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Australia for eXtrepreneurs
According to the latest World Bank rankings, Australia fares comparatively well in the Ease of Doing Business criteria. With its open-market policy with minimal restrictions, highly educated workforce and abundant sources of natural resources, it is one of the most attractive investment hubs in the world.
The Startup Muster Report states that approximately 36% of the founders were born overseas and have estimated this number to go up to 40% in the next year. Coupled with a vibrant economy, advanced technology and a healthy social and political environment, Australia is one of the leading choices for eXtrepreneurs to build their businesses and thrive.
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Australia Startup Ecosystem
Australia has a thriving startup business ecosystem, with global brands such as Canva and Atlassian flourishing in its economy. It ranks among the top choices by eXtrepreneurs for developing an innovative business.
With a history of raising over AUD 6 billion at an average in the last few fiscal years, the growth potential is tremendous. With government initiatives and support along with a huge talent pool to tap from, Australia becomes an ideal choice for a businessman to launch their ideas.
The average funding round for early-stage startups is AUD 1.40 million and for Series A, B & C is AUD 3 million, AUD 10 million and AUD 31 million, respectively. All these factors, and more make Australia an attractive and sought-after economy to establish and harness their businesses in.
To know more, download our quick read on “Australia Startup Ecosystem”
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Australia Company Formation
One of the critical choices that an eXtrepreneur needs to make while deciding up on whether to expand to Australia, is selecting the right type of entity structure for their business. This is a determining factor as it could impact the various aspects of a business, such as tax structure, and further expansion plans of the organisation.
Australia has two popular types of entity classifications for eXtrepreneurs viz. Company (Pty. Ltd. and Ltd.) & Partnership. While those looking to raise capital and list their venture in future, find it feasible to incorporate a company, others working in the professional domain and looking for fewer regulatory compliances , generally go for a partnership.
Various factors play an important role in determining the appropriate business structure that would thrive in the Australian Startup Ecosystem.
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Overview
With incredible opportunities to explore, Australia is one of the perfect destinations to setup businesses and foster new ideas. The Government, in order to attract highly skilled workers to the Australian labour market introduced the Global Talent Employer Sponsored (GTES) program. The program was first piloted in 2018 to attract international talent for STEM startups, which has now widened its scope to other fields such as mining, energy technology and Agtech. It is part of the Global Talent Program and is an integral part of the Australian economy, with more than 15,000 placements available in 2020-2021. The GTES program aims to bring globally mobile, highly-skilled and specialised individuals to Australia who can act as 'job multipliers' in Australian businesses to provide opportunities for Australians.
Highlights
1
Opens a pathway to Permanent Residency in Australia.
2
Trusted employers can access highly-skilled roles. One is not restricted to occupation lists for the TSS visa short-term or medium–term streams
3
You can negotiate age requirements for the permanent residence pathway
4
You can negotiate variations on the standard TSS visa requirements
Eligibility
A
Employer Criteria
- Demonstrate that access to the GTES will support job opportunities and skills transfer for Australians
- Labour market testing evidence for the specific positions
- Businesses must be able to demonstrate that they cannot fill the position through existing skilled visa programs.
- The employer must be in good standing with relevant regulatory agencies
- Operates in a technology based or STEM (science, technology, engineering and mathematics) -related field
- Have received an investment of at least AUD 50,000 from an investment fund registered as an Early Stage Venture Capital Limited Partnership
- Independent startup advisory panel will assess and endorse the business as a viable and genuine startup.
Please note that the GTES Visa shall be valid for up to 4 years from date of grant of visa.
B
Applicant and position criteria
- Must meet health, character and security requirements
- No familial relationship with directors or shareholders
- Qualifications must be commensurate with the highly skilled role
- At least 3 years work experience directly relevant to position
- Capacity to pass on skills or develop Australians
- Minimum annual earnings at the market salary rate, but not less than AUD 80,000. This can include equity, but must have a cash component that is no less than the Temporary Skilled Migration Income Threshold.
Renewal
Permanent Status
Key criteria to be met for Permanent Residency via Business Innovation and Investment (Permanent) Visa in the Business Innovation stream:
- currently work, or will work, for the employer under the GTES Labour agreement
- hold their TSS (Temporary Skill Shortage) visa and work in the nominated occupation for 2 out of 3 years before application
- unless exempt, sit a test to demonstrate Competent English
- meet the heath and character requirements.
Process and Timelines
Overview
To encourage foreign entrepreneurs to setup base in the Land Down Under, the government on July 1st, 2012, introduced the Australian Business Innovation and Investment (Provisional) Visa. It provides an opportunity to a founder to operate a new or existing business in Australia. Furthermore, it is also a gateway to securing permanent residency in Australia, as the entrepreneur can apply for the Australian Business Innovation and Investment (Permanent) Visa, once he fulfils the requisite conditions. The BIIP is a huge success and has received tremendous engagement from all across the world. The Australian Government to welcome the surge of applications, increased the number of Visa centres from 50,900 in 2021-2022 to 91,652 in 2022-2023 and 129,900 in 2023-2024.
