In short: A founder on a temporary visa can own a company, but a proprietary company needs at least 1 Australian-resident director. Whether the founder can work in the business depends on the visa condition, which varies by subclass.
Three questions before the structure
Founders on temporary visas ask us about companies and trusts. We ask three questions first. Does your visa let you work in your own business? Who will be the resident director? What does your accountant say about tax residency? The answers narrow the structure quickly. The company is usually the right vehicle. The visa condition often decides whether the founder can run it.
Visa conditions on work and self-employment
Work conditions vary by subclass, and self-employment is work. A 482 holder is bound by condition 8607. They must work only in the nominated occupation for their sponsor or an associated entity. Running a separate business breaches that condition. Holding shares passively does not. A 482 holder can therefore own a company but should not work in it without advice.
A student visa holder has a cap on work hours during term, and hours in their own business count. A graduate visa holder usually has no work limit. A partner visa holder has full work rights. A visitor cannot work at all. Business Innovation visa holders have their own requirements about managing the business. Our migration team confirms the condition on your grant notice before we form anything.
Director residency
The Corporations Act 2001 requires a proprietary company to have at least 1 director who ordinarily resides in Australia. The test is residence, not citizenship or visa type. A founder living in Melbourne on a temporary visa can often meet it. A founder who spends most of the year overseas cannot. Every director also needs a director identification number before appointment. The company needs a registered office in Australia, which can be our office or the accountant's.
We warn against nominee directors. A friend who agrees to be the resident director takes on the full duties and liabilities of a director. That is a real role, not a formality.
Company, trust or partnership
A proprietary company gives limited liability, a separate legal entity and a familiar structure for investors. The founder holds shares and, if resident, sits on the board. Share ownership on its own does not breach a work condition. It is the structure investors expect and the easiest to sell later. It also supports a shareholders agreement. The cost is ASIC registration and annual review fees, and the director duties that come with the role.
A discretionary trust with a corporate trustee suits asset protection and family distribution. For a founder on a temporary visa it has two catches. Distributions to a non-resident or temporary resident beneficiary are taxed differently, so the accountant must model them. In Victoria a trust with any potential foreign beneficiary can be treated as a foreign trust for land duty. The fix is a deed that excludes foreign beneficiaries. We include that exclusion where land is in view.
A partnership under the Partnership Act 1958 (Vic) is simple and cheap to form. Each partner is jointly liable for the debts of the business. Each partner is also self-employed, which breaches most temporary visa work conditions. We rarely recommend a partnership for a founder on a temporary visa. A company with a shareholders agreement achieves the same sharing of profit with limited liability.
Foreign investment rules
A temporary resident is a foreign person under Australia's foreign investment rules. Most start-ups fall below the thresholds that require approval. Buying land, including a shop or a factory, is different. It may need approval and may attract additional duty in Victoria. We check the position before any land purchase by the company or the trust.
Tax coordination with the accountant
A temporary resident is taxed differently from a permanent resident on foreign income and capital gains. Tax residency turns on facts, not on the visa. The choice between company and trust changes how profits flow to the founder and how a later sale is taxed. We do not form a structure without the accountant's sign-off on these points. Our commercial practice sends the accountant a one-page structure memo. They return it with the tax view. Then we draft.
Can my own company sponsor me?
Founders sometimes ask whether their company can sponsor them for a 482, or nominate them for a 186 later. It is possible in principle. The Department tests whether the position is genuine and whether the business needs the role. A company set up only to sponsor its owner does not pass. Our migration team assesses this before the company is formed, so the structure and the visa plan agree. Our note on 482 eligibility is the starting point.
Which structure, at a glance
| Question | Company | Trust | Partnership |
|---|---|---|---|
| Limited liability | Yes | Yes, with a corporate trustee | No |
| Resident director needed | Yes, at least one | Yes, for the trustee company | No |
| Founder's role and the work condition | Fine as shareholder; care as working director | Fine as beneficiary; care as working director | Partners are self-employed |
| Investor ready | Yes | Rarely | No |
| Foreign beneficiary duty issue | No | Yes, unless the deed excludes | No |
Before you form the company
Can I be the sole director while on a 482?
Only if you ordinarily reside in Australia and your work in the company stays within your visa condition. Being a director of a company that trades is work. Get advice first.
What if I have to leave Australia?
The company needs a resident director at all times. The shareholders agreement should say what happens to your shares and your role if you must depart. See our note on shareholders agreements.
Next step
Bring your visa grant notice and your accountant's contact details to the first meeting. The commercial team and the migration team meet you together. The structure and the visa plan are settled in one conversation. To book, contact us.
Frequently asked questions
Can a temporary visa holder be a director of an Australian company?
Yes, if they ordinarily reside in Australia and hold a director identification number. Citizenship is not required.
Does owning shares breach a 482 work condition?
Passive ownership does not. Working in the business outside the nominated occupation and sponsor does.
Is a partnership a good structure for a founder on a temporary visa?
Rarely. Partners are self-employed, which conflicts with most temporary visa work conditions.
Who decides my tax residency, the visa or the tax law?
Tax residency turns on your facts under tax law, not on your visa. Your accountant assesses it.
This article relies on the Corporations Act 2001, the Migration Regulations 1994 and the Partnership Act 1958 (Vic).
General information as at 2 September 2026. Not legal advice. Visa conditions and tax outcomes turn on your own facts, so obtain advice before forming anything.