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Thread: Entrepeneur Status via LTBV

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    SteveyC's Avatar
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    Default Entrepeneur Status via LTBV

    Ok so here goes, lets do this all again :-)
    Plan A - Claire get's her degree is Earth Sciences she is currently studying for and completes a masters in NZ to get us there asap under the normal points total route. Eta 4-5 years from now.

    Plan B - and although more convoluted I have a strong belief this could be a faster way in, as the title suggests via the Entrepeneur category......

    If my understanding is correct after a quick read on INZ, there are several different options to me which I'll discuss by order of required investment.

    1.) If I get 2.5mil I can basically 'buy' my way in as an investor 10 mil and I can do what the hell I want lol, maybe I'll go to the Bahamas instead.

    2.) Under both the Entrepeneur and Entrepeneur Plus schemes I can see little difference except under the 'Plus' scheme I would need $500k invested over the term of my LTBV and I'd be able to apply for Residency sooner.

    3.) Under the Entrepeneur scheme (Ironic as INZ have clearly stolen there whole Immigration categorising system from Visa - very creative and entrepeneurial) it would all depend on having a solid business plan, but if it was solid enough and proved to be profitable during the period of the LTBV money can be as little as the usal start up costs for whichever business you plan.

    So....I'll aim for number 3 which raises the following key questions, which I'll try to answer as a kick-start to the discussion however far off I may be.

    What exactly is an economic benefit to NZ?

    From INZ
    "The evidence you need to provide to show that your business is benefiting New Zealand could include:

    • employment records such as IRD PAYE monthly schedules
    • financial statements for the business
    • export/import documents
    • tax records. "
    Nothing very quantifiable here but based on the fact as an Entrepeneur plus, you just have to provide employment for 3 workers and this is the lower category, maybe I only need one Kiwi employee for my business to be deemed appropriate. What do you think?

    If I wanted to just straight up buy shares in a company instead under the 'establishing a business' mantel described on INZ instead of setting one up would this not be sufficient, providing the company 'benefits NZ' I presume?

    INZ says:

    "What are the business establishment rules?

    Substantial investment means the purchase of 25 per cent or more of the shareholding of a business."

    Surely this means that I only have to buy a share of an existing business, and being safe lets say they emply 3 Kiwi's. That should be a damn site cheaper than the $500k I mentioned in option 2 at the top.
    However, if I'm only owning 25% of a company and the original stipulation for setting up my own business was circa 3 employees, should I assume therefore that 25% x 4 = 100% and consequently my contribution to NZ in terms of employed Kiwis also rises by 4 meaning the company I buy 25% shares in must have 12 Kiwi's on the books (3 x 4).

    And finally... If I am to take the employee examples (as they seemed easiest) what if I was to approach it from a (presumably) exports angle as in the 1st quotation from INZ above.

    With reference to Employment of Kiwis INZ says:

    "Full-time employment is considered to be at least 30 hours of work per week."

    and...

    "You will need to have documents that show us you meet these requirements, such as documents proving you are:
    • paying employees no less than the correct minimum wages
    • meeting holiday and special leave requirements and looking after the health and safety of your employees"
    Based on this


    If a Kiwi's salary can be taken into account and compared to say gross export values I can calculate that 30hours x 50 weeks = 1500 hours, which at minimum wage of $13 p/h = $19500 worth of exports. Multiplied by however many employees we conclude is neccessary in above question.
    Or is it indeed $19500 in taxes and exports etc. etc.

    Put this way, it all seems a bit more achievable than half a million bucks. What do you reckon? *skulks off feeling chuffed at his metal arithmetic.

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    SteveyC's Avatar
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    Oooo that was long, if I get to NZ by this route I'm writing an ebook :lol:

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    MotherBear's Avatar
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    I think I'll have to lie down in a darkened room to think about this one - meanwhile praying someone else can come up with some answers for you.

    House in Bulgaria and talking of investing mounds of money in NZ? You won the lottery or robbed a bank, Steve ? Can't say I've heard anything on the news about it.
    Mother Bear

    Try to bloom wherever you are planted.

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    SteveyC's Avatar
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    :-) I don't have investment mounds yet, but have a new found life ethos and that dreaming big and aiming high are subtly different, aiming high is more calculated and forces you to consider the steps required to get there, thus making them easier to undertake.
    It would be easy for me to think how the heck I am I going to get 500k but finding or founding a company with 3 employees and making a business plan plays to my strengths more. I have many ideas and if I can put them to action in NZ rather than putting them into action here in order to raise $500k-$2mil several years could be saved thus fitting in with the time line of the boys' growing up.

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    SteveyC's Avatar
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    Hmph so MB is still lying down in a dark room. Taffy is Pondering Indefinitely, maybe WG will have the answers.
    Come on chop chop I only have 4 years to sort this out.

