DOIA 1819-0291

 

Dear Vinu,

 

On behalf of the Ministry of Business, Innovation and Employment I
acknowledge your email of 27/08/2018 requesting under the Official
Information Act 1982 (the Act), the following:

 

I intend to import clay tiles from India. I spoke to the MPI who do not
see any restrictions to this item in their list. However I want to know
what are the minimum requirements to start a business. If I intend to
apply from an investor visa what is the minimum financial requirement for
the same. Also do I need to register a company or can I just start
importing on my name and supply or to the retailers in Auckland.

 

Your request is being processed in accordance with the Act and a response
will be sent to you in due course. If you have any enquiries regarding
your request feel free to contact us via email [1][MBIE request email] or
using the contact details below.

 

 

Yours sincerely,

Alan Witcombe

MANAGER, MINISTERIAL SERVICES

 

Corporate, Governance and Information

Ministry of Business, Innovation and Employment

Level 4, 15 Stout Street, PO Box 1473, Wellington 6140

[2]cid:image001.jpg@01D406FB.810B33E0

 

[3]www.govt.nz - your guide to finding and using New Zealand government
services

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1. mailto:[MBIE request email]
3. http://www.govt.nz/

Dear Vinu,

 

 

You must hold a valid visa allowing you to work in New Zealand in order to
work. If you intend to work for yourself (i.e. be self-employed), you must
either hold a visa allowing you to do so, or a visa that has open work
conditions.

 

An application for a visa under the Investor category requires you to
invest either NZ$3,000,000 or NZ$10,000,000 in acceptable investments in
New Zealand. The definition of an acceptable investment is as follows:

 

BJ5.50 Definition of ‘acceptable investment’

 a. An acceptable investment means an investment that:

i. is capable of a commercial return under normal circumstances; and
ii. is not for the personal use of the applicant(s) (see BJ5.50.1
below); and
iii. is invested in New Zealand in New Zealand currency; and
iv. is invested in lawful enterprises or managed funds (see BJ5.50.5)
that comply with all relevant laws in force in New Zealand; and
v. has the potential to contribute to New Zealand's economy; and
vi. is invested in either one or more of the following:

o bonds issued by the New Zealand government or local
authorities; or
o bonds issued by New Zealand firms traded on the New Zealand
Debt Securities Market (NZDX); or
o bonds issued by New Zealand firms with at least a BBB- or
equivalent rating from internationally recognised credit
rating agencies (for example, Standard and Poor's); or
o equity in New Zealand firms (public or private including
managed funds and venture capital funds); or
o bonds issued by New Zealand registered banks; or
o equities in New Zealand registered banks; or
o residential property development(s) (see BJ5.50.10) or
o commercial property (see BJ5.50.20); or
o bonds in finance companies (see BJ5.50 (d));or
o eligible New Zealand venture capital funds (see BJ5.50.15);
or
o philanthropic investment (see BJ5.40.1); or
o ‘Angel funds or networks’ investments.

Note: New Zealand registered banks are defined by the New Zealand Reserve
Bank Act 1989.

 b. For private equity investments to be acceptable, the business
immigration specialist must be satisfied that the funds being
investigated are to be actively used by the company to, for example,
fund company growth, pay down company debt or purchase capital items.
 c. Notwithstanding (a) above, where an investment fails to meet one of
the acceptable investment requirements, a business immigration
specialist may consider, on a case by case basis, whether the failure
was beyond the control of the principal applicant and if satisfied
that this was the case, may consider the investment acceptable.
 d. A Business Immigration Specialist may consider bonds in finance
companies as an acceptable investment where the finance company:

i. is a wholly-owned subsidiary of,
ii. raises capital solely for, and
iii. has all its debt securities unconditionally guaranteed by a New
Zealand Stock Exchange listed company or a local authority.

Note: The value of an investment is based on the net purchase price (for
example, less any accrued interest, commission, brokerage and/or trade
levy), not on the face value of the investment.

 

BJ5.50.1 Personal use of investment funds

Personal use includes investment in assets such as a personal residence,
car, boat or similar.

 

BJ5.50.5 Managed funds

 a. For the purposes of these instructions, managed funds are defined as
either:

i. a managed fund investment product offered by a financial
institution; or
ii. funds invested in equities that are managed on an investor's
behalf by a fund manager or broker.

 b. In order to be acceptable as a form of investment managed funds must
be invested only in New Zealand companies. Managed fund investments in
New Zealand with international exposure are acceptable only for the
proportion of the investment that is invested in New Zealand
companies.

Example: Only 50% of a managed fund that equally invests in New Zealand
and international equities would be deemed to be an acceptable investment
as set out in BJ5.50.5

 

BJ5.50.10 Residential property development

For the purposes of these instructions, residential property
development(s) is defined as property(ies) in which people reside and is
subject to the following conditions:

 a. the residential property must be in the form of new developments on
either new or existing sites; and
 b. the residential property(ies) cannot include renovation or extension
to existing dwellings; and
 c. the new developments must have been approved and gained any required
consents by any relevant regulatory authorities (including local
authorities), or if consents are not available, evidence must be
submitted that consents have been requested; and
 d. the purpose of the residential property investments must be to make a
commercial return on the open market; and
 e. neither the family, relatives, nor anyone associated with the
principal applicant, may reside in the development.

