Can students on F-1 visa in U.S. operate a software business incorporated offshore?
<p>If I were to form an offshore company (IBC) for an internet business, can I run it in U.S. on F-1 Student status? It is just a software application. People go on the website to pay and download it. There is no major maintenance required, everything is almost automated.</p>

<p>Would I be allowed to hire freelancers to work for the offshore company?</p>

<p>Would I be allowed to hire employees(US or non-US) in the offshore company?</p>

<p>Does my presence in the U.S. as an F-1 student restrict me from earning money to my home country company and home country account?</p>

<p>P.S: the business will have no presence in the U.S. other than the owner living there and working for a job</p>

<p>Naively, this <a href="https://www.uscis.gov/working-united-states/students-and-exchange-visitors/students-and-employment" rel="nofollow noreferrer">does not appeared to be permitted</a> for holders of F-1 Visas.</p>

<blockquote>
  <p>M-1 Student Visa </p>
  
  <p>The M-1 visa (Vocational Student) category includes students in
  vocational or other nonacademic programs, other than language
  training.</p>
  
  <p>Employment </p>
  
  <p>F-1 students may not work off-campus during the first academic year,
  but may accept on-campus employment subject to certain conditions and
  restrictions. After the first academic year, F-1 students may engage
  in three types of off-campus employment:</p>
  
  <ul>
  <li><p>Curricular Practical Training (CPT) </p></li>
  <li><p>Optional Practical Training (OPT) (pre-completion or post-completion) </p></li>
  <li><p>Science, Technology, Engineering, and Mathematics (STEM) </p></li>
  <li><p>Optional Practical Training Extension (OPT) M-1 students may engage in practical training only after they have completed their studies.</p></li>
  </ul>
  
  <p>For both F-1 and M-1 students any off-campus employment must be
  related to their area of study and must be authorized prior to
  starting any work by the Designated School Official (the person
  authorized to maintain the Student and Exchange Visitor Information
  System (SEVIS)) and USCIS.</p>
</blockquote>

<p>The issues are whether "employment" implicitly is limited to employment within the U.S., whether self-employment counts as employment, whether this is self-employment, and whether this self-employment (if it constitutes self-employment) is taking place in the U.S. for immigration purposes.</p>

<p>Resolution of some of these issues is very fact specific.</p>

<p>OPT at least, can be self-employment if it is related to your studies:</p>

<blockquote>
  <p>OPT Policy Guidance, section 7.2.1:</p>
  
  <p>All OPT employment, including post-completion OPT, must be in a job
  that is related to the student’s degree program. For students who are
  not on a 17-month extension, this employment may include: (...)
  Self-employed business owner. A student on OPT may start a business
  and be self-employed. The student must be able to prove that he or she
  has the proper business licenses and is actively engaged in a business
  related to the student’s degree program.</p>
</blockquote>

<p>So, if you are a history student, this is probably not allowed, but if you are a computer programming or business major, it might be allowed.</p>

<p>But, this <a href="https://www.lawtrades.com/blog/answers/start-company-on-f1-visa/" rel="nofollow noreferrer">comes with caveats</a>:</p>

<blockquote>
  <p>In very limited circumstances, F1 students on OPT may be eligible to
  qualify as self-employed business owners. Of course, the business must
  relate directly to your studies. In addition, you must be able to
  obtain any required business licenses.</p>
  
  <p>You can read more about current US rules and regulations relating to
  improving and expanding training opportunities for F1 students with
  STEM degrees <a href="https://www.gpo.gov/fdsys/pkg/FR-2015-10-19/pdf/2015-26395.pdf" rel="nofollow noreferrer">here</a>.</p>
  
  <p>In the most general of terms, F1 students are prohibited from
  ‘engaging in business.’ At the same time, students on F1 visa are not
  expressly forbidden from ‘establishing’ their own business since they
  are allowed to engage in ‘preliminary business planning.’</p>
  
  <p>Again, it’s impossible to overstate that there’s a sharp legal
  difference between ‘establishing’ a business and ‘engaging’ with or
  working for it. The usual rule is that an F1 student is forbidden from
  working for a company – even one s/he starts.</p>
  
  <p>As described, there are some status modifications an F1 student can
  make that would allow him or her to work for a business they
  established. The CPT work authorization mentioned above is one way;
  the other is OPT, also previously mentioned.</p>
</blockquote>

<p>Specific questions:</p>

<blockquote>
  <p>Would I be allowed to hire freelancers to work for the offshore
  company?
  Would I be allowed to hire employees(US or non-US) in the offshore company?</p>
</blockquote>

<p>There is probably nothing wrong with owning a company outside the U.S. that has non-U.S. employees or non-U.S. independent contractors to which you devote minimal attention.</p>

<p>If you have U.S. employees you are probably running a business without a visa authorizing you to do so within the U.S.</p>

<blockquote>
  <p>Does my presence in the U.S. as an F-1 student restrict me from
  earning money to my home country company and home country account?</p>
</blockquote>

<p>Nothing prevents you from sending legally earned money anywhere you want, or from earning money from property (such as passive investments) anywhere. It probably doesn't prohibit you from earning money from earned income for services provided in your home country either.</p>

<blockquote>
  <p>P.S: the business will have no presence in the U.S. other than the
  owner living there and working for a job</p>
</blockquote>

<p>If you are actually doing significant work while in the U.S. you are probably in violation of the F-1 visa subject to the narrow exception for OPT self-employment related to your studies.</p>

business visa f1-visa