Lord of the Rings, Kiwi birds and the All Blacks aren’t just the only elements that make New Zealand such an incredible country. The IFC World Bank voted New Zealand the best country globally for ease of doing business, with their latest report pointing to the island nation as more attractive than Singapore, Denmark, and Hong Kong. Thanks to easy migration in and out of New Zealand, in addition to a relaxed attitude towards foreign investment and international expansion, entrepreneurs should consider taking their business to New Zealand.
With a population nearing 5 million people and a land size similar to that of Japan or Great Britain, this culturally diverse nation, there are many reasons to do business in New Zealand. Ranked number one on the Corruption Perception Index, 3rd on the Index of Economic Freedom, and 7th on the OECD’s Better Life Index, not to mention the 20th highest GDP per capita in the world, there is a great deal of prosperity on offer from the shores of Aotarangi. If you’re thinking of expanding have a read below of our list of reasons for doing business in New Zealand.
Optimistic Government And Legal System
New Zealand is undoubtedly the most reliable choice for an Australiasian base of operation as the least corrupt nation globally. Part of the British Commonwealth, the country operates under a parliamentary democracy, with a government led by a prime minister elected by New Zealand citizens. Though Her Majesty Queen Elizabeth II is its official head of state, the role is purely symbolic, with no real power over the sovereign state of New Zealand.
New Zealand’s legal system shares similar ties with Britain and other Australianasian nations like Australia. A thorough understanding of its laws as a foreign investor is crucial to incorporate a New Zealand business. The incorporation process will likely involve registering to pay Goods and Services Tax (GST) and applying for an Inland Revenue (IRD) number to operate a New Zealand business as an employer.
All foreign investment in New Zealand is monitored by the Overseas Investment Office, The Financial Markets Authority, and the Reserve Bank of New Zealand. These institutions regulate New Zealand’s financial markets, investments, and insurance through monetary policy and regulation.
Unrestrictive Foreign Exchange Market
One of the more critical reasons for operating in New Zealand is the lack of capital flow restrictions from a New Zealand business to overseas investors. New Zealand’s unrestrictive foreign exchange market allows companies to set up a New Zealand branch and quickly transfer assets back home. Remember to calculate your margins before launching, as overseas payments may be subject to withholding tax.
Economic Prosperity
This tiny but mighty country boasts a US$204.9 billion GDP with a steady growth of ~3.3%. With consumer spending growing steadily over the years, your business can ride along with the wave of economic success in New Zealand. Remaining on top throughout the 2008 financial crisis, much like Australia, and practically the only OECD nation free of COVID-19, New Zealand demonstrates strong economic leadership despite its geographical size.
Exports And Trade
Exported goods make up roughly 30% of New Zealand’s GDP, making the entire country is prime for expansion. Current export sales translate to approximately 8,500 per New Zealand resident, according to World’s Top Exports. Shipping more than US$38.4 billion worth of goods and services worldwide in 2018, those with operations already underway in Asian territories can benefit from 55.3% of exports that are shipped to the region.
Plenty of Opportunities
With such a firm reliance on exports, New Zealand relies on other countries to keep their economy afloat. This international dependence has allowed New Zealand’s raw materials sector to thrive, offering massive opportunities throughout its forestry, mining, and fishing industries. Horticulture is also ripe for the picking with vast quantities of peaches, plums, nectarines, drupe, cherries, and apricots grown in New Zealand for export. New technologies to improve crop yields or keep livestock healthy are viable options for any business looking to expand down under into New Zealand.
Straightforward Company Incorporation Process
Operating in New Zealand requires you to form a sole trader business, a partnership, or a limited liability company, with benefits from all three, depending on what level of business control you require. Offshore entities are different, as they must conduct business through either a local New Zealand subsidiary company structure or by establishing a branch of their company in New Zealand. One of the more popular methods for international entrepreneurs is limited partnership businesses. Limited partnerships allow operators to simplify the application process with a reputable New Zealand based company, ensuring a swift and compliant experience.
Simple Visa Processing
Visa processing is usually a tedious and, at times, an arduous task as a foreign investor. New Zealand makes things easier through Entrepreneur Work visas allowing you to buy or establish a New Zealand business. Previously referred to as the Long-Term Business visa, approval is given once an initial capital investment of NZ$100,000 or more is made, in addition to scoring at 120 on a scale used to determine the likelihood of business success in New Zealand.
A business plan will also need to be produced for review by the New Zealand visa processing department. Although, the visa process may require further revisions during the assessment period. Entrepreneurs should also consider a Work Visa for yourself or any other executives outside of New Zealand. Fortunately, Australian nationals do not need to apply for an investor or work visa as they are allowed to live and work in New Zealand indefinitely.
Doing business in New Zealand as an international company
Wanting to learn more about doing business in New Zealand? Contact ANZPEO today.
