Franco was a successful business person, he had accumulated over $5m in net work operating various businesses and investments in Europe. A good candidate for business migration, but not without some interesting hurdles along the way. Franco had operated three different types of businesses in the last ten years. They were a restaurant, residential property developments, and a commercial property development. The question was, which business visa did Franco fit into?
At first we looked at the 132 visa, which grants permanent residency straight away. This visa is granted to people who have had success operating businesses with turnover greater than $3m. Did Franco meet this criterion? His restaurant business did not reach $3m per year. The residential developments reached $5m in sales value but across more than one financial year. The commercial property development had only partly been sold, while most of the commercial property was actually leased and operated as a commercial property management company. That business might reach $3m in turnover but there was a risk. The risk was that most of the revenue was obtained through the leasing of commercial property. The problem was, revenue from rent of real property must be excluded from turnover calculations for the purposes of meeting the revenue test for a business visa.
So we then proceeded to look at the 188A criteria. This criteria is much more lenient than the 132 visa, and the trade off is that this visa is a provisional visa, not a permanent visa. The 188A requires the applicant to have managed a business with turnover over $500k in two of the last four years. The problem again, is that real property rentals must be excluded from the calculation of turnover. After careful analysis, with the rental income excluded, there was insufficient revenue to meet the $500k in two of the last four years. We worked with the clients accountants to see if there was any opportunity to classify turnover to meet the criteria, but it was too risky. Thankfully, there was a good alternative option.
The 188B visa allows a person to obtain a provisional visa leading to a permanent visa, if they can show that they have at least $2.25m in net assets in two of the last four years, and are willing to invest $1.5m into state government bonds for four years. In order to demonstrate net assets, we also needed to show where the assets came from. This involved working closely with their accountants to ensure all records were congruent, that is, financial statements, tax returns, bank statements and valuations all sung from the same hymn book.
After a thorough process of gathering the right financial documentation, we lodged state nomination, and then the visa application shortly thereafter. The visa was granted within a few months and the applicant is now on his way to permanent residency.
If you are interested in obtaining a business visa to Australia, contact us today, we have expertise in immigration, accounting and business advice, as well as a great referral network of trusted providers to help you transition your business career to Australia.