Highlights
1
Opens a pathway to Permanent Residency in Australia
2
No requirement for minimum investment in Australian business entity
3
Unlimited travel in and out of Australia
4
Family coverage includes spouses/common-law partner and their dependent children
Eligibility
1
Secure nomination from an Australian State or Territory government agency by submitting EOI (Expression of Interest)
2
Must satisfy business ownership requirements i.e., two criteria viz. ownership stake and ownership interest in total value of the business
3
The applicant along with their partner must have total business assets and personal assets of at least AUD1.25 million
4
Must have a successful business career
5
Be under the age of 55 years, exceptions may apply
6
The language requirements i.e., IELTS (Avg. band score of 4.5) must be met. In case they don’t meet it, they are required to pay the second installment of visa fees
Note: You must score at least 65 on the Points Test
Renewal
After being granted the Australia Business Innovation (Provisional) Visa in the Business Innovation stream (for up to 5 years), depending upon the criteria mentioned below, the applicant can either apply for a renewal or Permanent Residency in Australia.
-The renewal period depends on the date the applicant was invited to apply for the Australian (Provisional) Visa.
-Travel to, enter, and remain in Australia shall be granted for up to 7 years from the date of grant of the original Provisional Visa.
-The conditions that an applicant must fulfill for renewal of the Australian Provisional Visa are mentioned below:
- Meet the eligibility requirements of the Provisional Visa;
- Must have held the Business Innovation and Investment (Provisional) visa in the Business Innovation stream for at least 3 years;
- The main business of the applicant must have been operating actively for at least 2 years, prior to application for extension;
- Maintained commitment to stay directly and actively involved in day-to-day management of the company;
- Must have current nomination from a State or Territory agency.
Permanent Status
Key criteria to be met for Permanent Residency via Business Innovation and Investment (Permanent) Visa in the BusinessInnovation stream:
• Must be the primary holder of the Business Innovation and Investment (Provisional) Visa and must have held it for 3 years.
• Applicant and spouse and/or children must have been physically present in Australia for at least 1 year in the 3 years immediately
before applying for PR.
• Current nomination to be confirmed by State or Territory agency which saw the applicant’s EOI and nominated them.
• Fulfill ownership and management conditions in the Australian business for 2 years prior to application for PR.
• A minimum annual business turnover of AUD 300,000 in the last 12 months.
• Fulfill at least 2 of the requirements for at least 12 months before submitting the application.
• assets of AUD200,000 net value in your main business in Australia;
• personal and business assets in Australia of AUD 600,000 net value;
• equivalent of at least 2 full-time eligible employees*
Note*:Employees must be Australian citizens or Australian Permanent residents, or holders of valid New Zealand passportsand not members of the family engaged in main business
Process and Timelines
Overview
Another sought after Business Visa by eXtrepreneurs is the Business Innovation and Investment Visa (Entrepreneur Stream) which helps one to undertake entrepreneurial activities to commercialise their products or to develop their business in Australia. It is one of the top choices for startup and early stage entrepreneurs who have a potential to make their business go global. It has a validity of up to 5 years post which one can apply for Business Innovation and Investment (Permanent) Visa (subclass 888) Entrepreneur Stream for permanent residency.
Highlights
1
Open a pathway to Permanent Residency in Australia
2
No requirement for minimum investment in Australian business entity
3
Unlimited travel in and out of Australia
4
Family coverage includes spouses/common-law partner and their dependent children
Eligibility
1
Secure nomination from an Australian State or Territory government agency by submitting EOI (Expression of Interest)
2
Must be undertaking or proposing to undertake a complying entrepreneur activity to an innovative idea that will lead to the commercialization of a product or service, or the development of an enterprise or business in Australia
3
Depending on which Australian State or Territory government nominates them, they may need to meet additional requirements such as:
- Be endorsed or be part of an accelerator program
- There must be a legally enforceable agreement providing funding for the activity
- Funding must come from Commonwealth agencies, State or Territory governments, publicly funded research organisations or registered investors
4
Be under the age of 55 years, exceptions may apply
5
Must not have any debt from the Australian Government
6
The language requirements i.e., IELTS (Avg. band score of 4.5) must be met. In case they don’t meet it, they are required to pay the second installment of visa fees
Renewal
Key criteria to be met for Permanent Residency via Entrepreneur Visa:
- Must be the primary holder of the Business Innovation and Investment (Provisional) Visa in the Entrepreneur stream and must have held it continuously for 3 years.
- Have a successful record of entrepreneurial activities by showing success factors, such as:
- Employing 2 or more Australians
- Generating an annual turnover of at least AUD 300,000
- Filing a provisional patent or acquiring a standard or innovation patent
- Receiving ongoing funding or investment in your entrepreneur activity
- Entering into a partnership with a university
- Selling an entrepreneurial venture for AUD 2 million
- Applicant must have been physically present in Australia for at least 2 year on the provision Entrepreneur visa before applying for PR.
- Current nomination to be confirmed by State or Territory agency which saw the applicant’s EOI and nominated them.
- Committed to continuing business or investment activities in Australia
Permanent Status
Process and Timelines
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This tool compares the top nations inviting eXtrepreneurs on over 40 vital parameters to provide a holistic view and a comprehensive perspective of the Entrepreneur mobility options, the start up ecosystem and the policy benefits, to be availed.