How To Set Up A Business on a Temporary Australian Visa

For those with a temporary Australian visa, it’s important to ask the right questions and it starts here by figuring out whether or not you can start a business. 

For those with a temporary Australian visa, you are not restricted when it comes to beginning a new business, however, it’s still not as easy as you want it to be. 

There are certain conditions in place, which have to be honored at all times on a temporary visa. 

If you don’t abide by these conditions, your temporary visa is going to come under review, which tends to happen when starting a new business. 

There are times when a person loses their status as a temporary visa holder.

Let’s take a look at what it means to start a business with a temporary Australian visa.

Visa Requirements

Student Visa

For those on a student visa, it’s important to have a full-time position at a local school, especially when your courses are in session.

This means you have to attend classes at least 40 hours bi-weekly to meet this condition.

If you are going to be spending 20 hours at school, you can start a business in your spare time. 

However, if you are found not to be abiding by those time requirements then it is going to put your visa at risk.

It can be challenging to keep tabs on those hours, which is why it is important to understand what you are getting into by starting a business. 

You have to make sure not to break the conditions of your temporary Australian visa.

There are an array of short courses available for both permanent and short-term residents in Australia says mind professionals at the Academy of Therapeutic Hypnosis (AOTH). They state that “take control of this experience, Australia leaves no door unclosed when it comes to learning and development. Take advantage of this new opportunity to develop new skills through free or paid professional experiences.” 

Employer-Sponsored Visas

An employer-sponsored visa means you have to work for the employer based on what was written in the application. 

You will have to spend at least some time working with the business if you wish to run a separate business. 

This has to be proven or you are in breach of your visa conditions.

What Does it Take To Start a Business in Australia?

You will want to begin by looking over your visa conditions to see what’s required to start a business in Australia. 

In general, you will want to set up a separate Australian Business Number (ABN) and a Tax File Number (TFN) for eligible tax returns.

Setting Up a Company

With a company, you have to make sure it is set up as a proper business. 

This is only going to happen when you are ready to secure a separate account so your personal assets are not on the line when it comes to running the business. 

This is all about gaining protection under the limited liability clause. 

This means your personal assets are not going to come under attack due to debt. 

You will also have the opportunity to allocate funds and how the business is run.
Starting a business in a new country can be daunting for anyone states finance experts at Max Funding. They advise “Don’t get caught up in the excitement too soon. It’s important to understand the financial aspects of running an Australian business. There are many available services to enhance the beginning of your business through loans. However, stay on top of your debts to stay afloat.”

Structuring the company is ideal when it comes to inviting investments. You want to focus on bringing in new investors and that is only possible when you have a properly structured setup in place. 

Since you are dealing with temporary working rights, this becomes doubly important to secure your business and its assets. 

You will also want to make sure they see cost certainty in what you have to offer.

You will have to focus on running your business through a structured setup the ASIC (Australian Securities and Investments Commission) demands. 

The ASIC is going to require at least one of the directors associated with the company to be an Australian resident.

Things to Keep in Mind

Taxation

If you are a temporary visa holder, you will have to file taxes as a foreign resident. 

This is going to come with a much higher tax rate on the income that is being earned in Australia.

This is why you have to structure the company in a way where the taxation doesn’t bite heavily into your earnings. 

You will want to make sure the foreign resident tax is kept at bay as much as possible. 

In most cases, you will have to pay a bit in any situation.

Long-Term Implications of Your Business

You will have to think about how long the business is going to be set up in Australia considering your temporary visa and its expiration date. 

You will have to leave the nation as soon as the visa runs out.

If you are going to be setting up a business in Australia then you need to have a resident that can take care of it. 

Otherwise, you are going to have no one to run the business as soon as your visa expires. 

The same applies to those who want to sell their business before the expiration date. 

You have to figure out how the sale is going to be made and how much you are going to collect funds from the sale. 

These details matter considering taxation still applies to the sale.

Short-term visas can push stress onto our relationships. According to mental health experts at Thinking Families, mixing business and relationships in a small amount of time in a foreign country can impact the dynamic of your family. They state that “it’s important to maintain balance. Visiting a foreign country for business purposes can drive relationship stresses. Be sure to take time to relax and take time to experience the travel and be organized when it comes to a conclusion.”

Final Thoughts

For those who are thinking about setting up a new business, it is a challenging thing to manage.

It is complex and comes with many legal implications that have to be kept in mind at all times. 

You will want to focus on those temporary visa requirements and then start a new business. 

Having a business partner that is a resident will go a long way in this process.

Australia provides a range of visas for all kinds of visits. 

Therefore, simply plan ahead and become take control of new experiences.

Are you ready to start your next business venture? Here’s everything you need to know about an Australian business visa.