Starting a Company While on a Visa in Australia: What Migrants Need to Know

Australia is widely recognised as one of the best countries for entrepreneurs and startups. With a strong economy, transparent regulations, and a multicultural society, it offers great opportunities for migrants looking to start a business. However, navigating company formation in Australia while on a visa comes with its own challenges.

Many migrants arrive in Australia with valuable skills, innovative ideas, or entrepreneurial aspirations—but are often unsure whether their visa allows them to legally register a company in Australia. If you're in that position, this article will guide you through the key considerations, legal requirements, and steps you need to take to ensure a successful company registration in Australia as a visa holder.

Can You Start a Business in Australia on a Visa?

The short answer is yes—but with important limitations depending on your visa type. Not all Australian visas allow you to legally operate or manage a business. While the law permits anyone to register a company in Australia, your ability to work in or manage that business depends on the specific conditions attached to your visa.

There is a key distinction between being a company owner and being actively involved in running the business. Some visa holders may be allowed to own a business but are restricted from working for that business directly.

Common Visa Types and Business Eligibility

Here’s a general overview of how some common visa types relate to business ownership and management rights:

1. Student Visa (Subclass 500)

Student visa holders are permitted to work limited hours during their course and full-time during breaks. However, starting and managing a company may be considered a breach of visa conditions if it involves working beyond the allowed hours or roles not directly related to their study.

2. Temporary Skill Shortage Visa (Subclass 482)

This visa is tied to a sponsoring employer. Starting a business while on this visa can be risky unless it’s a passive ownership role. You generally cannot work for or manage your own business while under sponsorship.

3. Partner Visa (Subclass 820/801 or 309/100)

Partner visa holders typically have full work rights, which allows them to start, manage, and operate a company freely once their visa is granted.

4. Permanent Residency (e.g., Subclass 189, 190, or 191)

As a permanent resident, you can register and run a business in Australia without restrictions.

5. Business Innovation and Investment Visa (Subclass 188/888)

This visa is designed specifically for entrepreneurs and investors. If you're on this visa, you’re not only allowed but encouraged to start and operate a business in Australia.

Also Read: Foreign Ownership Laws for Company Registration in Mauritius

What Are the Legal Requirements for Company Registration in Australia?

If your visa allows it, company registration in Australia is a straightforward legal process. The steps to register a company in Australia are managed through the Australian Securities and Investments Commission (ASIC).

Here are the basic requirements:

1. Choose a Company Structure

The most common structure for new businesses is a Proprietary Limited (Pty Ltd) company. It provides limited liability and is suitable for small-to-medium-sized enterprises.

2. Have a Registered Office and Australian Address

Your company must have a registered office located in Australia. This can be a home or business address but must be accessible during normal business hours.

3. Appoint Directors and Shareholders

At least one director must be an Australian resident. This can pose a challenge for migrants on temporary visas, especially if they do not meet the residency requirement.

Foreign visa holders may still be shareholders, but they might need to appoint an Australian resident director to meet legal obligations.

4. Apply for an Australian Business Number (ABN) and Tax File Number (TFN)

An ABN is necessary to trade, invoice customers, and register for Goods and Services Tax (GST) if required. A TFN is needed for paying business taxes.

5. Register for GST (if applicable)

If your annual turnover is expected to exceed AUD 75,000, you must register for GST.

6. Understand Your Tax and Legal Obligations

This includes lodging tax returns, paying superannuation for employees, and complying with Australian Consumer Law.

Also Read: How to Register Company in Egypt?

Key Challenges Migrants Face in Company Formation in Australia

While the technical process to register a company in Australia is relatively simple, migrants often face several unique hurdles:

1. Visa Restrictions

As mentioned, many temporary visas limit work rights. Violating visa conditions by engaging in unapproved work can jeopardize your legal status.

2. Australian Resident Director Requirement

If you're not a resident for tax purposes, you may not qualify as the sole director. This often means partnering with a trusted Australian resident or using nominee director services.

3. Banking and Finance

Opening a business bank account in Australia usually requires identification and local address proof. Some banks may also require your visa details and a minimum presence in the country.

4. Understanding Regulatory Compliance

Australian businesses must comply with various regulations related to fair trading, employee rights, privacy laws, and industry-specific licensing. New migrants may need additional guidance to stay compliant.

How to Overcome These Challenges

1. Consult a Migration Agent or Immigration Lawyer

Before you start, get advice on whether your visa permits you to actively run a business. A migration expert can guide you on the safest path based on your current visa and future goals.

2. Use a Local Director or Partner

If your visa restricts you from being a director, consider working with a local partner who can fulfill the resident director requirement.

3. Hire a Business Advisor or Accountant

A local advisor can help you navigate tax, compliance, and reporting responsibilities. This is particularly helpful if you’re unfamiliar with Australian business law.

4. Start with a Sole Trader Model

If a company structure is too complex for your situation, you may be able to operate as a sole trader initially—if your visa permits working independently. This can be upgraded to a company structure later.

Also Read: Types of Structures for Company Incorporation in Ireland

Steps to Register a Company in Australia as a Migrant

1. Check your visa conditions for work and business ownership rights
2. Choose the right structure (company, partnership, or sole trader)
3. Secure a local address and, if needed, a resident director
4. Register your company with ASIC online or through a service provider
5. Apply for an ABN and TFN
6. Open a business bank account
7. Understand your tax, employment, and reporting obligations

Final Thoughts

Company formation in Australia is accessible to migrants, but visa conditions play a central role in determining what you're legally allowed to do. While the official process of company registration in Australia is efficient and largely digital, it’s essential to ensure your visa status permits you to engage in business activities.

By seeking expert guidance and complying with legal requirements, you can not only register a company in Australia but also set yourself up for long-term success in one of the world’s most business-friendly environments.

Whether you're starting small or launching a major venture, Australia offers the tools, transparency, and opportunity to make your entrepreneurial dream a reality.

Frequently Asked Questions

1. Can I register a company in Australia if I’m on a temporary visa?
Yes, you can register a company, but your ability to actively run or work in the business depends on your visa type. Always check your visa conditions before proceeding.

2. Do I need to be an Australian citizen or permanent resident to start a business?
No, foreign nationals can own and register a company in Australia. However, you must appoint at least one director who is an Australian resident.

3. Can I apply for a business visa after starting a company in Australia?
In some cases, yes. If your business meets certain criteria, you may become eligible for a Business Innovation and Investment visa or other pathways to residency. Consult a migration agent for personalised advice.