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The Entrepreneur Visa (Subclass 188E) is a 4-year temporary visa for entrepreneurs who have innovative business ideas and financial backing from a third-party sponsor. This visa requires nomination by an Australian State or Territory government, which is initiated by submitting an Expression of Interest (EOI) through the SkillSelect system.
Location: Applicants may apply from either within Australia or overseas.
If applying from within Australia:
✔️ Must hold a Substantive Visa or a Bridging A, B, or C visa.
After 2 years in Australia and sponsorship by a state or territory government, the applicant may qualify for permanent residency through the Business Innovation & Investment (Residence) Subclass 888 visa.
Before July 2023, the criteria for this visa included several crucial steps, including government nomination and funding commitments. Here’s a closer look at these requirements:
1. State or Territory Government Nomination
To apply for the Business Innovation and Investment Visa, you first need a nomination from an Australian state or territory government. This nomination is essential, as it signifies the government’s endorsement of your potential economic contribution to the region.
2. Proficiency in English
Proving competent English skills is a requirement. This means you must demonstrate an adequate level of fluency to effectively communicate and conduct business in Australia.
3. Age Limit: Under 55, with Some Exceptions
Generally, applicants should be under 55 years old. However, exceptions can be made if you can demonstrate that your business or investment will provide “exceptional economic benefit” to the nominating state or territory. This clause allows some flexibility for experienced entrepreneurs or investors who can drive significant economic growth.
The visa also mandates that you secure funding of at least $200,000 from approved sources. The funding requirement is pivotal because it ensures you have the backing necessary to support your business or investment plan. Here’s where you can source this funding:
– Commonwealth Agencies
Federal government departments or agencies may fund certain business ventures that align with national economic goals. Obtaining funding from a Commonwealth agency not only strengthens your application but also demonstrates alignment with Australia’s economic development goals.
– State and Territory Governments
State or territory governments may also invest in businesses that promise local growth and job creation. Securing funding from these governments reinforces the applicant’s commitment to regional economic development.
– Publicly Funded Research Organisations
If your business idea is research-oriented or technology-based, public research organisations may be potential funding sources. These organisations prioritize projects that have strong R&D elements, making them ideal partners for innovative business ventures.
– Registered Venture Capital Partnerships
Venture Capital Limited Partnerships (VCLPs) and Early Stage Venture Capital Limited Partnerships (ESVCLPs) are registered entities that fund high-potential startups and early-stage businesses. Having VCLP or ESVCLP backing not only validates your business’s potential but also satisfies the visa’s funding requirement.
The proposed venture would need to be either:
👉 Commercialisation of a product or service in Australia; or
👉 Development of an enterprise or business in Australia
Certain activities which are not considered sufficiently innovative will be excluded. This are defined by legislative instrument and include:
👉 Purchase of an existing business or franchise
👉 Real estate activities
👉 Labour hire activities
To apply for the Entrepreneur Visa in Australia, applicants must secure a funding agreement of at least $200,000 from one or more approved sources. These sources include:
👉 Commonwealth agencies
👉 State or territory governments
👉 Publicly funded research organisations
👉 Investors registered as Venture Capital Limited Partnerships (VCLPs) or Early Stage Venture Capital Limited Partnerships (ESVCLPs)
Additionally, the funding agreement must ensure that at least 10% of the total funds are transferred within the first 12 months after starting business activities in Australia. This requirement helps ensure that applicants have the financial foundation to launch and sustain their entrepreneurial projects effectively.
