All you need to know about the new Entrepreneur Visa
The Australian Government has established a new visa subclass designed to encourage foreign entrepreneurs to come to Australia.
The visa is being trialled in South Australia before being expanded to the rest of Australia in 2019.
Existing Entrepreneur Visa
Currently, there is an entrepreneur visa available under the Business Innovation and Investor regime (subclass 188). However, it has been found that such regime has failed in attracting sufficient applicants which may be a result of the difficult requirements that need to be met.
It is a requirement that the intended entrepreneurial activity is a ‘complying entrepreneur activity’. A complying entrepreneur activity must relate to an innovative idea that will lead to the commercialisation of a product or service in Australia or the development of an enterprise or business in Australia. However, this activity can not include residential real estate, labour hire or purchase of an existing enterprise or a franchise in Australia.
There is also a requirement that the applicant for a Business Innovation and Investor visa (subclass 188) under the Entrepreneur stream must enter into a legally enforceable agreement to receive funding of at least $200,000 from an approved entity which includes a Commonwealth Government agency, state or territory government or publicly funded research or innovation organisation. In addition to agreement, a number of other conditions must be satisfied, including the applicant holding at least 30% interest in their entrepreneur activity and a creating a business plan.
What’s different with the new visa?
Under the new entrepreneur visa, the Government has removed the funding requirements for applicants. Despite this, the entrepreneurial activities and innovative ideas must be ‘underwritten’ by the relevant state authorities and be approved by the Australian government.
The state government will collaborate with business incubators to recognize potential applications for state nomination.
The new visa will be a provisional visa that will likely be valid for four years. During this time, applicants would have established their business activities in Australia. Following this, and provided further requirements are met, the applicant can apply for permanent residency.
The introduction of the new entrepreneur visa is a great opportunity in attracting promising foreign investors with self-sourced funding to develop their businesses in South Australia.
If you have any questions in relation to the new entrepreneur visa or general migration queries please do not hesitate to contact one of our friendly staff at Bambrick Legal today.