Did you know that Australia’s economy thrives on foreign business investments worth billions each year?
For ambitious entrepreneurs looking to expand their horizons, the Subclass 188 Visa presents a golden opportunity to establish or invest in businesses down under.
This temporary visa, part of the Business Innovation and Investment Programme (BIIP), offers a pathway to establish or grow a business in Australia.
However, when you apply for an Australian business visa application, you need to understand its streams, requirements, and potential pitfalls.
In this blog, we’ll break down everything you need to know about the Subclass 188 Visa to help you avoid common errors and secure your chance to build your business Down Under.
Understanding The Subclass 188 Visa
The Subclass 188 Visa is a 5-year temporary visa for business owners and investors who want to start or manage a business in Australia. Once granted, it allows you to apply for permanent residency through the Subclass 888 Visa after meeting certain conditions. You can apply from inside or outside Australia.
If you’re in Australia, you must hold a substantive visa or a Bridging A, B, or C visa. Importantly, the BIIP will close in September 2024, with refunds offered for withdrawn applications, so acting soon is critical.
Streams Of The Subclass 188 Visa
This visa comes in five streams, each tailored to different goals.
Here’s a clear overview:
| Stream | Purpose | Minimum Investment | Duration |
| Business Innovation | Own and manage a new or existing business | AUD 200,000 | 5 years |
| Investor | Invest in complying investments | AUD 2.5 million | 5 years |
| Significant Investor | High-value investment in complying investments | AUD 5 million | 5 years |
| Entrepreneur | Start an innovative venture | No set amount | 5 years |
| Business Innovation Extension | Extend the Business Innovation stream | Additional 2 years |
Each stream has unique rules. The Business Innovation stream, for instance, can be extended by 2 years after 3 years, giving you up to 7 years total. Knowing which stream suits you helps avoid subclass 188 visa application mistakes.
Key Requirements For The Subclass 188 Visa
To qualify, you need a state or territory nomination and must lodge an Expression of Interest (EOI) via SkillSelect. For the Business Innovation stream, specific conditions apply. You must own a business with a turnover of at least AUD 750,000 for 2 of the last 4 fiscal years.
Your net personal and business assets should total at least AUD 1,250,000. Age matters too—applicants must be under 55 unless the nominating state certifies exceptional economic benefit. Scoring 65 points on the Business Innovation and Investment Points Test is also essential, though this doesn’t apply to the Significant Investor or Entrepreneur streams.
Points are awarded based on factors like age, English skills, qualifications, business experience, assets, and turnover. A successful business career is a must. Without meeting these requirements, you risk subclass 188 visa rejection reasons, such as insufficient documentation or low points.
The Points Test Explained
Achieving the 65-point threshold involves accumulation across various categories:
- Age: Maximum 30 points for applicants aged 25-32
- English Language Ability: 5 points for Vocational English, 10 points for Proficient English
- Qualifications: 5-10 points depending on educational background
- Business Experience: Up to 15 points based on business longevity
- Financial Assets: 5-35 points based on total asset value
- Business Turnover: 5-35 points based on annual turnover figures
- Business Innovation Qualifications: Additional points for patents, trademarks, export trade, etc.
How to Apply For The Subclass 188 Visa?
Applying starts with an EOI through SkillSelect. A state or territory must invite you based on your business or investment proposal. For example, the Australian Capital Territory (ACT) requires a viable plan showing economic benefit.
You’ll submit documents like your EOI record, CV, business proposal, financial statements, and a signed declaration. A non-refundable fee (e.g., AUD 600 for ACT) applies. Mistakes in this step, like incomplete forms, often lead to subclass 188 visa application problems. If approved, the Department of Home Affairs invites you to lodge your visa application.
Pathway To Permanent Residency
After holding the Subclass 188 Visa for a set period, you can apply for the Subclass 888 Visa. For the Business Innovation stream, you need to have been in Australia for at least 12 months in the 2 years before applying.
Your business must have operated for 2 years with a turnover of AUD 300,000 annually. You also need to meet two of three criteria: assets of AUD 200,000, total net assets of AUD 600,000, or two full-time Australian employees. Messing up these conditions is a top cause of Australian investor visa rejection.
What Is The Process Of Application For Subclass 188 Visa?
To start the process of application, you must submit an EOI in SkillSelect. You will need to be invited to apply by the state or territory for your business or investment proposal. For example, if applying for the Australian Capital Territory (ACT), you will need to provide a viable plan demonstrating that there is economic benefit.
The documents that you will submit includes the record of EOI, CV, business proposal, financial statements and signed documents. A cost also applies to this application (the cost for ACT was AUD 600). So, if any mistake occurs, such as incomplete forms through this process, it may likely cause problems to subclass 188 visa applications. If you are invited, the Department of Home Affairs will send an invitation to lodge your visa application.
Pathway To Permanent Residency
After holding the Subclass 188 visa for an appropriate amount of time and period, you will be eligible to apply for the subclass 888 visa. For a Business Innovation stream visa, you will need to be in Australia for at least 12 months within the two years prior to your application. In addition, your business would have to operate for two years and turnover of at least AUD 300,000 per year.
You would also have to comply with two out of three criteria: assets of AUD 200,000, total net assets of AUD 600,000, or two full-time employees in Australia. Making a mistake with these conditions is one of the main causes that Australian Investor visas are often refused.
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