In August 2025 Immigration New Zealand announced changes to replace the old Entrepreneur Category with the new Business Investor Visa (BIV).

The BIV differs from the old regime primarily by requiring significantly higher investment thresholds (NZD $1 m or NZD $2 m depending on which pathway) and stronger emphasis on job creation and business growth in New Zealand. All very exciting news, and one that I see as bringing much needed capital into the New Zealand economy.

What is important to note is that applicants are required to be “actively involved” in running the business, creating jobs, and of course complying with all New Zealand regulatory obligations. The visa framework therefore places an extra burden of responsibility on the business owner-migrant, which is markedly different to the usual ‘sponsored residence pathways’ such as the Skilled Migrant/ Green List (employer sponsored) or Family (family member sponsored) residence visas.

Effectively, the BIV is self-sponsored. This puts the control in the applicant’s hands, and also the responsibility as well.

Becoming a Business Owner in NZ

I consider the BIV to be a delicate piece of regulation, with lots of different moving parts. This blog is a short discussion about the employer/ business owner employment issues an applicant should proactively plan for when migrating to New Zealand as a business investor. Many of these relate to employment law, regulatory compliance, business structure, and risk-management.

Employment law – more employer obligations than many jurisdictions

New Zealand has relatively generous legal protections afforded to employees with strict obligations expected of employers. It will be wise to familiarize the essentials of employment requirements before jumping in and becoming a business owner.

Key employer obligations in NZ: a cheat sheet

• Under the Employment Relations Act 2000 (ERA), both employer and employee have rights and responsibilities, and parties must act in good faith when dealing with each other.
• Every employee must receive a written employment agreement setting out key terms.
• Employees are entitled to at least: Four weeks of paid annual leave after 12 months’ service. Public holidays (or alternative holidays) if they fall on days the employee would normally work. Ten days of paid sick leave each year once eligible. Minimum wage for all employees aged 16 and over.
• Employers cannot give workers less than the minimum protections even if the employee agrees to lesser terms.
• There are obligations around rest and meal breaks, deductions from wages, wage payments, etc.
• Health & safety obligations (via Health and Safety at Work Act 2015) plus broader employment standards apply (e.g., discrimination, harassment, fairness). Generally the Courts have interpreted the obligation to provide a safe work place widely.
• There are also specific protections for migrant workers (e.g., migrant exploitation provisions) which place additional risks if an employer fail to meet obligations.

Things to consider

• Before hiring the first employee, get specialist legal advice on New Zealand employment law and have proper employment contracts prepared (not generic templates).
• Ensure the business systems capture leave entitlements, breaks, holiday payments, payroll deductions, wage records and so forth. It is important that the systems are robust from the outset. The BIV requires at least 5 full time employees, and managing 5 staff is much more difficult than managing one person if the systems are not up to par.
• Set up director/manager oversight of employee relations and compliance, especially if not fluent in English, or unfamiliar with NZ labour law culture.
• Embed a culture of good faith and fair process. This part is not well defined and really comes with experience. It’s important to note that under the ERA one cannot simply treat employment relationships as purely transactional (good faith requirements).
• Monitor and record your job-creation obligations under your visa: e.g., how many New Zealand-based jobs have you created, how many hours, are they full-time, etc. (As the visa requires active involvement and impact.)

Finally, if you are bringing staff from overseas or seconding managers, ensure the visa implications of hiring foreign workers (e.g., AEWV settings) are correctly handled.

INZ has confirmed that a BIV may include migrant workers within the scope of the 5 full time employee requirements, and this brings with it a raft of other potential issues, as well as benefits.

New Zealand is a great location for setting up a small-medium sized business. The lower level of competition in the market offers a stable environment suitable for a high-quality owner-operator lifestyle. As a country with good regard for the rule of law, New Zealand also provides a stable legal environment as well as comparatively navigable taxation legislation.

The BIV represents a great opportunity to seek a change of pace. We support it. Just bear in mind that Immigration New Zealand places the obligation for due diligence on the applicant, so it pays off to look before you leap.

You can read more about the Business Investor Visa here and see our BIV brochure here.

If you are ever unsure, please contact the experts at Queen City Law who are here to help.

Disclaimer: This article is general commentary only and is not legal advice. Always seek tailored legal advice before making investment or immigration decisions.