Foreign companies planning to expand into Australia often need to transfer key personnel or recruit skilled workers to establish and support their Australian operations. Australian migration law allows overseas companies that are establishing an associated entity or business presence in Australia to sponsor foreign workers, provided certain statutory requirements are met.
Legal framework for business sponsorship
Under the Migration Act 1958 (Cth), a business must first obtain approval as a Standard Business Sponsor (SBS) before it can sponsor overseas workers. Section 140E of the Act provides that the Minister must approve an application for standard business sponsorship if the prescribed criteria are satisfied.
The relevant criteria are set out in the Migration Regulations 1994 (Cth), particularly Regulation 2.59. This regulation requires that the applicant be lawfully operating a business, whether in Australia or outside Australia.
Overseas companies not yet operating in Australia
Importantly, Australian migration law recognises that overseas businesses may seek sponsorship approval before establishing a fully operational business in Australia.
Under Regulation 2.59(h) of the Migration Regulations, where the applicant is lawfully operating a business outside Australia but does not yet operate a business in Australia, the applicant may still be approved as a Standard Business Sponsor if it intends for the visa holder to:
- establish, or assist in establishing, on behalf of the applicant, a business operation in Australia with overseas connections; or
- fulfil, or assist in fulfilling, a contractual obligation of the applicant.
This provision allows an overseas parent company to sponsor employees to Australia in order to help establish the Australian entity or support business activities connected with the overseas business.
Types of workers that may be sponsored
Once approved as a Standard Business Sponsor, the company may sponsor foreign workers under employer-sponsored visa programs such as:
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Skills in Demand Visa (subclass 482), commonly used for temporary skilled workers and intra-company transfers; and
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Employer Nomination Scheme visa (subclass 186), which provides a pathway to permanent residence for eligible skilled employees.
The sponsored workers may include:
- Intra-company transferees, such as executives, managers, or specialist employees transferred from the overseas parent company to establish or manage the Australian operation;
- Employees from the global corporate group who are required to support the Australian expansion or deliver specialised expertise; and
- Local hires, where the Australian entity recruits a foreign worker with specialised skills that cannot readily be sourced in the Australian labour market.
MCLP Lawyers regularly assist overseas companies planning to establish operations in Australia. We can help prepare and structure the documentation required to demonstrate that the sponsored worker will assist in establishing the Australian business or fulfilling the company’s contractual obligations.
Our team can assist with:
- preparing Standard Business Sponsor applications for overseas companies;
- structuring intra-company transfer arrangements;
- advising on employer-sponsored visa pathways and compliance obligations.
Conclusion
Australian migration law provides a practical pathway for foreign companies entering the Australian market to sponsor skilled foreign workers. Even where the overseas company does not yet operate a business in Australia, it may still obtain approval as a Standard Business Sponsor if the sponsored workers will assist in establishing the Australian business or fulfilling the company’s contractual obligations.
If you have any questions regarding sponsoring foreign workers or establishing a business presence in Australia, please contact MCLP Lawyers for further advice and assistance.