SUBCLASS 188A VISA: AN INVESTMENT OPPORTUNITY TO LIVE PERMANENTLY IN AUSTRALIA

What is a subclass 188A visa?

Subclass 188A visa is a temporary visa for overseas entrepreneurs/investors to come to Australia to invest by buying an existing business or establishing a new one. It is a great opportunity to live, study and work in one of the best countries in the world.

 

 

The applicants and their family members can apply for a permanent resident subclass 888 visa if they meet the requirements.

 

The benefits of the subclass 188A visa

 

Benefits	Details
Residence	Staying in Australia for up to 5 years.
Business and investment	The applicants are allowed to invest, run a new business or buy an existing business in Australia.
Education and working	Working and studying in Australia.
Working and studying in Australia	Being able to travel outside Australia and return as many times as they want while the visa is valid.
Sponsor family members	Being able to sponsor family members after obtaining PR.
Applying for Australian citizenship, if eligible	Permanent resident visa holders have the opportunity to apply to become Australian citizens.

If you have any inquiries about the Business Innovation Stream, please contact us for more information.

 

The requirements of the subclass 188A visa

The requirements of the subclass 188A visa (stage 1)

In order to successfully apply for this temporary visa, you must meet the following requirements:

 

Requirements	Details
Age	Under 55 years old at the time of the visa lodgement.
Be nominated	Applicants must be nominated by an Australian State before being invited to apply for this visa.
Business ownership	Owning and directly running a business/businesses for at least 2 financial years.  The ownership percentage in those 2 years must be: 51%: if the business’s turnover is less than 400,000 AUD per year 30%: if the business’s turnover is 400,000 AUD or more per year 10%: if the business is a publicly listed company.
Net business and personal assets	Minimum personal and business assets: 1,250,000 AUD (can be combined with spouse’s assets). Applicants must be able to prove the source of funds. Applicant’s funds must be available to transfer to Australia within 2 years of the visa grant.
Turnover	For 2 out of 4 fiscal years immediately before applicants receive an invitation to apply, the turnover of the business must be at least 750,000 AUD. If the turnover is less than 750,000 AUD, the applicant must own 40% of the shares.
The Australian skilled points test	Applicants must achieve a minimum of 65 points.
English	At least 4.5 IELTS, or equivalent (applicants may be asked to pay an additional fee if they do not meet the requirements).
Health and character	Must meet the health requirements. Have no debt to the Australian Government. If so, applicants must have paid it back or have an approved arrangement in place to pay it back. Have no criminal background. Not having had a visa canceled.
Criminal Records	Have not been refused or canceled by the Australian Government. Have no debt to the Australian Government. If so, applicants must have paid it back or have an approved arrangement in place to pay it back. Have no criminal background.
Where to lodge a visa	Depending on the specific circumstances, applicants may be inside or outside Australia
Where to receive a visa

If you believe that you are eligible for the subclass 188A visa, please continue referring to further information below. Otherwise, contact us!

 

 

At VEM, our licensed migration specialist – Mr. Phong Cao who has been an Australian investment consultant for many years will evaluate and advise you on the best business/investment visa pathway. With many successful cases and practical experience, Mr. Phong Cao is confident to accompany you for the whole journey.

If you find the subclass 188A visa not attractive enough, please refer to the business innovation and investment visa Australia for further information.

 

The requirements of subclass 888A visa (stage 2)

 

Requirements	Details
Residence time	Must reside in Australia for at least 1 year in the last 2 years before applying for a subclass 888A visa.
Business operation	During 2 years prior to subclass 888A visa lodgement, applicants must have: Own and run a business that meets the requirements (applicants can have up to 2 businesses). Continue to manage their business activities directly. Have submitted a business activity report to the Australian Taxation Office (ATO).
Turnover	One year prior to visa application lodgement, the turnover of businesses must be at least 300,000 AUD.
Assets and employees	Business assets: at least 200,000AUD. Personal and business assets: At least 600,000AUD. At least 2 eligible employees who are Australian citizens, Australian permanent residents, or eligible New Zealand citizens. And, they are not family members of the applicants
Be nominated	Must have a new nomination from the state where they are investing.
Commitment	Must have a firm commitment to continuing their business activities in Australia.
Criminal Records	Applicants must comply with Australian laws. Do not involve in any illegal activities. Have no debt to the Australian government.

