General questions:

Q: Why were the business 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. They are also investing additional funds over and above the sum they need to invest for immigration purposes. 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: What is happening as a result of that review?

A:The Long Term Business Visa is being discontinued, and will be replaced by a new visa for business migrants likely to be called the Entrepreneur Work Visa. The new visa will be designed to attract business migrants who can create high growth and innovative businesses with export potential. Immigration New Zealand will only accept Long Term Business Visa applications until 4pm on 20 December 2013.

Q: What are the details of the new visa? When will more information about this new visa be available?

A: The detailed criteria for the new visa are currently being drafted, and will go into effect in March 2014. The full details will be made public before March 2014 to help business people and immigration advisers put together applications that will fit the aims of the new category.

The broad criteria for the new visa have been agreed by Cabinet (the Cabinet paper is available online). The new policy will:

• Have a minimum $100,000 capital investment requirement, excluding working capital
• Establish a new points-based system to actively assess intending business migrants and to choose those who can create high growth and innovative businesses, with points for:
  • business experience;
  • employment creation;
  • export potential 
  • innovation;
  • capital investment;
  • age;
• a plan to invest outside of Auckland (migrants would also need to reside outside of Auckland); and
• having undertaken market research, or having the endorsement of a chamber of commerce, an economic development agency, or any other relevant government agency.
• Enable senior immigration staff to allow for discretion to waive the minimum capital requirement of $100,000, in exceptional cases, for applicants proposing to establish a science or ICT-based business, or other export-oriented sector, where it displays a high level of innovation or has credible short-term high growth prospects.
• Clarify that applicants for a visa in the Entrepreneur Work Visa category may only submit a change in the business plan for their business once, and that changes must be minimal otherwise a new application will be needed.

Click here to view the proposed Points Table

Q: Why is a points system and a minimum capital investment of $100,000 being introduced for the new Entrepreneur Work Visa being introduced?

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. A points system also ensures that policy criteria are clear and transparent.

Q: Why will there be a moratorium on new applications under the Entrepreneur Work Visa?

A: Knowledge of the review has been widespread within the immigration adviser community. A moratorium is designed to prevent a surge applications being made in the run up to the changes. But the Ministry will be consulting closely with advisers and other interested parties to ensure that new Immigration Instructions are workable.

Questions for people who hold, have applied for, or are planning to apply for a Long Term Business Visa:

Q: Will there be any impact on people who have already applied for a Long Term Business Visa?

A: No. People who have already made an application under the old policy will continue to be processed under that policy.

Q: What about people who currently hold a Long Term Business Visa? Will this have an impact on their ability to gain residence under Entrepreneur Category?

A: People who are on a Long Term Business Visa and who are ready to apply for residence under Entrepreneur category will still be able to do this. This is because the Entrepreneur category is not being revoked. It will be renamed and slightly amended in March 2014. The main change will be that the Entrepreneur Plus category will be disestablished and included in the Entrepreneur Category, but this will not disadvantage any Long Term Business Visa holders transitioning to residence.

Q: What about people who currently hold a Long Term Business Visa who want to change their business plan or need get the balance of their three years?

A: Long Term Business Visa holders will continue to be able to apply for and be granted the balances of their three year visa or permission to change their business plan, as these are not new visas but continuations of the existing Long Term Business Visa.

Long Term Business Visa holders who anticipate that they might need a renewal of their visa will need to contact the Business Migration Branch management team to discuss their circumstances. In order to be approved they would need to be close to the end of their Long Term Business Visa and have a genuine and compelling reason for why they are not able to apply for residence under Entrepreneur policy yet.

Q: Why do people only have five days to lodge applications under the existing LTBV policy? What will happen to applications sent in after the five days is up?

A: The five day notice period has been set in place to prevent a surge in applications being made in the run up to the changes. All applications lodged within this five day period must be received in the office by Business Migration Branch by 4pm on Friday 20 December. Any applications received after this time will be returned.

Q: If the Business Migration Branch receives a Long Term Business Visa application that does not contain all necessary documents in the five days before the moratorium begins, will they hold the application waiting for the documents, or will they return it as per usual practice?

A: During the five day period the Business Migration Branch will use their discretion to accept for lodgement any exceptionally high quality Long Term Business Visa applications which are missing key documents, such as police certificates or medicals. This is entirely up to the discretion of Business Migration Branch management. No incomplete applications will be accepted without a comprehensive and specific business plan, including a signed sale and purchase agreement and other evidence as required to show that the plans for the business are at an advanced stage and are for a business that will benefit New Zealand.

Q: What can people who want to a visa to be self-employed do in the meantime? Do they have any options?

A: No self-employed work visa will be available for the period between the closure of Long Term Business Visa and opening of the new category.

People who are interested in applying for a visa to start their own business in New Zealand are advised to put their efforts into market research and compiling a strong business plan that will have a good chance of being approved under the new category.

People who want to visit New Zealand for market research or to source business opportunities may be able to get a visitor visa as a business visitor. Business visitor’s visas have a maximum period of three months. Holders of business visitor’s visas are not permitted to work in New Zealand.