Business Visas

The objective of Business Immigration Policy is to contribute to New Zealand's economic growth by fostering outside links, increasing New Zealand's level of human capital and encouraging enterprise and innovation.

With the world revolutionising into a global village, distances are shrinking and the breaking of trade barriers with the advancement in technology has created demand for business investment worldwide. Countries like New Zealand offer excellant opportunities to attract potential investors to establish new business, or expand their existing business.

Business Immigration Policy is a special category. There are five main applications of interest.

Investor category

The Investor category of residence is split into three investment tiers depending on the amount of available investment.
The table below sets out a summary of each particular investment tier. The Global Investor, Professional Investor, and General (Active) Investor:
The following points are of interest:

Semi-active and active investment*

The investment required under all three tiers cannot be passive.
In relation to semi-active investment, INZ have determined that these investments include managed funds, and minor shareholding. In relation to fully active investments, these have been determined by INZ as major shareholding (minimum 10%), being a partner in a business and/or a sole proprietor of a New Zealand business.
It should also be specifically noted that funds are not able to be invested directly or indirectly in residential property development, even if these are sound investment opportunities capable of providing a commercial return

Business experience*

A minimum of four years business experience is required under each tier. The business experience will need to include activity which required planning, organisation, senior change-management, direction setting and mentoring acquired through ownership of, or management level experience in a lawful business enterprise. Further, the business must employ at least five full-time employees and have an annual turnover of at least NZ$1million.

Minimum settlement funds

In the General (Active) Investor tier a minimum of NZ$1million is required for settlement funds. This means that not only is an applicant required to demonstrate they have in excess of NZ$2.5million to invest in New Zealand for a period of 4 years in a semi-active investment; the applicant must also demonstrate they have NZ$1million of extra funds in order to financially maintain themselves during the investment period.

Physcial presence

The physical presence requirement varies from tier to tier, with the lowest form of investment requiring the most time physically in New Zealand.

INVESTMENT CAPITAL
Global Investor
$20M At least $5M active*
Professional Investor
$10M At least $2M active*
General (Active) Investor
$2.5M Must be at least semi-active*
MINIMUM BUSINESS EXPERIENCE
4 years*

 

In terms of a New Zealand tax perspective an applicant is automatically a New Zealand tax resident and thus required to pay income tax in New Zealand on their world wide income if they have resided in New Zealand for a period of six months in any one year (there are exceptions to this).
It should be noted that applicants staying less than six months in New Zealand can be deemed a tax resident in New Zealand, depending on their personal and family circumstances. Therefore, any individual considering investing in New Zealand and wishing to avoid a New Zealand tax liability should seek appropriate professional advice. In most instances tax liability can be avoided by sound planning.

 

Long term business visa and entrepreneur category

Long term business visa policy

There is a broad assumption that the Long Term Business Visa (LTBV) category is a type of New Zealand residence application. This is not the case. The LTBV is essentially a 3 year temporary work visa which allows an individual the opportunity to make an investment in a New Zealand business (minimum 25%) by purchasing or establishing a new business. After operating the business for a 2 year period within the 3 year currency of the LTBV, an application for New Zealand residence can then be made under the Entrepreneur Category.

There are various requirements for a successful LTBV application, and considerable discretion can be exercised by the immigration officer processing the application. Generally however, in order to obtain an LTBV the individual applying for the visa must:

1. Hold a satisfactory business plan
2. Have business experience relevant to the business proposal
3. Have not been involved in bankruptcy or business failure within the 5 years preceding the date of the application
4. Have not been involved in business or financial impropriety
5. Have, in addition to the investment capital required for the business plan, sufficient funds for the maintenance and accommodation of the applicant applying and/or family members included in the application for the entire currency of the LTBV
6. Satisfy INZ that the applicant is genuinely interested in establishing a business in New Zealand

PLEASE NOTE: THE LTBV CATEGORY IS A LONG AND EXPENSIVE PROCESS WHICH REQUIRES A SUBSTANTIAL INVESTMENT OF TIME AND MONEY. APPLICANTS CONSIDERING SUCH AN AVENUE NEED TO GIVE CAREFUL THOUGHT TO THE SIGNIFICANT COST AND PREPARATION INVOLVED.

Business plan

The most crucial part of an LTBV application is the business plan.
It is advisable that the business plan is prepared by a New Zealand Chartered Accountant, and preferably, a Chartered Accountant who has previous experience in preparing business plans for LTBV applications. There are two crucial parts of the plan that should be given significant attention.

First, demonstrating that the applicant has the required knowledge and has conducted sufficient research regarding the plan and New Zealand business environment.
Second, providing information as to how the proposed business will actually benefit New Zealand and prove to INZ that the business will be profitable or at least have the potential to be trading profitably at the time an Entrepreneur Category application is lodged.

Research

We would discourage individuals from applying for an LTBV unless the individual has actually traveled to New Zealand to undertake some market research and received advice from their New Zealand accountant to be instructed to draft the plan. Although not impossible to obtain an LTBV before traveling to New Zealand, immigration officers are usually hesitant to grant LTBV's if the individual in question has never been to New Zealand and therefore does not understand the New Zealand business environment. With any serious business plan, market research must be undertaken, and although a New Zealand based Chartered Accountant can assist with this, it will be materially important for any applicant to demonstrate that they have taken the time to travel to New Zealand to research their proposal.

