Business Innovation and Investment Visa (Subclass 188)
The Subclass 188 visa, also known as the Business or Investor Visa, is granted to individuals who intend to engage in business, investment, or entrepreneurial activities in Australia. This visa is specifically designed for those who wish to start or expand their business in Australia. It is a temporary visa that allows the holder to carry out economic activities in the country, with the potential to later apply for permanent residency.
The 188 visa includes several streams, each with its own requirements and conditions. It supports individuals and families seeking business opportunities, company registration, or investment in Australia, helping them enter the Australian market and benefit from its economic advantages.
In this article, we’ll explore the types of the 188 visa, its conditions and benefits, and how it can lead to permanent residency.
Unfortunately, based on a recent decision by the Australian Parliament and an official announcement by the Department of Home Affairs, the budget allocation for 2024–25 includes no provision for this visa stream. As a result, processing of business visa applications is currently suspended, and from September 2024, applicants who wish to withdraw their applications may request a refund.
Types of Subclass 188 Visas
The Subclass 188 visa is divided into several streams, including:
Business Innovation stream
Investor stream
Significant Investor stream
Premium Investor stream
Entrepreneur stream
Each visa stream is designed for specific purposes and comes with unique requirements. This classification allows applicants to choose the stream that best suits their goals and needs, ensuring better access to the visa’s benefits.
The Investor stream suits individuals investing in smaller projects.
The Significant Investor stream targets high-net-worth individuals investing larger sums, and the Premium Investor stream is intended for those with very substantial capital.
When considering these visas, one must also take into account the role of taxation in Australia and the business’s ongoing performance.
The Entrepreneur stream supports those intending to launch a new startup and who may require specialised support.
انواع ویزای نوآوری و سرمایهگذاری تجاری 188 استرالیا | ||
Visa Type | Key Requirements | |
Business Innovation | Minimum assets of AUD 1.25 million | IELTS 4.5 or equivalent |
Investor | AUD 2.5 million in assets over 2 years | IELTS 4.5 or equivalent |
Significant Investor | AUD 5 million in assets | IELTS 4.5 or equivalent |
Premium Investor | Nomination by Austrade | Minimum AUD 15 million |
Entrepreneur / Startup | Endorsement from a state or territory government | Minimum IELTS score of 6 in each band |
General Requirements for the Subclass 188 Visa
To qualify for a Subclass 188 visa, applicants must meet several specific requirements, including:
Proving financial capacity to invest
Managerial or entrepreneurial experience
Engagement in economic activity in Australia
Additionally, applicants must submit an approved business proposal and demonstrate readiness to participate in commercial activities in Australia.
Applicants must also achieve a minimum points score in the immigration points system and meet health and character requirements.
This visa is temporary, and holders must fulfil the business or investment commitments within the specified time to be eligible for permanent residency.
Importantly, the financial relationships and transactions of the business play a critical role. Accounting services in Australia are highly important, and companies that successfully outsource these services place themselves on a solid path to success.
Clearfix Accounting offers top-tier accounting support to all fellow Iranians in Australia.
Visa Type | Minimum Investment | Duration | Financial Requirements | Managerial Experience | State Nomination | Other Key Requirements |
Entrepreneur | AUD 800,000 | 4 years, 3 months | Minimum asset threshold | Yes | Yes | Start a business in Australia |
Investor | AUD 1.5 million | 4 years, 3 months | Minimum asset threshold | Yes | Yes | Invest in a state or territory |
Significant Investor | AUD 5 million | 4 years, 3 months | Minimum asset threshold | Yes | Yes | Invest in government-approved programs |
Premium Investor | AUD 15 million | 4 years, 3 months | Minimum asset threshold | Yes | Yes | Invest in pre-approved projects |
Requirements for the Investor Stream
The standard Investor stream targets individuals with investment and business experience.
To be eligible, applicants must:
Have at least one year of experience in managing a business or investments
Be able to invest a minimum amount in Australia
Show sufficient financial capacity to cover living and investment costs in Australia
Applicants must also commit to carrying out the planned investments within the given timeframe.
