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New Zealand Launches Entrepreneur Work Visa

July 31, 2014

Marco Deutsch

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By: Karen Justice

As forecast in our March newsletter, the New Zealand Long Term Business visa, which had not been substantially reviewed since 1999, has been relaunched as the Entrepreneur Work visa. This welcome move introduces a number of significant policy changes to ensure those wishing to buy or establish a high value business in New Zealand now have a clearer, faster and more effective application process to follow.
 
What are the main differences between the old and new style business visas? 
 
The Entrepreneur Work visa has changed to a points-based application process. To be eligible to submit an application, applicants must score a minimum of 120 points, broadly based on business experience, employment creation, export potential, unique or new products, capital investment, and age. 
 
Relevant self-employment in the proposed business gains the highest number of points. However, it is also possible to score points for relevant senior management level experience. 
 
Points awarded for employment creation are designed to acknowledge newly-created, ongoing, full or part-time positions for New Zealand citizens or residents. Bonus points are available for those who intend to establish themselves and their business outside of the Auckland region, or who gain formal support from a local agency such as a business development initiative or grant. 
 
In addition, applicants are required to have a minimum capital investment of NZD 100,000 (excluding working capital) and submit a credible, well-researched business plan. A major criticism of the previous system was the number of template-style business plans received, particularly from a variety of immigration advisers and lawyers, which resulted in lower value and poorly researched businesses being established, eventually leading to high failure rates. 
 
Recognising that some high-value businesses do not require significant capital investment up front, there is facility for the minimum upfront investment to be waived in certain circumstances. This is restricted to businesses in science, ICT or other high-value export-oriented sectors which show a high level of innovation or credible short-term high growth prospects. 
 
A two-stage process 
 
Initially, successful applicants are granted a twelve-month work visa, referred to as the Start Up Stage, to allow them to travel to New Zealand and begin their operations. Once the Business Migration Branch is satisfied the necessary steps have been taken to establish the business, the remaining 24 months of the visa, referred to as the Balance Stage, will be granted to take the total combined stay to three years. 
 
Achieving residence status 
 
As with the former Long Term Business visa, the new Entrepreneur Work visa provides a pathway to residence status through the Entrepreneur Residence category. This can occur once the visa holder has successfully established their business, been self-employed in the business for two years, realised the proposed benefits to New Zealand, and made the capital investments outlined in the original Entrepreneur Work visa application. 
 
Entrepreneur Work visa holders can fast-track their residence status if the principal visa holder has been self-employed in the business for six months, has invested at least NZD 500,000 (excluding working capital), and has generated at least three ongoing and sustainable full time jobs for New Zealand citizens or residents. 
 
How long does it take to process an application for an Entrepreneur Work visa? 
 
Processing times are anticipated to be within two to four months from date of lodgement. However, the Business Migration Branch in Wellington currently has a significant backlog of Long Term Business visa applications still to be worked through. 
 
Licensed Adviser No. 200800190 

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