Entering the New Zealand Market
New Zealand Market
Foreign companies and investors who wish to expand into New Zealand will be met with a world-renowned market that focuses on innovation, globalization, and high-quality, large-scale products. The country offers a highly skilled, diverse, and educated workforce, attractive cuts on withholding tax payments, and robust support from the state.
New Zealand’s position offers access to markets in Asia and the Pacific, which adds up to an influence of over 5 billion people. With strong sectors such as retail, agriculture, tourism, and finance, and flexible administration duties, this creates an attractive environment for any business owner seeking to expand their business.
However, setting up shop in an unfamiliar place comes with its own challenges. Foreign businesses must comply with employment, tax, payroll, and corporate legislation whilst ensuring that their employees are working productively and efficiently.
Starting a business in New Zealand
To start a business in New Zealand you must go through a company registration procedure, which is straightforward and designed to be executed easily. These steps can be done online through the one-stop-shop Companies Register website or in person.
However, there are other tasks that need to be done before registering the company, as well as after incorporation but before operations can begin:
- Obtain a local business address.
- Open a local bank account in New Zealand and deposit the appropriate share capital.
- Prepare the appropriate registration documents and having them translated to English (if needed).
- Notarizing and legalizing the registration documents at a notary’s office.
- Register all directors and shareholders with the Companies Office within 20 days of incorporation.
- After incorporation, register the company for a Goods and Services Tax, an Inland Revenue Number and as an employer.
- Register the company for a commercial license, if one applies, before beginning operations.
Register with a KiwiSaver fund provider.
Expanding Business into New Zealand
Foreign companies that wish to expand into New Zealand will be met with a thriving economy that is accompanied by a highly educated workforce, attractive administration costs, and low withholding taxes, which are provided to all companies in the market. The country’s location offers business with easy to trade with Australia and the Asian Pacific, which accounts for over 4.5 billion people.
New Zealand boats of a formidable economy, with robust sectors such as agriculture, scientific and technical services, and construction. However, the services industry is the strongest, contributing over 65% of the country’s GDP.
When looking to expand to New Zealand, it is best to go to cities which can offer a large customer base and the infrastructure for importing and exporting the materials you need, as well as connections. Popular cities that offer both things include Auckland, Christchurch, Wellington, Hamilton, Tauranga, and Lower Hutt.
New Zealand Business Facts
- Capital City – Wellington
- Population – 5, 130, 310
- Cities – Auckland, Christchurch, Hamilton, Tauranga, Dunedin, Napier, Porirua, Rotorua, New Plymouth, Hastings, Upper Hutt
- Official language(s) – English, Maori
- GDP (2020) – $193,545 billion
- World Ranking (Ease of Doing Business) – 1st
- Leading sectors – Agriculture, Forestry, Horticulture, Seafood, Tourism, Finance
- Main exports – Dairy products, meats, logs, wood products, fruit, machinery and equipment, wine, fish, and seafood
- Main imports – Vehicles and aircraft, machinery and equipment, petroleum, electronics, textiles, and plastics
- Main trading partners – China, Australia, United States, Japan, South Korea, United Kingdom, Taiwan, Hong Kong, Indonesia, Singapore
- Government – Unitary parliamentary constitutional monarchy
- Currency – New Zealand Dollar (NZD)
Advantages and Challenges of the Mexican Market
The market of New Zealand has a variety of significant advantages:
- Low employer costs: Labour costs are significantly low in New Zealand for employers, with only voluntary KiwiSaver funds to be paid.
- Tax advantages: Taxes in New Zealand can benefit from tax reductions and exemptions, and businesses can choose the month they have to file their tax returns.
- Education and healthcare: Hungary’s workforce boast world-renowned education, and most workers also benefit from a free or highly subsidized high-quality healthcare services.
- Language: The local workforce is multilingual, but the main language for business is English.
- Ranking: New Zealand ranks 1st in the Ease of Doing Business Survey.
- Location: New Zealand’s location offers access to over 5 billion people in the Asia Pacific.
The biggest challenge facing New Zealand’s market currently is the effects of COVID-19, like many other nations around the world. Other challenges include high logistics costs, challenging tax filing procedures, and strict regulations on importation and exportation standards.
The 100 per cent solution is to consider the alternative to setting up a subsidiary by working with Bradford Jacobs. Our Professional Employer Organization (PEO) international recruitment specialists will find the perfect fit for the roles you need to fill. Then our Employer of Record (EOR) in-country consultants will handle all the complexities of New Zealand’s employment laws, tax regulations and payroll, ensuring your New Zealand expansion plans progress smoothly and effortlessly.
Limited Company / Subsidiary or Branch in New Zealand? A subsidiary established in Newland is considered a separate legal entity from the parent company, with independent administration and management, providing freedom explore the local market and create international credibility.
A branch, however, does not have any independence from the parent company, but it is taxed and reported similarly to resident entities, and is limited in its commercial activities.