This is a common question that international students have in their minds. Can an international student start a business in Australia?🧐

Yes is the simple answer to that question.

You are allowed to start a business in Australia as an international student, but you must still abide by the restrictions outlined in your visa. This means that you are limited to working 40 hours every two weeks, in addition to having to finish the required amount of hours of study.

However, when beginning a business in Australia, certain conditions must be met, and additional considerations must be made.

Therefore, Univly here and in this essay is going to introduce a practical course (Pathfinder) and to provide you with comprehensive information on how to launch a business in Australia as an international student.

Considerations before starting a business

There are several points to take into account when beginning a business.

The first and most important one is self-awareness.

You need to know about your:

• skills (personal strengths and weaknesses)
• interests (sorts of activities and subjects to find interesting)
• styles (kinds of jobs)

When you don’t have self-awareness, you can’t find a better job and get your big picture. There are different techniques through which you can get self-awareness.

1️⃣ Holland Test

2️⃣ Career Interest Test

3️⃣ Strenght Test

4️⃣ Personaaality Type Test

Steps to starting your own business in Australia

Self-awareness is followed by the introduction of the stages for beginning a business in Australia.

Let us Consider these actions to be reverse engineering:

1. Choose an industry

You should search about the industry and get enough information about its employment, sectors and…

2. Visa type and considerations

• student visa

The following need to be considered on the student visa:

👉 Visa Conditions:

You are permitted to work up to 40 hours per fortnight in Australia while you are a student and have a student visa.

During the holidays, you are permitted to work at any time.

👉 Balance study and work

Living on a student budget can be difficult at times, and you will probably need to look for a part-time job at some point while you are a student.

It might be difficult to strike the correct balance between obligations to your job and your studies.

 It will require time management skills.

👉 Relevant to study if possible

When considering a student employment, think about the position that would be most helpful to your academic goals.

👉 Big picture

3. Money to start

It depends on the skill and business type.

There are some businesses that require more funding than others, such as internet jobs.

Reasons why would start a business in Australia

Studying in Australia can be expensive, which is why many international students are working in different jobs in Australia. Most international students in Australia are willing to work in any job to support themselves.

However, in Australia, it is possible for international students to start their own businesses, and this can have many benefits.

By starting a business in Australia, international students can earn a high income. On the other hand, starting a business in Australia means that you determine your working conditions and can easily plan your working hours.

Starting a business in Australia for international students is not a difficult and complicated task and it only requires knowledge of its rules and conditions, which we try to examine in this article.

4 Phases for international students to begin a business in Australia

Have a business idea? A hobby that you’d like to turn into a job? Have a business overseas and want to start it in Australia? We would like to share the 4 steps with you if you responded positively to any of the questions above.

1️⃣. Market research

Spend time and resources on thorough market research. Don’t limit your search to companies in your industry. Many industries overlap in today’s world of sharing economies, high transparency, globalization, etc. Consider how the Amazon and their drones, for instance, can be both a threat and an opportunity for your start-up if you are starting a drink company.

2️⃣. Name Checker

Before you register your business name, purchase a domain, create your branding, set up your social media accounts, and do all the other exciting things, visit https://www.namecheckr.com/ to check the availability of your business name on various platforms.

3️⃣. Start-up lawyer

They will assist you in navigating and comprehending all legal requirements that apply to your business or sector in Australia. It’s crucial to establish the right legal framework right away. You don’t want to be soliciting funding, making pitches to investors, and negotiating shares while you aren’t yet in compliance with the law.

4️⃣. Choose your business structure

In Australia, there are four commonly used business structures, which one is best suited for you? we will talk about business structures in Australia later on.

How to start a business in Australia?

Before you start a company, there are a series of factors you should consider: What problem would you be solving?

While profit is the obvious benefit of business, at its core, any company is essentially solving a problem. Not every ‘problem’ has to be life or death; all you need to know is that people will pay you money to make their lives better in some way. Your business will only be successful if you do this.

Are there already other companies operating in the same area?

While there is nothing wrong with competition, especially if you have a unique angle, you should be aware of other businesses doing something similar. What do they do well? What could you have done better? What is the extent of their market penetration and market share? Before you invest too much time in your venture, a simple internet search is a great place to start.

Do you have the time and money to get started?

Any business will almost certainly require more time and money than you anticipated. However, if you believe you have the time, your main concern will be money. Bootstrapping (doing it all yourself), money from friends and family, and seeking outside investment are the three main ways to finance a company. As a company grows, it is not uncommon for it to employ all three styles.

Do you have, or have access to, the skills and resources required?

You may have a fantastic idea, but do you have the necessary skills to put it into action? Creating a Minimum Viable Product is the best way to test the waters of your business (MVP). This is the most basic version of your product or service that you can use to test with early customers and attract investment. You can use the MVP to test your idea, see if there is a market for it, and decide which areas to focus on in the future.

Business structures in Australia

Before discussing the various types of businesses in Australia, it is important to note that in order to establish a business in the country, it is always necessary to have the assistance of a qualified professional in the field.

The professional can assist you in clarifying the laws and the benefits that each type can provide the entrepreneur.

