New Zealand’s small size means that markets are limited and it can be hard to reach your growth targets. This is especially true in the current economy – rising interest rates makes lending less viable and slowed consumer spending means that businesses have to explore alternative methods of raising capital.
If you can’t raise capital inside New Zealand, why not try looking outside of New Zealand?
The New Zealand Government is currently pushing to increase investor-based immigration, meaning that high-value migrants are shopping around and looking for local Kiwi businesses to invest in.
When it comes to investor-based immigration, there’s two main visa pathways – the Active Investor Plus visa and the Entrepreneur visa. We’ll quickly explain both and how they can benefit your business.
The Active Investor Plus visa (AIP, also known as the golden visa) is the main investor visa you might have seen in the news. Migrants need to invest $5 to $10 million into New Zealand. The way the rules are set up makes it so it heavily favours migrants investing directly into local businesses rather than parking their money into passive investments, which means business owners should be aware of the potential to generate large amounts of capital quickly.
Not every business can put their hand up for this opportunity, however. If you want to be eligible as a candidate for direct investment like this, you have to be approved by New Zealand Trade and Enterprise (NZTE) first. The basic criteria looks simple at first glance:
Of course, its always a lot more complicated than it sounds. We would recommend that you get professional assistance with this as it will make the whole process a lot smoother. Once you’re approved by NZTE though, your potential for growth will skyrocket as your business is placed on NZTE’s Live Deals page. This is the online platform that NZTE uses so that migrants can decide what businesses they choose to invest in. Earning a place here means you have the opportunity to work with migrant investors and enjoy a substantial injection of capital.
The other investor pathway is the Entrepreneur visa. This is more hands-on for migrant investors as it would require them to start or buy a business, and develop a business plan that shows how they will contribute to the local economy.
You don’t need NZTE approval for this one as the eligibility criteria is more focused on the business plan. This also means that if you’re aiming to sell part or all of your business, targeting a migrant investor might be the ticket you need.
Regardless of which pathway, each process is fraught with complex issues – compliance with immigration instructions, following NZTE approval requirements, the legalities around restructuring your business and more. You will need to engage with a law firm that’s multi-faceted and can offer an experienced hand to guide you through every step.
Getting your business involved with investor immigration opens the door to more potential, more growth and more capital. With the right preparation and legal support, your business could grow by leaps and bounds. Queen City Law is more than happy to assist you on your journey as we are experts in commercial, property and immigration law. Come to us for your one-stop-shop.
Disclaimer: This blog is general commentary only and is not legal advice. Always seek tailored legal advice before making investment or immigration decisions.