[UPDATE] Invest $100,000 to obtain PR!
Recently, the Queensland State Nomination 491 – Small Business Owners pathway has grabbed a lot of public attention. Not only does it not require massive investments like other migration pathways, it does not have as strict the requirements as that of the usual 491. Why is this particular visa being looked favourably upon by the government? The insights will be unraveled in the following article.
Who is eligible for 491 SBO?
485 Temporary Graduate visa holder
476 Skilled-Recognised Graduate visa holder
417/462 Working Holiday visa holder
482 Temporary Skill Shortage visa holder
500 Student visa Master Degree dependent, must be 18 years old and above
Applicants must be trading in the business for at least 6 months prior to application, and have 50 EOI points and a skills assessment at the time of application.
SBO Application Process:
1. Find a suitable small business
-operation has been run for at least 12 months (4 BAS & ABN)
-registered in Queensland (ASIC / ABN Registration)
-not operated from home
2. Obtain Australian FIRB approval
3. Purchase of small business
-$100,000 investment (including the purchase of business and equipments, not including ongoing operating costs)
4. Operate the small business
-evidence of daily management
-at least two Business Activity Statement (BAS)
-balance sheet and profit and loss statement
-employ a minimum of one Australian employee
5. 491 visa requirement
-IELTS score 6 for each of 4 bands within two years
-skills assessment within two years
-EOI point no lesser than 50 (independent applicant or paired applicants)
-nomination documents
6.Once invited, apply for 491 visa immediately
7.Continue three complete NOA of financial year after 491 visa is approved
8.Apply for 191 visa to get PR
Benefits of applying for SBO:
IELTS score 6
EOI 50 points
No requirement of capital resources
No requirement of prior business operation experience evidence
Application process is clear and simple
Supported by government, less disturbance factors
What you need to know:
Queensland SBO is categorised as subclass 491 thus will need to meet the basic requirements of 491, aligning with the occupation list (STL/MTL/ROL). The business type does not have to be the same as the applicant’s occupation, for example, an accountant can purchase a restaurant.
Need to meet the requirement of $100,000 investment and above. There is no limitation in terms of business model. This $100,000 investment does not involve ongoing operation cost. For example, if you want to run a restaurant, this $100,000 can be used to purchase the restaurant as well as the machinery, but it cannot be used to purchase the ingredients.
It does not matter whether the EOI point is high or low,as long as 65 points are met. You can provide some evidence proving your management ability, for example, family business experience, MBA and so forth.
All pre-existing businesses need to have been operating for at least 12 months prior to purchase of the business. After the purchase the business needs to be operated for 6 months prior to application.
You need to employ a minimum of one Australian employee. They must be an Australian resident.(Note: An Australian resident for the purposes of the 491-SBO pathway is defined as an Australian permanent resident, Australian citizen or a New Zealand citizen usually residing in Australia on a Special Category Visa). They also need to be working a minimum of 20 hours a week.
There are no limitations to the type of business one can operate. The business can be a restaurant, cafe, fast moving consumer goods company, retail store, and gas station. The partnership right with the gas station must be purchased and cannot be rented.
$100,000 loan can be borrowed, but the business itself cannot be mortgaged.
There is no requirement for business annual profit.
Student visa holders are not eligible to apply for SBO, including those with full time working rights, such as nursing students who can work full-time at nursing homes. However, student visa dependents with full-time working rights are eligible to apply.
Can 482 visa holders invest $100,000 in Queensland small business?
The answer is no, as this will violate the criteria of working for only one employer.
Generally speaking, the visa holders who are eligible for 491 SBO are those on 485 visa, WHV and student dependent visa.
In terms of how long the business should be operating after the 491 visa has been granted there is no exact requirement at this point.
Applicants who reside outside of Queensland are eligible to apply as long as the requirements are met.
You need to have 100% ownership in the business. It cannot be a partnership or a joint venture.
After the purchase, changing business name and ABN will not have any impact given that you can provide evidence to show that the business has been operating for one year prior to purchase.
491 SBO has its own quota. There is a very high separate quota for SBO applicants within the 491 quota.
If you are previously affected by S48, in other words, having visa cancellation or refusal and having no substantive visa, you will not be eligible to apply.
AMS Insights
Given that there is a very high separate quota for SBO applicants within the 491 quota, it can be assumed that other 491 quotas would be reduced, thus making the application ever more challenging.
Taking into consideration that 491 SBO is one of the lastest visa subclasses, it has the tendency to be given greater quota allocation by the Australian Department of Home Affairs (HA).
Since the purchase of a business can be extremely convoluted, especially for applicants who are aiming for skilled migration pathways and even more so for those who have never had business management experience. So, how to purchase an ideal business that matches all the requirements?
If there is a professional expert who has an in-depth understanding of the Australian market, constantly keeping up-to-date with the latest trends and is capable of catering to your needs to the greatest extent, then all the concerns and the problems will definitely be alleviated!
Here at AMS we have our experienced Registered Migration team who can assist you!
AMS 491 SBO One-Stop Solution
1. Initial assessment – We will conduct a complete assessment regarding your situation as well as your expectation for a small business. We will then offer you relevant advice, helping you map out a small business plan that tailors to your individual demands.
2. Business matching – We will help you source a small business in Queensland that matches the application requirements. We will also run a thorough assessment for the business, helping you establish negotiation with the buyer.
3. Purchase of the small business – Once we have helped you find a suitable small business, ongoing support will be provided by AMS throughout the whole purchasing process. We will help you analyse the terms and conditions of the purchase in detail, ensuring your legal right is protected.
4. Visa application – After you have successfully invested $100,000 into the small business and run it for 6 months, AMS Registered Migration Consultants will help you process the visa application.
Call free:+61 (3) 9092-1688
