BB6.1 Definitions (24/03/2014)

The definitions set out in this section define terms for the purposes of the Entrepreneur Work Visa Category (BB) and the Entrepreneur Residence Visa Category (BH).

BB6.1.1 Definition of a business plan

A business plan is a plan to establish or purchase a specific business in New Zealand, which contains information as set out in the business plan form, and is supported by appropriate documentation. Business plans must be based on specific details of the proposed business: generic or template business plans will not be accepted.

BB6.1.5 Definition of funds earned or acquired legally

1. Funds and/or assets earned or acquired legally are funds and/or assets earned or acquired in accordance with the laws of the country in which they were earned or acquired.
2. Business immigration specialists have discretion to decline an application if they are satisfied that, had the funds and/or assets been earned or acquired in the same manner in New Zealand, they would have been earned or acquired contrary to the law of New Zealand.

BB6.1.10 Definition of unencumbered funds

Unencumbered funds are funds that are not subject to any mortgage, lien, charge and/or encumbrance (whether equitable or otherwise) or any other creditor claims.

BB6.1.15 Definition of self-employment

1. Self-employment is lawful full time active involvement in the management and operating of a business which the principal applicant has established or purchased, or in which the principal applicant has made a substantial investment.
2. Substantial investment is defined as the purchase of 25% or more of the shareholding of a business.
3. For the avoidance of doubt, self-employment does not include involvement of a passive or speculative nature.
4. Applicants for an Entrepreneur Work Visa (see BB) may claim points for experience of self-employment in the points scale at BB3.10(d) for businesses outside of New Zealand, and/or for self-employment in New Zealand while on a visa that permitted self-employment.
5. Applicants for an Entrepreneur Residence Visa (see BH) must have been self-employed in New Zealand in order to be granted residence under this category.

BB6.1.20 Definition of senior management

1. Senior management experience means extensive experience at a senior level within a lawful business enterprise, in planning, organisation, control, change-management and direction-setting, where the business enterprise had at least five full-time employees or an annual turn-over of NZ$1 million.
2. To demonstrate senior management experience, an applicant will need to be able to show they held the day-to-day responsibilities of managing a business or company or corporation, or function within a large company (with, at that time, 5 or more full time employees, or a turnover in excess of $1,000,000 per annum), with specific executive powers conferred onto them with and by authority of the board of directors and/or the shareholders.

BB6.1.25 Definition of creation of full time employment

1. The creation of full time employment means a new full time and ongoing job or jobs that will be created for New Zealand citizens or residents.
2. A full time and ongoing job means a permanent role for at least 30 hours a week:
   1. as demonstrated in written employment contracts for the role; and
   2. excluding contract or casual roles.
3. The creation of full time employment may include cases where new permanent and ongoing part time jobs have been created which, when taken together, are equivalent to new full time roles. Evidence must be provided in respect of each claimed equivalent full time job to demonstrate the part time roles:
   1. are for two or more new roles with fixed hours that are equivalent to one new full time job; and
   2. are for permanent and ongoing roles as demonstrated in written employment contracts for the roles; and
   3. meet all employment and immigration laws; and
   4. exclude contract, sub-contracted or casual roles.
4. The creation of employment for non-New Zealand citizens or residents in new or existing jobs will not result in points being awarded in the points scale at BB3.10(d).
5. The employment of New Zealand citizens and residents in existing jobs will not result in points being awarded in the points scale at BB3.10(d).

BB6.1.30 Definition of providing unique or new products/services to New Zealand

1. A product or service is considered “new” if it is:
   1. a significant enhancement or product line not being provided by existing businesses in New Zealand or the region of New Zealand in which the prospective business would be located; or
   2. a proposed enhancement that would promote New Zealand’s economic growth within the 3 year validity of the Entrepreneur Work Visa.
2. A product of service is considered “unique” if it is:
   1. the only product or service of its type being provided in New Zealand; or
   2. a product or service that is not available elsewhere in New Zealand or the region of New Zealand in which the prospective business would be located.

BB6.1.35 Definition of a business based outside Auckland

A business based outside Auckland means a business with its headquarters or sites based outside the area covered by the authority of the Auckland Council. Please see the Auckland Council website for details of the area they cover.

BB6.1.40 Definition of trading profitably

For the purposes of the instructions in Entrepreneur Work Visa Category (BB) and the Entrepreneur Residence Visa Category (BH), “trading profitably” means:

1. meeting or exceeding the projected annual turnover from the original business plan, and assessment from the points scale at BB3.10(d); and
2. making sufficient profit to enable the principal applicant to pay themselves at least the minimum wage per annum.

BB6.1.45 Definition of substantial investment

Substantial investment means the purchase of 25% or more of the shareholding of a business.

BB6.1.50 Definition of working capital

For the purposes of Entrepreneur Work Visa Category and Entrepreneur Residence Visa Category instructions, working capital is cash or capital that is tied to assets used in the on-going maintenance or day-to-day running of a business.

BB6.1.55 Definition of revitalisation of an existing business

For the purposes of Entrepreneur Work Visa Category and Entrepreneur Residence Visa Category instructions, revitalisation means significantly improving the performance of an existing business through the injection of new skills, networks, management capability and/or capital. Evidence of revitalisation can include, but is not limited to, evidence of:

1. doubling the annual turnover of the business; or
2. creating two or more full time and ongoing jobs for New Zealand citizens or residents; or
3. adding a series of new product lines to an existing business; or
4. expanding the number of branches or sites of the business; or
5. significantly expanding the customer base of the business.

BB6.1.60 Definition of business in ICT sector

For the purposes of these instructions, Information and Communications Technology (ICT) is defined as one of three important activities in the economy: ICT manufacturing, telecommunications and information technology (IT) services.

BB6.1.65 Definition of a high value export-oriented business

For the purposes of these instructions, a high value, export oriented business is one where the Entrepreneur Work Visa application has claimed points in the points scale at BB3.10(d) for a business plan that aims to:

1. create 5 or more new full time positions for New Zealand citizens or residents (50 points); and
2. achieve an annual export turnover of NZ$500,000 per annum or more; and

where the applicant can demonstrate that they have met these goals at the time they apply for an Entrepreneur Residence Category Visa.

BB6.1.70 Definition of innovation

For the purposes of these instructions, an innovative business is one that demonstrates a high probability of succeeding in discovering and applying new ways to produce more with the same quantity of inputs.

BB6.1.75 Definition of unacceptable risk

Unacceptable risks to the integrity of New Zealand’s immigration or employment laws is defined as offering business opportunities to meet the requirements of an Entrepreneur Work Visa by persons whose main business is the facilitation of entry to New Zealand of non-New Zealand citizens and residence class visa holders.

BB6.1.80 Definition of formal support from a local agency

For the purposes of gaining bonus points in the points scale at BB3.10(d), local agency support is defined as a proposed business that has been included in a formal initiative or business development programme run by a council, EDA, or local office of MBIE or NZTE; for example being offered a grant or subsidy to develop their business, being part of formal on-going discussions, or being included in business or export development programmes run by that agency. Formal support will be determined by the local agency at its sole discretion.

Effective 24/03/2014