Establishing a new business in Australia often requires bringing key employees, managers or specialists from overseas to help launch and grow the Australian operation.
A common question for newly established Australian companies is whether they need to have been trading for a particular period before they can sponsor an overseas employee.
The good news is that a newly established Australian business can potentially sponsor an overseas worker, including under the Skills in Demand (Subclass 482) visa program. There is no general requirement that an Australian business must have been operating for 12 months before it can become a Standard Business Sponsor.
However, businesses with limited Australian trading history will generally need to provide sufficient evidence to demonstrate that the business is genuinely established and operating.
Becoming a Standard Business Sponsor
An Australian business wishing to sponsor an employee for a Skills in Demand (Subclass 482) visa will generally first need to become an approved Standard Business Sponsor.
To qualify, the business must satisfy a number of requirements, including demonstrating that it is lawfully operating a business.
For a well-established Australian company, this can often be demonstrated through historical financial records, tax returns, Business Activity Statements and other evidence of ongoing operations.
A newly established business may not yet have this history. This does not necessarily prevent sponsorship, but it means that different evidence may be required to establish the nature and viability of the Australian operation.
What Evidence Can a Newly Established Business Provide?
The Department of Home Affairs specifically recognises that new businesses may not have the same financial and trading records as established businesses.
For a new business, Home Affairs indicates that evidence should include, at a minimum, a business plan, including contracts to provide services to the business, together with business bank statements covering the period of operation.
Depending on the circumstances, additional evidence may include:
- an Australian Securities and Investments Commission (ASIC) company extract;
- Australian Business Number (ABN) registration;
- lease agreements for Australian business premises;
- evidence of employees already engaged by the Australian business;
- Business Activity Statements for completed quarters;
- contracts with Australian customers or suppliers;
- evidence of investment or funding; and
- other documents demonstrating that genuine business activities are taking place in Australia.
The particular documents required will depend on the structure, activities and stage of development of the business.
What if the Australian Business Has an Overseas Parent Company?
Many newly established Australian businesses are subsidiaries of larger overseas companies.
This can be particularly relevant where an international organisation establishes an Australian subsidiary and needs to relocate an experienced employee, senior manager or specialist to establish or expand its Australian operations.
In these circumstances, the Australian subsidiary may have little or no historical revenue of its own. However, the broader corporate structure and the activities of the overseas parent company can provide important context.
Evidence may include information about the overseas parent company, its financial position and operations, the relationship between the overseas parent and Australian subsidiary, funding provided for the Australian operation, the Australian expansion strategy and the role the sponsored employee will play in developing the Australian business.
The evidence should tell a coherent commercial story: why the Australian operation has been established, how it is being funded, what activities it will undertake and why the proposed overseas employee is required.
Demonstrating Financial Capacity
Financial capacity can be an important consideration for a newly established business proposing to sponsor an overseas employee.
The business will need to meet the salary and employment requirements applying to the relevant sponsored position. Where the Australian entity has only recently commenced operations, its current Australian revenue may not necessarily provide the complete picture.
Depending on the circumstances, evidence of funding, capital contributions, business bank balances, contractual arrangements and financial support associated with an overseas parent company may help demonstrate how the Australian operation is being established and funded.
It is important that the financial evidence is consistent with the business plan and the proposed employment arrangements.
For example, where a newly established company proposes to employ a senior manager on a significant salary but has minimal Australian revenue, the supporting documentation should clearly explain how the position will be funded and why employing the person makes commercial sense at that stage of the company’s development.
Can an Overseas Company Sponsor Someone to Establish the Australian Operation?
There is also a separate option that may be relevant where the Australian operation has not yet been established or commenced operating.
The Standard Business Sponsorship framework allows a business operating outside Australia, in certain circumstances, to seek approval as an overseas business sponsor where it intends for a sponsored worker to establish, or assist in establishing, a business operation in Australia with overseas connections, or to fulfil a contractual obligation in Australia.
This can be useful for international companies entering the Australian market where the Australian operation is not yet sufficiently established to sponsor the employee itself.
The appropriate structure should therefore be considered carefully at the outset: in some cases the Australian company may be the appropriate sponsor, while in others an overseas business sponsorship arrangement may be more suitable.
Preparation Is Particularly Important for New Businesses
New businesses are not excluded from Australia’s employer-sponsored visa program simply because they lack a lengthy Australian trading history.
However, applications involving newly established businesses can require more careful preparation because the company cannot rely on years of financial statements, tax returns and Australian trading activity to demonstrate its operations.
A strong application should therefore provide a clear and consistent picture of:
the business + its funding + its Australian operations + the proposed position + the need for the overseas employee.
For international businesses expanding into Australia, considering the immigration strategy at the same time as establishing the Australian corporate structure can also help avoid unnecessary complications later.
How Hartman Immigration Can Assist
Hartman Immigration assists Australian and international businesses with employer-sponsored visa strategies, including businesses establishing or expanding operations in Australia.
We can assist with Standard Business Sponsorship applications, Skills in Demand (Subclass 482) nominations and visa applications, intra-company transfers and immigration planning for overseas businesses establishing Australian operations.
If your business is newly established in Australia and is considering sponsoring an overseas employee, obtaining advice early can help determine the appropriate sponsorship strategy and the evidence required to support the application. You can contact us for advice and assistance.
f your business is newly established in Australia and is considering sponsoring an overseas employee, obtaining advice early can help determine the most appropriate sponsorship pathway and ensure the business is well positioned to support the application with the necessary evidence.
Contact Hartman Immigration to discuss your business’s Australian sponsorship and immigration requirements.
This article provides general information only and does not constitute immigration or legal advice. Visa requirements and government policy may change, and advice should be obtained in relation to individual circumstances.