‘Small, niche category’: Immigration Minister says there could potentially be 100 to 150 applicants in the first year as Government introduces new Business Investor Visa

The Government is introducing a new residence pathway for people who want to invest in and operate a business in New Zealand. 

Called the Business Investor Visa (BIV), Immigration Minister Erica Stanford says “we are introducing a more targeted pathway for experienced businesspeople with capital to invest and the hands-on experience and skills needed to run a successful business”.

There are a few caveats. 

For people wanting to go down this path, they have to invest in a New Zealand business, meet financial thresholds and business requirements, create at least one new full-time job for a New Zealand citizen or resident and maintain the employment of at least five full-time staff.

The applicants have to be 55 or younger, have enough funds to support themselves and families, and meet English language, health, character and business experience requirements. 

They would also have to be in the country at least 184 days a year. An eligible business must have been operational for five years and the applicant will be required to operate the business for three years. 

The BIV has two investment options:

• A $1 million investment in an existing business, with a three-year work-to-residence pathway
• A $2 million investment in an existing business, with a 12-month fast-track to residence pathway

Businesses excluded from this scheme include adult entertainment, convenience stores, discount/value stores, drop shipping, fast food outlets, franchises, gambling, home-based businesses, immigration advisory services and tobacco/nicotine-related businesses.

This sees the retirement of the Entrepreneur Category with the Government saying this had low application volumes, high decline rates and didn’t deliver strong economic impacts. 

“This new visa will bring overseas investment to maintain and create jobs, grow incomes, and breathe new life into existing businesses across the country," Stanford says. 

Work is also under way, Stanford says, on a visa pathway for start-up entrepreneurs with “scalable, innovative business ideas, designed to complement existing settings and complete the suite”. 

'Small, niche category'

This would be different to the Active Investor Plus Visa, Stanford told Newstalk ZB’s Mike Hosking on Wednesday.

The BIV was more about people who have experience running a business and investing in a business they had to be in New Zealand to oversee for at least 184 days in a year, Stanford says. 

They would also be a tax resident and have to “actively run the business”, Stanford says, whereas the Active Investor Plus Visa was about a person’s capital and business connections.

Stanford says the BIV is not like an “Oprah-style” where everyone gets a visa. 

The Government thought the BIV would potentially have 100 to 150 applicants in the first year, Stanford says. 

This visa would also depend on the businesses for sale. 

“If you look at the moment, businesses for sale over that amount … there’s about 185. But it may well be that there’ll be more for sale once we’re able to open up this pool of people who have capital to buy businesses.”

Stanford says this was a “small, niche category”. 

'Positive step'

BusinessNZ chief executive Katherine Rich says “this is a positive step in the Government’s programme to support foreign investment and attract international expertise, and will help ensure greater business continuity, giving owners more choices for succession planning”.

"It’s good to see the criteria focused on the skills and experience of the individual, without the overly prescriptive business plan requirements that were in place under the old system.”

"Attracting global business skills and expertise will deliver real benefits to our economy and our communities," Rich says.

Applications for the BIV open in November.