Visas & Advice Detail
Business visa category
The Business visa category presents the opportunity for applicants under the age of 55 to emigrate to Australia, writes John Adams
In past years it was very easy to obtain a Business visa, as the requirements of the Department of Immigration were relatively low in comparison with the current regulations. Unfortunately, though, the system failed in that some applicants could not make the grade and the programme did not attract enough genuine business owners or investors.
In February 2003, the Department of Immigration changed the regulations to better serve Australia's needs and to ensure that applicants were properly screened prior to the visa grant. This has had the desired effect of improving the quality of applicants, and substantially reducing the 'casualty rate' of business migrants. Subsequently, the various states, as well as the Department of Immigration, have stepped up the requirement for business visa applicants to properly research their business intentions and, in most cases, to show that they have visited the state, or at least Australia, to obtain first-hand knowledge of the business or industry that they plan to invest in. An integral part of the application is the presentation of a business plan that addresses all of the visa requirements and shows the applicants' ability and skills in running an existing business. This needs to be matched to the planned Australian operation. In other words, an applicant with skills in the catering industry is unlikely to be granted a visa if their plan is to manufacture children's toys.
Presentation of intelligent financial projections and believable financial history is also paramount to the success of an application. This should ideally be prepared by someone with expertise in those areas, otherwise the application is likely to fail. In addition, all applicants must meet the Australian government's health and character requirements, and have a vocational level of English skills. The business visa category is broadly divided into two main categories: Business Owner and Business Investor. There are also State Sponsored visas in each business category, which have slightly different criteria from their federal counterparts.
For all state sponsored visas you must:
Be less than 55 years old when you apply (except where the regional authority considers that the proposed business will be of exceptional economic benefit to the region); and
Be sponsored by an appropriate regional authority of a state or territory government.
It is worth noting that for all federal visas, you must be under 45 years old when you apply.
A successful application from outside of Australia results in a provisional visa for four years. Within this period, the applicant needs to prove that they have managed a business/investment for two years and met the required criteria before being able to apply for a permanent visa.
A monitoring process is in place to check on applicants throughout the provisional period.
The following is a summary of the various visas.
Business Owners
All Business Owner visa categories require that:
You have sufficient assets to settle in Australia;
You have an overall successful business career;
You have not been engaged in a business where the provision of professional, technical, or trade services took up more than half your time;
You and your spouse have never been involved in unacceptable business activities;
You have a commitment to maintain an ownership interest in a business in Australia and direct and continuous involvement in the management of that business; and
There is a need for you to live in Australia on a temporary basis to conduct or establish the proposed business activity.
For State/Territory Sponsored Business Owner (Provisional) (Subclass 163), the following criteria apply:
You must have an ownership interest in a main business (or two main businesses combined) with an annual turnover of at least AUS$300,000 in at least two of the four fiscal years immediately before you apply, or you are a senior manager; and
Your (and your spouse's) combined total assets have a net value of at least AUS$250,000 and were legally acquired and are capable of being transferred to Australia within two years of being granted this visa.
For Business Owner (Provisional) (Subclass 160) the following criteria applies:
You have notified the state or territory of your intention to develop a business in that state or territory;
You had net assets in a qualifying business of AUS$200,000 for at least two of the four fiscal years immediately before applying;
The annual turnover of your main business (or two main businesses combined) was at least AUS$500,000 in at least two of the four fiscal years immediately before you apply;
Your total assets have a net value of at least AUS$500,000, and were legally acquired and are capable of being transferred to Australia within two years of being granted this visa;
You are expected to provide valuable input to the Australian economy;
You must obtain a substantial ownership interest in a business in Australia; and
In that business you must actively participate in the day-to-day management at a senior level, and continue to make genuine efforts to hold a substantial ownership interest at a senior level in the day-to-day management of such a business.
In your business you must also do at least one of the following:
i) Develop business links with international markets;
ii) Create or maintain employment in Australia;
iii) Export Australian goods;
iv) Produce goods or services that would otherwise be imported;
v) Introduce new or improved
technology; or
vi) Add to commercial activity and competitiveness within sectors of the Australian economy.
Business Investors
For State/Territory Sponsored Investor (Provisional) (Subclass 165), the following criteria apply:
At the time of the decision you made a government-approved Designated Investment of at least AUS$750,000 in a state or territory of Australia.
For at least one of the five fiscal years immediately before you apply:
i) You have maintained direct involvement in either managing a qualifying business in which you (or you and your spouse together) had an ownership interest of at least 10 per cent of the total value of the business; or
ii) You maintained direct
involvement in managing your (or you and your spouse's) combined eligible investments, the total value of which was at least AUS$750,000;
iii) You have a total of at least three years experience of direct involvement in managing one or more qualifying businesses or eligible investments;
iv) You have demonstrated a high level of management skill in relation to an eligible investment or qualifying business activity;
v) You have a commitment to develop and maintain an ownership interest in a business in Australia and you must maintain direct and continuous involvement in the management of that business; and
vi) The net value of your (or your and your spouse's combined) assets was at least AUS$1,125,000 for the two fiscal years immediately before you apply.
For Investor (Provisional) (Subclass 162), the following criteria applies:
You have notified the appropriate regional authority of a state or territory of your intention to develop a business in that state or territory;
At the time of the decision you have made a government-approved Designated Investment of AUS$1,500,000 in a state or territory of Australia;
For at least one of the five fiscal years immediately before you apply:
i) You have maintained direct involvement in either managing a qualifying business in which you (or you and your spouse together) had an ownership interest of at least 10 per cent of the total value of the business; or
ii) You maintained direct involvement in managing your (or you and your spouse's combined) eligible investments. The total value of that investment was at least AUS$1,500,000; iii) You have an overall successful record of eligible investment of qualifying business activity;
iv) You have a total of at least three years experience of direct involvement in managing one or more qualifying businesses or eligible investments;
v) You have demonstrated a high level of management skill in relation to an eligible investment or qualifying business activity;
vi) You have a commitment to develop and maintain an ownership interest in a business in Australia and you must maintain direct and continuous involvement in the management of that business; and
vi) The net value of your (or your and your spouse's combined) assets was at least AUS$2,250,000 for the two fiscal years immediately before you apply.
Senior Executives
For State/Territory Sponsored Senior Executive (Provisional) (Subclass 164) the following criteria apply:
You have occupied a position in the three highest levels of the management structure of a major business in which you were responsible for the strategic policy development affecting a major component or a wide range of operations of that major business for at least two of the four fiscal years immediately before you apply; and
Your total assets have a net value of at least AUS$250,000, and were legally acquired and are capable of being transferred to Australia within two years of being granted this visa.
For Senior Executives (Provisional) (Subclass 161) the following criteria apply:
You must have notified the appropriate regional authority of a state or territory; and your intention to develop a business in that State or Territory.
You have occupied a position in the three highest levels of the management structure of a major business. In that position you were responsible for the strategic policy development affecting a major component or a wide range of operations of that major business, and have done so for at least two of the four fiscal years immediately before you apply.
Your (or your and your spouses) total assets have a net value of at least AUS$500,000, and were legally acquired and are capable of being transferred to Australia within two years of being granted this visa.
John Adams is a registered migration agent for Immigration2oz.com.