Self-Employment on F-1 / OPT?

Can an F-1 Student on OPT Work for Their Own Company?

Yes, they can—under certain conditions.

F-1 students participating in Optional Practical Training (OPT) are permitted to engage in self-employment, including starting and working for a business in which they hold majority ownership. However, several important criteria must be met to maintain compliance with immigration regulations.

Key Requirements for Self-Employment on OPT:

  1. Direct Relation to Degree Program:
    The business activity must be directly related to the student’s major field of study.
  2. Proper Business Licensing:
    The student must obtain all necessary business licenses required to legally operate the company.
  3. Active Involvement:
    The student must be actively engaged in running the business. Passive ownership is not sufficient; the business must be operational and demand substantial time and effort from the student.
  4. E-Verify Requirement for STEM OPT Extensions:
    For students on the STEM OPT extension, the business must be enrolled in E-Verify, and the student must work full-time for the business.
  5. Compliance with OPT Reporting Requirements:
    The student must meet all standard OPT reporting obligations, including notifying the Designated School Official (DSO) of employment details and any changes in employment.

Regulatory Guidance

These rules are outlined in U.S. Immigration and Customs Enforcement (ICE) guidance, specifically SEVP Policy Guidance 1004-03 on Optional Practical Training (OPT). This policy confirms that F-1 students on post-completion OPT may be self-employed if they meet the following conditions:

  • The employment is directly related to their degree.
  • The student possesses the required licenses.
  • The student is actively working in the business.

For STEM OPT participants, additional requirements apply:

  • The business must be E-Verify enrolled.
  • The student must work a minimum of 20 hours per week (typically interpreted as full-time).

Purpose and Compliance

These provisions ensure that F-1 visa holders maintain the primary purpose of the visa—academic study—while also allowing them to gain practical experience through entrepreneurship, so long as the work remains closely tied to their academic field.

Last Revision: March 2025.