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Australia

Business Innovation and Investment Programme

Under the Business Innovation and Investment Programme foreign-nationals conducting business or investing in the country, may obtain a temporary residency visa, together with their dependents, and eventually a permanent residency visa. To be eligible the foreign national must be nominated by a state or territory government or Australian agency.

To be nominated, the investor/entrepreneur must file an application for State Nomination with the Business Migration Centre (BMC).

Once approved, it is required to submit an Expression of Interest (EOI) through the SkillSelect Online process of the Australian Department of Immigration and Border Protection.

Once nominated in SkillSelect, he or she will receive an invitation from the Department of Immigration and Border Protection to apply for a Provisional visa subclass 188.

After a certain period of time, depending on the business/investment stream, he or she may apply for a permanent visa subclass 888. After 4 years of permanent residency, he or she may be eligible to apply for citizenship.

investment


Entrepreneur stream

To apply for the provisional visa subclass 188 under the Entrepreneur stream, you must be undertaking or proposing to undertake a entrepreneur activity in Australia.


This activity must not relate to residential real estate, labour hire or purchase of an existing enterprise or a franchise in Australia.
To qualify for the program, you must have one or more legally enforceable agreements to receive funding with a total of at least AUD 200,000 from the Commonwealth Government agency or the State or Territory Government or a Publicly Funded Research Organisation or an Investor registered as an Australian Venture Capital Limited Partnership or Early State Venture Capital Limited Partnership or a Specified Higher Education Provider.

Under the agreement at least 10 per cent of the funding must be payable to the entrepreneurial entity within 12 months of the day the activity starts to be undertaken in Australia;
You held at least 30 per cent interest in your entrepreneurial entity when you entered into the agreement.

You have a business plan for the entrepreneurial entity noting how your innovative idea will lead to the commercialization of a product or service in Australia, or the development of an enterprise or business in Australia.

After 4 years, you may apply for a permanent visa subclass 888, provided that your entrepreneurial activity has been successful, measured by number of employees, annual turnover, innovation patents, partnerships with Universities, receiving ongoing investment or funding, or selling the venture for at least AUD 2,000,000.

Requirements


- Statement of Assets and Liabilities Position (SALP).
- Evidence of ownership of assets.
- Have a high level of management skill in relation to the eligible investment or qualifying business activity.
- Have at least three years' experience of direct involvement in managing one or more qualifying businesses or eligible investments.
- Have an overall successful record of eligible investment or qualifying business activity.

Restricted Nationalities


No nationality is officially restricted

dual citizenship


Dual citizenship is recognized in Australia. You are not required to renounce your previous nationality to become a citizen of Australia.


Documents Required


  • Certified copy of passport
  • Two passport-size photos
  • Certified copy of ID Card
  • Original or Certified copy of Birth Certificate (if applicable)
  • Original or Certified copy of Marriage Certificate (if applicable)
  • Medical Certificate
  • Original Police Clearance Certificate
  • Evidence of language skills
  • Business Plan
  • Bank Statement
  • Proof of net wealth
  • Certified copy of Business License or Incorporation documents
  • dual citizenship Yes
  • Family members included Yes
  • land ownership Yes
  • Physical residence required No
  • Personal visit required Yes
  • Language skills required Yes
  • Interview required No
  • Investment Single A$200,000
  • Investment Family 4 A$200,000
  • Minimum annual income -
  • Time to citizenship 96
  • Time to permanent residency 48
  • Visa-free countries 170
  • Financing available No

Fees

processing fees main applicant A$3,600
total fees main applicant A$3,600
processing fees spouse A$1,800
total fees spouse A$1,800
processing fees dependents -18 A$900
total fees dependent -18 A$900
processing fees dependents 18-25 A$1,800
total fees dependent 18-25 A$1,800
processing fees dependents +65 A$1,800
total fees dependent +65 A$1,800

Country details

Australia
AUD
61
Canberra
Oceania
English
21515754
The Commonwealth of Australia is the sixth largest continent worldwide. Located in Oceania, the country occupies the main continental mass of the Sahul Shelf, in addition to some islands in the Pacific, Indian and Antarctic Oceans. The closest countries to Australia are Indonesia, East Timor and Papua New Guinea to the north, Solomon Islands, Vanuatu and the French dependency of New Caledonia to the northeast, and New Zealand to the southeast. Its population barely exceeds 20 million inhabitants, and are mostly concentrated in the coastal cities of Sydney, Melbourne, Brisbane, Perth, Adelaide and the capital Canberra.

