The provisional Business Innovation Visa (often referred to as SC188A) is for successful business innovators and business owners who intend to enter business in Australia and contribute to the growth of the Australian economy. Business owners up to the age of 55 years who have business management and ownership experience for at least 2 years or longer must use those business skills to obtain a substantial ownership interest in a new or existing business in Australia and actively participate in that business at a senior management level. The main objective is to maximise the number of business migrants successfully engaging in business in Australia and to achieve better dispersal of the business migration intake to enable regional and low growth areas of Australia to attract business persons they need to promote regional economic development and growth. Persons who successfully establish a business while holding the provisional Subclass 188 Innovation Visa are provided with clearer pathways to permanent residence when meeting specific criteria from the first 3 (three) years of operation. You can lodge this visa from Australia or outside Australia.

THIS VISA

• allows you to carry out business and investment activity in Australia
• allows you to travel to, enter and remain in Australia for the validity of your visa grant i.e. 5 years
• allows you to bring eligible dependent members of your family unit with you to Australia
• allows you to apply for a permanent Business Innovation and Investment (Permanent) visa (subclass 888) Innovation stream
• requires State Government or Territory Nomination approval and applicants must satisfy the nominated state or territory government criteria
• allows for english exemptions for the main applicant and spouse/partner if base english requirements cannot be met
• does not require a skills assessment or employment offer
• requires that main applicants meet the minimum threshold of 65 points to be considered for an Invitation for Expression of Interest

KEY CRITERIA – [All of the following must apply]

1. The primary criteria that must be met as foundation requirements specific to the SC188A stream is that Business Owner applicants must have had, for 2 of the 4 fiscal years’ preceding the visa application, an ownership interest in a main business that had an annual turnover of at least AUD$750 000 for each of the 2 financial years

• If the foundation criteria are not met, then this visa is not suitable. You would need to be assessed against other business visas eligibility criterion.

2. In assessing primary financial assets value of both business assets and or/personal assets, all assets owned both by main applicant and partner/spouse combined can be used to meet the minimum threshold value of AUD$1,250,000 million

• If the base financial asset foundation criteria cannot be met, then this visa is not suitable. You would need to be assessed against other business visas eligibility criterion

3. In assessing ownership interest, the main business that will be used to meet criteria 1 and 2, you must have held more than 30% equity for each of the 2 main fiscal years

• If your ownership or equity interest cannot be evidenced or is less than 30% shares, then this visa is not suitable. You would need to be assessed against other business visas eligibility criterion

This is a temporary or provisional visa and is points tested. Higher Points may be allocated if you can provide substantial business supporting evidence to demonstrate higher turnover, asset value and years of business management operation. Audited financials by an external and reputable auditor are required to support your points claims. Applicants who have operated their businesses in Hong Kong or Mainland China will need special purpose audit reports for their application. Additional factors which can enhance or affect your points threshold at the time of invitation include your age, english language levels, educational qualifications, innovation patents or trademarks registered, and financial venture capital funding received for your current business operations.

You must have a genuine and realistic commitment to:

• Establish or co-invest in an eligible Australian business by obtaining a substantial ownership interest in the business/s after arrival
• Transfer a minimum of AUD$1,250,000 million to Australia within 12 months of visa grant
• Operate your Australian business on a day-to-day management level 
• Ensure your business meets certain success factors for the permanent business eligibility criteria for the subclass 888 A visa

WHAT WE DO FOR YOU

• You complete our contact form to discuss further through an initial in person meet or through zoom video meeting and discuss your specific needs
• We send you our initial Business Assessment form to complete and provide to us for a scheduled meeting to which we will discuss your business meeting the ownership/turnover/operational activities and financial asset valuation to ensure this meets with assessment criteria Australia regulations and needs

Additional Matters will be considered in our discussions such as:

• the type of business/es you have been operating in the last 2-7 years
• the size of the business
• your specific role in the management of the business
• the relevance of other professional, technical, or trade-qualified staff employed in the business/es
• your affiliations (if any) with professional, business/management or other relevant organisations and

• Operational processes and structure evidence for all key personnel including business owners core functions
• We will introduce you to reputable Legal and Business Advisory Firms that operate in the chosen State or Territory with experience to your industry & skills sets. They will assist in business feasibility & due diligence relating to all your business needs
• Mygration will assist to prepare and lodge State nomination & Visa applications
• We will assist with Bridging Visa applications
• Processing times vary and change continuously. Our current Subclass 188 Business Innovation Visas are taking 12 weeks to prepare from engagement and a further 6-18 months to be finalized by Department of Home Affairs Processing Centre. Factors affecting the processing times are backlogs related to Covid restrictions and/or location of businesses operating in China or Hong Kong.