 

How migration points for a subclass 188a visa are counted?

Applicants must score at least 65

 

Standard	Requirements	Points
Age	18 – 24 years old	20
	25 – 32 years old	30
	33 – 39 years old	25
	40 – 44 years old	20
	45 – 54 years old	15
	Over 55 years old	0
English level	IELTS 5.0 or above	5
	IELTS 7.0 or above	10
Qualifications	Certificates or Bachelor’s degree in business from educational institutions in Australia. A Bachelor’s degree is awarded by a qualified educational institution.	5
	Graduate with a Bachelor’s degree in business, science or technology from a qualified Australian institution/ educational institution.	10
Net personal and Business assets	Total personal and business assets of applicants and his/her spouse in the last 2 financial years:
	Over 1,250,000AUD	5
	Over 1,750,000AUD	15
	Over 2,250,000AUD	25
	Over 2,750,000AUD	35
Business Turnover	For 2 out of 4 fiscal years prior to the time of application, annual business revenue must be:
	Over 750,000AUD	5
	Over 1,250,000AUD	15
	Over 1,750,000AUD	25
	Over 2,250,000AUD	35
Business Statement	At the time applicants receives the invitation, the business has been running:
	More than 4 years	10
	More than 7 years	15
Total Investment	Prior to applying for a visa, applicants must have owned at least AUD 250,000 in investment funds:
	More than 4 years	10
	More than 7 years	15
	Has a registered patent at least 1 year	15
	Has a registered trademark 1 year ago	10
	Applicants directly run their business for at least 1 year before applying for the visa	5
	Applicants’ shares are equal to or more than 50% of the company’s annual turnover from the export trade	15
	For the last 5 years: There are 3 consecutive financial years where the average annual revenue growth is higher than 20%. At least once in those 3 years the business has at least 10 employees working. The minimum total working hours of these employees must be equal to those of full-time employees.	10
	The business owner received a government subsidy which is at least 10,000 AUD during the period of starting the business. The minimum venture capital funds is 100,000 AUD (within 4 years before applicants are invited to start an early-stage business, the commercialization concept of a product, develop the business, or expand the business).	10
Certifications	A state or territorial government in Australia certifies that the applicants’ business is the only entity of particular interest to the region.	10

 

Step-by-step of the subclass 188A visa

Step 1: Considering the possibility of being eligible for this visa.
Step 2: Preparing documents.
Step 3: Applying for a State’s nomination.
Step 4: Receiving a State’s nomination and invitation to apply for the visa.
Step 5: Applying for the visa
Step 6: Receiving visa lodgement confirmation.
Step 7: Providing additional documents if requested.
Step 8: Being granted the subclass 188A Visa.

 

 

What must prepare for the subclass 188A visa documents

 

Documents	Details
Identification papers	Passport photos. Certified copies of the applicant’s passport. Certified copies of the applicants’ ID cards. Certified copies of the applicant’s birth certificate. Marriage certificates (if any). Proof of change of name, if applicable
Business documents	Business Overview	Details of the functional areas of business. Describes the business activities. Business Organizational Chart. Photos of the location and business activities (no more than 6 pictures).
	Business Ownership	Applicants provide evidence of ownership of a company, such as: A certificate of incorporation A business license Submitted documents that prove applicants’ annual capital contribution to the company. You can schedule a consultation session with VEM for a complete list of required documents!
	Prove the right to run the company	Provide evidence demonstrating the continuity of direct management and business operation. Validity of evidence: must be within 2 out of 4 fiscal years before the nominated applicant submits the nomination application.
	Proof of the originality of the assets	Applicants must provide documents proving their assets are transparent such as If the asset is cash: provide a bank statement. If the property is real estate: certificate of ownership. If the property is a personal loan: loan agreement, loan statement, and repayment schedule. If assets are stocks and bonds: certificate of ownership of shares. If assets from operating activities: financial statements. Providing proof of the above documents is not easy. In fact, many entrepreneurs take lots of time to prepare documents because the information provided is not clear and convincing enough. At VEM, our Migration Specialist will advise and assist you through.
	Proof of business loss (if any)	If the business is at a loss or is no longer able to be paid, applicants need to describe this in detail.
English	Provide proof of the applicant’s eligibility.
Migration points	Provide evidence of at least 65 points.
Documents for accompanying person (if any)	Identification papers. Proof of his/her eligibility. Proof of the relationship with the main applicants.

