How to Start a Business in Australia as a Foreigner in 2026
How to Start a Business in Australia as a Foreigner in 2026
While Australia is still a great place for overseas entrepreneurs to be, the truth of the matter is that the answer to ‘how easy is this’ has changed considerably in 2024 and much of the information that’s floating around online hasn’t yet caught up. In July 2024, the subclass 188 visa for business migration was closed to new applications. If you’re looking into starting a business in australia as a foreigner in 2026, the first thing you need to know is that it’s a much different landscape than it was even two years ago, and the visa process is just as important as the company registration process.
Two Commonly Confused Questions that people often get mixed up
It is not the same to have a business in Australia as it is to live in Australia and run a business from day to day. A company doesn’t require an owner or director to be resident; it is enough if at least one director ordinarily resides in Australia – the company can be registered and shares held, and the company can even be directed entirely from outside Australia without the need for a visa. The visa issue only arises when you are ready to visit physically, to work in the business yourself. Many prospective business owners in australia for foreigners make this mistake, thinking that company registration and immigration approval are one and the same. They are not and mixing the two up is one of the most frequent early pitfalls.
What's changed with visas in 2026?
The subclass 188 Business Innovation and Investment Program, which has been the go-to visa for entrepreneurs and investors for years, closed to new applications on 31 July 2024. The subclass 188 permanent visa program is no longer open, although 188 visa holders can still make a transition to the subclass 888 permanent visa.
The government replaced the National Innovation Visa (subclass 858) with the new visa in December 2024 for exceptionally talented founders, researchers and investors who can show that they have made genuine achievement and contribution to priority sectors, including critical technologies, health, and low-emission industries. It is a merit-based process, not a passive investment process; there is no simple formula to get a visa anymore and applicants are expected to demonstrate a track record, not just capital.
If you don’t qualify for the high threshold, the more practical pathway for starting a business in australia for foreigner purposes in 2026 is likely to be indirect – through a skilled visa, employer sponsorship (including self-sponsorship structures in some cases) a partner visa (where applicable) or a regional visa (such as subclass 491 or 494 – if the business is located outside a major city). None of these were intended to be “business visas,” but in reality they are doing a lot of that work.
Costs to Consider
In addition to visa application fees, which can be quite high depending on subclass and application, anyone wishing to open a business in australia as foreigner should also expect to pay for company registration with ASIC, an Australian Business Number (ABN) and Tax File Number (TFN) for the company, a registered office and public officer if necessary, and professional fees for accounting and legal set up. A cost that is not always considered is the cost of the migration agent or lawyer – most successful visa applicants in 2026 will have a migration agent who is registered with the MARA, not apply for a visa themselves.
Legal steps
- Choose a structure (company, trust, partnership or sole trader – note that generally a sole trader structure will require Australian residency).
- Register the entity with ASIC and get an ABN/TFN.
- Check your visa pathway before you invest capital – the last step people take when they are researching starting business in australia for foreigners is to confirm their visa pathway.
- Register a business bank account (usually requires proof of identity and company registration documents).
- Register for GST, PAYG and industry specific licences, if applicable, to your industry.
- Ensure that tax and migration advice is delivered concurrently as visa status will impact on tax residency and reporting.
The easy part is the setup of the company itself (ASIC registration takes days). The real complexity in 2026 is all on the immigration side: the investment pathway is no longer there, and the vast majority of foreign founders are now required to go through a skilled visa, a sponsored visa, or a merit-based visa pathway. The difference between a smooth set up and a business that has no legal means for the founder to actually run it from within Australia is getting proper migration advice before registering anything.
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