Business Innovation and Investment (Provisional) Visa (Subclass 188)

Visa Benefits:

• Establish or manage a new/existing business in Australia.
• Stay duration of up to 5 years, varying by application date.
• Eligible family members can accompany you.
• Path to permanent residency through subclass 888 visa.

Stay Duration:

• Provisional visa, up to 5 years if invited on/after July 1, 2021.
• 4 years and 3 months if invited post-July 1, 2015, and before July 1, 2021.
• Up to 4 years if applied before July 1, 2015.
• Multiple entries allowed, visa starts on grant date.

Business and Asset Criteria:

• Manage eligible business or investments for 1 year in the last 5.
• Need at least 10% ownership or eligible investments.
• Assets of AUD 2.5 million (post-July 2021) or AUD 2.25 million (pre-July 2021) in the last 2 years.
• Lawfully acquired, transferable to Australia in 2 years.

Investment Requirements:

• Invest AUD 2.5 million after application (from July 2021).
• Allocate in venture capital, approved managed funds, and a ‘balancing investment’.
• No direct residential real estate investment; limited indirect investment through managed funds.

Experience and Points:

• 3 years’ management in qualifying business or investments.
• Proven track record and high-level management skills.
• Minimum 65 points on points test.

Residency Intent:

• Genuine intention to live in a nominated State/Territory for at least 2 years.

Investment Requirements:

Invited on or after July 1, 2021:

• Minimum AUD5 million investment.
• Complying significant investment with specific distribution:
  •   AUD1 million in venture capital for start-ups.
  •   AUD1.5 million in managed funds for emerging companies.
  •   AUD2.5 million in a ‘balancing investment’.
• No direct investment in residential real estate.
• Investments cannot be used as loan collateral.

Invited before July 1, 2021:

• Same AUD5 million investment requirement.
• Complying significant investment with different distribution:
  •   AUD 500,000 in venture capital for start-ups.
  •   AUD1.5 million in managed funds for emerging companies.
  •   AUD3 million in a ‘balancing investment’.
• Similar restrictions on real estate investments and loan collateral.

• Manage a new or existing business in Australia.
• Stay in Australia for 6 to 8 years after obtaining the initial Business Innovation and Investment (Provisional) visa (Subclass 188) in the Business Innovation stream.
• Travel to and enter Australia with this visa.
• Bring eligible family members along.
• Qualify to apply for a permanent Business Innovation and Investment (Permanent) visa (subclass 888) within the Business Innovation stream if specific requirements are met.

Visa Requirement:

COVID-19 Concessions:

Requirements include:

• Demonstrating the necessity of residing in Australia for effective business operation.
• Your main business operated actively in Australia for two years before applying, except for COVID-19 concessions.
• Active operation of your main business for at least two years while holding the specified visas.
• Maintaining ownership interest in the main business.
• Ongoing involvement in the day-to-day management and decisions of the business.

Visa Benefits:

• If invited to apply on/after 1 July 2021 with subclass 188 visa, stay up to 7 years.
• If invited before 1 July 2021 with subclass 188 visa, stay up to 6 years.
• If invited on/after 1 July 2021 with subclass 188 extension, stay up to 9 years.
• If invited before 1 July 2021 with subclass 188 extension, stay up to 8 years.

Complying Investment:

• Visa Benefits:

• • Engage in investment activities in Australia.
  • Stay in Australia for 4 years and 3 months.
  • Bring eligible family members with you.
  • Opportunity to apply for a permanent Business Innovation and Investment (Permanent) visa (subclass 888) Premium Investor stream.

• Duration of Stay: Provisional visa valid for 4 years and 3 months.

• Multiple Entries: Allows multiple exits and entries to Australia during its validity.

• Visa Start: Validity begins on the date of grant.
• Investment Obligation: Make a complying premium investment of AUD 15 million.
• Post-Application Commitment: After application submission, commit to a qualifying investment of AUD 15 million.

Investment Options:

• Asset Choices: Select from options including listed assets, government bonds, corporate bonds, real property (excluding residential), and more.
• Cash and Derivatives: Cash in the fund must be below 20% of net assets; derivatives are for risk management only.
• Philanthropic Allocation: Choose to allocate part or all of the investment via an endorsed philanthropic donation.

Additional Points:

• Tax Implications: Income from compliant premium investment is subject to Australian taxation.
• Continued Commitment: Display a sincere intention to maintain investment activity in Australia post-visa expiration.
• Timing: Do not start the premium investment before submitting the visa application.

Eligibility Criteria:

• Net Assets Requirement: Possess net assets of at least AUD 15 million, lawfully acquired and available for investment.
• Unacceptable Activities: No involvement in business or investment activities considered unacceptable in Australia.
• Legal Agreement: Agree not to take legal action against the Commonwealth for investment losses, including family members aged 18 or older.

• Age Requirement: 
  • Applicants under 55 are eligible.
  • Exception for those aged 55+, if their activity benefits the economy.
  
  
• Complying Entrepreneur Activity:
  • Must be engaged in innovative activity in Australia.
  • Aims at product/service commercialization or business development.
  • Excludes real estate, labor hire, and buying existing ventures.


• Endorsement (Post July 1, 2021):
  • Those invited after July 1, 2021, must be endorsed by a recognized body affiliated with the State or Territory government agency. 
  • Contact details for eligibility verification can be obtained from relevant entities across different regions of Australia.

• Funding (Pre July 1, 2021): 

• • Applicants invited before July 1, 2021, need to secure funding from an approved source. Legally binding funding agreements totaling at least AUD200,000 are required. 
  • Eligible funding sources include government agencies, research/innovation organizations, specified higher education providers, and registered venture capital partnerships.

• Entrepreneurial Entity: The entity responsible for the activity (individual, company, or partnership) must receive at least 10% of the funding within the first year of activity commencement in Australia.

• Personal Stake (Non-Entrepreneurial Entity Applicants): If not the entrepreneurial entity, applicants must personally hold at least 30% interest in the entity when entering the agreement.

• Business Plan: A detailed business plan outlining how the innovative idea will lead to product/service commercialization or enterprise/business development is required.

• Legally Acquired Funding: All funding allocated to the entrepreneurial entity under the agreements should be legally acquired and unencumbered. This ensures a genuine commitment to fostering innovation and economic growth in Australia.