Residency 'carrot' lures rich investors

**MotherBear** · 17-11-2009, 05:35 PM

Residency 'carrot' lures rich investors
By Lincoln Tan
4:00 AM Tuesday Nov 17, 2009

Thousands of wealthy foreigners are lining up to move here, just weeks out from the introduction of business migration laws that will grant them residency almost immediately.

Under a new Entrepreneur Plus immigration category - effective on November 30 - entrepreneurial migrants who create at least three fulltime jobs and invest $500,000 in their business will be offered a fast track to residency.

Currently, entrepreneur migrants are issued with a long-term business permit and can apply for residency only after two years.

Although there is no minimum investment capital required, neither is there a guarantee their residency application will be approved.

The new scheme will grant conditional residence virtually as soon as an application is made.

"There is no time requirement that you must have operated your business for to be successful under this category," the Immigration New Zealand website says.

More here.

**cani** · 18-11-2009, 03:50 AM

I was reading this on the immigration site yesterday. Don't think i understand it correctly. It looks like you have to apply for LTBV, which costs 2600, and then a year later, you applied for this new residency visa for a further 2600 while showing that you've fulfilled all their requirements. How is this easier than the way it already is? What am I missing?

Kristina

**MotherBear** · 18-11-2009, 05:07 AM

I think applying for the LTBV is the start of the application under the Entrepreneur Plus Category. The LTBV needs to be already in place along with the other requirements in the list below when you finally apply for residency after 2 years of successfully running your business. I'm sure you wouldn't need to have 2 LTBVs because people just wouldn't bother. When you first apply you would be given a work permit (LTBV) to cover the 2 years you need to build up your business then, if all is well, you would hopefully get residency. This new category seems to replace the old entrepreneur category.

What are the main requirements for the Entrepreneur Plus Category?

To be approved residence under the Entrepreneur Plus Category you must hold a long-term business permit and have:

* successfully established a business in New Zealand
* been 'self-employed' in your business
* transferred at least NZ$0.5 million through the banking system to New Zealand
* invested at least NZ$0.5 million in your business
* created a minimum of three new full-time jobs for New Zealand citizens or residents (this is in addition to existing staff if you purchase a business)
* a minimum English language ability of IELTS 4
* met health and character requirements.

**cani** · 18-11-2009, 08:07 AM

But where would you get the long-term business permit that you need for the new category if you don't apply for LTBV first? sorry for being so thick but it just doesn't make sense to me. I would think if you have a business plan that they like and can show what business you have, they would give you a permit under the new category and then you still have at least a year to prove yourself.?.

Kristina

**MotherBear** · 18-11-2009, 06:57 PM

I am assuming the permit they give you when you first apply under the EPC is the LTBV. You don't need to already hold one to be able to apply. I think what they are saying is that you need to have this LTBV in place (plus all the other bits and pieces) when you have worked 2 years in your company and then qualify to progress on to PR. As you will be granted the LTBV after you apply and have your business plan etc. approved, that is all you need to move forward.

It works the same way as the old LTBV where you apply and are granted it before you can start your business. After you have worked x number of years successfully running the business, you are allowed to progress on to residency. This works in the same way, but there are a few variations in the conditions so they have given the category a new name.

Is your problem concerning the below wording? It's difficult to tell if this is aimed at people who have already applied and been granted a LTBV or if it is a question for those who will be granted one and then want to change their business type. I must say I am confused by this.

Does my business have to be the same as the one for which I was granted a long-term business permit to establish?

Yes, unless a business immigration specialist at the Business Migration Branch has previously given consent for you to modify your original business proposal. Your application cannot be approved under the Entrepreneur Plus Category if your established business is different to your proposal in your business plan.

**cani** · 19-11-2009, 03:50 AM

No, what's confusing me is that under either of them you have to wait two years to get residency (as Macfod did) so how are they different? Other than the requirements of more funds and personnel, the only difference I see is that after the same amount of time, the new one is more of a quanantee of residence than the old one, but either way, you still have to prove that the business you applied under is successful and doing everything you said it would when you applied. In other words, the only real difference I can see is that the new category could be more expensive. I've read it over and over and really can't see where else it's different, time-wise.

Kristina

**MotherBear** · 19-11-2009, 08:55 AM

I must admit I didn't have time to properly read through the news article I originally posted and only scanned through it. I later read partway through the questions and answers for the EPC on the INZ website. Not having sufficient time to fully read through these items lead me to get only part of the story and mix up the old and new LTBVs and may have only served to confuse you all the more. My apologies

.

This is the difference between the 2 LTBVs according to the news article above.

Currently, entrepreneur migrants are issued with a long-term business permit and can apply for residency only after two years.

Although there is no minimum investment capital required, neither is there a guarantee their residency application will be approved.

The new scheme will grant conditional residence virtually as soon as an application is made.

"There is no time requirement that you must have operated your business for to be successful under this category," the Immigration New Zealand website says.

Regarding the latter item, previously I believe that, if your business wasn't successful at the 2 year point, your application for residency would be turned down. Now it seems there is no cut off point, so you can relax a bit as long as you concur with the other requirements.

**cani** · 19-11-2009, 05:10 PM

Thanks, that makes it a bit clearer. Sometimes I think we get too into something to see what it is we're looking at and it takes someone else to show us. I've been at this a while and have so much going on in my head I wonder some days what I'm doing. Again, thank you.

Kristina