Can Tourists Open A Business In Australia?

Australia is an attractive place to start a business - strong consumer demand, a stable legal system and access to Asia-Pacific markets all make it compelling.

But if you’re visiting on a tourist visa, can you actually open a business here?

In short: you can do some early planning and even set up certain structures from overseas, but you can’t lawfully “work in” or actively run an Australian business while you’re on a visitor visa. To operate day‑to‑day, you’ll need a visa that allows you to work or carry on a business in Australia.

Below, we’ll unpack what’s possible (and what isn’t) for tourists and other non‑residents, the legal steps to set up a compliant Australian business, and how to protect your venture from day one.

What Can A Tourist Do (And Not Do) When It Comes To Starting A Business?

Visitor visas (like subclass 600) don’t allow you to work in Australia. Running or managing a business is considered “work”, so you can’t lawfully carry out operational activities while on a tourist visa.

However, there are still a few things you can do from outside Australia or while visiting, provided you don’t work in the business here:

• Research the market, meet advisers and explore opportunities (purely exploratory activities).
• Incorporate an Australian company as a passive owner from overseas (more below).
• Appoint local professionals to help with setup tasks you can’t lawfully do yourself while on a visitor visa.

If you want to be hands‑on in Australia, you’ll need a visa with work rights (for example, a business or investment visa). Migration settings and eligibility change, so it’s wise to seek advice from a registered migration professional for your specific visa pathway. We can help with the legal setup once you’ve got the right visa in place.

Can A Non‑Resident Set Up An Australian Company?

Yes - many non‑residents establish Australian companies. The key legal requirement is that a proprietary limited company must have at least one director who is ordinarily resident in Australia. You can read more about this in our guide to Australian Resident Director requirements.

At a high level, setting up a company involves:

• Choosing a name and checking availability.
• Deciding on share structure and roles (founders, investors, directors, company secretary).
• Registering the company with ASIC and getting an ACN (and then an ABN for tax).
• Adopting a Company Constitution or using replaceable rules.

We can manage the process end‑to‑end through our Company Set Up package, including the documentation you need to get started correctly. If you trade under a chosen name that isn’t your company’s legal name, you’ll also need to register a Business Name.

Important: owning or directing a company does not, by itself, give you the right to work in Australia. Visa work rights are a separate requirement.

What Business Structure Should I Choose As A Non‑Resident?

Your structure affects liability, control, tax, and investor readiness. Common options include:

• Sole Trader: Simple and low cost. Harder as a non‑resident, and there’s no liability separation between you and the business.
• Partnership: Two or more people share control and liability. Again, no limited liability protection - and partners are jointly responsible for debts.
• Company (Pty Ltd): A separate legal entity that provides limited liability and can be more attractive to investors. Requires at least one Australian resident director and ongoing ASIC compliance.

Most non‑resident founders who are serious about growth use a company structure because it separates personal assets from business risks and is well‑understood by banks, suppliers and investors.

What Legal And Compliance Steps Will I Need To Cover?

Once you have (or plan for) the right visa to be active in the business, map out the Australian legal requirements early. Key areas include:

1) Registrations And Tax

• Get an ABN (and TFN as needed) and register for GST if your turnover will exceed the threshold.
• If using a trading name, hold a current Business Name registration.
• Keep your ASIC details up to date and diarise annual statements.

2) Directors, Governance And Ownership

• Ensure you meet resident director obligations and keep proper corporate records and minutes.
• If you have co‑founders or investors, put a clear Shareholders Agreement in place covering ownership, decision‑making, exits and disputes.
• Adopt a fit‑for‑purpose Company Constitution to set internal governance rules.

3) Consumer Law

• Any business that sells to Australian consumers must comply with the Australian Consumer Law (ACL): don’t mislead customers, honour consumer guarantees and advertise accurately. Our explainer on misleading or deceptive conduct is a helpful starting point.

4) Privacy And Data

• If you collect personal information (most businesses do), you’ll likely need a compliant Privacy Policy and clear collection notices.
• Online businesses should publish Website Terms and Conditions that set the rules for use and limit your liability.

5) Employment Law

• If you hire staff, you must comply with Fair Work obligations, pay the correct minimums and issue the right contracts. Start with a solid Employment Contract and appropriate workplace policies.
• If engaging contractors, use tailored agreements and avoid sham contracting risks.

