ENTREPRENEUR WORK VISA AND
ENTREPRENEUR RESIDENCE VISA: Comments on
the recent changes
Marcus Beveridge, Principal, Queen
City Law
Bradley So, Lawyer, Queen City Law
1
OVERVIEW
Topics
•
Entrepreneur Work Visa
BB3.10 - Point System
- Business Experience
- Employment
- Approved Export
- Unique and New
- Capital Investment
- Bonus Points
BB3.15 – Requirement for a Business Plan
BB5 – Changing a Business Proposal
•
Entrepreneur Residence Visa
- BH2.1 – Successful Establishment
- BH4.10 – Trading Profitably as per BH6.1.40
- Existing LTBV – Grand parenting
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ENTREPRENEUR WORK VISA
BB3.10 – POINTS SCALE
•
Minimum score of 120 (is not Expression of Interest)
BUSINESS EXPERIENCE
•
One Category
•
Not essential to claim but will need to show (Not
Recommended):
• BB3.1 (h) – Sufficient business experience? Transferrable
Skills?
• Linkages in NZ – Business Mentors/Incubators e.g ICEHOUSE,
SparkBox etc..
• “Buying Experience” - what is the applicant’s role?
3
ENTREPRNEUR WORK VISA
NEW FULL-TIME EMPLOYMENT
•
At least 30 hours
•
When do I have to employ? At what period? First year? Second
Year? Final Year?
•
TEST: Comply with your proposed Business Plan
APPROVED EXPORT BUSINESSES (BASED ON ANNUAL
TURNOVER)
•
What is the basis to claim the turnover? Is this based on the First
year, Second Year, Third year of the Projection.
•
THE TEST IS: “ANNUAL” - COMMON DENOMINATOR (“CD”)
Year 1:
200K
CD
200K
Year 2: 400K
200K
Year 3: 600K
200K
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ENTREPRENEUR WORK VISA
UNIQUE OR NEW PRODUCTS OR SERVICES
BH6.1.30
•
New – “Significant Enhancement”
•
Unique – “Only product or service” – What is the Unique Selling Point?
CAPITAL INVESTMENT
•
Minimum of $100,000 (No points) to claim points at least $200,000
•
BB3.5.1 – Waiver only applies to:
•
•
BB6.1.55 - ICT
•
BB6.1.60 - High Value Export (5 new jobs plus $500,000 turnover)
•
BB6.1.70 – Innovation
BB6.1.50 - What is working capital?
TEST: If it is an expense then it is working capital? If you can amortize or
depreciate then this is Capital Investment
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ENTREPRENEUR WORK VISA
BONUS POINTS
•
BB6.1.35 – Outside of Auckland
• Where is the headquarters of business located?
• Where are the job created?
• Where is the commercial activity?
•
Local Agency Support:
• A grant or subsidy to develop the business
• Must be measurable and tangible – a letter of support is not
sufficient.
• NOTE: Agencies are not obliged to give support
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SPECIFIC BUSINESS
BUSINESS PLAN AS BB3.15
•
Be Specific
• What is the business?
• Where is the business?
• When do you intend to operate the business?
• Why do you choose this business?
•
Format
• Follow the format as per the application form
• Itemise breakdown the allocation of investment capital/working
capital
•
Forecast – What are the assumption?
•
Differentiate between New or Existing business
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SPECIFIC BUSINESS PLAN
FACTORS TO CONSIDER
•
TYPE OF BUSINESS
•
Consistent with the Objectives of BB1
• High growth
• Innovative
• Export
•
•
New/Existing Business
CAPITAL REQUIREMENT
•
Existing Business
• Share Acquisition/Asset Acquisition
•
LOCATION
•
In Auckland or outside of Auckland
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SPECIFIC BUSINESS PLAN
Practical Implications
•
Offshore applicants will need to come to NZ before a visa is granted
•
Interim visa of 12 months is purely to set up the business
•
One variation of business plan opportunities
•
Decrease in buying existing businesses
•
Pro forma business plans will no longer apply
•
Applicants are better prepared for Residency
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ENTREPRENEUR RESIDENC
CAPITAL
VISA
BH2.1 SUCCESSFULLY ESTABLISHING A BUSINESS
•
TWO YEARS
•
SIX MONTHS – subject to S49 Conditions maintain $500k and three jobs
created
BH4.10 BENEFITING TO NZ
Benefits
•
Promoted New Zealand’s economic growth as set out in a) i - vi, such as
by creating employment or introducing new, or enhancing existing,
products or services, spill-over
•
Productivity-enhancing spillover benefits
•
Increase Capacity Utilisation (such as significant net new job creation)
Trading profitably
•
BB6.1.40 – meeting or exceeding the projected annual turnover from the
original business plan and assessment from the points scale;
•
Making sufficient profit = minimum wage per annum
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ENTREPRENEUR RESIDENCE VISA
GRANDPARENTING
•
TEST: Did you comply with your business plan?
WHAT IF I DON”T MEET THE FORECAST OR THE BENEFITS
CLAIMED?
•
The applicant can apply for extension on the EWV provided that
they can show that the business has potential to meet the
forecast.
•
BH3.1 (a)(iv) – may be triggered
“The business has provided a significant benefit to New Zealand
or greater than the original business as determined by a business
immigration specialist”
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CONCLUSION
REMEMBER – BEFORE SUBMITTING AN APPLICATION
•
BE CONSERVATIVE WHEN CLAIMING POINTS
•
JUSTIFY YOUR ASSUMPTIONS
•
WORK ON THE BUSINESS PLAN
•
DO NOT APPLY FOR RESIDENCE PREMATURELY
•
ENSURE CONSISTENCY WITH BB1
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