Written by Immigrad · Registered Migration Agent · MARN 1805710 · Last updated November 2026
Possibly, yes. Sole traders are a recognised business structure on Department of Home Affairs sponsorship forms, so structure alone does not rule you out. What matters is whether your business is legally established and currently operating, has no adverse information against it, and can show a commitment to employing local labour. Each application is assessed on its own facts.
Many small operators work as sole traders, such as tradespeople, hospitality owners and consultants, and wonder whether they must incorporate before they can employ an overseas worker. This page explains how the Department approaches the question, in general terms.
How sponsorship is assessed
To sponsor a worker on a Skills in Demand (subclass 482) visa, a business first applies to become a standard business sponsor. The Department assesses whether the business is suitable to take on sponsorship obligations. For a sole trader, the application is made in the individual’s name, so the business and the person are effectively the same for assessment purposes.
Our guide on whether a new or small business can become a standard business sponsor sets out the published criteria, and our page on standard business sponsorship requirements covers the wider requirements. The documents a business needs will differ depending on its structure.
If you are weighing up incorporation, the choice depends on tax, liability and commercial considerations that sit outside migration advice. You may wish to speak to an accountant as well as a registered migration agent.
Is there a minimum trading period for a sole trader?
Immigrad’s guide to new and small businesses explains that the Department does not set a minimum trading period. The question is whether the business is real, currently operating and suitable to hold sponsorship obligations, not how old or large it is.
What does the Department look at when assessing a sole trader?
The Department considers whether the business is legally established and operating, whether there is adverse information about it, and whether it has a record of, or commitment to, employing local labour. Because a sole trader is the individual, that person’s own compliance history is likely to be relevant.
Does the position still need to be genuine?
Yes. Sponsorship approval is only the first step. The employer must then nominate a genuine position that meets the salary and other nomination requirements, and the worker must meet the visa criteria. A sole trader is held to the same standards as any other sponsor. See our guide to 482 nomination requirements and the genuine position test.
Will sponsorship obligations apply to a sole trader?
Yes. Approved sponsors take on ongoing obligations, such as keeping records and meeting pay and notification requirements. A sole trader carries these personally, so it is worth understanding them before applying.
Not sure whether your business structure suits sponsorship? Book a consultation with Immigrad and we will review your situation before you commit.
This article is general information only, current as at November 2026, and is not personal migration advice. Complex cases need personal advice from a registered migration agent. Sources: Department of Home Affairs, Becoming a sponsor and sponsorship form guidance.