Can a Foreigner Buy Business in Australia?

by Vanessa Lovie 1st of July, 2024

Foreigner Buying Business in Australia

Are you an international or foreign citizen looking to buy a business in Australia for investment or immigration purposes? We take a look at the options available to you and how you could make that dream a reality.

Australia has very strict immigration policies and the pathway available to you will depend on several factors. This is why it is always advisable to get advice from an immigration lawyer or migration agent specific to your circumstances.

To give you an idea of the options, we will look at business visa pathways depending if you are 'onshore' aka - in Australia or 'offshore' - aka overseas.

On Bsale you will see a number of businesses for sale that are suitable for 'visa applications'. These are businesses that meet specific visa conditions in certain states and you will normally find them in Queensland, South Australia and Tasmania.

To get started on the pathway to buying a business as an international, there are a few things you need to understand.

Onshore - Are you in Australia and want PR? Look at the 491 SBO Pathway

In Australia, states can sponsor people to buy businesses. Currently there are 3 states offering a 'state nominated skilled program'. Which is basically an opportunity to buy a business - generally in remote areas that you can operate and continue on a path to permanant residency.

You will often see businesses advertised for sale with 'visa options' or 'meeting 491 visa requirements'. There are a number of business brokers who work with foreign nationals to help them buy a business for residency purposes.

Lets take a look at the states offering this scheme and what the requirements are:

1. Queensland

In Regional Queensland there is the 491 SBO pathway to Australian citizen program to for people wanting to become business owners and obtain PR.

To be eligible for the Small Business Owner (SBO) stream in regional Queensland, you must already be living and operating a small business in regional Queensland. Therefore, you must be in Australia and specifically in regional Queensland at the time of application. This requirement ensures that applicants are actively contributing to the regional economy and are established in the area before applying for the visa.

There are a number of criteria you and the business you are purchasing must meet:

Requirements:

Purchase a business for a minimum of $100,000.
Live and own the business in regional Queensland specified by postcodes
Operate the business full-time working a minimum of 30 hours per week.
Must hold 100% ownership of the business; partnerships or joint ventures are not eligible.
The business must have been operating for at least two years in its current location prior to purchase.
Must operate the business for at least six months after settlement. The six-month period starts after 100% of the purchase price is settled.
Must employ at least one Australian resident working a minimum of 20 hours per week, or two employees working 10 hours per week each. Employees cannot be family members or subcontractors.
No share transfer (must have a contract of business sale)
No vendor financing
Cannot purchase business from family member or relative
Cannot purchase a business previously owned by a 491 SBO applicant
Home-based or virtual offices are not eligible for the 491 SBO pathway
Commission agents or leasing agents of franchises (such as petrol stations) will not be considered
Applicants must operate their business for at least three years in a regional area (and may be subject to monitoring) after the grant of the visa. Should an applicant choose to sell their business prior to this time, Migration Queensland has the option to withdraw the nomination of the 491 visa to allow the applicant to explore other visa options

> How to Apply to Queensland

> Find Elligible Business for Sale in Queensland

2. Tasmania

Tasmania offers a Small Business Owner (SBO) pathway as part of its state nomination program for the Skilled Work Regional (Provisional) visa (subclass 491). This pathway is designed for migrants who are living and operating a small business in Tasmania.

Here are the key points about the SBO pathway in Tasmania:

Applicants must be currently living in Tasmania and have been operating a business for a minimum period.
The applicant must own at least 51% of the business and must be actively involved in its daily operations.
The business must be a genuine, profit-generating enterprise that has been actively trading in Tasmania for at least six months before the application. Home-based businesses and franchise operations are generally not accepted.
There must be a substantial financial investment in the business. The exact amount can vary, but it typically should reflect the nature and size of the business.
The business should demonstrate the potential to contribute to the local economy and may need to employ at least one Australian citizen or permanent resident.
The business must be located in a regional area of Tasmania.

Applicants need to submit an Expression of Interest (EOI) through SkillSelect and be invited by Migration Tasmania to apply for state nomination. The application process involves providing detailed business documentation and demonstrating the business's viability and contribution to the Tasmanian economy.

> How to Apply to Tasmania SkillSelect

> Find a Elligible Business for Sale in Tasmania

3. Canberra

The Small Business Owner (SBO) pathway in Canberra is part of the Australian Capital Territory (ACT) state nomination program for the Skilled Work Regional (Provisional) visa (subclass 491). This pathway is designed to attract and retain skilled migrants who can contribute to the local economy by owning and operating a business in Canberra.

