SUBCLASS 188E VISA - THE ENTREPRENEUR STREAM

What is a subclass 188E visa?

Subclass 188E visa for people who have an exceptional business concept that is funded by a third party to undertake complying entrepreneur activity. This concept is proposed to lead to either the commercialization of a product or service in Australia or the development of a business in Australia.

 

 

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 188E visa

When the Australian Government grants applicants a subclass 188E visa, not only they but also their accompanying family members will enjoy the full benefits of the visa:

Benefits	Details
Residence	Staying in Australia for up to 5 years.
Including family member	The applicant can include their eligible family members to come to Australia and enjoy the same benefits.
Social security	Applicant’s family members can be entitled to full benefits from Australia’s social security policy.
Education and working	Can work and study in Australia.
Multiple entries	Being able to travel in and out Australia while the visa is valid.

 

 

Advantages of the subclass 188E visa

Significant advantages of this visa stream:

• Financial capacity is not required.
• Migration point of 65 is not required.

 

The requirements of the subclass 188E visa

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

Primary applicant must:

 

Requirements	Details
Age	Be under 55 at the time of the invitation to apply for the visa.
Be nominated	Applicants must be nominated by an Australian State before being invited to apply for this visa.
Business ideas	A complying entrepreneur activity must relate to an innovative idea that will lead to: The commercialization of a product or service in Australia, or The development of an enterprise or business in Australia. This activity must not relate to any of the following categories: Residential real estate. Labor hire. Purchase of an existing enterprise or a franchise in Australia.
Business capital	The applicant must have one or more legally enforceable agreements to receive funding with a total of at least 200,000 AUD. The funding must be from one of the following entities: Commonwealth Government agency. State or Territory government agency. Publicly funded research or innovation organization. Higher education provider specified as a Table A or Table B provider under Part 2-1 of the Higher Education Support Act 2003. Investor registered as an Australian Venture Capital Limited Partnership or Early Stage Venture Capital Limited Partnership. At least 10% of the funding must be payable to the entrepreneurial entity within 12 months of the activity starting in Australia. Ownership of at least 30% in the joint venture.
English	At least competent English (IELTS 6 or equivalent English test result)
Health	Must meet the health requirements of the Australian Government.
Criminal Records	Applicants and partners have no history of illegal business or investment in Australia. Have no debt to the Australian Government. If so, applicants must have paid it back or have an approved arrangement to pay it back. Have no criminal background.

 

The requirements of subclass 888E visa (stage 2)

 

Requirements	Details
Length of stay	Applicants must have been in Australia for at least 2 of 3 years (or 2 of 4 years previously)
Be nominated	The applicant must be nominated by a State or Territory government agency.
A successful record of entrepreneurial activities	To apply for this subclass 888E visa, the applicant needs to show either: 2 key success factors, or 1 key success factor and 3 supporting success factors. Key success factors: Employing 2 or more Australians, permanent residents or other eligible persons. Generating an annual turnover of at least 300, 000 AUD. Filing a provisional patent or acquiring a standard or innovation patent. Receiving ongoing funding or investment in entrepreneur activity. Entering into a partnership with a university. Selling an entrepreneurial venture for 2 million AUD. Supporting success factors: Adapting your entrepreneurial activities into other business areas. Receiving a statement of success from a state or territory government nominator. Receiving sponsorship from the corporate sector. Starting at least 1 other business or contributing to at least 2 other businesses. Receiving formal awards or recognition. Raising or contributing to social capital.
Judicial Records	Have fulfilled the obligations of the subclass 188E visa. Have followed Australian laws. Have no debt to the Australian government.

Step-by-step of the subclass 188E visa

Step 1: Assessing the applicant’s ability to qualify for this visa and preparing documents.
Step 2: Submitting the Expression of Interest (EOI).
Step 3: Be nominated by a State or Territory, and then be invited to apply.
Step 4: Applying for the visa and paying the application fee.
Step 5: Additional documents.
Step 6: The subclass 188E visa is granted.

 

 

What must prepare for the subclass 188E visa documents

The applicant must provide the following documents with the main application:

Documents	Details
Identification papers	ID photos. (in the last 6 months). Certified copies of the applicant’s passport. Certified copies of applicants’ ID cards. Certified copies of the applicant’s birth certificate. Marriage certificate (if any). Proof of change of name, if applicable.
Business documents	Prove that the enterprise receives investment from the organization that meets the conditions. A business plan of the enterprise. Prove that applicant has ownership of the business.
English	At least IELTS 6, or an equivalent test result.
Health and character	Must meet the health and character requirements of the Australian Government.
Documents for accompanying person (if any)	Identification papers. Proof of his/her eligibility. Proof of the relationship with the main applicant.

 

The cost of the subclass 188E visa

In the group of 4 Australian investment and temporary business visas, the subclass 188E visa fee is the lowest.

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.	4,240 AUD	2,120 AUD	1,060 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!

 

The processing times of a subclass 188E visa

 

Processing times
75% of applications	6 Months
90% of applications	9 Months

 

Obligations of a subclass 188B visa

The applicant must fulfill the requirement when holding this visa to be able to apply for permanent residence visa – Subclass 888E. During the subclass 188E visa holding period, the applicants must fulfill the following obligations:

• Keeping a minimum of 30% of the enterprise shares.
• Meeting the requirements of the 888E visa – stage 2 (mentioned in part 4 of the article).

Susan Le – VEM’s customer who is granted the subclass 188A visa – shared some useful information regarding a successful visa application for your reference.

 

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

 

Frequently asked questions

Do I need to submit an EOI application before applying for the subclass 188E visa?

• You must send an EO I and be nominated by the State or Territory Government to apply for the visa.

Does the subclass 188E visa require applicants to meet the age requirement?

• The applicant must be under the age of 55 at the time of invitation.

What industry does my company have to do in order to apply for this visa?

• Your business needs to operate in the right field for the visa requirement. You can review part 4 of the article for complete information.

When applying for the subclass 188E visa, do I have to provide a business plans?

• Yes. You also have to describe in detail and persuasively in order to receive funding and be nominated.

 

 

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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!