Part 2: What is a Complying Entrepreneurial Activity?
The Business Innovation and Investment visa has seven streams aimed at applicants who want to own, manage and invest in businesses in Australia. Part 1 gave an overview of the newly established Entrepreneur Stream that is specifically designed to facilitate entry into Australia of entrepreneurs with innovative ideas. Part 2 will have a more in depth look of the criteria that needs to be met for a person to qualify under the Entrepreneurial Stream.
For an entrepreneur activity to be complying it must satisfy all criteria set out by the Department of Immigration and Border Protection. The applicant must:
- Have an Innovative Idea that will Lead to the Commercialisation of a Product, Service or the Development of Business in Australia
Activities that do not fall within this criteria include, the purchase of an existing business or franchise, activities related to real estate, or activities related to labour hire. If an activity does not meet this criteria or is deemed insufficiently innovative, the application will be refused.
- Have a Business Plan
The applicant must provide a business plan to show how the entrepreneur is going to achieve their outcomes. The validity of the business plan will be determined by the minister.
- Secure Funding Through a Legally Enforceable Agreement
The applicant must have secured funding through a legally enforceable agreement from; an agency of the Commonwealth, a State or a Territory, a body that undertakes publicly funded research or innovation initiatives and are established under a law of the Commonwealth, a State or a Territory; investors registered or conditionally registered as venture capital limited partnerships; early stage venture capital limited partnerships or higher education providers listed in the Higher Education Support Act 2003. The funding must be at least A$200,000, with a guarantee that at least 10% of the funding will be provided within the first 12 months. Funding must be provided to the applicant, partner, or body corporation of the business and all of the funding provided to the entrepreneurial entity must be unencumbered and lawfully acquired. A combination of the above listed sources as opposed to a sole source of funds may be acceptable.
- Hold at least a 30% share of the business entity.
If the applicant is not a sole entrepreneur, they must hold at least 30% share of the business entity, restricting the number of persons that will qualify for the subclass 188 entrepreneurial stream visa for each business entity.
If you feel that you may qualify for the Entrepreneur Stream of the Business Innovation and Investor (Provisional) visa (subclass 188), Immigration Solutions Lawyers can assist in all aspects of your visa application.
Click here to read more about Immigration Solutions Lawyers and Anne O’Donoghue.