The business structure you want to utilise must be chosen as you set up your company. The following are the top four:

✅ Sole Trader

✅ Partnership

✅ Company

✅ Trust

Being a sole trader or self-employed is a very common business model in Australia. Essentially, it is the country’s most basic and least expensive business structure.

Your business’s operations may be impacted by the structure you choose. For example, if you start your firm as a sole proprietor, you might change to a different business organization structure, which might lead to new legal needs like a new ABN. Everything is dependent on the new structure.

Entrepreneurship entails additional legal obligations, which change depending on the chosen firm structure.

Requirements to start a business in Australia

Here are some prerequisites that must be met in order to start a business in Australia:

🔘 ABN

An ABN is required since the majority of international students start their own businesses in Australia as sole proprietors or self-employed individuals.

Australian Business Number is known as ABN. Australian Business Register has assigned you an 11-digit number to identify you as a firm.

Basically, an ABN is required for anyone operating a business in Australia. You have the option of registering an ABN under your name, such as John Smith, or a business name, such as Overseas Students Australia.

You can use ASIC to register a different name for your business if you want to. Obtaining an ABN is completely free when starting a business in Australia.

🔘 TFN

Obtaining a TFN is crucial as well. Tax File Number is referred to as TFN. Your personal tax returns will be filed using this 9-digit number. Getting a TFN is free as well.

🔘 ACN

You must register a company in Australia if you wish to operate a business as a corporation. You will require an ACN for that. An Australian company number is known as an ACN.

You can register a company as an international student, but it’s crucial that at least one of the directors is an Australian citizen. That individual may be an Australian citizen or a permanent resident of Australia.

A cost must be paid when registering an ACN, hence getting an ACN is not free. In Australia, the price of forming a business can range from $500 and higher.

Costs to set up a business in Australia

Let’s start by taking a look at the required fees for registering a business in Australia. Although there is no cost to apply for a TFN or to get an ABN (Australian Business Number), there is a cost to register as a company and to get a business name. Obtaining a business name costs $37 for 1 year or $87 for 3 years while registering a firm costs $506 (for a proprietary limited company).

You will need to budget for a wide range of expenses in addition to the required startup costs for your business. Examples of typical small business startup expenses include the following:

Salaries – Salaries for your staff are perhaps the most crucial item to take into account. Australia’s current minimum wage is $19.84 per hour, or $753.80 a week (38 hours). However, depending on the kind of roles you’re hiring for, you may need to pay significantly more to draw the talent you need to advance your company.

Rent – Rent is a key startup expense that you should also take into account. The cost you might anticipate will depend on the location you’re renting and the quantity of the space you require. According to commercialrealestate.com.au, the average office rent in Australia is $380 per square meter per year on the Gold Coast, compared to $1025 per square meter per year in the Sydney CBD.

Professional fees – It’s also important to consider the costs associated with outsourcing any essential business operations. Although paying for legal and accounting services is expensive, it is crucial for businesses to get the compliance and regulatory side right from the start.

6 issues to consider for starting a business in Australia

1. Tax Issues

A temporary visa holder is most likely a foreign resident for tax purposes in Australia. Any income earned in Australia will be subject to a higher tax rate. Because Australia has a 30% flat tax rate, the company structure may be advantageous. However, suppose you distribute any of the company’s profits to yourself. In that case, you may still be subject to a higher foreign resident tax rate.

2. Business Sustainability Concerns

One of the most important considerations is how you intend to run your business after your temporary visa expires. You must leave Australia as soon as your visa expires.

As a result, it is critical to think about the type of business you want to start. Is it a business that can be easily exported and operated from anywhere? Is your presence in Australia required for business?

 It would be inconvenient to open an in-person shop in Australia only to leave when your visa expires, so consider these questions before embarking on your entrepreneurial journey.

Assume you intend to continue operating your own business from abroad. In that case, you will require an Australian business partner to handle matters on your behalf in Australia. Nonetheless, any business income or dividends you receive in Australia will be taxed.

If you intend to sell your business when your visa expires, you should do so as soon as possible. A business sale in Australia can take up to two weeks to complete. Remember that any proceeds from the business’s sale will be taxed at a higher foreign resident tax rate.

3. Important Takeaways

Starting a business on a temporary visa in Australia is a good idea. However, the procedure can be extremely complicated. You should review your current visa requirements to ensure that you will be able to meet them if you start a business. If you have an Australian business partner, you may be able to start a company. However, you might want to avoid this company because of the high tax implications.

4. Look for mentorships, innovation and business networking programs

Has your university established initiatives to support entrepreneurship by putting students in touch with communities, businesses, and start-ups? To learn about the potential for student entrepreneurs, get in touch with your educational institution.

5. Attend events

Speaking events are excellent venues for networking with like-minded individuals and attending thought-provoking, cutting-edge lectures on cutting-edge start-ups, business strategies, and significant inventions.

6. Network

Find out more about the members of your entrepreneurial community. Attend meet-and-greets, industry seminars, and even speed dating events with business executives—where ideas, research, and skills are the “heart” of the date—to network with other businesspeople. In addition, you’ll be able to practice your pitches, which will be a great way to improve your confidence and network.