clipper Posted November 7, 2013 Share Posted November 7, 2013 (edited) Hi all I have a friend who is from Slovakia. He and his wife have been in Australia for 4 years on student visas. I think one had a two year visa, followed by the other for two years. The final visa expires next March. I'm not entirely sure what steps they've taken regarding a direct DIAC approach but, I'm a little worried about the situation they've put themselves in through panic, which I'll explain: They have contacted a company which specialises in getting visas via business. To date they have given the company $10,000 to find them a business to buy. This money is for search fees..not the business. They have been told by the company; they will have to search away from Brisbane (where they currently live) and search in the south (Adelaide has been mentioned). The company will find them a business to buy which has to be older than two years (they've been told they cannot start their own business) The husband will buy the business and employ the wife on a 457 visa, and she will then sponsor him. He's about to part with over $100,000 to buy a business. I'm a little worried about this. After parting with $10,000 two weeks ago he has only received one very brief txt. Is this possible? It all seems very unlikely to me! I know most of you will say they wouldn't give a company they don't know $100,000 and I agree! But...Has anyone heard of this before? Is this legal and could this work? Thanks Edited November 7, 2013 by clipper Quote Link to comment Share on other sites More sharing options...
Xenon4017 Posted November 7, 2013 Share Posted November 7, 2013 Gosh, where do you begin? [Firstly, 4 years as students, and they've accrued 6 figures in savings? But let's leave that for now.] I think they'll need a an Aussie citizen or PR to be a director of their new company. And actually, 100k for a company sounds a bit cheap, if it really is a going concern. For this company to sponsor a 457 they'll have to demonstrate that they've looked locally with no success and that they pay the market rate, train their own employees etc etc. Then DIAC might smell a rat when they see that the part owner is related to the 457 migrant. This kind of "pulling yourself up by the shoestrings" visa is a scam that DIAC are familiar with. I've also heard of similar scams whereby people effectively pay their own salaries to a company in return for the sponsorship. It's a really expensive way to stay here. I can't see this having a happy ending. My advice would be to keep the 100k and eek out a holiday for a year or so. Or put the 4 years studying to good use and get a job. Quote Link to comment Share on other sites More sharing options...
Rupert Posted November 7, 2013 Share Posted November 7, 2013 Are you serious? This is an utterly crazy idea. I cannot emphasise that enough. Have they involved a registered migration agent at any point? Quote Link to comment Share on other sites More sharing options...
clipper Posted November 7, 2013 Author Share Posted November 7, 2013 Thanks Xenon. Think the $10,000 and $100,000 are coming via family members. Funny enough I've just spoken to the guy. I'm with you though, and think I smell a rat?. Firstly your right about having to prove the job has been advertised without success. Apparently this is why they have to set up business regionally (think that's right) He's been told that the conditions are less stringent. I can't see anything which backs that up. I basically said to him even if you manage to buy a business, you will still have to offer the job to your wife and she will be alone going through the DIAC process. What happens if you buy a business with someone already in that role? I'll keep this post rolling, it could help others. Quote Link to comment Share on other sites More sharing options...
clipper Posted November 7, 2013 Author Share Posted November 7, 2013 They are serious! Unfortunately! Rupert. I really don't know what's led them to this? They apparently (have to say apparently as I..well?) contacted a migration lawyer who recommended the guys they are dealing with now. Beyond that I'm not sure. They seem to be completely convinced that ' and I quote' these guys know what their doing! I'd like to say, well...just get on with it. But they are friends and we're worried for them. Any help from you guys..even thoughts are gratefully received. Quote Link to comment Share on other sites More sharing options...
xxlornaxx Posted November 7, 2013 Share Posted November 7, 2013 They must have money to burn if they are not questioning this...you can only advise them..if they are convinced what can u do? Quote Link to comment Share on other sites More sharing options...
Xenon4017 Posted November 7, 2013 Share Posted November 7, 2013 Thanks Xenon. Think the $10,000 and $100,000 are coming via family members. Funny enough I've just spoken to the guy. I'm with you though, and think I smell a rat?. Firstly your right about having to prove the job has been advertised without success. Apparently this is why they have to set up business regionally (think that's right) He's been told that the conditions are less stringent. I can't see anything which backs that up. I basically said to him even if you manage to buy a business, you will still have to offer the job to your wife and she will be alone going through the DIAC process. What happens if you buy a business with someone already in that role? I'll keep this post rolling, it could help others. I think it's more nebulous than you imagine. For the 100k, you don't get to buy a business, you get to buy _into_ the business. Which remains under the ownership of a third party. For your 100k, the business will require a Slovakian speaking specialist cupranologist, which are hard to find. So they offer his wife a job. As her spouse, he's on the visa. She draws a salary, but never turns up. Until they need more cash to pay her salary. What do you do then? Admit to visa fraud? I know of one guy who did something similar to get PR when he was over the age limit. The umbrella company was a consultancy that allowed the employees to market themselves in any area of business they chose. They were basically funding their own salaries. After a year, everyone shakes hands, says goodbye and the wheel goes round again. It's clearly unethical though. But money talks. Quote Link to comment Share on other sites More sharing options...