6) Intellectual Property (Brand And Content)

• Protect your brand by registering a trade mark for your name and logo in the correct classes.
• Use copyright licences when working with designers, developers or content creators to ensure your business owns or can use the outputs.

7) Commercial Contracts

• Have clear customer-facing terms (such as Terms of Trade or a Service Agreement) that cover pricing, scope, timelines, IP, liability and termination.
• Lock in reliable supply with written Supplier or Distribution Agreements.

It can feel like a lot, but setting these foundations now will save you major headaches later - and positions your venture to scale confidently.

Step‑By‑Step: How A Non‑Resident Can Get Ready To Do Business In Australia

Step 1: Confirm Your Path To Work Rights

Before you plan to be hands‑on in Australia, make sure your visa will allow you to work or run a business here. It’s normal to map the business pathway while your migration plans take shape, but don’t perform any work in Australia until those work rights kick in.

Step 2: Choose Your Structure And Governance

Decide if a company is right for you and, if so, who will be the Australian resident director. If you’re raising capital or have co‑founders, agree ownership splits and decision‑making rules early, then document them in a Shareholders Agreement.

Step 3: Register Your Entity And Trading Names

Incorporate the company, adopt your Company Constitution, obtain an ACN/ABN and register your Business Name if you’ll be trading under one. Our Company Set Up service can handle this while you focus on strategy and customers.

Step 4: Set Up Your Brand And Online Presence

Secure your domain, social handles and brand assets. File a trade mark application early to protect your name and logo. Publish a compliant Privacy Policy and Website Terms and Conditions on your site.

Step 5: Put Your Key Contracts In Place

Tailor your customer terms, supplier agreements and NDAs before you start trading. If hiring, issue the right Employment Contract and onboard policies.

Step 6: Build Your Compliance Rhythm

Set up record‑keeping, invoicing and payroll systems. Calendar ASIC lodgements, tax dates and licence renewals. Train your team on ACL and privacy obligations so compliance becomes part of everyday operations.

What Legal Documents Will I Need?

Every venture is different, but most Australian startups benefit from these core documents:

• Shareholders Agreement: Sets out ownership, voting, exits and dispute processes among founders and investors.
• Company Constitution: Your company’s rulebook (we can provide and tailor this with our Company Constitution service).
• Terms of Trade / Service Agreement: Clear terms for customers covering scope, pricing, IP, liability, cancellations and payment.
• Website Terms and Conditions: House rules for site/app users, IP protection and liability limitations, especially if you operate online.
• Privacy Policy: Explains how you collect, use and store personal information in line with the Privacy Act.
• Employment Contract: Defines duties, pay, confidentiality, IP ownership and termination for staff.
• Supplier or Distribution Agreements: Locks in product/service supply, quality expectations and pricing.
• Non‑Disclosure Agreement (NDA): Protects confidential information when you speak with partners, suppliers or investors.
• Trade Mark Registration: Secures your brand name and logo - start the process through our trade mark service.

You may not need all of these on day one, but having the right set of tailored contracts in place will reduce risk and help you trade with confidence.

Buying A Business Or Franchise Instead Of Starting From Scratch?

If you’re exploring visas that support business investment, you might look at acquiring an established business or buying a franchise. These paths can offer brand recognition and systems, but they come with their own legal checks.

For a business purchase, you’ll usually negotiate a sale agreement, conduct due diligence, transfer assets and intellectual property, review leases and assign key contracts. If you’re looking at a franchise, you must receive and review the disclosure document and franchise agreement carefully, with particular attention to fees, territory, training, marketing obligations and how you can exit.

Whichever path you choose, it’s essential to align timeline and conditions with your visa plan so you don’t accidentally “work in” the business before your work rights begin.

Key Takeaways

• Tourist visas don’t allow you to run or manage a business in Australia - you’ll need a visa with work rights to be hands‑on.
• Non‑residents can set up an Australian company, but a proprietary company must have at least one Australian resident director.
• Choose a structure that fits your goals; many founders use a company for limited liability and investor readiness.
• Cover the basics early: ABN/ACN, Business Name (if needed), governance, brand protection and clear customer/supplier contracts.
• Comply with core laws from day one, including the Australian Consumer Law, privacy rules and Fair Work requirements if hiring.
• Protect your brand with trade marks and publish a compliant Privacy Policy and Website Terms and Conditions if you operate online.
• Strong, tailored legal documents help manage risk and set you up to scale confidently in Australia.

If you’d like a consultation on starting or acquiring a business in Australia as a non‑resident, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.