Here are the key points about the SBO pathway in Canberra:

Eligibility Criteria:
- Applicants must be living in Canberra for at least six months prior to the application.
- Applicants must own at least 51% of the business.
- The business must have been actively trading in Canberra for at least six months
- The business must be a genuine, profit-generating enterprise. Home-based businesses, franchise operations, and passive investment businesses (such as rental properties) are generally not accepted.
- There must be a significant financial investment in the business. While the exact amount can vary, it typically needs to reflect the nature and size of the business.
- The business should demonstrate the potential to contribute to the local economy. This may include employing at least one Australian citizen, permanent resident, or eligible New Zealand citizen.

Applicants need to submit an Expression of Interest (EOI) through SkillSelect and indicate that they are seeking ACT nomination for the subclass 491 visa.

> How to Apply to Canberra

> Find Eligible Business for Sale in Canberra

If the SBO pathway seems like a good option for you, then take a look at 5 businesses that are currently for sale meeting the necessary criteria in those states.

Overseas person migrating to australia

Offshore - Are you Overseas and Want to Enter Australia on a Business Visa?

Understand the Different Types of Visa's

Australia has a strict immigration policy and most foreign nationals who arrive enter on professional, student or business visa's. They all have very strict assessments and the majority of them require you to pass tests like achieving band 8 in IELTS and having completing a bachelors or higher degree.

So if you are currently living overseas and want to enter Australia you need to look at the different pathways. In terms of business ownership there are a few that can be obtained from outside the country and allow you to enter.

Always obtain advice from a licensed immgration lawyer or agent so you can understand your best options.

Look at the188 Visa - The Business Innovation and Investment (Provisional) Visa

This visa is for entrepreneurs, investors, and business owners who want to operate a new or existing business in Australia. This visa is designed to encourage business investment and entrepreneurial activity, promoting economic growth in Australia.

This visa is limited to people under 55 with business skills who want to establish, develop, and manage a new or existing business in Australia.

Here are the main streams and their requirements under the subclass 188 visa:

1. Business Innovation Stream

Purpose: For people with business skills who want to establish, develop, and manage a new or existing business in Australia.
Stay: Up to 5 years.
Cost: From $9,450
Requirements:
- Ownership interest in a business with an annual turnover of at least AUD 500,000 for two of the four fiscal years immediately before you are invited to apply.
- Net personal and business assets of at least AUD 800,000.

2. Investor Stream

Purpose: For people who want to make a designated investment of at least AUD 1.5 million in an Australian state or territory and maintain business and investment activity in Australia.
Stay: Up to 5 years
Cost: From $9,450
Requirements:
- Have at least three years’ experience managing one or more qualifying businesses or eligible investments.
- Have a high level of management skill.
- Make a designated investment of at least AUD 1.5 million.

3. Significant Investor Stream

Purpose: For people who are willing to invest at least AUD 5 million into complying investments in Australia and want to maintain business and investment activity in Australia.
Stay: Up to 5 years
Cost: From $13,860
Requirements:
- Make a complying significant investment of at least AUD 5 million.
- Hold the investment for at least four years.

4. Premium Investor Stream

Purpose: For people who are nominated by Austrade and who invest at least AUD 15 million in Australian investments and/or philanthropic contributions.
Stay: 4 years and 3 months
Cost: From $9,455
Requirements:
- Invest at least AUD 15 million in complying premium investments.

5. Entrepreneur Stream

Purpose: For people who have a funding agreement from a third party for at least AUD 200,000 to undertake a complying entrepreneurial activity that leads to the commercialization of a product or service in Australia or the development of a business in Australia.
Stay: Up to 5 years
Cost: From $6,395
Requirements:
- Have an agreement with a third party for at least AUD 200,000 in funding.

> How to Apply for a 188 Visa

Who is the FIRB?

Depending on the type and value of the business, foreign investors might need to get approval from the Foreign Investment Review Board (FIRB) before purchasing.

The FIRB is a key regulatory body that foreign investors must engage with when considering buying a business in Australia. Its role is to ensure that foreign investments are in the national interest, providing a clear framework for approval and compliance.

Foreign investors may need to seek FIRB approval depending on the type and size of the investment, particularly in sectors like agriculture, real estate, and critical infrastructure.

The approval process involves submitting a detailed application, which the FIRB assesses based on factors such as national security, competition, economic impact, and community impact.

. The FIRB ensures that foreign investments benefit Australia and do not pose risks to national security or economic stability, providing a clear framework for foreign investors to follow.

So can you buy a business in Australia as a foreign national?

Simply put, yes. Take a look at Ericas journey from South Africa to Australia! But you will need to go through the visa channels to ensure you have the correct working rights and are buying a business that is lawful.

Originally Published: 2013. Updated 2024

Tags: buying a business foreign visa international