Long Term Business Visa/Entrepreneur Residence

This category is an opportunity for applicants who do not have formal tertiary qualifications but who have experience in running their own business to apply for a Long Term Business Visa, to set up a business and then to obtain residence on entrepreneur grounds.

The principal applicant must have a minimum of Level 5 on the IELTS (average) and have sufficient funds to support his or her family for the 3 year period whilst the business is being set up as well as sufficient funds to set up the business depending on the type of business. There is no minimum dollar requirement.

The business must be commenced within 9 months of approval. The business plan must be submitted and processed before any steps are taken to move to New Zealand.

In most cases applicants will need to travel to New Zealand in order to study the market and to confirm that their business would be successful. This probably makes it difficult for clients from countries who do not have visa free entry into New Zealand (such as India and China) although, it is possible to get a visitor’s visa to travel to New Zealand in some circumstances provided that the applicant can prove that he or she is a business person. Such visitor visa applications might benefit from assistance from a legal professional.

After the Long Term Business Visa has been approved the applicant has a work permit/visa for 3 years. The residence entrepreneur application can be lodged after the business has been running for 2 years. It is dangerous for there to be any major departure from the business plan without discussion with your legal professional. The business must employ at least one other person or benefit New Zealand in some other way.

There are a number of pitfalls with such applications and all applicants are well advised to seek the advice of experienced legal professionals in this area. The following are some examples of successful Long Term Business Visas:

1. New cinema in a small town (initial investment $60,000)
   
2. Manufacturing business (initial investment $250,000)
   
3. New export market business involving growth through new investment
   
4. Health resort (existing) (initial investment of $900,000) - revitalisation of business, ability to expand the market
   
5. IT consultancy (new) (initial investment $30,000) – new business operating within a growth and innovation framework
   
6. Motel, refurbishment of business and expansion of services
   
7. Revitalisation of an existing poor performing business
   
8. Industrial spray painting (initial investment $150,000) – employment opportunities
   
9. Bed and breakfast (full time business)
   

Long Term Business Visas which are not likely to be granted or which will have considerable problems:

1. Small businesses involving child care of a couple’s children in a private home
   
2. De facto retirement visas
   
3. Small scale bed and breakfasts – a couple of rooms rented out in a private home
   
4. Sole charge courier or taxi business
   
5. Franchises (there may be problems with these, particularly lawnmowing and cleaning franchises)
   
6. Businesses that are being introduced into a saturated area (dairies, superettes, taxi drivers).
   
7. Business proposals which involve the purchase of 25% of a small business effectively leaving the purchaser with no managerial control)