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    I have no idea what you are asking

    If you take the LTBV route, you need to establish or purchase a business, and over the course of the visa employ 3 NEW staff members for the whole 100% of the company (it's not 3 per shareholder) and make the business successful - successful being it's got a solid future and isn't about to fail any time soon.

    Is that something close to what you were asking?!
    Taffy

    The greatest mistake you can make in life is to be continually fearing you will make one.

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    SteveyC

    One thing you need to look at in your plan is INZ will look and see do you have the prior expertise and experience to do this. Otherwise every person wanting in would come up with a plan to sell chewing gum on the street corner to passing cars and call it a business or generate a business to provide waiters to restaurants, which is needed. Likewise you may have a plan to build factory and sell to multinationals. You may have a great plan but have you done it before. INZ has some pretty sharp people so don't under estimate them. This is no game and they are not stupid in the slightest.

    INZ doesn't get applications by the tens or hundreds but by the thousands. INZ know very well if something is real and will work. As a kiwi I am personally insulted the way you treat the immigration process like it is some kind of game to manipulate the rules so you can get in. You will find out it just ain't so.
    Cheers

    Cliff

    Nelson, New Zealand
    NZ Citizenship in 2000, been in NZ 15 years now
    Arrived NZ in 1997 from Las Vegas, Nevada, USA

    "New Zealand isn't just a physical place it is a state of mind."

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    SteveyC's Avatar
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    Quote Originally Posted by Cliff View Post
    SteveyC


    INZ doesn't get applications by the tens or hundreds but by the thousands. INZ know very well if something is real and will work. As a kiwi I am personally insulted the way you treat the immigration process like it is some kind of game to manipulate the rules so you can get in. You will find out it just ain't so.
    Hmmm, with 235 posts on a NZ immigration site and that attitude to getting through the immigration process set by your governemt, you really are a bit of an anomaly.

    It's not a game but it is a problem and end goal I want to solve/achieve. Therefore one must assess the full scale of the problem and establish which steps are needed to solve it. It's the most basic fundamental of human development. If you don't GET IT Mr 'Insulted Kiwi' then maybe that's why your government is crying out for people like me and the good users of this forum who actually have a clue, socially AND mentally!!!!

    Now, the initial point you make is a genuine one however, I recognise that I would need experience in the area I wish to establish a business, however given you know nothing of my background the frank tone, in which you make said point, is a little overbearing.

    Taffy you're right that is kind of what I'm asking and you've summarised my rambling thought process nicely (see time posted :-), with one exception.
    The 25% bit of the requirement, what does my 25% input have to bear in terms of 'benefit to NZ'. Is it the same as founding a business or 100% ownership?

    E.g. Cliff here, owns a business whereby he gets paid to upset all prospective immigrants and at the moment he employs 2 clever colleagues to do the same. However, I buy a 25% share in the company and after that, they employ 3 more dastardly devotees to upset more immigrants and the company flourishes. Can I lay claim to the extra employees as the spoils of my investment?

    Which leads on to, what if Cliff gives me 25% of his business for thruppence-halfpenny but my knowledge, knowhow and numerous contacts lead to the growth, is my investment still valid? Or would Cliff's Wicked Wanderers Inc - need to be valued beforehand so that my 25% purchase is fully quantifiable? Plus does the company need to be registered on the NZX?

    I realise it's complex subject, and was not expecting a dfinitive single answer, but started the thread so the process can be thought through and any conclusions found can be aired for all to see.

    TTFN

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    Taffy's Avatar
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    Now now, play nicely!!

    I think this may be the info you need to see:

    BC4.15 Criteria for a business benefiting New Zealand

    • A business may be considered to benefit New Zealand if it promotes New Zealand's economic growth through, for example:
      • introducing new, or enhancing existing, technology, management or technical skills; or
      • introducing new, or enhancing existing, products or services; or
      • creating new, or expanding existing, export markets; or
      • creating employment for a New Zealand citizen or resident; or
      • revitalising an existing business; and
    • in the opinion of a business immigration specialist it appears likely that the business will be trading profitably at the time any subsequent application under the Entrepreneur Category is made, or clearly has the potential to be trading profitably within 12 months after the application is made.

    I would think that investing 25% or more in a business would be 1.5, revitalising an existing business. Employing people is an 'or' option.
    Taffy

    The greatest mistake you can make in life is to be continually fearing you will make one.

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    SteveyC's Avatar
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    See you can be helpful when you put your mind to it ;-)

    JK that's cool, although I would say if my existance in a company opens up new export market i.e. the pofitable business I already have elsewhere, wouldn't that count for something?

    What do you reckon on stock exhange thing?

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