What does it take to qualify for an investment visa into Australia?

A combination of an Australian dollar at less than USD 0.70 and politicians from the red and blue corners agreeing that immigration numbers must go down until more infrastructure is build has seen a sudden uplift in new enquiries from investment visa applicants at Projects RH.

Parties come to Projects RH because we see and identify venture capital opportunities and are able to work with clients to prepare and review investment cases. (see www.projectsrh.com.au)

Projects RH is not an migration lawyers or advisers. We do work with migration lawyers and advisers in supplying the investment component of investment visa application and process management.

Welcome to Australia

For people seeking a new country to invest in it is hard to look past Australia. When asked why Australia I answer:

10 Reasons to Invest in Australia

1)                  Stable political environment – Westminster Democracy with Common Law coupled with wonderful climate. An island continent nation – the size of mainland USA (7.7 m sq km).

2)                  Diverse, globally focused and dynamic economy.

3)                  Strong credit rating – AAA with stable currency

4)                  Recognition that the economy is dependent on international investment. In the fastest growing region of the work – Asia Pacific – same time zones and Beijing, Tokyo, Hong Kong and Singapore.

5)                  Top 20 global economy with domestic market of 25m which annually feeds 75m

6)                  State of the art communication and transport

7)                  Independent central bank, strong capital markets with leading stock exchange (ASX) and banking sector dominated by 4 Australian based global banks.

8)                  OECD and TPP member with Good network of trade and double tax agreements.

9)                  English speaking with independent judiciary, established values and business rules but multicultural and tolerant society.

10)                Strong natural and raw materials sector with food exports

Having agreed that they want to invest in Australia the next question is how much?

First the amount this article talks about is the net of all fees adviser, legal, compliance, government and fund costs excluded. Also excluded are accommodation and living costs until the investments start performing. Generally most people who speak to us also want to buy a home.

When my family came to Australia it was free transport and they were granted some land in due course but a lot has changed since the 1840’s, but people choose Australis for a better life for themselves and their family. Today lots of people want to come to Australia for many reasons. Whilst Australia has one of the biggest pro-rata intake of immigrants it has decided that the annual intake is limited. Investor migrants are seen as especially good for the country and get to fill their quota.

Projects RH is not involved in migration generally; we focus on the investment visa candidates and partner with others to undertake the legal and migration agency.  My comments here are for general information and are not a statement of the law. If you have questions about investment visas please send them to investvisa@projectsrh.com.au. 

Sydney the financial centre of Australia

At Projects RH we see two groups of prospective visa applicants:

1)       132 B Venture Capital Entrepreneur stream

2)       188 Visa….

The first is known as the 132 B Venture Capital Entrepreneur stream It is ideally suited to Professionals seeking Permanent Residency in Australia.

Why do applicants like it

ü  This is a permanent residency visa – 1 step.

ü  This is one of the fastest ways to obtain a permanent residency visa -usually less than 12 months

ü  This visa allows you and your spouse or partner and children to live and work or study in Australia.

ü  you can enrol in Australia’s world-renowned Medicare system

ü  you can able to buy property in Australia without the need for approval from the Foreign Investment Review Board (FIRB).

ü  You do not have to be aged under 55 years

ü  There is no English language requirement to be satisfied to be granted this visa.

ü  There is no requirement to live in Australia before this visa is granted.

ü  Venture Capital Entrepreneur visa holders are not subject to Business Skills post-arrival monitoring.

ü  132B Visa is one of the fastest streams to achieve permanent residency.

ü  132B Visas usually lead to Permanent Residency at least two years faster than the other business visa (visa 188) in Australia and two and a half years faster than EB5 in USA

ü  132B Visa is also one of the least complicated visas to achieve.

ü  Unlike some other Visas here is no business skill test.

ü  Compared to a 188 visa, a 132B visa has much less complicated criterion.

Melbourne – Our fastest growing city – it will be Australia’s largest city in 2025.

Why do applicants choose to work with Project RH and our strategic partners? Project RH works with applicants to ensure that their strategy meets the eligibility criteria. We believe with our strategic partners we are able to provide you with services that meet all of the Australian Governments requirements. Our roll is secure for applicants all of the documentation, reports and agreements that you will need to satisfy the Australian Department of Immigration’s Visa requirements.

We see it as a three step process – normally completed within 18 months.

