Understanding Visas: Setting up business operations in New Zealand

Setting up operations in New Zealand (NZ), or transferring employees into the country, will usually require consideration of visa regulations.

There are a number of visa options to consider, depending on circumstance and it may require a tailor-made solution to satisfy all requirements of the business.

Seconding an employee to temporarily work on client premises

New Zealand’s visa system allows for seconding a senior or specialist employee to a substantial NZ company, or a subsidiary of an overseas company, for up to 24 months.

A specialist employee is one who is being transferred to undertake a specialist task, at a senior level. The employee must also have knowledge of the services, equipment, techniques, or management of your business and this knowledge must be required to undertake the specialist task.

The NZ entity does not need to prove that it has tried to find a New Zealander for the position. However, the employee must be needed in NZ for a specific purpose or event, which is time bound. Therefore, the employee cannot be transferred to work for the client on a permanent basis. Also, there must be no risk that a New Zealander would miss out on a work opportunity.

There is also a work visa option for sending an employee to install or service specialised equipment, including IT systems. However, this type of work visa will only be valid for a maximum of three months in any 12-month period. It cannot be extended.

If the situation at your business does not fit into either of these scenarios, or you do not wish to involve your client in the process, it may still be possible to obtain a work visa for the employee. However, eligibility will depend on the circumstances, such as whether the issue of the work visa would cost a New Zealander a job opportunity and whether the situation justifies the employee being sent to New Zealand.

As with all visa applications, the employee must meet certain health and character requirements.

Transferring an employee to New Zealand for more than a few months

Your business can transfer an employee to its New Zealand branch, for up to three year years, which can be extended for a further three years. Again, there is no need to undertake a labour market check, however, this type of work visa is also only permitted for a specific, time-bound purpose. For example, overseeing New Zealand operations for a few years, or managing training and hand-over to a new manager.

If you wish to permanently transfer an employee to New Zealand, then he or she is likely to require an “Essential Skills’ work visa. This can be valid for five years, each time it is issued, and can be renewed indefinitely, depending on the skill level of the job. The New Zealand entity must make a genuine attempt to try to find a New Zealand citizen or resident for the position before applying for the work visa, to meet labour market check requirements. If none are available or readily trainable, then the work visa may be approved. This is very possible, given that New Zealand’s unemployment rate is currently at only 3.9 per cent.

The employee may also be eligible to apply for residence, under the Skilled Migrant Category, which would allow the employee and his or her family to permanently reside in New Zealand. Again, your employee must meet health and character requirements. This will involve obtaining police certificates and having medical checks prior to applying for the visa.

Moving you and your business to New Zealand

If you are the business owner and wish to move both you and your business to New Zealand, you cannot obtain a work visa. This is because work visas can only be granted to employees. However, the ‘Entrepreneur’ visa category may be an option, allowing migrants to set up a business in New Zealand. Usually, to obtain such a visa, the business owner needs to invest at least NZD100,000 into the business and must submit a detailed business plan, that explains how the business will benefit the New Zealand economy.

You will need to obtain medical tests and police certificates as part of the application process, and prove your business experience and how you earned the money to invest in and establish the New Zealand business.

Bringing family

In most circumstances, if a visa is granted for more than six months, the visa holder can bring a de facto partner or legal spouse, as well as any dependent children aged less than 20 years. Of course, the family members must also meet police check and medical requirements. The partner should then be eligible for an open work visa, allowing work in any occupation and for any employer, and school-aged children should be eligible for student visas.

Please do contact us to discuss your requirements, so we can develop a tailor-made solution.