Starting A Business In New Zealand
Starting A Business In New Zealand
There are various kinds of business opportunities in New Zealand, which is why business owners and entrepreneurs alike seek to do business there. The country’s laissez-faire approach to both personal and corporate tax rates gives it mass appeal to entrepreneurs, business owners and corporate development partners. As a result, New Zealand has consistently ranked at the top of The World Bank’s Ease of Doing Business Index, which ranks global economies based on indicators that are indicative of a given job market, such as obtaining credit, protecting investors, quality control, and registering property or permits.
As a country with a notably open market, New Zealand makes for a great business environment. And whether you are a small business or a limited liability company (LLC), you can reap numerous benefits from joining the New Zealand economy with your own business for years to come.
Why Start a Business in New Zealand?
There are many benefits of starting or owning a business in New Zealand. On top of being one of the easiest places in the world to do business, New Zealand is also one of the easiest countries to start a business venture.
This is predominantly due to the fact that the country has very minimal restrictions on establishing and conducting business in New Zealand. In fact, business owners and startups can officiate their business name in a matter of hours through the government’s online application tools.
The country has a strong economy backed by an open market that caters to entrepreneurs and investors alike. Additionally, regulatory efficiency ensures low corporate tax rates, investor protection and other benefits, such as monetary incentives, soft regulatory policies and high transparency.
Moreover, trade freedoms greatly benefit foreign business owners who opt not to relocate and reside in the country. For those who prefer to conduct business on-site, New Zealand is ripe with sound infrastructure and networks to propel your business venture into sustainable success.
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The process of starting a business in New Zealand will vary based on the type of business you intend to start, whether you want to move there, and if you already own a foreign business that you want to expand to New Zealand.
In general, these are the eight steps to take to start your business:
- Confirm your business idea is viable and that it will work.
- Declare a company name and domain name for your business.
- Choose a business structure:
- Sole Trader: Business is conducted solely by the owner.
- Partnership: Business is conducted in collaboration with other industry professionals and is often used within the agricultural industry.
- Limited Liability: Business is conducted as a sole entity with legal separation from any existing shareholders and owners.
- Use the RealMe New Zealand government login tool to officiate your business.
- Obtain a New Zealand business number.
- Secure a business name.
- Double-check regulations and policies, and that your business operational procedures will comply.
- Officially register your own business.
While navigating the steps to start a business in New Zealand, here are several considerations to keep in mind:
- Do your research and stay informed about the market your business will be operating in, including specific local economies, such as in Auckland and Māori.
- Understand local territorial rules and regulations before setting up an official place of business to conduct your daily operations.
- Refer to policies outlined by the Inland Revenue Department to ensure your business complies with the required individual tax number or company tax number, depending on the structure of your business.
- Seek legal and financial advice from professionals to assist with financial operations, including setting up a business bank account. This is particularly important if you plan to transfer any funds overseas for your business. In this case, it would benefit your business to seek counsel from migrants’ services before proceeding with moving any funds around to ensure that you comply with any tax obligations.
- Triple-check with the New Zealand Intellectual Property Office and the Companies Office that your business name is protected. This will save you a headache later if you already ordered stationary and finalized logos for your business.
Easily filter searches for Advisors on Relocate, an independent platform for global migration, to find Advisors that specialize in launching new businesses in New Zealand.
If you are applying for an investor visa, there are minimum investment requirements for designated time frames. The two categories consist of the following:
Investor 1
- Minimum investment: NZ$10 million
- Time frame: At least three years
Investor 2 Minimum investment: NZ$3 million Time frame: At least four years
There are also acceptable investment criteria that must be met. Acceptable investments can range from equity firms to residential property development. The investment must also contribute to the New Zealand economy, generate a commercial return and not be for the personal use of the investor.
How to Immigrate to New Zealand and Start a Business
The key legal requirements of moving to New Zealand and starting a business vary depending on your venture. If your goal is to work at a business you own, your visa will have different requirements than others.