1)      Initial Assessment – we can help or not

2)      Moving forward

a.       Sourcing an Appropriate business for you to invest in.

b.       Securing complying venture capital Fund Approval

c.       Provide all documentation necessary for lodgement of the formal application for State/Territory nomination.

3)      Lodging the Federal DIBP Application and responding to questions over 3 – 6 months.

The second is the 188 Visa.

Applications under a 188 Visa can be made under 5 streams with their own eligibility criteria:

1)      Business Innovation Stream

2)      Investor Stream (Say USD 1.5m inc. costs)

3)      Significant Investor stream (Say USD 5m inc. costs)

4)      Premium Investor Stream (Say USD 15m inc costs)

5)      Entrepreneur stream

Brisbane : A great place to invest and live

1)      Business Innovation Stream

Keys

1)      Get State / Territory Sponsorship

2)      Be under 55 years of age (but this can be waived)

3)      Score 65 or more points on the points test

4)      Run / manage business and not be a service provider more than 50% of your time

5)      Owned a business with turnover of USD 500,000 pa two of the last 4 years

6)      Transfer personal assets to Australia of USD 800,000 plus

2)      Investor Stream (Say USD 1.5m inc. costs)

Keys:

1         Get State / Territory Sponsorship – you must reside in this State / Territory

2         Be under 55 years of age (but this can be waived)

3         Score 65 or more points on the points test

4         Have at least three years' experience of direct involvement in managing one or more qualifying businesses or eligible investments

5         Make a designated investment of at least AUD 1.5 million in a state or territory government security using unencumbered funds accumulated from qualifying businesses or eligible investments and be prepared to hold that investment for at least four years from date of issue in your nominating state or territory.

3)      Significant Investor stream (Say USD 5m inc. costs) (Currently Closed at the time of writing)

Keys:

1.       You must have a genuine and realistic commitment to:

1.       reside in the state or territory whose government agency nominated you,

2.       continue your business and investment activity in Australia after the conclusion of your provisional visa,

3.       live in Australia for at least 40 days per year (calculated cumulatively) for the duration of your provisional visa, or your spouse to live for at least 180 days per year (calculated cumulatively) for the duration of your provisional visa.

2.       For applications made after July 2015 you must make a complying significant investment of at least AUD 5 million over four years in the following proportions:

1.       At least AUD 500 000 in venture capital and growth private equity funds which invest in start-ups and small private companies.

2.       At least AUD 1.5 million in approved managed funds investing in emerging companies listed on the Australian Stock Exchange.

3.       A ‘balancing investment’ of at least AUD 3 million in managed funds that may invest in a range of assets, including ASX-listed companies, Australian corporate bonds or notes, annuities and commercial real estate.

4)      Premium Investor Stream (Say USD 15m inc. costs)

Keys:

1)      You must transfer assets of at least USD 15m to Australia.

2)      They must be commercially invested in approved assets (excluding residential real estate).

3)      You must also have a genuine and realistic commitment to continue your business and investment activity in Australia after the conclusion of your provisional visa.

4)      A business-related asset – employing local staff will be highly regarded.

5)      There are NO tests for

a.       Age

b.       Health, or

c.       Language skills.

5)      Entrepreneur stream

Keys:

1         Be under 55 years (this can be waived)

2         Be eligible under the skill select system

3         You must be unmarried.

4         have competent English ability, i.e. IELTS 6.0 across all components or equivalent

5         New innovative corporate activity (no franchise, residential real estate or Labour hire)

6         You need get at least $200,000 of funding from an investor registered as an Australian Venture Capital Limited Partnership or Early State Venture Capital Limited Partnership.

7         $200,000 needs to be paid in 12 months

8         Your able to support yourself during the development phase.

9         You need an approved business plan.

10     Continue to reside in Australia – Maximum Stay on this via IS 4 YEARS AND 3 MONTHS

Projects RH Office Level 12, Plaza Building Australia Square, Sydney

Everyone’s situation and drivers are different. If your interested in coming to Australia based on an investment via I suggest you email Projects RH and indicate where you see yourself in the visas outlined in this article. Generally, we will ask some supplementary questions before we have our first discussion. Please contact us at investvisa@projectsrh.com.au

Political and policy priorities change over time so please talk to Projects RH if you close to the criteria.

Our team include experts which can source a complying project and can prepare the business case for consideration.

By Paul Raftery (see www.paulraftery.com.au)