Business Investor Work Visa $1m+ – Standard Pathway
New Zealand’s Business Investor Work Visa provides an immigration pathway for experienced business people who want to invest in and actively operate an established New Zealand business.
The Standard Pathway requires an investment of at least NZ$1 million and can lead to eligibility for residence after the investor has successfully operated the business for three years
Unlike the Active Investor Plus Visa, this is not designed for passive investors. The Business Investor pathway requires the applicant to become actively involved in the management and operation of the business they acquire.
How much must be invested?
Under the Standard Pathway, an applicant must invest at least NZ$1 million in an acceptable established New Zealand business.
The investment amount does not include GST, the value of business property, or transaction and professional costs associated with purchasing the business.
The applicant may purchase an entire business or acquire a qualifying ownership interest. In either case, the investment must result in the applicant owning at least 25% of the business.
The investment funds must be owned by the applicant, or jointly with an eligible partner or dependent child included in the application, and the applicant must be able to demonstrate that the funds were lawfully earned or acquired.
An additional NZ$500,000 in reserve funds
In addition to the NZ$1 million business investment, applicants must have at least NZ$500,000 available in reserve funds.
These funds are intended to support the applicant and any accompanying family members while they establish themselves and operate the business in New Zealand.
The reserve funds are separate from the minimum NZ$1 million that must be invested in the business.
What type of business qualifies?
The Standard Pathway is focused on investment in established New Zealand businesses rather than simply setting up a new business from scratch.
The nominated business must satisfy Immigration New Zealand’s requirements.
Among other requirements, the business must:
- Have been trading for at least five years
- Be lawfully and currently operating in New Zealand
- Employ at least five full-time equivalent employees
- Meet applicable immigration, employment and business standards
- Result in the applicant acquiring at least a 25% ownership interest
- Meet the required purchase and investment criteria
- Not already be owned by the applicant or a member of their family
Franchise businesses may also qualify where they meet the applicable Business Investor requirements.
Applicants should undertake proper commercial, financial and legal due diligence before committing themselves to purchasing a business.
The applicant must actively run the business
The Business Investor Work Visa is fundamentally a hands-on business visa.
Simply providing capital to a New Zealand company is not sufficient. The applicant must intend to actively operate and develop the business.
This makes the Standard Pathway particularly relevant to established business owners, entrepreneurs and senior managers who have practical commercial experience and want to relocate to New Zealand to operate a business.
Applicants must have at least three years of acceptable business experience.
Age requirement
Applicants must be aged 55 years or younger when they apply.
This requirement reflects the active nature of the visa. The applicant is expected to personally participate in the operation and development of the New Zealand business rather than simply hold it as an investment.
English-language requirement
Applicants must meet the applicable English-language requirements.
This differs from the Active Investor Plus Visa, which does not impose an English-language requirement on the principal applicant.
Applicants must also satisfy Immigration New Zealand’s health and character requirements and demonstrate that they meet the applicable fit and proper person requirements.
The Establishment stage
The Business Investor Work Visa can be granted for up to four years. The initial period is known as the Establishment stage. During this period, the investor must complete the purchase of the nominated business and begin actively operating it.
Within the first nine months, the applicant must provide Immigration New Zealand with evidence demonstrating that the business has been purchased and that they have begun operating it.
If Immigration New Zealand is satisfied with that evidence, the visa can continue for the remainder of its four-year duration.
If the required evidence is not provided and accepted within the applicable timeframe, the visa will expire at the end of the 12-month Establishment stage.
Employment requirements
The Business Investor pathway is intended to support established businesses and employment in New Zealand.
The business must maintain at least five full-time equivalent employees.
The investor must also create at least one new ongoing full-time equivalent position for a New Zealand citizen or resident.
That additional position must be maintained for at least 12 months before the relevant employment requirement for residence can be satisfied.
Time spent in New Zealand
The Standard Pathway requires the investor to make New Zealand their genuine base for operating the business.
The applicant must generally spend at least 184 days in New Zealand in each relevant year while holding the Business Investor Work Visa.
This is an important distinction from investment categories that permit investors to spend relatively limited periods in New Zealand.
The physical-presence requirement reflects the expectation that Business Investor applicants will personally and actively manage their businesses.
Residence after three years
The Standard Pathway can lead to eligibility to apply for a Business Investor Resident Visa after the applicant has actively operated the approved New Zealand business for at least three years.
The applicant must continue to satisfy the applicable requirements relating to their investment, ownership interest, active involvement, business performance, employment and physical presence.
The business must also remain solvent and comply with New Zealand’s tax, employment, immigration and other legal obligations.
The residence application is therefore based not merely on the original investment but on the applicant successfully maintaining and operating the qualifying business over the required period.
Including family members
Applicants can include their partner and dependent children in their Business Investor Work Visa application, provided they meet the relevant requirements.
The visa can therefore provide a pathway for an experienced business person and their immediate family to relocate to New Zealand while the principal applicant purchases and operates an established business.
Permanent residence
After obtaining a Business Investor Resident Visa and meeting the applicable conditions, the investor may subsequently become eligible to apply for a Permanent Resident Visa.
A Permanent Resident Visa provides indefinite travel conditions, allowing the holder to leave and return to New Zealand without the travel conditions attached to an ordinary resident visa.
Standard or Fast-Track Pathway?
The Business Investor category provides two principal investment options. The Standard Pathway requires at least NZ$1 million to be invested in an established New Zealand business and provides a pathway to residence after three years of successfully operating the business.
The Fast-Track Pathway requires a larger investment of at least NZ$2 million but can allow the investor to become eligible to apply for residence after only 12 months, subject to the applicable requirements.
The Standard Pathway therefore requires less investment capital but involves a longer period before the investor can progress to residence.
Who might consider the Standard Pathway?
The Standard Pathway may be particularly relevant to an experienced business person who wants to purchase and personally operate a New Zealand business but does not want to commit the NZ$2 million required for the Fast-Track Pathway.
It may also suit applicants who are comfortable taking a longer-term approach to residence and want to demonstrate their commitment through the successful operation and development of an established business.
A hands-on business pathway to New Zealand residence
The Business Investor Work Visa – Standard Pathway combines business ownership with an eventual pathway to New Zealand residence.
Applicants must invest at least NZ$1 million in a qualifying established business, retain at least NZ$500,000 in additional reserve funds, take an active role in operating the business and satisfy the employment and physical-presence requirements.
For experienced business people prepared to establish themselves in New Zealand and personally manage their investment, the Standard Pathway provides an alternative to the higher NZ$2 million investment required under the Fast-Track option, with eligibility for residence after three years of successfully operating the business.