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Marcus Beveridge, Principal, Queen City LawBradley So, Lawyer, Queen City Law
ENTREPRENEUR WORK VISA AND ENTREPRENEUR RESIDENCE VISA: Comments on the recent changes
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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
OVERVIEW
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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?
ENTREPRENEUR WORK VISA
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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 Year 2: 400K Year 3: 600K
CD 200K 200K 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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CAPITAL ENTREPRENEUR RESIDENC 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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