Actually, most people are familiar with the 188E visa, but before the new policy,188Eit required external investment of AUD 200,000, which discouraged many aspiring entrepreneurs who had good ideas but no way to secure investment. Amid the pandemic, the Department of Home Affairs adjusted the 188E policy to attract more innovative entrepreneurs to help restore Australia’s economy.
New policy from 1 July 2021
For applicants invited after 1 July 2021,there is no longer a requirement for AUD 200,000 in investment funds. This change has, in effect, created new opportunities forapplicants with an international student backgroundto migrate.
Eligibility criteria under the new policy:
— Applicant must be under 55 years of age
— A new innovative business, or a business the applicant is preparing to establish
*The business must not involve real estate, labour hire, the direct purchase of an existing Australian business, or a franchise
— English proficiency of IELTS 6 in each band (or equivalent)
— Applicant needs to prepare a comprehensive business plan
Understanding the new policy
Although the AUD 200,000 investment requirement has been removed, applicants still need to obtain approval from a state or territory government,and the key to a successful application still lies in how the government assesses the applicant’s innovative idea, and whether the business plan presented is recognised by the government as one that will contribute to Australian society.
Each state will be free to select suitable projects and applicants according to its own needs,encouraging more Australian graduates and overseas entrepreneurs to start businesses in Australia,driving economic and technological development.
Who this suits:
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Within Australia: those with business ideas —Australian international students
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. Outside Australia:those with a solid foundation in English who are considering establishing and running an innovative business in Australia in the future
If within Australia | International student background
Recently, several regional states have progressively introduced state nomination requirements under the small business stream. We’ve received a number of enquiries from people willing to run a business, who already have a solid, well-developed business plan, and who want to obtain their status through their own business,but who have a number of concerns about living and running a business in a regional area, and would still prefer to find a pathway that lets them stay in the major city they’re currently in.
This article aims to offer everyone another migration pathway to consider. If you have a promising business idea in its early stages, feel free to message us privately — we can provide you with a detailed assessment.
If overseas | With the intention to start and run a business
Those who have been following Australia’s business and investor migration closely will know that, from this financial year, while the federal government still encourages investor migration, amid the pandemic it wants to attract applicants who are more sustainable in the long term. Aside from the investment amount,, it is looking for applicants with stronger English skills who can grow and innovate, and make a lasting contribution to emerging industries.So, from 1 July, the eligibility thresholds for most business and investor migration applications have been raised, and the 132 direct-to-PR visa has been scrapped.
The 188E is the exception — its threshold has actually gone down, not up. If you’re considering starting a business in Australia once the pandemic passes, feel free to get in touch with us in advance for an assessment and plan.
Application process
Submit EOI → apply for state nomination → obtain state nomination → lodge the visa application after formal invitation → be granted a 5-year Subclass 188E visa
*Under the new policy, applicants invited on or after 1 July 2021 are granted a 5-year Subclass 188E visa
Requirements to be met when transitioning to permanent residency:
For applicants invited after 1 July 2021, once they have held the 188 visa for 3 years and meet the following:
1. Residence requirement:The applicant must have lived in Australia for at least 2 years during the 4-year visa period
2. Business requirement: be able to demonstrate that the business operated in Australia is successful, meeting the Department of Home Affairs’ requirement of 2 primary success factors, or 1 primary success factor plus 3 secondary success factors,Here are two of the primary success factors, as an example:
1) Employing 2 local staff members;
2) Achieving an annual turnover of AUD 300,000
If you’d like to know about all the factors, feel free to message me privately and I’ll explain them in detail.
State governments are progressively opening up the 188E application pathway
If you’d like to know the details of the application,
feel free to reach out any time via private message
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