Australia is a sought-after destination for entrepreneurs, investors, and skilled professionals from around the world. With its strong economy, transparent legal system, and supportive infrastructure, the country offers a solid platform for business growth. But what happens if you want to register a company in Australia while holding a temporary visa?
It’s a common question—and one that can have serious legal consequences if misunderstood. While the Australian company registration process is relatively straightforward, operating a business while on a temporary visa introduces a number of legal and immigration risks.
In this blog, we’ll unpack the rules around company registration in Australia for temporary visa holders, explain what you can and can’t do, and help you navigate the process without violating immigration law.
Can Temporary Visa Holders Register a Company in Australia?
Yes—in most cases, you can legally register a company with the Australian Securities and Investments Commission (ASIC) while on a temporary visa.
Australia’s Corporations Act 2001 does not specifically prevent temporary visa holders from being listed as:
A director of a proprietary limited (Pty Ltd) company
A shareholder
A company secretary (if required)
However, registering a company is not the same as being allowed to legally operate or work in that business, especially if your visa does not permit business activities.
Key Legal Risks to Consider
Before you rush to set up your business, consider the following legal and immigration risks:
1. Breaching Visa Conditions
The biggest legal risk is violating your visa conditions. Most temporary visas have specific work restrictions, such as:
Student visas (subclass 500) – Limited work hours and not typically allowed to run a business
Tourist visas (subclass 600) – Strictly prohibit any form of paid work or business activity
Temporary Skill Shortage (subclass 482) – You’re tied to an employer sponsor and cannot operate your own business
Working Holiday Visa (subclass 417/462) – Allows casual employment but not running a full business
Registering a company may not violate visa rules, but actively managing, working in, or receiving income from the company without appropriate visa permission does.
2. Acting as a Company Director Without Work Rights
Being a company director in Australia is considered a position of responsibility under the Corporations Act. While you may be listed as a director in ASIC records, if you exercise control or perform director duties, it may be deemed as work by the Department of Home Affairs.
This creates a grey area. If your visa doesn’t allow you to work, and you're:
Signing contracts
Managing operations
Receiving payments
—then you're likely breaching your visa, even if you’re not drawing a salary.
3. Operating Illegally Under Australian Migration Law
If you’re caught working without authorization, the consequences can be severe:
Visa cancellation
Deportation
Ban from re-entry to Australia
Future visa refusals
In addition, any business activity you’ve conducted may be considered unlawful, raising questions around contract validity, tax compliance, and more.
4. Business Bank Account and Tax Complications
Opening an Australian business bank account or applying for an Australian Business Number (ABN) or Tax File Number (TFN) can trigger questions about your immigration status.
Banks and the Australian Taxation Office (ATO) may request:
Proof of residency
Visa subclass and entitlements
Business activity details
If your visa doesn't support self-employment or business operation, this could result in denied applications, tax complications, or red flags with immigration authorities.
5. Challenges in Securing Business Licences and Insurance
Many business activities in Australia—such as hospitality, construction, or personal services—require licenses, permits, or insurance.
Applying for these may require:
Proof of work rights
Business premises
Valid ABN and TFN
Identity verification linked to immigration status
If you cannot legally operate your business, you may not be able to secure the required regulatory approvals—delaying or invalidating your operations.
Tips to Reduce Legal Risk Before You Start
If you’re a temporary visa holder exploring business opportunities in Australia, here are some essential steps to take before registering a company:
1. Understand Your Visa Conditions
Visit the official Department of Home Affairs website or use the Visa Entitlement Verification Online (VEVO) system to check what you’re legally allowed to do.
Look specifically for:
Permission to work
Limits on business activity
Duration and renewal options
2. Consult a Registered Migration Agent or Immigration Lawyer
Before setting up a company, speak to a qualified migration agent. They can help you:
Interpret your visa conditions
Plan for visa upgrades (e.g., to a Business Innovation visa)
Avoid violations that could impact your immigration status
This step is critical if you plan to actively run the business.
3. Separate Passive Ownership from Active Involvement
If your visa doesn’t allow work, you may still be able to:
Hold shares in a company
Appoint a resident director to manage the business
Receive passive dividends or investment returns
However, you should not be involved in daily operations or management without the proper visa.
4. Appoint a Resident Director
All Australian proprietary companies must have at least one director who ordinarily resides in Australia.
If you’re not legally allowed to work, appoint a trustworthy resident director to:
Manage the company
Handle banking and compliance
Act as the public face of the business
This ensures compliance with ASIC regulations and avoids immigration violations.
5. Explore Business or Investor Visa Options
If your long-term goal is to build a business in Australia, consider switching to a visa that allows it. Options include:
Business Innovation and Investment (subclass 188)
Permanent Business Talent Visa (subclass 132)
Entrepreneur Visa (stream under 188)
These visas are designed for founders, investors, and business operators and come with pathways to permanent residency.
FAQs
1. Can I register an Australian company if I’m on a student visa?
Yes, you can register a company. However, if you begin working in the business or earning income, it may violate your visa's limited work conditions. Always consult a migration advisor before operating.
2. What happens if I work in my own company while on a restricted visa?
This is considered unauthorized work. If discovered, your visa may be cancelled, and you could face deportation or a ban from entering Australia again.
3. How can I legally run a business in Australia as a foreigner?
The best option is to apply for a Business Innovation and Investment visa or switch to a visa that explicitly allows self-employment. Until then, limit yourself to passive ownership and appoint a resident director to handle operations.
Conclusion
Australia welcomes entrepreneurs and investors—but that openness comes with strict immigration compliance. While it is legally possible to register a company in Australia on a temporary visa, the real issue is whether you're permitted to operate, manage, or earn income from that business.
Failing to understand this distinction can lead to serious legal consequences, from visa breaches to deportation. To protect yourself, always consult qualified professionals, check your visa entitlements, and consider long-term strategies that align your business goals with Australia’s immigration framework.
