People & Places
New Zealand's the business!
Glen Standing of Golden Sands Migration answers our questions about recent changes to New Zealand's investor policy
Why did INZ decide to change the country's investor policy?
The Government's new business migration scheme aims to boost our country's economic performance by making New Zealand more attractive for business and entrepreneurial migrants.
Since 2005 there has been a significant drop off in business migration investment, which has been linked to unrealistic investment expectations and English language requirements.
Attracting the right business migrants has been identified by the Government as a high priority initiative. The changes are expected to attract more investors to New Zealand, connect them with existing business networks, and create real jobs for New Zealanders.
In what ways is this new policy an improvement over the old policy?
The new policy package is designed for migrants who want to invest or set up a business in New Zealand and gain permanent residence.
For investor migrants the previously existing three categories are streamlined to two, with more realistic requirements for capital, language skills and time spent in New Zealand annually, as well as a far greater flexibility in terms of investment vehicles.
For entrepreneurial migrants the new policy introduces a new Entrepreneur Plus category which complements the existing Entrepreneur category. Entrepreneur Plus offers a faster path to residence for applicants who create at least 3 fulltime jobs and invest $500,000 in their business.
What core skills and experience are required from an applicant for an NZ investor visa?
There are two categories under which you can apply for residency of New Zealand as an investor – Investor Plus (Category 1) and Investor (Category 2).
Investor Plus (Category 1) requires an investment of at least NZ$10 million. No business experience is required and there are no English language requirements for the applicant or his/her spouse. There is also no age limit and no settlement funds required.
Eligible applicants can lodge their residency application immediately, but must maintain the investment funds in New Zealand for a minimum of three years and spend 73 days in New Zealand in each of the last two years of the three-year investment period.
Investor (Category 2) requires an investment of at least NZ$1.5 million and settlement funds of NZ$1 million (transfer to NZ not required). The applicant must also have a minimum of 3 years business experience and be aged 65 or younger. English language requirements must be met.
Eligible applicants can apply for residency under a points based system similar to that used for skilled migrants. They must maintain the investment funds in NZ for a minimum of four years and spend 146 days in NZ in each of the last three years of the four-year investment period.
Is the new policy theoretically open to those applicants who do not have any experience of running a business? If so, is this potential emigration route advisable if no other options are open?
No. Only applicants with at least NZ$10 million are exempt from having to demonstrate business experience. Based on the level of investment required, it's likely we will get more migrants interested in gaining residency under the Investor (Category 2), which means they need to demonstrate at least 3 years business experience.
The Skilled Migrant Category should always be the first route to consider when applying for permanent residency. Applying for residency as an investor or entrepreneur is a more time consuming and complex process.
However, as well as the two investor categories, the Long Term Business Visa (LTBV) and Entrepreneur categories may also be viable options. A LTBV is a 3-year work visa which gives you sufficient time to move to NZ and commence your business prior to applying for New Zealand residence.
Recent changes to 'business experience' requirements for LTBV applications means potential migrants are no longer obligated to start a venture similar to what they were managing in their home country.
After running your business for two years you may be eligible to apply for New Zealand residence as an Entrepreneur. The new Entrepreneur Plus Category is a faster path to residence for applicants who create at least 3 fulltime jobs and invest $500,000 in their business.
With less stringent age requirements, is an investor visa a viable option for those approaching retirement? Only those applying for residency under Investor Plus (Category 1) are not subject to age requirements, so it could be an option for high net worth individuals approaching retirement. However, those applying under Investor (Category 2) must be aged 65 or under at the time they lodge their residency application with Immigration NZ.
What core skills are required to make a success of running a business in NZ?
As well as sound commercial nous, good communication and people skills are essential to running a successful business in New Zealand. In business, Kiwis value the opportunity to build real relationships with their customers and key stakeholders and do business in person as much as possible. Exceptional people management skills will also be crucial. New Zealand's more laid back culture means many managers and business owners operate an 'open door' policy and involve their staff as much as possible in business decisions and the day-to-day running of the business.
The UK has a slow-moving bureaucratic culture. With this in mind, is NZ considered to be an easier country in which to do business?
In general I would say yes. Core services like telecommunications, IT, banking, tax etc are readily accessible and available and response times from service providers are generally good. When setting up a business, gaining resource consents from local government for example can be lengthy and time consuming. It pays to inform yourself and plan ahead.
Doing day-to-day business is considered relatively easy. However, in some cases it will depend on the size of the business and the sector in which you operate. For example, as you would expect, decision making can take more time in the public sector or in a larger organisation with more levels of management.
There are a number of organisations and groups that provide information and advice for business professionals. For example, the New Zealand Government's www.business.govt.nz brings together free business resources, tools and information to help people start, manage and grow their business.
Golden Sands: www.goldensandsmigration.co.nz