5 Compelling Reasons to Establish a Business in New Zealand
The World Bank’s 2017 Ease of Doing Business report placed New Zealand in first place for the first time ever; here are the top five reasons why doing business in New Zealand is so easy.
If you are in the process of launching a new company and are unsure as to where your headquarters should be located, then the following are five reasons why conducting business in New Zealand is appealing and why it is, in the end, the ideal location in the Asia Pacific region for you to establish your operations.
1. A Conducive Economic Climate
In spite of the fact that it is a relatively tiny country, New Zealand has made a name for itself as one of the best countries in the world to launch a new company because of the stability and potential for expansion of its economy.
Consumer spending has been expanding consistently over the past year and shows no indications of slowing down, as seen by the consistent growth of 3.3% in GDP that was recorded in the previous year. Because of this, it is an excellent location for you to capitalize on the current wave of economic success.
In addition to this, it appears that the government of New Zealand is both willing and able to provide support for commercial and entrepreneurial endeavors.
It has a long history of providing substantial infrastructure support for such endeavors, including the awarding of grants by the government of New Zealand to newly established businesses, as well as the provision of mentoring and low-cost legal advice to owners so they can organize and run their companies.
In addition to this, New Zealand has always kept up positive relations with the nations that are located in the Asia Pacific region. For instance, the strong ties that exist between the two countries have led to the formation of a Free Trade Agreement known as the Closer Economic Relations deal.
This agreement grants each nation unrestricted access to the markets of the other nation. This essentially means that there will be no tariffs applied on any exports to or imports from New Zealand to Australia, which is one of the many benefits that this will bring to businesses.
If you are thinking about someday expanding into other markets, this would be a fantastic situation for you to be in. When thinking about the future of your company over a longer period of time, it is especially crucial to keep these two considerations in mind.
2. Straightforward Obligations in Regard to the Law
When it comes to beginning a business in New Zealand, there is no need to be concerned about becoming bogged down by an excessive amount of bureaucracy or being restricted by regulatory requirements.
Depending on the type of business structure you go for – whether it be a partnership, limited partnership, company, or sole trader – there is a possibility that each person will be subject to somewhat different rules and laws.
In order to be able to run a business, one must first complete a variety of procedures, some of which include registering to pay the Goods and Services Tax (GST), registering as an employer, and applying for an Inland Revenue (IRD) number.
In spite of this, all of the necessary paperwork to launch a company may be accomplished online in a matter of hours, with a great deal of simplicity and comfort.
Note: If you are interested in starting your business in New Zealand then you must have your New Zealand visa. To get that you can fill out the online New Zealand application form by selecting the business visa category.
3. A Community That Encourages New Businesses to Succeed
When you plunge headfirst into the process of starting a business, you are going to require as much assistance as you can get your hands on. Because of this, it is essential to have a community that provides you with access to many resources.
The startup environment in New Zealand appears to be able to deliver just that, with working spaces galore and a welcoming, tightly-knit community full of people who have similar worldviews as themselves.
You won’t have any trouble finding people willing to give you suggestions, lend you an ear to listen to what you have to say or even just be a sounding board for your thoughts.
This is only the tip of the iceberg; for more information on the startup ecosystem in New Zealand, check out our comprehensive guide to the New Zealand startup community.
4. A Forgiving Tax System
Unfortunately, paying taxes is one of those things in life that can’t be avoided. Due to the fact that taxes have an effect on a company’s revenue, small enterprises frequently find themselves concerned about these levies.
A company is required to pay income tax on the amount of its net profit, which is calculated based on the number of goods and services it sells. This is determined by the kind of legal business you run and the amount of money you bring in during the course of the year.
New Zealand’s tax system is, thankfully, one of the most lenient ones in the developed world. Here you can check some amazing facts about New Zealand that are compelling for those who wanted to live in New Zealand.
One example of a tax concession is a discount of 6.7% on taxes for individuals who are self-employed or who are partners in a partnership. Another example of a tax concession is a number of rebates for sole traders and partners in partnerships if their annual income is less than $38,000 in New Zealand dollars.
5. Finding a Good Balance Between Work and Life
The concept of maintaining a healthy work-life balance may appear to be an oxymoron to someone who is interested in launching a new business. You are going to have to put in as much effort as you possibly can if you want to succeed in the very competitive atmosphere that exists in the startup world.
Nevertheless, what you may want to think about is how to be productive in a manner that is more meaningful and concerted, and ensuring that you have a healthy work-life balance may be of assistance to you in this regard.
A person’s level of productivity can be influenced by a variety of factors, including the natural environment, the person’s responsibilities toward their family, and their level of social connectivity, amongst many others. Your individual way of life stands out as a significant contributor.
You could be able to increase your productivity in the long run by maintaining a healthy work-life balance in which you are able to schedule time for yourself to relax and re-energize. This will enable you to work more effectively to ensure that your ideas are successful.
According to the results of the HSBC Expat Explorer Survey, New Zealand has the best work-life balance of any country in the Asia Pacific region, and it ranks sixth overall among countries around the world.
This shouldn’t come as much of a surprise; considering the abundance of opportunities for recreation on the island and the ease with which one can become involved in the neighborhood, New Zealand is undeniably an excellent location from which to run a company.
To summarise, it has never been simpler to launch a new company in New Zealand’s market. When expanding into a new market, it is essential to ensure that the legal requirements of your firm are being satisfied in order to avoid any legal complications.