clipper Posted November 7, 2013 Author Share Posted November 7, 2013 The only thing we can do Lorna is try to put some truth to it. I know it sounds a little strange as an excuse, but I only found out at the start of all this (a few weeks ago) that he has a serious medical condition and gets relief in a warm climate? Putting that aside, they are desperate to stay in Australia. It doesn't matter what your feelings are towards the way in which they hope to gain a visa. It's not nice to see folk fall prey to this kind of scam (I could be wrong but doubt it). I'm just waiting for him to say they are asking for more money! Quote Link to comment Share on other sites More sharing options...
clipper Posted November 7, 2013 Author Share Posted November 7, 2013 Thanks Xenon Believe me I am no doubt that what is going on isn't right! You're right and if he found a business to buy into, the present owner would have to be willing to go along with the scheme..which makes it a scam! If they decided not to offer her a job, what then? They have his $100,000. and he has a departure date! Quote Link to comment Share on other sites More sharing options...
Xenon4017 Posted November 7, 2013 Share Posted November 7, 2013 but I only found out at the start of all this (a few weeks ago) that he has a serious medical condition and gets relief in a warm climate? And he's thinking of buying a business in Adelaide? It just gets better.... Quote Link to comment Share on other sites More sharing options...
clipper Posted November 7, 2013 Author Share Posted November 7, 2013 Exactly?? The (whatever it is) company have said that's the best location for the money he has, and it's an immigration soft spot? He hopes to get his PR and return to Brisbane. I've advised he keeps his cash in his pocket, goes home and thinks things through. Or go to another warm country! Don't worry Xenon, I think the idea is absolutely bonkers. His wife is very skilled at what she does, and I'm sure that he wants the business to be successful. Even though his position would be very weak as a junior or sleeping partner. The question I asked him was, why when you've been here for four years didn't you tackle this earlier???? Instead of waiting for the 11th hour to appear. No reply. Although not acting rationally, he is very worried about his position, and knowing whatever the outcome he will be leaving many friends behind. Sadly I'd like to see him go with his money still in his pocket. He keeps mentioning this special 457 they have told him about. Specific to those seeking to enter into business outside the popular cities. I can only find one 457 visa?? Quote Link to comment Share on other sites More sharing options...
oppyddrum Posted November 7, 2013 Share Posted November 7, 2013 Exactly?? The (whatever it is) company have said that's the best location for the money he has, and it's an immigration soft spot? He hopes to get his PR and return to Brisbane. I've advised he keeps his cash in his pocket, goes home and thinks things through. Or go to another warm country! Don't worry Xenon, I think the idea is absolutely bonkers. His wife is very skilled at what she does, and I'm sure that he wants the business to be successful. Even though his position would be very weak as a junior or sleeping partner. The question I asked him was, why when you've been here for four years didn't you tackle this earlier???? Instead of waiting for the 11th hour to appear. No reply. Although not acting rationally, he is very worried about his position, and knowing whatever the outcome he will be leaving many friends behind. Sadly I'd like to see him go with his money still in his pocket. He keeps mentioning this special 457 they have told him about. Specific to those seeking to enter into business outside the popular cities. I can only find one 457 visa?? Perhaps, he is referring to the 188 visa? http://www.immi.gov.au/Visas/Pages/188.aspx Quote Link to comment Share on other sites More sharing options...
Xenon4017 Posted November 7, 2013 Share Posted November 7, 2013 He keeps mentioning this special 457 they have told him about. Specific to those seeking to enter into business outside the popular cities. I can only find one 457 visa?? There might be some mileage in that. The polis are always on about developing outside the major cities. But does your friend have any business pedigree? What does he do all day? If he's just a European playboy being bankrolled from his parents then he might find it's the end of the line. (If he is then he should beware any Matt Damon lookalikes who claim to be an old friend from his heady days in Bratislava Uni). Quote Link to comment Share on other sites More sharing options...
clipper Posted November 7, 2013 Author Share Posted November 7, 2013 I looked into this too Oppyddrum. But apparently not. 188 is the business visa (lots of money business) He's discussing a 457 that his wife will apply for which is for regional areas. Apparently it negates the need for a company to advertise a position locally? I can't find it. He won't have a visa; just a business. He then employs his wife who then sponsors him. The business has to be legal and she has to actually work for them and draw a wage...I know...then the three bears came home and....... Headache! Quote Link to comment Share on other sites More sharing options...