 

The cost of the subclass 188A visa

 

Visa application charge installments	Visa costs (not including 1.4% surcharge)
	Main applicants	Additional applicants
		Over 18 years old	Under 18 years old
First installment: the time of lodging a visa application.	9,450 AUD	4,725 AUD	2,365 AUD
Second installment: Additional applicants who are 18 years old or older have less than functional English (4.5 IELTS).	9,795 AUD	4,890 AUD	0 AUD

 

Any kind of refund is impossible when the application is rejected. Additionally, when a visa is refused, there is not only financial lose, but time and especially opportunities for your whole family!

 

How to stay in Australia when the subclass 188A visa expired?

During 5 years of holding the subclass 188A visa, applicants need to meet the visa requirements of a subclass 888A visa. But if not satisfied, applicants can renew the subclass 188A visa once to have more time to complete the requirements (only apply for the visa was applied and granted before 01/01/2021).

 

 

If you are VEM’s client, your entire visa journey will be accompanied. It is important to achieve your permanent residency as soon as possible.

 

The processing times of a subclass 188A visa

The applicants will wait for more than 2.5 years to receive the application results.

 

Processing times
75% of applications	33 Months
90% of applications	36 Months

In order to get the best choice for future orientation, investors can refer to information about other types of investment visas such as: subclass 188B visa, subclass 188C visa, subclass 188E visa.

 

Testimonials

VEM’s customer – Ms. Susan Le has just been granted subclass 188A visa – Business Innovation stream just before the Australian Government increases the requirements. Ms. Diem is now in Australia for the second permanent residence stage.

 

VEM’s customer who is granted the subclass 188A visa

 

Clients applying for the subclass 188A visa with VEM always receive more than just a visa. For example, Ms. Thu Giang Nguyen – a client accompanied by VEM, is preparing for the final stage of applying for a subclass 888A visa.

Following her experience during the visa application process in the video below.

 

VEM’s customer who is granted the subclass 188A visa

 

Frequently asked questions

What assets can i use to prove that i meet the subclass 188a visa eligibility requirements?

• Valid sources of assets, such as: cash, savings accounts, real estate, loans, stocks or bonds,….

I want to use my real estate to prove property eligibility. my real estate is currently mortgaged at the bank, can i use it for subclass 188a visa financial requirement?

• The answer is yes. But depending on the purpose for which you take a mortgage, the value of the property may decrease. This issue is quite complicated, if you need to find out, you should consult with VEM’s specialist!

I want to settle in Australia permanently via a subclass 188a visa. however, i do not want to run a business in Australia, is there another way to meet the requirements for a permanent visa – subclass 888a?

• Absolutely possible. But keep in mind that the business has never been used for subclass 888A visa purposes.
  When you acquire a business, you need to ask the owner of that business to commit to the issue. If you are not secure, contact VEM now!

I am worried that i would not be able to meet the requirement to apply for a subclass 888a visa. so, during the period of holding a subclass 188a visa and doing business, if i can not meet the subclass 888a visa requirements, can i switch to another kind of business?

• A subclass 188A visa is valid for 5 years. And you can only change your type of business in the first 2 years of holding this visa.

 

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Lots of entrepreneurs/investors apply for this subclass 188A visa this year. You should complete and submit the application as soon as possible. If you need help from our licensed migration specialist – Mr. Phong Cao, contact VEM now! Moreover, we have a preferential program for this investment visa!