SBS Application: Proving Your Business is Lawfully Operating
For Australian businesses looking to sponsor overseas workers through a Skills in Demand (SID) (Subclass 482) Visa, a valid Standard Business Sponsorship (SBS) is required. For an SBS application, simply proving your business is legally established isn’t enough. Recent trends indicate an increase in SBS application refusals under Regulation 2.59(c), often because case officers are not satisfied that the sponsoring business is “lawfully operating”.
What Does “Lawfully Operating” Truly Mean?
Beyond basic registration, “lawfully operating” implies that your business is:
Engaged in its declared business activities, generating revenue, and incurring expenses.
Adhering to all relevant Australian laws and regulations, such as tax, employment, and industry-specific regulations.
The company is genuine and not merely a shell company or a business set up solely for the purpose of sponsoring visas.
What are the Common Pitfalls Leading to an SBS Refusal?
Case officers are now seeking more robust evidence than ever before. Refusals often occur when employers:
Provide only basic registration documents without proof of ongoing commercial activity.
Submit limited or inconsistent financial records.
Fail to demonstrate a clear operational history.
Related: Staying Compliant: Sponsorship (SBS and TAS) Obligations for Australian Employers Guide
How to Prove Your Business is Actively and Lawfully Operating?
To improve your SBS application, focus on providing a broad range of verifiable supporting documents that paint a clear picture of your business’s active and compliant operation. Some key evidentiary documents to submit:
A comprehensive letter from your business’s external account, on letterhead, confirming the lawful operation, financial viability, and trading history of the business.
Submit annual reports that include financial statements.
Provide copies of your most recent business tax returns.
Submit several recent Business Activity Statements (BAS) to demonstrate consistent trading activity.
Provide recent bank statements for your business accounts.
Evidence of ongoing contracts with clients/supplies, sales invoices, and purchase records.
Payslips for existing Australian staff, superannuation contributions, and employment contracts (if applicable).
Read our clients’ testimonials on Agape Henry Crux and Accredited Specialist in Immigration Law, Jason Ling.
Related:
What If My Employer Withdraws My Nomination After It’s Been Approved?
What Happens if My Sponsor Loses their SBS Approval while I’m on a SC482 Visa?
How Can Agape Henry Crux Help You?
If you find sponsoring for your employee is confusing, consider consulting with an immigration lawyer for professional advice and guidance. At Agape Henry Crux, our team of immigration lawyers work closely with our Accredited Specialists in Immigration Law to handle highly complex matters. You can book a Migration Planning Session with our team by calling 02 8310 5230 or emailing us at info@ahclawyers.com to arrange a time.
We speak fluent English, Mandarin and Cantonese. If these aren’t your language, we can also help you arrange an interpreter.
This article/presentation (“publication”) does not deal extensively with important topics or changes in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you find this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances, please contact our office.
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