oppyddrum Posted November 7, 2013 Share Posted November 7, 2013 I looked into this too Oppyddrum. But apparently not. 188 is the business visa (lots of money business) He's discussing a 457 that his wife will apply for which is for regional areas. Apparently it negates the need for a company to advertise a position locally? I can't find it. He won't have a visa; just a business. He then employs his wife who then sponsors him. The business has to be legal and she has to actually work for them and draw a wage...I know...then the three bears came home and....... Headache! Wow, sounds very shady, and 100Grand is no small bread. i really hope there is something about this that we are missing that will make it all make sense... for his sake. Quote Link to comment Share on other sites More sharing options...
clipper Posted November 7, 2013 Author Share Posted November 7, 2013 Hahahaha Thanks Xenon! needed that. He, to my knowledge has no special qualifications. His wife has her own small business which is internet based with international clients. so good for Australia (she's a multi media designer)(Multi media as is in paints, photographs, sews blah blah) And very good. I'm fast running out of things to say about this as nothing seems to make sense...I think he'll desperately go down the path of parting with his cash then! Well...I hope not! Quote Link to comment Share on other sites More sharing options...
clipper Posted November 7, 2013 Author Share Posted November 7, 2013 Internet sites sell up to $75,000. You don't actually get much for $100,000. Certainly not if you design and print etc. equipment costs must be huge! Quote Link to comment Share on other sites More sharing options...
Alan Collett Posted November 7, 2013 Share Posted November 7, 2013 None of what I have read above makes any sense to me. There are no relaxations of 457 visa requirements for businesses in regional areas (for one thing). Why doesn't the wife use her own business to be the business sponsor? Yes, a business plan might be needed to support the 457 business sponsor application, but this sounds like a more sensible use of one's money than what is being suggested. Best regards. Quote Link to comment Share on other sites More sharing options...
Alan Collett Posted November 7, 2013 Share Posted November 7, 2013 (edited) Gosh, where do you begin? [Firstly, 4 years as students, and they've accrued 6 figures in savings? But let's leave that for now.] I think they'll need a an Aussie citizen or PR to be a director of their new company. <snip> . Nope - the requirement is for an Australian Pty Limited to have a director with a residential address in Australia. There is no requirement for that director to be an Aus citizen or permanent resident. Best regards. Edited November 7, 2013 by Alan Collett Quote Link to comment Share on other sites More sharing options...
clipper Posted November 7, 2013 Author Share Posted November 7, 2013 The wifes business has only been registered for 12 months. The business does not meet the requirements as it need to prove a successful track record. Still reading up, although not sure why, as i think it falls on deaf ears. He is looking to buy...buy into a business so he can employ his wife and in turn get sponsored by her. Reading further, the company doing the 'leg work' will have to not only find a company to enter into with limited business funds, but also one which could employ his wife, and also one which is a registered 'approved standard business sponsor' The search is certainly set to get wider. The more I read into this...the less likely this route appears to be able to succeed. Quote Link to comment Share on other sites More sharing options...
Xenon4017 Posted November 7, 2013 Share Posted November 7, 2013 Nope - the requirement is for an Australian Pty Limited to have a director with a residential address in Australia. There is no requirement for that director to be an Aus citizen or permanent resident. Best regards. I'll take your word for it, but wouldn't a residential address imply residency? You couldn't give the address of your B and B, for example? Quote Link to comment Share on other sites More sharing options...
clipper Posted November 7, 2013 Author Share Posted November 7, 2013 Thinking Alan is correct too. You may also be granted approved business sponsorship whilst overseas too. Quote Link to comment Share on other sites More sharing options...
Raul Senise Posted November 7, 2013 Share Posted November 7, 2013 He's discussing a 457 that his wife will apply for which is for regional areas. Apparently it negates the need for a company to advertise a position locally? I can't find it. He won't have a visa; just a business. He then employs his wife who then sponsors him. The business has to be legal and she has to actually work for them and draw a wage...I know...then the three bears came home and....... Headache! The 457 visa does not require the position to be advertised, irrelevant of where it is located. There are no Regional concessions for the 457 program and there haven’t been for many years. Quote Link to comment Share on other sites More sharing options...
clipper Posted November 7, 2013 Author Share Posted November 7, 2013 Quote .gov. if you are lawfully operating a business in Australia, you must attest, in writing, that you have a strongrecord of, or a demonstrated commitment to, employing local labour I think this actually says. You must inform us in writing the steps you have taken to fill the position locally....If I'm not mistaken? Quote Link to comment Share on other sites More sharing options...
clipper Posted November 7, 2013 Author Share Posted November 7, 2013 I don't think the actual 'special' 457 visa exists. I think it's believed that if you chose to take up employment in a less popular region, you may get an easier ride? Remember the whole thing rests on his wife getting a 457, not the business side of the issue. Quote Link to comment Share on other sites More sharing options...
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