Questions and Answers
Q: Why do we have business migration policies?
A: Business migration policies provide a point of difference to other mechanisms for bringing people with experience of running their own business into New Zealand. As well as supplying capital, both policies can also bring in people with new ideas, entrepreneurial flair, overseas networks, and business experience.
Q: Have the policies been successful?
A: The policies currently attract over 500 migrants per year, who come to New Zealand to gain residence through establishing or expanding a business. These policies have the potential to better contribute to New Zealand’s economic development and support the Business Growth Agenda.
Q: Why were the policies reviewed?
A: Business migration policies, for people seeking to establish a business, have not been extensively reviewed since 1999 so a review was needed to ensure they are working as well as possible. The review has shown that business migrants can bring to New Zealand considerable commercial expertise and access to global commercial networks. But the review has found that the policies can be improved to attract even more high-calibre migrants who can make a significant contribution to the economy. The changes are designed to ensure that migrants know that there is a pathway in place to those coming to New Zealand to set up a productive business.
Q: How would you define a successful migrant business?
A: A successful migrant business would have a combination of some or all of the following: is innovative; brings in new technology; employs New Zealanders; supports effective domestic competition; and has good growth prospects. Ideally, the business would also create exportable products and services that do not already exist in our market.
Q: Why are you introducing a points system and a minimum capital investment of $100,000 for the new Entrepreneur Work Visa?
A: The review found that a significant number of businesses created under the Long Term Business Visa had limited export growth potential. The introduction of a points system and a minimum capital investment figure of $100,000 are designed to ensure that successful applicants can create high growth and innovative businesses with export potential. However, exemptions are possible on a case-by-case basis should a business model not require such an investment (ie a web-based IT start-up). A points system also ensures that policy criteria are clear and transparent.
Q: Why will points be offered for businesses outside of the Auckland region?
A: It’s well known that Auckland attracts a large share of new migrants each year. By incentivising potential applicants to consider investing and starting businesses in regions around New Zealand, it helps share the benefits of newly created jobs and investment across the country.
Click here to view the proposed Points Table
Q: What are you doing to make it easier to apply under these policies?
A: INZ is developing an online eligibility calculator on its website to enable prospective applicants to assess their likelihood of success before committing to an application. It’s essential that prospective applicants have all the information they need at their disposal so they know exactly what they’ve got to do.
Q: When will the current Long Term Business Visa category close and the new policies come into effect?
A: The LTBV category will close on Friday 20 December. The new Entrepreneur visa policies will open in March 2014.