SC888 A – Business Innovation (Permanent) visa

POST VISA GRANT CRITERIA

Once the SC188A visa is granted – applicants who have operated their Australian approved business may be eligible to apply for SC888A Permanent visa after 3 years of holding the SC188A and meeting other main requirements such as;
Business ownership, Turnover & Asset requirement post visa grant before applying for Permanent residency

• For the 3 years immediately before you apply for the permanent visa, you must have:
• had, and continue to have, an ownership interest in up to two main businesses in Australia
• had a direct and continuous management role in that business or businesses
• submitted Business Activity Statements to the Australian Taxation Office & have an ABN for each of your businesses

For the 24 months immediately before you apply, you must own at least:

• 51% of the total value of a business with a turnover of less than AUD400,000 per year, or
• 30% of the total value of a business with a turnover of AUD400,000 or more per year, or
• 10% of the total value of a business that is operated by a publicly listed company

Your main business or businesses (or the business or businesses of your spouse or de facto partner, or of you and your spouse or de facto partner together), had an annual turnover of at least AUD300,000 in the 12 months immediately before the application was made

SETTING UP YOUR NEW BUSINESS IN AUSTRALIA

Once your visa is lodged, you may begin setting up your new business. In setting up a new business, you will ideally hold 100% shares of your business. You are also able to establish a discretionary trust and assign your new company as the corporate trustee of your family trust. The corporate trustee company (Pty Ltd) would be the start-up company used for operation for goods and services in line with your Business Innovation Visa requirements.

If you are outside Australia and require assistance, we can assist you by facilitating all requirements on your behalf with trusted legal and accounting professionals who are experienced in the international business startup space. Applicants who are in Australia at the time of lodgement, will receive a bridging visa A after lodging their visa applications. This bridging visa will come into effect after the visa you have arrived with expires. Once the bridging visa takes effect (and as long as it has not conditions or restrictions) you can commence your business activities.

General Startup Expenses (depending on the business type) can range from $100,000 – $150,000 for Small Enterprise. For Medium enterprise, set up costs are estimated above $200,000 AUD. The Business Innovation Visa requires that you transfer AUD$1,250 000million to Australia of which needs to be set aside for your new business and the balance of the funds can be attributed to acquiring residential property. The amount required to be utilized for business purposes is subject to whether you will operate your business in metropolitan or regional areas. State or Territory governments will also influence the allocation of these funds depending on the nature of business you intend to operate in Australia

Factors to consider when starting your business in Australia

• Company registrations and all Tax registrations for accounting fees
• Digital & Marketing
• Government licensing and registration (specific to industry)
• Lease for premises/facilities
• Materials and Equipment office furniture hire /purchase
• Public Liability Insurance
• Website Development
• Other IT (security/software etc.)
• Recruiting team
• Legal Fees
• WHS procedures in accordance with Australian state government legislation

During our initial consultation, we will elaborate further on New Business Processes and Investment opportunities in Australia

MATCH AND INVEST

Setting up a new business as a new migrant in Australia can be challenging when arriving to a new country, many business owners have opted to obtain a substantial ownership interest in an existing business in Australia and actively participate in that business at a senior management level. Owning substantial interest in an existing business means that you should acquire minimum of 30% equity shares and can be up to a max 100% depending on your chosen business venture.

Most Australian business owners seeking investment will generally provide their brokers a full financial history of their business and will have the business valued by their own professional providers. In determining the value of the business, you intend to invest in, it is important to ensure that due diligence is undertaken for this business by reputable solicitors and accounting firms who will provide you with key information pertaining to the full value of the business and any associated risks.

The negotiation phase involving entering a partnership with an existing Australian entity can be a smooth one or challenging. It is important to consider your preference and management style before investing into an existing business.
Other alternatives to partially acquiring equity interest, is choosing to purchase an existing business outright. This would provide you with full operational and management control. 

We work with registered Australian business brokers to source businesses that match your skill set, industry experience and preference.
Once your visa is lodged, you may then finalise your business purchase. If you are outside Australia and require assistance, we can facilitate all requirements on your behalf with trusted legal and accounting professionals who are experienced in business sales & acquisitions. Enquire about Australian Businesses seeking international joint ventures.