1 Marcus Beveridge, Principal, Queen City Law Bradley So, Lawyer, Queen City Law ENTREPRENEUR WORK VISA AND ENTREPRENEUR RESIDENCE VISA: Comments on the

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  • 1 Marcus Beveridge, Principal, Queen City Law Bradley So, Lawyer, Queen City Law ENTREPRENEUR WORK VISA AND ENTREPRENEUR RESIDENCE VISA: Comments on the recent changes
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  • 2 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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  • 3 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 applicants role? ENTREPRENEUR WORK VISA
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  • 4 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 1:200KYear 2: 400KYear 3: 600K CD200K200K200K
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  • 5 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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  • 6 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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  • 7 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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  • 8 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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  • 9 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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  • 10 CAPITALENTREPRENEUR 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 Zealands 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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  • 11 ENTREPRENEUR RESIDENCE VISA GRANDPARENTING TEST: Did you comply with your business plan? WHAT IF I DONT 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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