Can an F-1 student on OPT with employment authorization work in his or her own company which they are a majority owner of? Yes, they CAN!
An F-1 student on Optional Practical Training (OPT) can indeed engage in self-employment, including starting and working for their own company in which they have a majority ownership. However, there are specific requirements and conditions that need to be met:
- Related to Degree Program: The self-employment or business must be directly related to the student’s major area of study.
- Proper Business Licenses: The student must obtain the proper business licenses to legally operate the business.
- Active Engagement: The student must be actively engaged in the business, ensuring it is operational and involves substantial time and effort.
- E-Verify Registration: For students on a 17-month STEM OPT extension, the business must be registered with E-Verify, and the student must work full-time in the business.
- Compliance with OPT Reporting Requirements: The student must comply with all reporting requirements related to OPT, including reporting employment and changes to the designated school official (DSO).
The regulatory framework that allows F-1 students on OPT to be self-employed is found in the “Policy Guidance for the Student and Exchange Visitor Program (SEVP) and Designated School Officials (DSOs) of SEVP-Certified Schools” issued by U.S. Immigration and Customs Enforcement (ICE), specifically in Policy Guidance 1004-03, which is an update to Optional Practical Training (OPT). This document outlines the conditions under which an F-1 student on post-completion OPT may start a business and be self-employed. Key points include:
- Self-Employment: F-1 students on OPT are allowed to start a business and be self-employed, provided they can demonstrate that they have the necessary business licenses and are actively engaged in a business that is directly related to their field of study.
- STEM OPT Extensions: For those on a STEM OPT extension, self-employment is also permitted. However, the business must be registered with E-Verify, and the student must work full-time in the business.
These guidelines ensure that the primary purpose of the F-1 visa, which is to engage in academic study, is maintained, while also providing flexibility for students to gain practical experience in their field of study through self-employment or entrepreneurship, provided it directly relates to their major area of study.
Revised: March 2024.