Business Investor Work Visa $2m+ – Fast-Track Pathway
New Zealand’s Business Investor Work Visa provides a pathway for experienced business people who want to invest in and actively operate an established New Zealand business.
The Fast-Track Pathway is aimed at investors prepared to make a substantial investment and become directly involved in running the business. By investing at least NZ$2 million, an applicant may become eligible to apply for residence after operating the business for 12 months.
This distinguishes the Business Investor pathway from the Active Investor Plus Visa, which is primarily an investment-based residence category. The Business Investor Work Visa requires the investor to take an active role in the New Zealand business.
How much must be invested?
Under the Fast-Track Pathway, an applicant must be able to invest at least NZ$2 million in an acceptable established New Zealand business.
The investment amount does not include GST, the value of the business property, or fees and transaction costs.
An investor can purchase the business outright or acquire a qualifying interest in it. The investment must result in the applicant owning at least 25% of the business.
The applicant must demonstrate that the investment funds or assets are owned by them, or jointly with an eligible partner or dependent child included in the application, and that the funds have been lawfully earned or acquired.
NZ$500,000 in additional reserve funds
The NZ$2 million business investment is not the only financial requirement.
Applicants must also have at least NZ$500,000 in reserve funds available to support themselves and any family members included in the application while they establish, operate and grow the business in New Zealand.
These reserve funds must be additional to the funds being used for the business investment.
What type of business can be purchased?
The visa is directed at investment in established New Zealand businesses rather than simply establishing a new enterprise from scratch.
The nominated business must meet Immigration New Zealand’s requirements. Among other things, it must:
- Have been trading for at least five years
- Be lawfully and currently operating in New Zealand
- Meet applicable immigration, employment and business standards
- Have the required qualifying purchase price
- Employ at least five full-time equivalent staff
- Result in the investor acquiring at least a 25% ownership interest
- Not already be owned by the applicant or a member of their family
- Meet the other requirements applying to acceptable businesses
Applicants are expected to undertake proper financial and legal due diligence before purchasing the nominated business.
Franchise businesses can also qualify where they satisfy the applicable Business Investor requirements.
Active involvement is essential
This is not a passive investment visa.
The applicant must intend to be actively involved in running the business in New Zealand.
This means the visa is particularly suited to experienced business owners, entrepreneurs and senior business operators who want to relocate to New Zealand and personally participate in the operation and development of the business they acquire.
The applicant must also have at least three years of acceptable business experience.
Age requirement
Applicants must be aged 55 years or younger when they apply for the Business Investor Work Visa.
This differs from the Active Investor Plus Visa, which is structured around substantial investment rather than the applicant personally operating an acquired business.
English-language requirement
Applicants must be able to speak and understand English and satisfy the applicable English-language requirements.
This is another important distinction from the Active Investor Plus Visa, which does not impose an English-language requirement on the principal applicant.
The applicant must also meet health and character requirements and satisfy Immigration New Zealand that they are a fit and proper person.
The Establishment stage
A Business Investor Work Visa can be valid for up to four years and initially involves an Establishment stage.
During this period, the investor must purchase the nominated business and begin actively running it.
Within the first nine months of the visa, the applicant must provide Immigration New Zealand with evidence showing that the business has been purchased and that they have started operating it.
If Immigration New Zealand accepts the evidence, the visa can continue for the remainder of its four-year duration.
If acceptable evidence is not provided within the first nine months, the visa will expire at the end of the 12-month Establishment stage.
Creating employment in New Zealand
The Business Investor pathway is intended not only to bring investment into existing businesses but also to support employment.
The investor must maintain at least five full-time equivalent employees in the business.
In addition, the business must 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 employment requirement for residence can be satisfied.
Time spent in New Zealand
Applicants seeking residence through the Business Investor pathway must demonstrate a substantial commitment to personally operating their New Zealand business.
An investor must generally spend at least 184 days a year in New Zealand while holding the Business Investor Work Visa.
This reflects the hands-on nature of the category. It is intended for investors who will genuinely operate their New Zealand business rather than manage the investment predominantly from overseas.
Fast-track residence after 12 months
The principal attraction of the Fast-Track Pathway is the ability to become eligible to apply for a Business Investor Resident Visa after actively running the business for at least 12 months.
To use this pathway, the investor must have invested at least NZ$2 million in the established business.
By the time of the residence application, the applicant must also satisfy the other applicable requirements, including those relating to active involvement, business solvency, employment, ownership, physical presence and compliance with New Zealand’s financial, tax, employment and legal obligations.
The business must be the same business approved during the Establishment stage, subject to the rules allowing an approved change of business.
Residence after 12 months does not end the business commitment
An important feature of the Fast-Track Pathway is that obtaining residence after 12 months does not mean the investor can immediately cease operating the business.
Fast-track applicants are still required to actively run the business for at least three years in total.
The time spent operating the business while holding the Business Investor Work Visa counts towards this three-year requirement.
If residence is granted after the first year, conditions are imposed on the Business Investor Resident Visa requiring the investor to continue actively operating the approved business until the overall three-year requirement has been completed.
Including family members
An applicant can include their partner and dependent children in their Business Investor Work Visa application, provided they satisfy the applicable requirements.
The pathway can therefore provide an opportunity for an experienced business person and their family to establish themselves in New Zealand while the principal applicant acquires and develops an existing New Zealand business.
Permanent residence
The Business Investor Resident Visa allows the holder to remain in New Zealand indefinitely.
After holding a Business Investor Resident Visa for at least two years and satisfying all applicable conditions, the investor may be able to apply for a Permanent Resident Visa.
Fast-Track or Standard Pathway?
There are two principal investment options under the Business Investor pathway.
The Standard Pathway requires an investment of at least NZ$1 million and can provide eligibility to apply for residence after three years of operating the business.
The Fast-Track Pathway requires at least NZ$2 million but can provide eligibility to apply for residence after only 12 months.
The higher investment requirement can therefore significantly accelerate the point at which an investor becomes eligible to apply for residence.
A hands-on route to New Zealand residence
The Business Investor Work Visa – Fast-Track Pathway provides a potentially attractive option for experienced business people who want more than a passive investment in New Zealand.
It requires a significant financial commitment, with at least NZ$2 million invested in an established business and at least NZ$500,000 in additional reserve funds. It also requires the investor to spend substantial time in New Zealand, actively operate the business, maintain employment and create at least one additional job for a New Zealand citizen or resident.
For qualifying investors prepared to take an active role in New Zealand business, however, the Fast-Track Pathway offers the significant advantage of potential eligibility to apply for residence after just 12 months of operating the business.