For newcomers holding an Australian 188A business visa, successfully buying and running a business is a crucial step in obtaining permanent residency (“green card”) in Australia. This article will provide a detailed guide to buying a business to help you avoid common pitfalls and ensure that your investment decisions are guided wisely.
The 188A Business Migration Visa is for business owners who intend to start or manage a business in Australia. The advantages of this type of visa include a lower investment amount requirement, flexible investment options, and the fact that there is no need for a high degree or language proficiency.
Steps to buy a business
1. Establish a company and register a business number
Before buying a business in Australia, you usually need to set up a company and register a business number (ABN, ACN) for the company. This is because business and company in Australia are separated, and new immigrants are eligible to buy a business as the main shareholder and director of the company.
2. Find the right business
Business can be found through business agencies, online or newspaper advertisements, or through referrals from acquaintances. Once the purchase intent is formed, a detailed investigation should be conducted, including the store’s customer flow, geographical location, surrounding resident groups, and competition.
3. Appraisal of business (due diligence)
Due diligence is a critical step in evaluating a business, including business operations, financial status, legal and tax compliance, contracts, lease agreements, intellectual property rights, and more. Melbourne and Adelaide have specific financial reporting requirements.
4. Sign a business sales contract
After the price agreement is reached with the seller, the contract signing stage will begin. The contract must contain all the necessary documents to accompany the purchase of the business. The buyer’s lawyer may add special terms based on the buyer’s interests.
5. Lease transfer
The sale and purchase of a business is usually accompanied by the transfer of a lease. The buyer is required to provide personal information and financial information to the landlord and obtain the landlord’s consent before proceeding with the transfer.
6. Business transfer
Once all conditions are met, all aspects of the business will be transferred from the seller to the buyer, including leases, licenses and permits, employees, inventory, registered name, etc. The transfer of business-related licenses is the first priority after the conclusion of the sales contract.
What newcomers need to look out for when buying a business:
1. Understand Australia’s business environment and laws and regulations, especially business-related tax and employment laws.
2. Assess the sustainability and profitability of the business to ensure that the business can maintain a stable income in the coming years.
3. Consider the location of your business and whether it is suitable for the type of business you intend to run.
4. Review all contracts and legal documents to ensure there are no hidden terms or potential legal issues.
Buying a business is a complex process that involves multiple legal procedures and financial assessments. It is advisable to consult with a professional legal and financial advisor for the most up-to-date and accurate guidance to ensure that your rights and interests are protected and your investment decisions are more secure.
Disclaimer: The information on this page was updated in 2024 for general informational purposes and is not intended to provide legal advice on a case-by-case basis, the content is protected by the Platform, and the author and the Platform have prepared this page based on real-time publicly available information from sources they believe to be reliable at the time of writing, but have not independently verified such information. The content of the information on this page is subject to change without notice, and the author and the platform expressly disclaim any liability for the consequences of any action taken or inacted in reliance on any content of the text.