 

The benefit and profitability test

Immigration New Zealand will need to be suitably satisfied that the business has the potential to actually benefit New Zealand and be profitable. A business will be considered to benefit New Zealand and satisfy the profitability test if it contributes to New Zealand's economic growth. INZ will take into consideration (among other things) the following:

1. Whether the business will introduce new, or enhance existing technology, management or technical skills; or
2. Whether the business will introduce new or enhance the existing products or services; or
3. Whether the business plan will create new, or expand existing export markets; or
4. Whether the business plan will create employment (other than employment for the applicant); or
5. Whether the business proposal will revitalise an existing business; and
6. Whether it appears likely the business will be trading profitably at the time any subsequent application under the Entrepreneur Category is made, or clearly has the potential to be trading profitably within 12 months after the date of the submission of the Entrepreneur Category application.

While the applicable policy above provides a guide as to how a business is determined to benefit New Zealand, what applicants should be aware of is the actual way INZ practically apply the policy. INZ want to see business plans which require significant investment, that are going to introduce something that is perhaps new to an area, that are not merely going to create more competition, and are not merely going to employ the applicant and/or their family members but also actually create employment opportunities for New Zealand citizens or New Zealand residents. While obtaining an LTBV can be a difficult process in itself, it is very much only the first stage of the process for an applicant to move
towards holding the right to indefinitely reside in New Zealand. The second stage of the process, which is more important than the initial LTBV application, is the subsequent application for New Zealand residence under the Entrepreneur Category.

Before any LTBV application is considered, it is also material to consider the current policy governing the grant of residence under the Entrepreneur Category. Many applicants who do not receive accurate advice and assistance do not consider this policy before applying for an LTBV.

Entreprenuer category

The objective of the Entrepreneur Category is to attract migrants who can demonstrate that they have been actively participating in a business and contributing to New Zealand's economic development. An applicant must demonstrate that they have been legally involved in the management and operation of their own business in New Zealand for a minimum of two years immediately preceding the application, the business is profitable, and is benefiting New Zealand
in some way.

An individual will be considered to have successfully established a business in New Zealand if they have established or purchased or made a substantial investment (at least 25%) in a business operating in New Zealand and the main applicant of the Entrepreneur Category application has been self employed in the New Zealand business for at least two years preceding the date the application for residence under the Entrepreneur Category is made.
INZ have been very strict in relation to the definition of an applicant operating a business. An applicant will not be termed to be operating the business if the investment has been passive or speculative in nature only.

Entrepreneur category benefit test

Under the Entrepreneur Category, INZ will determine whether or not the business at the time of submission of the application is also materially benefiting New Zealand. The same benefit test is applied to individuals demonstrating that the business will benefit New Zealand in an LTBV application.

It is, therefore, very important that when an LTBV application is submitted, the benefits to New Zealand are not padded, as the benefits advised in the LTBV application will be a starting point for the INZ officer processing the Entrepreneur Category application. Obviously, if the business environment has negatively impacted on a business and some benefits envisaged in the LTBV did not eventuate, this would be explainable. The bottom line, however, is that if an applicant is able to demonstrate the full time employment of at least one New Zealand citizen or resident, then this is currently enough to reach the benefit test.

Employee of a relocating business category

The objective of this category is to promote New Zealand as a place in which to invest and locate businesses. This is facilitated by granting residence to employees of businesses relocating to New Zealand who do not qualify for residence under any other existing category. This category is designed for large corporations or multi-national companies intending to establish a branch in or relocate to New Zealand who require a key employee (or a number of key employees) to also relocate to ensure the successful establishment and operation of the business.

What are the main requirements for the Entrepreneur Plus Category?

To be approved residence under the Entrepreneur Plus Category you must hold a long-term business permit and have:

 

•successfully established a business in New Zealand
•been 'self-employed' in your business
•transferred at least NZ$500,000 through the banking system to New Zealand
•invested at least NZ$500,000 in your business
•created a minimum of three new full-time jobs for New Zealand citizens or residents (this is in addition to existing staff if you purchase a business)
•a minimum English language ability of IELTS 4
•meet health and character requirements.
 

Unlike the Entrepreneur Category, there is no time requirement that you must have operated your business for to be successful under this category

What is the application fee?

The application fee is NZ$2600.

 

Does my business have to be the same as the one for which I was granted a long-term business permit to establish?

 
Yes, unless a business immigration specialist at the Business Migration Branch has previously given consent for you to modify your original business proposal.  Your application cannot be approved under the Entrepreneur Plus Category if your established business is different to your proposal in your business plan.

 

Do I have to provide evidence that I have transferred at least NZ$500,000 of investment capital to New Zealand?

Yes, you should provide telegraphic transfer documentation as evidence.

 

What evidence do I need to provide showing the establishment of my business?

Acceptable evidence that you have established a business in New Zealand may include (but is not limited to):  

•a certificate of incorporation or business registration
•shareholder certificates or proof of ownership of business
•business purchase agreement
•company financial accounts and bank statements
•company tax returns
•GST returns
•documents showing property lease or purchase by the business
•invoices for business equipment, supplies, ACC, utility bills
•photos of the business
•strategic planning documents.
 

All documents submitted to prove that you have established a business in New Zealand must be produced by a reliable independent agency or professional (for example, a solicitor or chartered accountant).