The New Zealand Government is reviewing its immigration policy, affecting the visa regime. As mentioned in my previous article (Indian Newslink, March 1, 2014), the Long Term Business Visa has been disestablished, replaced by Entrepreneur Work Visa.
The Entrepreneur Work Visa is a temporary permit that could possibly lead to residence application under Entrepreneur Residence Visa. It works on a point system with the current minimum requirement placed at 120 points.
While details are still being finalised, this could be the most complex category of application that requires a rock solid, detailed business plan, which will be assessed for viability, credibility and potential advantage to New Zealand.
Score Card
There are relevant points awarded for self-employment and senior management experience. For instance, if the person applying for the Entrepreneur Visa has relevant self-employment experience for ten or more years, he or she gain 40 points. Those with five or more years of experience can claim 30 points and those with three or more years of experience can score 20 points.
Immigration New Zealand will consider visa applications on the potential of the applicants to contribute to the growth of the country’s economy, good character and other factors.
Anyone seeking the Entrepreneur Work Visa will get points for creation of new jobs (full time employees) and for approved export business based on annual turnover. Applicants who introduce unique services to New Zealand or to a particular region, currently not serviced by existing businesses will also stand a good chance.
Those promising to create ten or more new full time jobs for New Zealanders can gain up to 80 points. Applicants promising five or more full time positions will be awarded 50 points and those creating three of more jobs will receive 30 points. Potential entrepreneurs under this Visa will get 10 points for creating one full time job opportunity to a permanent resident or citizen.
Capital investors
As far as capital investment excluding working capital, the person applying for the visa can score maximum points of 80 for investment of $1 million and the lowest requirement of investment of $100,000 can be waived for business in Science, ICT or other high value export-oriented sector which demonstrates high level of innovation or credible short term high growth prospects.
Investments less than $200,000 will not be entitled for points.
Age factor
There is a separate set of points for the age factor. How old you are when you file your application would make a major difference. If you are between 25 and 49 years of age, you would get 20 points. Points for those in the lesser or higher age group will change accordingly.
There are bonus points for setting up businesses outside Auckland and those supporting the New Zealand Trade & Enterprise, the New Zealand Chamber of Commerce or the concerned City Council.
There will be a thorough background check on the applicant’s business history, financial performance over the previous five years, integrity and honesty.
The general speculation regarding the new changes is that they may not work since most applicants may not be able to meet the minimum requirements. The tough regime will deter most entrepreneurs from applying in this category.
The popular opinion is that there should be greater flexibility and a system that will properly assess the bona fides of applicants.
There are a lot of subtexts to the new changes in the law, which are complex. They must be properly understood and interpreted.
Saif Shaikh is a Licensed Immigration Adviser and Director of Immigration Advice NZ Ltd based in Auckland. He can be contacted on (09) 2724424; Email: saif@ianzl.co.nz
www.immigrationadvicenz.com
