Business Talent (Subclass 132) Visa Is For Successful Business People To Live And Operate A Business In Australia
If you have a successful business career and your business annual turnover is at least $3mil, you may apply for a Business Talent (Subclass 132) visa. This permanent visa allows you and your family to live and operate a business in Australia.
How do I know I qualified?
You and/or your partner (spouse or de facto partner) must have an ownership interest (as a shareholder or a partner or sole proprietor, including business interest held indirectly through 1 or more interposed companies, partnerships or trusts) in 1 or more qualifying businesses. The business must supply goods or services for a profit. It cannot be for rental of property or operate primarily or substantially for the purpose of speculative or passive investment. The net value of your and/or your partner assets in the qualifying business must have been at least $400,000 unless the qualifying business is a public listed company, then your shareholding must be at least 10% of the total issued capital.
In the last 4 years immediately before you are invited to apply for the Business Talent (Subclass 132) visa, your main business for at least 2 fiscal years must have had an annual turnover of at least $3mil.
There are 2 streams in the Business Talent (Subclass 132) visa:
- significant business history – this stream is for business owner or part owner with annual business turnover of more than $3mil) and,
- venture capital entrepreneur – people having received at least $1mil funding from a member of the Australian Venture Capital Association Ltd (AVCAL) to establish a start-up company for product commercialisation or business development of a promising high-value business idea. Under either stream, you must be nominated by an Australian state or territory.
If you are nominated by an Australian state or territory (click here if you are interested in Victoria nomination) and you meet the Business Talent (Subclass 132) (Class EA) visa criteria, you will be invited by the Department of Immigration (Department of Home Affairs) to apply for either the Significant Business History stream or the Venture Capital Entrepreneur stream.
If you are applying under the Significant Business History stream, you and/or your partner must have net assets of at least $1.5mil that is available to transfer within 2 years after the visa is granted, and have a business ownership interest of at least $400,000 in 1 or more qualifying businesses for at least 2 of the 4 fiscal years before you are invited by the Department of Immigration to apply for the Business Talent (Subclass 132) visa.
Your business ownership interest must be at least 51% if the business annual turnover is less than $400,000, or 30% if the business annual turnover is more than $400,000, or the business is a public listed. you must own at least 10% of the total shares.
In addition, you must be under 55 unless waived if the proposed business will be of exceptional economic benefit to the nominating state or territory.
You can either operate a new or existing business in Australia. Your business must do 1 of these things:
- develop business links with international markets, or
- employ people in Australia, or
- export Australian goods, or
- produce goods or services that would otherwise be imported, or
- introduce new or improved technology, or
- add to commercial activity and competitiveness within the Australian economy.
When you operate this business, you must (a) maintain substantial ownership, (ii) maintain direct and continuous involvement in the day-to-day management, and (iii) make decisions that affect the overall direction and performance of the business.
If you are applying for Business Talent (Subclass 132) visa under the Venture Capital Entrepreneur stream, you must enter into an agreement with the venture capital firm. The agreement must specify when the venture capital firm will make an initial investment in the start-up business and detail the follow-on investments when certain development stages are met. This first signed agreement is known as “term sheet” which is not a legally binding document or in-principle agreement. There are usually 6 stages at which the venture capital firm will provide funding which will correspond roughly to the stages of product development. However, the venture capital firm might not participate or fund all of the 6 stages.
What are the 6 stages?
Stage 1: seed money to finance the new idea or concept
Stage 2: start-up the business, example, product development and marketing
Stage 3: first round of funding to develop sales and/or production
Stage 4: second round of funding for working capital for commercialising the product but yet to achieve a profit
Stage 5: third round of funding or mezzanine financing to assist the newly profitable company to expand
Stage 6: fourth and final round of funding or bridge financing to fund the process of floating the company on a stock exchange.
You must be invited
You cannot apply for Business Talent (Subclass 132) visa under the Venture Capital Entrepreneur stream unless you are invited by the Department of Immigration (Department of Home Affairs) to apply. You will be required to provide a copy of the venture capital agreement and a letter from the venture capital firm explaining how much venture capital will be provided. You will have to enter into a legal binding agreement and provide evidence of funding for any of the 6 stages. The venture capital investment must not be connected with you or applicants seeking the venture capital funding. You must obtain at least $1mil funding which can be paid by instalments.
After you are granted the Business Talent (Subclass 132) visa, you must make genuine effort to engage in the business not as an employee.
Adding family members
You can include your family members in a combined application. They cannot apply for the visa separately unless they are born after you have been granted the Business Talent (Subclass 132) visa or got married or entered into a de facto relationship.
Business Talent (Subclass 132) is a permanent visa and is valid for 5 years from the date of grant (click here to learn more about RRV 155 visa).
Australian migration law is complex and difficult to understand, contact our immigration lawyer for a free 15 minutes consultation to help you decide if you are eligible to apply for a Business Talent (Subclass 132) visa (click here to find out how an immigration lawyer or registered migration agent can help you). You may also refer to our FAQs for answers regarding visa application or visa cancellation by clicking here.
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This article is not intended to be or taken as migration legal advice. The author of this article disclaims any liability for any action or omission on the information provided or not provided in this article. You should always consult an immigration lawyer or a registered migration agent to form an informed opinion on your immigration matter.