This stream suits those interested in smaller-scale investments or expanding their current business, and allows them to benefit from Australia’s economic advantages, such as tax returns.
Indicator | Description |
Minimum Investment | AUD 1.5 million |
Visa Duration | 4 years, 3 months |
Managerial Experience | At least 3 years within the past 5 years |
State Nomination | Required |
Net Assets | Minimum AUD 2.25 million (including investment) |
Points Requirement | Minimum 65 points |
Age | Under 55 (unless waived by the nominating state) |
English Requirement | IELTS score of at least 4.5 |
Other Conditions | No criminal record; sound physical and mental health |
Requirements for the Significant Investor Stream
The Significant Investor Visa (subclass 188B) is for individuals looking to make major investments in Australia.
To be eligible, applicants must:
Invest at least AUD 5 million
Prove the investment contributes to Australia’s economic development
Demonstrate sufficient business or investment experience and financial capacity to support themselves
Holders of this visa can live in Australia for up to four years while managing their investment.
This visa aims to attract large-scale investors and enhance the Australian economy.
Minimum AUD 5 million investment
Investment must be in designated assets (e.g., managed investment funds)
Funds must remain invested for at least 4 years
No strict English language requirement
Nomination by a state or territory is required
Must spend at least 40 days per year in Australia over 4 years
Requirements for the Premium Investor Stream
The Premium Investor Visa (subclass 188C) is for those wishing to invest substantial capital in Australia.
To be eligible, applicants must:
Invest a minimum of AUD 15 million
Prove the investment supports Australia’s economic growth
This stream suits individuals with very high net worth who want to invest in major Australian projects.
Indicator | Description |
Minimum Investment | AUD 15 million |
Visa Duration | 4 years, 3 months |
Managerial Experience | Not required |
State Nomination | Required |
Net Assets | Not required |
Points Test | Not required |
Age | No age limit |
English Proficiency | Basic functional English (IELTS 4.5) |
Other Conditions | No criminal record; sound health |
Requirements for the Entrepreneur Stream
The Entrepreneur Visa (subclass 188E) is for those looking to launch an innovative business in Australia.
To qualify, applicants must:
Present an innovative business idea with high growth potential
Provide sufficient funding to establish the business
Have relevant experience and skills
Applicants must be endorsed by an Australian government agency or a recognised organisation.
This visa offers the chance to thrive in Australia’s cutting-edge business environment.
General Conditions for the 188 Visa
The Subclass 188 visa is a temporary, business- and investment-based visa offered under multiple streams.
While the requirements vary per stream, general conditions include:
Age: Usually under 55 years
(May be waived if the applicant offers substantial economic benefit to the nominating state)Points Test:
Minimum of 65 points required, based on:Age
Work/business experience
Investment level
English proficiency
Education
State nomination
English:
Minimum functional English (IELTS 4.5 in each band)
If not met, applicants may need to pay for English courses in AustraliaNet Assets:
188A (Business Innovation): AUD 1.25 million
188B (Investor): AUD 2.5 million
188C (Significant Investor): AUD 5 million
Business or Investment Background:
188A: Active business management for 2 of the last 4 years;
Annual turnover of at least AUD 750,000188B: Minimum 3 years of successful business/investment experience
188C: Must invest AUD 5 million in qualifying investments
State Nomination:
Required from a state or territory governmentMedical Requirements:
Health checks and clearance by panel physicians approved by the Australian embassyResidency and Investment Commitment:
Applicants must demonstrate genuine intent to live and operate their business or investment in the nominating state or territory.
Benefits of the 188 Visa (Australia)
The 188 visa offers a wide range of benefits to its holders. The most significant advantage is that it allows investors and entrepreneurs to reside in Australia for up to four years, during which they can carry out business and investment activities.
Additionally, visa holders can take advantage of Australia’s strong economy and commercial opportunities to expand and develop their ventures.
Another key benefit of the 188 visa is that it can be a pathway to permanent residency. It gives applicants the opportunity to meet the requirements for permanent residency while holding a temporary visa.
