Visas & Advice Detail
New Zealand Entrepreneur Visa
Mark Williamson of Lane Neave Lawyers clarifies the requirements for a New Zealand Entrepreneur Visa
The key to the granting of New Zealand residence under the Entrepreneur Category will be for an applicant under current policy to demonstrate that they have successfully established a business in New Zealand. An individual will be considered to have successfully established a business in New Zealand if they have established, purchased or made a substantial investment (at least 25 per cent) in a business operating in New Zealand and the main applicant of the application has been self-employed in the NZ business for at least two years preceding the date the application for residence under the Entrepreneur Category is made.
Immigration New Zealand (INZ) has been very strict in relation to the definition of an individual operating a business. An individual will not be termed to be operating the business if the investment has been passive or speculative in nature only. Individuals are also required to be involved in the management and operation of the business for a period of two years before they can qualify for NZ residency. INZ has been quite strict in the past in relation to the amount of time an individual must demonstrate that they have been physically present in New Zealand operating their business in the two-year qualifying period.
There has been an application declined, for example, where an individual has spent in excess of four calendar weeks outside New Zealand in any year of operation of the business. INZ, in that particular decision, provided advice that it would be expected that if a person owns and operates their own business in New Zealand for a two-year period, then the period of 'leave' from the business would be that of the industry standard – which is four calendar weeks per annum. Decisions, however, have been successful where individuals have spent over four weeks outside of New Zealand, where they can provide specific evidence to INZ that the absence was entirely connected with the business.
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 NZ in an Long-Term Business Visa (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 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 individual is able to demonstrate the full-time employment of at least one New Zealand citizen or resident, this is currently enough to reach the benefit test.
The following is a summary of the tips that I would provide to an individual considering obtaining New Zealand permanent residence via the LTBV and Entrepreneur Category:
Research, research, and more research. The more research undertaken will allow the preparation of a realistic business plan which not only will obtain an LTBV, but also, importantly, will allow you to satisfy the requirements for the grant of New Zealand residence under the Entrepreneur Category;
Stick to what you know. Whilst INZ does have discretion to grant LTBVs to individuals who do not have business experience specifically related to the intended venture, the business plan would need to be very sound before you should entertain any type of business other than what you already know;
Instruct a chartered accountant who has previous experience in preparing business plans for INZ. The business plan is not only the key aspect of a LTBV application, but a chartered accountant should also be viewed as a long-term partner who will be able to assist you to reach the identified goals for both obtaining New Zealand residence under the Entrepreneur Category and allowing your business to actually be successful in NZ. A good accountant will not merely focus on preparing a good business plan to obtain an LTBV, they will also be similarly focused on ensuring that the business has a chance to succeed irrespective of any immigration concerns; and
If there is any doubt, instruct an immigration lawyer or a reputable consultant who has extensive experience and a long history of preparing LTBVs. The LTBV is an exceptionally complicated part of immigration policy, and all applications are processed by the Business Migration Branch located in Wellington. Even though the governing policy is made readily available by INZ, the actual way INZ apply the policy to applications will be unknown to you.
In conclusion, it is hoped that the above summary will be of use to you and will form a basic guide to be taken into consideration when pursuing a business-related application with INZ. It is appropriate, however, to caution that the information is a mere summary, and by no means covers all material aspects which should be considered by an individual before filing an application under Business Immigration policy. If in doubt, seek professional advice/assistance.
For further information:
Lane Neave Lawyers
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