Australia ranks second in the UN’s Human Development Index, only surpassed by Norway, and the fourth freest economy according to the Heritage Foundation’s Index of Economic Freedom. It has one of the highest income per capita worldwide, slightly higher than the United States, United Kingdom, Germany and France in terms of purchasing power parity. Australia has a solid and stable economy, with reduced unemployment, controlled inflation, relatively small public debt, and a strong and stable financial system. Its currency is the Australian Dollar (AUD).

Visa Free Travel

With your new passport from Australia you'll be able to access 170 countries visa free
>

Taxes

You will be considered a tax resident in Australia, if your permanent domicile is in the country or you have been in Australia more than half-year (unless your place of abode is outside Australia and you don’t intent to reside in the country) or you are an Australian employee.

Tax residents are subject to personal income tax on their worldwide income, whereas non-residents are taxed on their income derived from Australia.

If you hold a provisional visa, you will be considered as a temporary resident, and therefore your foreign-source income may not be subject to taxation.

Personal income tax rate is progressive up to 45% for annual income in excess of AUD 54,232 (AUD 62,685 for non-residents).
An additional tax of 2% applies to income in excess of in excess of AUD 180,000, both for residents and non-residents.
Capital gains are treated as ordinary income, if the asset is held by a tax resident (excluding temporary residents) more than one year, a 50% discount may apply. Nonresidents are also subject to a non-final withholding tax of 10%.

Dividends received from resident companies are taxable income, but a tax offset is usually available to prevent double taxation. For dividends received from foreign source a foreign tax credit may be also available. Interests and rental income is subject to taxation at standard rates.

Australia has enacted controlled foreign company (CFC) regulations. Foreign companies controlled by residents that fails the “active income test” (usually when passive income is more than 5%), their passive income may be subject to taxation, whether the income is passed at the personal level or not. Ranges to determine whether a company passes the ‘active income test’ or not, will depend on its jurisdiction of residence.
States and territories levies land taxes. Transfers of assets are subject to a stamp duty at rates up to 5.75%. There is no net worth tax, nor inheritance taxes in Australia.

There is a Good and Services tax, which applies to transactions of goods and services. The standard rate is 10%.

Regarding corporate taxation, resident entities are subject to a 30% tax on their worldwide income. A reduced tax rate of 28.5% may apply for those companies whose turnover is less than AUD 2 million. There are available several tax breaks and exemptions for companies engaging R+D activities.

Dividends from resident entities are usually entitled for a tax offset. Dividends from foreign-source may be exempted if the parent company holds at least 10% of the shareholding of the payer entity, otherwise they may be taxable.

Capital Gains are treated as ordinary income. An exemption may apply for those from the disposal of shares, if parent company holds at least 10% of the capital of the subsidiary.

Dividends paid to non-residents may be exempt from withholding taxes, provided that profits were already taxed, otherwise may be subject to a 30% withholding tax. Payments on interests abroad are usually subject to 10% withholding tax, however certain interests may be exempt. Royalties are usually taxed at 30%. These rates may be reduced or eliminated under a tax treaty.

For further information on corporate taxation, legal framework and tax treaties, check out incorporations.io/australia.

This should not be construed as tax advice. Flag Theory | Passports.IO has access to a global network of qualified attorneys and accountants who can give you the proper advice for your particular circumstances. Contact us for further information.

  • Property tax Yes
  • Transfer tax Yes
  • Inheritance tax No
  • Net worth tax No
  • CFC law Yes
  • Tax residency days 183
  • Personal income tax rate 47%
  • Capital Gains tax rate 27.5%
  • Investment income tax rate 27.5%
  • Territorial taxation Yes

Procedures

Flag Theory | Passports.IO and our qualified lawyers in Australia, will handle all paperwork, and guide you through each step of the process to ensure that it is as fast, efficient and pain free as possible.

First, our advisors will help you to successfully pass the Skillselect test and the Expression of Interest (EOI). If required, they will advise you on what investments and business are likely to be nominated and approved. They will help you to develop your business and investment plan (if applicable). Once you are nominated our lawyers will guide you through all document requirements to file, as well as complete questionnaires, translate and legalize documents.

Then, we will file your application to the Immigration and Border Control department. The whole process may take about 12-18 months. Once, your project is approved you may apply for the residency visa and conduct the investment.

For further information on Australian Business Innovation and Investment visas and detailed procedures, contact us for a free private consultation.

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