Generally, the benefits include:
Temporary residency in Australia
Opportunity to invest and establish a business
A pathway to permanent residency
Access to education and healthcare services
Freedom to travel
Ability to bring eligible family members
Study and work rights
Access to strong business and economic infrastructure
High level of safety and quality of life
Availability of support and advisory networks
Potential for high returns on investment
Disadvantages of the 188 Visa (Australia)
Despite its many benefits, the 188 visa also comes with certain limitations. These include its temporary nature, the requirement for substantial financial commitment, a complex application process, and restrictions based on age and the points test.
Also, eligibility for permanent residency depends on the success of the proposed business or investment venture, which can be challenging for some applicants.
Main drawbacks include:
Temporary visa (initially valid for 5 years)
High financial and investment commitment required
Time-consuming and complex application process
Dependence on state or territory nomination
Age restrictions (under 55 years in most cases)
Must meet business/investment targets as proposed
Additional costs (e.g. translation, assessments, taxes)
Risk of refusal if financial sources are not verified
Pressure to prove commitment to the nominating state
Exposure to economic fluctuations in Australia
Costs of the 188 Visa (Australia)
The total cost of applying for the 188 visa depends on the stream selected and the applicant’s specific circumstances. The main costs include the visa application fee, medical checks, character assessments, and security checks.
Additional costs may include legal or migration advice, which can significantly impact the total expenditure and should be considered during financial planning.
Application Fees by Stream (in AUD):
Visa Stream | Primary Applicant | Additional (18+) | Additional (<18) |
Business Innovation | $9,450 | $4,725 | $2,365 |
Investor | $9,450 | $4,725 | $2,365 |
Entrepreneur/Startup | $6,395 | $3,195 | $1,600 |
Premium Investor | $9,455 | $4,725 | $2,365 |
Significant Investor | $13,860 | $6,390 | $3,470 |
Documents Required for the 188 Visa
Applicants must submit a range of documents, including identity, financial, and business-related evidence. All documents must be translated into English and certified by authorised bodies.
Applicants must demonstrate the ability to manage and operate a business or investment in Australia. Relevant documents include financial reports, tax returns, and proof of personal assets.
Key documents include:
Identity Documents: Valid passport, birth certificate, national ID
For Married Applicants: Marriage certificate or legal proof of relationship
Financial Documents:
Bank statements
Investment proofs (shares, bonds)
Property ownership documents
Asset valuation reports from certified auditors
Business Documents:
Business registration (e.g. constitution, incorporation certificates)
Audited financial reports (last 2 years)
Proof of active management (invoices, contracts, tax returns)
Points Test Evidence:
Proof of age
English language test certificate (Functional English or higher)
Educational qualifications (university or vocational)
Employment Records:
Resume with job descriptions and responsibilities
Reference letters from current and former employers
State Nomination Documents:
Nomination approval from an Australian state/territory
Proof of Lawful Financial Sources:
Documentation of inheritance, business profits, or asset sales
Police Clearance:
Police certificate from countries of residence in the past 10 years
Medical Certificates:
Health checks from an approved panel physician
Stream-Specific Documents:
Business plan or investment confirmation (depending on visa stream)
Minimum Investment for Entrepreneurship in Australia
Applicants under the Entrepreneur stream of the 188 visa must meet a minimum capital requirement to qualify.
Minimum Capital Required: AUD $200,000
Minimum Business Turnover: AUD $500,000 over 2 years
Minimum Investment in Business Assets: AUD $200,000
This visa allows skilled individuals with entrepreneurial ideas and capital to establish a business in Australia. However, each stream of the 188 visa has different capital requirements that must be met to enter the Australian market.
Steps to Apply for the 188 Visa (Australia)
It is recommended to follow the step-by-step guidance on the official website of the Department of Home Affairs. The process includes:
Choose the appropriate stream (Entrepreneur, Investor, Innovation)
Obtain a state/territory nomination
Submit an Expression of Interest (EOI) through SkillSelect
Prepare and submit financial and business documents
Complete the online visa application form
Pay the visa application fee
Receive an invitation to apply
Undergo medical and character checks
Wait for the outcome
Points Test for the 188 Visa
Applicants must score at least 65 points in the Australian migration points test. Points are awarded based on factors such as age, business experience, capital, and English proficiency.
