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The New Zealand Government’s new business migration scheme launched on 28th July 2009 aims to boost the country’s economy by making NZ more attractive for business and entrepreneurial migrants. It is now easier for business applicants to immigrate to New Zealand as the government has simplified the English language, age and time spent in NZ criteria for business migration, while at the same time lowering the capital requirements and broadening the investment options.
1) Long Term Business Visa (LTBV) - Temporary Residence
The LTBV is for applicants who are interested in establishing a business in New Zealand or purchasing a business, that will be of benefit to New Zealand, to obtain residency under the Entrepreneur category at a later stage.
The LTBV has no age limit, which is very unique and attractive as other business destinations, such as Australia, have strict age limits for their business visa categories. The amount of capital required will be determined by the type of business you are setting up or purchasing, however applicants will need sufficient capital to maintain themselves and their family for the validity of your visa.
Successful applicants will be granted a multiple-entry, 9-month work visa. At the end of this 9 month period, this visa may be extended for a further 27 months provided applicants can prove that reasonable steps have been taken to establish and operate the planned business and for money required to establish this business has been transferred to NZ.
2) Entrepreneur Category - Residence
Holders of the LTBV who have successfully established a business may apply for a Residence Visa under the Entrepreneur Category after spending a minimum of 2 years in New Zealand.
Applicants must demonstrate that:
- They have established a business in New Zealand;
- The business is benefiting New Zealand in some way;
- They have been self-employed in New Zealand in that business for at least two years; and,
- The business is trading profitably or has the potential to be trading profitable within 12 months.
The LTBV and Entrepreneur category can be successfully used together as a means to obtain residency for those applicants who have sufficient capital, possess business experience, high level management or business ownership experience and want to minimise their business investment.
It is prudent that all applicants seek professional immigration advice on the LTBV and Entrepreneur visa categories and seek legal/financial advice on the proposed business given the risks involved with establishing or purchasing any new business.
3) Migrant Investor Policy – Permanent Residency
The recently announced revised migrant investment policy aims to attract applicants who wish to make a significant financial contribution to NZ's economy by offering more realistic requirements for capital, language skills and time spent in New Zealand, as well as a far greater flexibility in terms of investment.
There are now only two categories that exist. These are:
i) The Higher Investor Plus (Investor 1)
- This category requires applicants to invest $10 million. This level of funds must then be transferred to New Zealand and invested in a suitable investment for three years.
- Investor Plus applicants must spend at least 20% of their time in NZ in years two and three and must show that the funds they possess have been legally acquired.
- There is no age, business experience and English language requirements that need to be satisfied, however health and character requirements must be meet.
- There is no limit on the number of Investor 1 applicants.
ii) The Lower Investor (Investor 2)
- This category requires applicants to have the ability to nominate funds or assets equivalent to at least NZ$1.5 million for investment funds, and NZ$1 million for settlement funds. Applicants must meet a minimum points score to lodge an Expression of Interest (EOI) and be invited to apply for residency. A minimum of 20 points must be achieved to submit an EOI and points are awarded for age (65 years or younger), business experience, English language and investment funds.
- Investor applicants must retain investment funds in an acceptable investment(s) for four years, and spend at least 40% of their time in New Zealand in years two, three and four.
- All applicants must meet health, character and English language requirements. The principal applicant must also have at least three years' business experience.
- A maximum of 300 Investor (Investor 2 Category) visa’s will be issued each year.
- Both investor categories detailed above can be successfully used as a vehicle to obtain residency outright for those applicants who have sufficient capital and who want to adopt a flexible and conservative investment approach.
- Applicants should seek professional immigration visa advice to ensure that certain all requirements can be satisfied and a cautious approach is taken when structuring an EOI points claim.
4) Entrepreneur Plus Category – Permanent Residency
Entrepreneur Plus offers residency outright for any applicant who invests $500,000 in a new or existing business enterprise in New Zealand, and then additionally creates and retains three fulltime employment positions.
The new Entrepreneur Plus category will provide an incentive for applicants to invest at higher levels and create employment by providing a faster path to residence. The final details of this policy are set to be announced in November when the policy is to take effect.
New Zealand is a great place to be in business. The 2008 World Bank survey ranked NZ as the number two country for ease of doing business, second only to Singapore. The Government’s new business migration scheme shows a willingness to attract business applicants looking for a higher quality of life for themselves and their family.
It is important that all applicants obtain professional advice and are assisted with meticulous planning and careful consideration before applying for one of the above business visas.
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