Australia. This 5-year temporary visa allows individuals to contribute to the Australian economy by either setting up or acquiring a business and eventually offers a pathway to permanent residency through the Subclass 888 visa. Here’s everything you need to know about eligibility, application process, and benefits.

Eligibility Requirements for Subclass 188A Visa

To qualify for the 188A Visa, applicants must meet several key criteria:

👉 State or Territory Nomination: Only applicants nominated by an Australian State or Territory government are eligible for this visa. The nomination process starts with lodging an Expression of Interest (EOI) through the SkillSelect system.

👉 Points Test: Applicants must achieve the minimum score on the points test, which assesses factors like age, English language proficiency, business experience, and investment history.

👉 Business Ownership and Management Intent: The applicant must demonstrate a genuine interest in either starting or managing an existing business in Australia.

Visa Program Changes in 2024

In September 2024, the Australian government will be phasing out the Business Innovation and Investment visa program (BIIP). Applicants who wish to withdraw their application will be eligible for a refund of the visa application charge. This change will impact some prospective applicants, so understanding alternative pathways or deadlines is crucial for those considering a business venture in Australia.

Visa Duration and Extensions

The Subclass 188A Visa is granted initially for five years, allowing the applicant ample time to establish their business. There’s also an option for a 2-year extension if the applicant has held the visa for at least three years. This extension offers up to six years of total stay from the date of the original visa grant, giving ample flexibility to establish business operations.

Pathway to Permanent Residency (Subclass 888 Visa)

After running their Australian business successfully, 188A Visa holders may be eligible to apply for permanent residency through the Business Innovation and Investment (Residence) Subclass 888 Visa. This transition allows investors and business owners to gain permanent status in Australia, enjoying the full benefits of residency.

Application Process

Applicants can submit their visa applications either from within Australia or overseas. However, if the applicant is in Australia at the time of application, they must hold:

👉 A Substantive Visa or

👉 A Bridging Visa A, B, or C

General Requirements for Subclass 188A Business Innovation Visa

To be eligible for the Subclass 188A Visa, applicants must fulfill several financial and business benchmarks that demonstrate their readiness to establish a business in Australia:

👉 Applicants must have owned a business with an annual turnover of at least AUD 750,000 for at least two of the past four fiscal years.

👉 Must possess personal and business assets totaling at least AUD 1,250,000. These assets can include cash, real estate, or other significant holdings.

👉 Applicants should be under 55 years of age, unless the nominating state or territory certifies that the applicant will provide an exceptional economic benefit to the region.

👉 Must meet the pass mark of 65 points on the Business Innovation and Investment Points test. Points are awarded based on factors like business experience, investment history, age, and more.

👉 A strong history of business management or entrepreneurship is essential, showcasing the applicant’s ability to run a profitable business.

Requirements for Subclass 888 Permanent Residency Visa

Once an applicant has successfully established and operated their business on a 188A Visa, they can apply for permanent residency through the Subclass 888 Visa. The following criteria must be met:

👉 The applicant must have lived in Australia on a Subclass 188A visa for at least 12 months within the two years before lodging their application.

👉 The applicant must have owned and operated a business in Australia for at least two years with an annual turnover of at least AUD 300,000 for at least two of the past four years.

👉 Applicants must fulfill two of the following three criteria for at least 12 months:

👉 Must have business assets of at least AUD 200,000 in their Australian business.

👉 Must hold net personal and business assets of at least AUD 600,000 in Australia, indicating significant financial investment in the country.

👉 Must have employed at least two full-time Australian employees within their business. These employees should be Australian citizens, permanent residents, or New Zealand passport holders, contributing to the local economy.

Exemptions from the Points Test

To qualify for the Subclass 188 Business Innovation and Investment Visa in the Business Innovation or Investor streams, applicants must score a minimum of 65 points on the Points Test. This assessment measures various aspects of an applicant’s background and business acumen to ensure they meet the visa’s eligibility standards.

The Points Test does not apply if you are applying under one of the following streams:

✔️ Significant Investor stream

✔️ Premium Investor stream

✔️ Business Innovation Extension stream

✔️ Significant Investor Extension stream

These streams have specific requirements and benefits, and do not require a points-based assessment.

Categories for Points Assessment

Points are awarded in multiple categories, each designed to measure an applicant’s human capital, business innovation, and investment potential. Here’s a breakdown of each category:

Age: Points are awarded based on the applicant’s age at the time of application, with younger applicants typically receiving higher points.

English Language Ability: Applicants are assessed on their proficiency in English, with higher points awarded to those demonstrating strong language skills.

Qualifications: Academic or professional qualifications are considered. Higher education degrees and relevant business certifications contribute positively to the score.

Experience in Business or Investment: Points are granted for substantial experience in business management or investments, showcasing the applicant’s expertise and track record.

Net Personal and Business Assets: The applicant’s total personal and business assets are considered, demonstrating financial capacity and stability. Higher net worth yields additional points.

Business Turnover: Points are awarded based on the turnover of the applicant’s business, highlighting the potential for economic contribution to Australia.

Innovation: Additional points are provided for demonstrated innovation, such as patents, product development, or unique business models that bring value to the Australian economy.

Points Criteria for the Business Innovation and Investment (Provisional) Visa (Subclass 188)

Applicants for the Subclass 188 Business Innovation and Investment Visa can earn up to 15 points based on their experience in business or investments. Points are awarded according to the duration and level of relevant experience prior to receiving an invitation to apply, and they differ between the Business Innovation and Investor streams.