Entrepreneur visas are commonly used for this purpose. They enable you to establish a business in New Zealand and be self-employed at your place of business while residing in the country.
Requirements for this type of visa include a viable business plan proposal and a clean business and banking history that is without bankruptcy, business failure or any fraud. There are also English language proficiency requirements and health and character qualifications. Additionally, there is a minimum capital investment of NZ$100,000 required.
From there, your Entrepreneur Residence Category will permit you to legally work and permanently reside within New Zealand as long as you have established growth within your business. Your business must also provide export potential in the country. There are two ways to qualify for residence under this policy. One requires self-employment for at least two years, wherein your business contributes to the economy. The second, faster track option requires that you invest a minimum of NZ$500,000 in your business plan and create three full-time jobs for New Zealand citizens or residents.
Some of the essential steps for immigrating to the country and starting your business as a resident includes the following.
- First, determine if you want to apply for either a visa or New Zealand Electronic Travel Authority (NZeTA).
- Next, visit the New Zealand Immigration website to explore visa options for living permanently. Select the visa option to work or invest in New Zealand depending on your business venture.
- Afterward, you will be asked to specify your origin as traveling from Australia, traveling from the Cook Islands, traveling from Niue, traveling from another country or presently in New Zealand.
- Then, you will be asked to disclose whether you have a job offer within the country, the country of your passport and your age.
- You will be provided with visa options available to you depending on your information. If a business or investor visa is not optimal or available for you, there are other available options to explore. There is a Global Impact Visa (GIV), specific to innovative business ventures, which requires a few more qualifications to obtain. There are also other visa alternatives, including resident visas, work visas and student visas.
- Check that you meet the criteria for your visa option and confirm that it is the right choice for you. Each option will provide you with information about how long you can stay in the country and what you can do while residing there. The website will also provide you with detailed information pertaining to who to include in your residence application, opening and closing dates and times for the application process, and what to expect after the visa application.
- Afterward, you will be provided with additional details and can proceed to apply.
Resources are available to assist you with planning your move to New Zealand. Dig-deeper into related topics for launching a business or investing into New Zealand, browse qualified Advisors and more.
Maybe moving is not ideal for you in the long run, or you just prefer to operate remotely. If this is the case, there is good news. Thanks to New Zealand’s flexible regulations, the government permits businesses to operate remotely in the country so long as they meet a few requirements. This includes but is not limited to appointing at least one director who is a New Zealand resident, having a physical address in the country to serve as the registered office for the business, and delegating a staff member to be compliant with the country’s regulations.
You should expect inspectors from the New Zealand Companies Office or other government agencies to inspect your company’s New Zealand registered office to ensure compliance is maintained over time. Routine inspections typically involve a representative from the Companies Office.
Similarly, investors are permitted to conduct business internationally as long as particular criteria are met. This includes having a minimum number of years of business experience, passing English proficiency requirements, applying for ESOL tuition and being under the age of 65. Once your visa to conduct your international venture is approved, you will be permitted to operate with the same benefits of the local economy, such as that of local and resident investors. However, there might be additional income taxes that your business could incur when assets are distributed to foreign shareholders.
If you are an active business owner, investor or entrepreneur looking to expand your current non-New Zealand business venture into the country, there is a good reason to do so. The country remains a viable destination for economic growth due to its top-notch trade agreements and expanding economy.
The easiest way to expand your current business to New Zealand is to open a branch or subsidiary in the country. These two options ensure that your business can conduct commercial activities within the country.
- Subsidiary office: A subsidiary office is an independent legal entity that can be established by a foreign business. While establishing a subsidiary office of your business means you have less say over operations of the firm, a New Zealand subsidiary can conduct additional business activities that expand from the parent company. In doing so, the subsidiary office essentially becomes its own foreign company.
- Branch office: A branch office remains entirely dependent on the parent company. This means your business will retain complete control over operations and daily activities at the branch in New Zealand. As a dependent legal entity, your branch office in New Zealand would not be in compliance with local laws if it were to undertake additional or separate operations from that of your business.
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