In Short
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Temporary visa holders in Australia can generally start a business, but must follow their specific visa conditions.
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Student visa holders have a 48-hour per fortnight work limit, which includes time spent on a business.
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Temporary Graduate visa holders have full work rights and more flexibility to run a business.
Tips for Businesses
Check your visa conditions carefully before starting a business. Make sure your business activity will not breach any work restrictions. You will need an ABN and the right business structure. If your visa has limits, consider working with a business partner or looking into permanent residency for longer-term stability.
Starting a business, especially overseas, can be an exciting opportunity. However, it is imperative that this is accomplished lawfully. If you are a temporary Australian visa holder, you may be wondering whether you can legally start a business in Australia. In most cases, temporary Australian visas do not expressly restrict you from starting a new business. Despite this, setting up a business can still be a difficult process if you do not understand the key conditions of your visa, especially those that relate to work, commerce and employment. This article will outline when having a temporary Australian visa will allow you to start a business.
Student Visa
If you are on a student visa (subclass 500), you must study full-time while your course is in session. As of 1 July 2023, Australian visa conditions allow you to work up to 48 hours per fortnight. This means that if you spend only, for example, 20 hours working on your business, you will technically comply with your visa conditions.
However, you may face an obstacle when trying to calculate the number of hours you spent on starting your new business. In addition to recording difficulties, you must also meet your other student visa obligations. Notably, you will also need to ensure that you:
- meet your course requirements;
- maintain adequate health insurance; and
- do not breach your visa conditions.
Temporary Graduate Visa
As a holder of the temporary graduate visa (subclass 485), you are allowed to work for an unrestricted number of hours. This provides you with more opportunities to start your business and engage in entrepreneurial activities, provided you still comply with your visa conditions.
Furthermore, you may be part of or consider applying for the Graduate Work stream, which will allow you to temporarily live and work in Australia once you have completed your studies. One key qualification for being part of the stream is that you must have a qualification relevant to an occupation on the skilled occupation list. However, engaging in business activities in a completely unrelated industry from your occupation is not prohibited. This means that your new business should be related to the qualifications you gained.
Employer-Sponsored Visas
You may be on an employer-sponsored visa (such as subclass 457 and 482 or 494). In this instance, you must work only in your nominated occupation and for your approved employer as per condition 8607, unless your occupation is exempt. This means you are not required to work solely for your approved employer. However, you must continue to work in the nominated occupation. In these circumstances, you may be able to start a business if you will still be working in the nominated occupation.
Generally, if you are a sponsored worker, nothing prevents you from establishing a business and only becoming a shareholder. However, you must be careful to refrain from actively participating in the management and operation of the business, as this may fall under the umbrella of engaging in work.
For example, suppose you are in a nominated occupation as a chef sponsored by restaurant X. You can start your own business (restaurant Y) and be a shareholder. Nothing is preventing you from enjoying and receiving income from restaurant Y. However, under condition 8607, you cannot work for restaurant Y.
How Can I Start a Business in Australia?
After reviewing your visa conditions, you should check the national requirements for starting a business in Australia. To start trading, you must apply for an Australian Business Number (ABN) and Tax File Number (TFN) to lodge your tax returns.
Starting a Company
A company structure is also beneficial from an investment standpoint. As you only have temporary working rights, investors might only want to invest in your business if you have a company structure. The investors are guaranteed that their rights remain in the company even if they subsequently leave the country. Additionally, it also provides them with certainty over their returns.
Suppose you choose to run your business through a company structure. You must formally incorporate a company through the Australian Securities and Investments Commission (ASIC) register. ASIC requires that at least one of the directors of your company will need to be an Australian resident.
Continue reading this article below the formIssues to Consider
Tax Issues
You may be under a different tax rate as a temporary visa holder. Again, the company structure might be favourable as it roughly has a 30% flat tax rate in Australia. However, if you distribute company income to yourself, you may have to pay tax at a rate applicable to your circumstances.
Business Longevity Issues
One of the most crucial things you must consider is how you intend to run your business when your temporary visa expires. When your visa expires, you must leave Australia immediately.
Therefore, it is essential to consider the kind of business you want to set up. Consider whether it is a business you can easily take overseas and run from anywhere or whether it requires you to be in Australia. You must assess these issues before setting up your business. For example, setting up an in-person shop in Australia and leaving it behind when your visa expires would not be ideal.
Alternatively, if you plan to sell your business when your visa expires, you must find a suitable buyer in advance. Settling a business sale in Australia can take up to two weeks.
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Key Takeaways
Starting a business in Australia on a temporary visa might seem promising. However, it can be a highly complex process. You should begin by ensuring you can fulfil your current visa conditions whilst developing your business. This depends on whether your visa is a:
- student visa (subclass 500);
- temporary graduate visa (subclass 485); or
- an employer-sponsored visa.
You should also ensure to fulfil relevant business obligations such as applying for an ABN and choosing a business structure. Furthermore, you may consider starting a company with an Australian resident business partner. Alternatively, consider looking into applying for a permanent visa.
If you have any questions about starting a business in Australia as a temporary visa holder, our experienced immigration lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1800 870 694 or visit our membership page.
Frequently Asked Questions
No provisions stop you from setting up a business on a temporary visa. However, there are work and industry restrictions to consider. Ensure you check your visa conditions before starting a business, as you want to avoid breaching your visa conditions.
First, you must consider your visa conditions, such as work restrictions. You also need to decide on a company structure that best suits your circumstances and carefully assess tax and business longevity issues.
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