Business Innovation Stream: Experience Requirements

Points are awarded for a proven history of active involvement in business operations for specific periods:

✔️ 10 Points: Awarded for at least four years of business experience within the preceding five years.

✔️ 15 Points: Awarded for at least seven years of business experience within the preceding eight years.

This experience reflects the applicant’s familiarity with running a business, managing risks, and contributing to economic activity.

Investor Stream: Eligible Investment Experience

In the Investor Stream, applicants can earn points based on their investment activities. The required investment minimum is AUD 100,000 in eligible assets, with points awarded as follows:

✔️ 10 Points: Awarded for at least four years of investment experience in the years leading up to the application.

✔️ 15 Points: Awarded for at least seven years of investment experience, showing a long-term commitment to and knowledge of the investment market.

This requirement underscores the applicant’s capability in managing and maintaining substantial investments, reflecting experience that could contribute significantly to the Australian economy.

Net Personal and Business Assets – Points Criteria for Subclass 188 Visa

To qualify for points based on your net personal and business assets when applying for the Business Innovation and Investment (Provisional) Visa (Subclass 188), you need to meet specific thresholds. These assets can be yours alone, or they can include those of your partner, or a combination of both. The required net assets must have been held for each of the two fiscal years leading up to your application. Points are awarded as follows:

✔️ 5 Points: For net personal and business assets of at least AUD 1,250,000.

✔️ 15 Points: For net personal and business assets of at least AUD 1,750,000.

✔️ 25 Points: For net personal and business assets of at least AUD 2,250,000.

✔️ 35 Points: For net personal and business assets of at least AUD 2,750,000.

Accumulating sufficient points based on your assets can significantly bolster your application, demonstrating your financial stability and capacity to invest in Australia.

Business Turnover – Points Criteria for Subclass 188 Visa

In addition to asset requirements, applicants can also earn points based on the turnover of their nominated main business. This criterion is essential for the Business Innovation stream but does not apply to the Investor stream. The business turnover must be demonstrated in at least two of the four fiscal years before you are invited to apply, with points awarded as follows:

✔️ 5 Points: For a business turnover of at least AUD 750,000.

✔️ 15 Points: For a business turnover of at least AUD 1,250,000.

✔️ 25 Points: For a business turnover of at least AUD 1,750,000.

✔️ 35 Points: For a business turnover of at least AUD 2,250,000.

These points reflect the operational capacity and revenue-generating ability of your business, indicating your potential contribution to the Australian economy. Meeting these turnover benchmarks can significantly enhance your eligibility for the visa, showcasing your business acumen and success.

Business Innovation – Points Criteria for Subclass 188 Visa

When applying for the Business Innovation and Investment (Provisional) Visa (Subclass 188) under the Business Innovation stream, it’s essential to demonstrate your innovative capabilities. Points can be awarded based on specific attributes, and you may receive points for multiple attributes, but only once for each. Below are the criteria for which you can earn points:

Registered Patents or Registered Designs (15 Points)

To earn points in this category, you must have registered patents or designs that meet the following criteria:

✔️ The patent or design must have been registered for at least one year.

✔️ It should have been utilized in the daily operations of your nominated main business, showcasing its practical application and value in your business model.

Registered Trademarks (10 Points)

Points can be awarded for registered trademarks if they fulfill these conditions:

✔️ The trademark must have been registered for at least one year.

✔️ It should have been actively used in the daily activities of your main business, demonstrating brand recognition and market presence.

Joint Venture Agreements (5 Points)

If you have entered into joint venture agreements, you can receive points as long as:

✔️ The agreement is a formal arrangement that has been in force for at least one year.

✔️ You have been involved at a senior level in the day-to-day management and decision-making processes for the venture, highlighting your leadership and strategic input.

Export Trade (15 Points)

To qualify for points based on export trade, your nominated main business must meet these criteria:

✔️ At least 50 percent of annual turnover must have been derived from export trade for at least two of the preceding four fiscal years. This demonstrates your ability to engage in international markets and contribute to the Australian economy through exports.

Gazelle Businesses (10 Points)

Points are awarded if your nominated main business meets the following requirements:

✔️ It must have been registered for no more than five years.

✔️ The average annualized growth in turnover must exceed 20 percent each year for a continuous period of three fiscal years.

✔️ The business must have employed 10 or more full-time employees for at least one fiscal year during this three-year period, indicating successful scaling and job creation.

Receipt of Grants or Venture Capital Funding for an Innovative Business Idea (10 Points)

You can earn points for receiving financial backing for your innovative ventures if you meet these conditions:

✔️ Grants: You must have received a grant of at least AUD 10,000 under specified conditions from a government body in your home country within the preceding four years.

✔️ Venture Capital Funding: You must have secured venture capital funding of at least AUD 100,000 within the preceding four years, demonstrating investor confidence in your business model and growth potential.

Special endorsement

In specific cases, if a nominating state or territory government recognizes that your proposed business or investment provides a unique and significant benefit to the local economy, you may be awarded an additional 10 points. This provision allows for greater flexibility in the evaluation of your application, recognizing exceptional contributions to the community or economic landscape.

Validity of the Visa

The Subclass 188 Business Innovation visa is initially valid for 4 years and 3 months. This duration provides you with ample time to establish and manage your business in Australia, allowing you to implement your business strategies effectively.

Extension Options

While the standard validity period is generous, there may be circumstances where visa holders can apply for an extension of their visa. Under certain conditions, you may be eligible for a 2-year extension. However, it’s important to note that this extension can only be granted once, and you must meet specific requirements outlined by the Australian immigration authorities.

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