 

BJ5.50.15 Venture capital funds

 a. For the purposes of these instructions, a venture capital fund is
defined as a fund that invests capital in an early-stage or start-up
(or seed) company or companies in exchange for an equity stake in that
company or companies.
 b. In order for a venture capital fund investment to be deemed acceptable
by a business immigration specialist, nominated funds can be placed in
approved on-call accounts or venture capital funds, subject to the
following conditions:

i. applicants must have entered into a binding fund investment
contract with an approved venture capital fund manager and into an
approved fund structure (for example a New Zealand limited
partnership), to supply an agreed amount of funds as committed
capital; and
ii. the committed funds are a fixed commitment, managed on an
applicant’s behalf by a fund manager or broker, to be drawn down
over a stated period; and
iii. nominated funds can either be committed to an acceptable
investment or placed into on-call accounts which meet the
specifications in BJ5.50.15(e); and
iv. applicants must maintain a level of funds in any approved on-call
account equal to the nominated amount minus any funds already
committed to the venture capital fund; and
v. applicants must be able to demonstrate that all funds placed into
on-call accounts are in those accounts pending call-up by their
nominated venture capital fund.

 c. In order to be approved, all on-call accounts or venture capital funds
must be managed on an applicant’s behalf by a fund manager or broker
and held in New Zealand in New Zealand dollars.
 d. Funds and fund administrators or managers must be able to provide
confirmation that both funds and managers are fully compliant with any
legislative and regulatory obligations, applicable codes of practice
and licensing or registration requirements under New Zealand law,
including any requirements imposed by the Financial Markets Authority.
 e. Dor the purposes of these instructions, acceptable on-call accounts
are defined as an investment that can be liquidated to meet the needs
of the venture capital fund, including trusts, bonds, or shares in
equities.

 

BJ5.50.20 Definition of ‘Commercial Property’

For the purposes of Investor 2 Category instructions, commercial property
is considered to be an acceptable investment if:

 a. the property(ies) is not residential or for domestic use; and
 b. the property(ies) is used for business purposes, in that it is:

i. capable of a commercial return; and
ii. not used for land banking ; and

 c. the purpose of the commercial property investments must be to make a
commercial return on the open market; and
 d. neither the family, relatives, nor anyone associated with the
principal applicant may reside in the development; and
 e. if a new development, the property(ies) must have been approved and
gained any required consents by any relevant regulatory authorities
(including local authorities).

Note: Commercial property can include empty land if plans for development
are submitted to regulatory authorities and/or work has commenced

 

BJ5.50.25 Definition of 'Philanthropic Investment’

 a. For Philanthropic investments to be considered acceptable, a Business
Immigration Specialist must be satisfied the investment is genuine
(see (b) below) and is in:

i. a registered charity with at least two years annual returns and
Inland Revenue donee status; or
ii. a not-for-profit organisation that provides social, cultural or
economic benefits approved by the Business Migration Branch
Operations Manager.

 b. In determining whether a philanthropic investment is genuine, the
factors a Business Immigration Specialist may consider include, but
are not limited to:

i. the length of time the entity has been operating; and
ii. the constitutional arrangement of the entity; and
iii. the entity’s track record.

 c. A maximum of 15 percent of total investment funds can be invested in
philanthropic donations.

 

You must first have an established business in New Zealand to invest in,
which ordinarily requires a valid visa, so this category is likely not
appropriate for your purposes. A better category to apply for is the
Entrepreneur visa category, however its requirements are very strict. You
can find more information about this category at the following link:
[1]https://www.immigration.govt.nz/new-zeal...

 

You can register a limited liability company, or can operate as a sole
trader (i.e. under your own name). These have different requirements under
New Zealand law, specifically tax requirements. More information is
available on the IRD website:
[2]https://www.ird.govt.nz/yoursituation-bu...

 

It is strongly recommended that you take the time to research and
understand the immigration and tax laws of New Zealand before starting a
business. You should seek the advice of a lawyer or accountant before you
make any significant investment.

 

 

Porirua Technical Advisor Team

 

Visa Services - Porirua, Immigration New Zealand

Ministry of Business, Innovation & Employment

 

[3][email address]

[4]www.immigration.govt.nz

[5]http://thelink/how/PublishingImages/MBIE...

From: Vinu Raghunath
Subject: Vinu Raghunath - customer query [UNCLASSIFIED]

 

 

Dear Ministry of Business, Innovation & Employment

I plan to start a business in Auckland. I intend to import clay tiles from
India. I spoke to the MPI who do not see any restrictions to this item in
their list. However I want to know what are the minimum requirements to
start a business. If I intend to apply from an investor visa what is the
minimum financial requirement for the same.
Also do I need to register a company or can I just start importing on my
name and supply or to the retailers in Auckland.

Yours faithfully,
vinu Raghunath

 

[6]www.govt.nz - your guide to finding and using New Zealand government
services

show quoted sections

References

Visible links
1. https://www.immigration.govt.nz/new-zeal...
2. https://www.ird.govt.nz/yoursituation-bu...
3. mailto:[email address]
4. http://www.immigration.govt.nz/
6. http://www.govt.nz/