Higher scores increase the chances of success and provide better priority in visa processing.
Points Breakdown:
جدول معیارها و نوع امتیازبندی ویزای 188 استرالیا | ||
Age | 18–24 | 20 |
25–32 | 30 | |
33–39 | 25 | |
40–44 | 20 | |
45–54 | 15 | |
55 and over | 0 | |
English Proficiency | IELTS 5 or equivalent | 5 |
IELTS 7 or equivalent | 10 | |
Qualifications | Diploma, Bachelor or relevant certificate | 5 |
Bachelor in Business, Science, or Technology | 10 | |
Net Assets (past 2 years) | $1.25 million AUD | 5 |
$1.75 million AUD | 15 | |
$2.25 million AUD | 25 | |
$2.75 million AUD | 35 | |
Business/Innovation Experience | 4 years in the past 5 years | 10 |
7 years in the past 8 years | 15 | |
Bringing an international approval or certificate | Obtaining state approval of the importance of the business plan | 10 |
Investment Experience | At least 4 years | 10 |
At least 7 years | 15 | |
Processing Time for the 188 Visa
The processing time for subclass 188 visas varies depending on the stream and applicant’s profile. On average, it takes between 6 to 24 months.
Estimated Timeline:
Preparing documentation: 1–3 months
Applying for state nomination: 1–3 months
Submitting visa application: 6–12 months
Medical & character checks: 1–3 months
Final decision: 1–6 months
In ideal conditions, the process may take 12–18 months, but delays can occur due to incomplete documents or background checks.
How to Convert 188 Visa to Permanent Residency (Subclass 888)
Applicants can apply for permanent residency (PR) via subclass 888 after holding a 188 visa and meeting specific conditions—such as maintaining investment or business operations.
The 888 visa grants access to full rights and benefits as a permanent resident. This process requires detailed documentation and can take several months.
Reasons for Rejection of 188 Visa Applications
Common reasons include:
Not meeting financial requirements
Lack of business or management experience
Inability to provide supporting documents
Failure to secure state/territory nomination
Incomplete or inconsistent documentation
Doubts about the legality of financial sources
Applicants must carefully follow all guidelines and provide complete, accurate records to maximise their chances of success.
How Long Does the 188 Visa Take to Be Granted?
It varies depending on the stream and complexity of the application but typically ranges from a few months to over a year. Consistent follow-up and submitting all required documents on time can speed up the process.
Final Thoughts
The 188 visa is an excellent option for those wishing to invest or start a business in Australia. It allows applicants and their families to migrate and benefit from the high quality of life and strong economy Australia offers.
By fulfilling the eligibility criteria and submitting complete documentation, applicants can secure the visa and, eventually, permanent residency. Diligent follow-up and accuracy during the application process are key to improving approval chances.
Frequently Asked Questions (FAQs)
Do I need to provide an English language test to apply for the 188 visa?
Yes. A minimum IELTS score of 4.5 is required. Alternatively, you can pay an additional fee in lieu of providing a test score.
Can the 188 visa be extended?
Yes. Applicants holding a 188 visa under the Business Innovation or Significant Investor streams may be eligible to apply for an extension of their visa.
What is the age limit for the 188 visa?
Generally, applicants must be under 55 years of age.
Can an Iranian citizen apply for an entrepreneur visa in Australia?
Yes. Each year, around 1,200 Iranian nationals migrate to Australia on an entrepreneur visa. However, this visa stream is currently inactive.
Does the number of family members affect the cost of the 188 visa?
Yes. The total visa cost increases with each family member included in the application. Fees vary depending on whether the additional applicant is over or under 18 years of age.
Can I include my family members in the 188 visa application?
Yes. You may include close family members such as your spouse and dependent children.
What is the minimum score required for the 188 visa?
You must score at least 65 points on the Australian immigration points test to be eligible.
Is an English language score required for the 188 visa?
Yes. You need to demonstrate at least Functional English or pay a fee in place of meeting the language requirement.
What is the maximum age to apply for the 188 visa?
Generally, up to 55 years old. In exceptional cases, applicants over 55 may be considered if they can demonstrate substantial economic benefit to Australia.
