Entrepreneur visa - capital investment and working capital definitions

[Loofty]

Hi Folks,

I am hoping someone can help clarify the following for me:

a) I gather that your investment capital of $100,000 or more to start your business is for stock, shop fittings, buying machinery or premise/land (if not renting),etc. Besides stock and fittings and the latter, can it be used for initial rental and utility deposits (if you need to rent shop frontage), company registration fees, etc?

b) It is stated that you require working capital thereafter to run your business. Is this expected for the entire 24 month period (including rent, wages, utilities, stock replenishment) or is it accepted that your business should; within a reasonable projected time frame; be covering these costs from your foretasted sales figures?

I ask as besides your initial capital investment, to have sufficient working capital to support your business for a full 24 months is rather difficult.

Thanks in advance for any feedback given.

Regards,

Lofty

[mmm]

Working Capital: Current Assets - Current Liabilities . So you require initial investment in business and difference between assets which generate you income and current liabilities which liabilities during the year should be positive. It's balance sheet.

[Heynekamp]

I read an article recently that discussed INZ and their loosening on the working capital restriction in that they would allow you to use your investment into your business for both asset/startup investment as well as working capital so long as you don't reduce it over time. Essentially if you spend $400,000 on building fitout, equipment, startup fees, and then another $100,000 on inventory, consumables, etc. that would work AS LONG as after your application you hadn't reduced either. That said INZ is full of pitfalls and contradictions and tread very, very carefully. After my ongoing challenges I recommend everyone to find an attorney who is very experienced with the business visa and entrepreneur residency to oversee all operations and review everything from employment contracts, to your investment, to making sure you meet your business plan goals. The LaurentLaw blog had a 75% failure rate for people trying to gain residency via the entrepreneur residency route! Be very, very careful!

[Loofty]

Thanks Heynekamp for your reply.

[slingshot]

Very interesting topic, I am very keen to learn more about residency via investments and best approach toward it.
I personally holding NZ permanent residency and seeking for residency via investment for my brother.
Is there any good tread here to follow and start with ? Also I will appreciate if you know well working reasonable attorney/lawyer as you mentioned some INZ rules can be tricky to deal with

[JandM]

There have been very few people on the forum who went the investor route for residence, so there isn't any thread or anyone, apart from Heynecamp (who has several times offered help to others, e.g. here https://www.enz.org/forum/showthread...565#post563565), I can point you to as a source of information.