Chapman Tripp - Resource Library - Doing Business in New Zealand


Contents

	Introduction
	About Chapman Tripp
	Why do business in New Zealand?
	Overview
		Geography Climate People Government Legal system Currency Infrastructure Business conditions Holidays Living in New Zealand Cost of living
	Economy
		Major industries Markets Trade agreements Economic position Economic policies
	Starting up business
		Type of business Corporate structure options Branch or subsidiary? Government consents
	Immigration
		Entry requirements Temporary employment for foreign nationals New Zealand residence Immigration policy Returning residents' visa
	Buying and developing land and property
		Title Contracts for sale and purchase of land Resource Management Act and district plans The Building Act 1991 Barriers to buying land Maori land claims
	Taxation
		Overview Income tax Goods and Services Tax Import duties Rates Other taxes
	Finance
		Reserve Bank Financial institutions Financial markets Raising finance Repatriation of funds
	Regulations affecting business
		The Commerce Act The Fair Trading Act
	Intellectual property
	Labour and employment
		Employment Relations Act Working conditions

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Immigration

Entry requirements

As a general rule, foreign visitors to New Zealand (except Australians) are required to arrange a current visa to enter New Zealand before they arrive in the country. Nationals of some countries may visit for up to three, or (in the case of British citizens) six months without a visa.

The types of visa likely to be applicable are:

	residence visa - for those wishing to reside in New Zealand permanently
	work visa - for those seeking to work in New Zealand for a temporary period (up to three years)
	long term business visa – for those seeking to establish their own business in New Zealand (for an initial period of nine months, which can later be extended to a total of three years)
	visitor’s visa - for the purposes of a visit and not work (typically for a period up to nine months)
	student’s visa - for the purposes of study.

Temporary employment for foreign nationals

An applicant may also be eligible where he or she is coming to New Zealand for a specific purpose or event where his or her skills, attributes and expertise will benefit New Zealand

	the employee must have sufficient funds to pay for accommodation, maintenance and repatriation following the termination of employment. Alternatively, the employer may guarantee any or all of those costs
	the employee must be in good health and of good character. If the intended period of work in New Zealand exceeds two years, medical and x-ray examinations and police clearances from the country of citizenship and any other country where the employee has spent more than five years will be required
	the employee must hold a valid passport which expires later than three months after the proposed date of departure
	an application form must be completed and a fee paid (unless there is a fee waiver).

An applicant may also be eligible where he or she is coming to New Zealand for a specific purpose or event where his or her skills, attributes and expertise will benefit New Zealand

	the employee must have sufficient funds to pay for accommodation, maintenance and repatriation following the termination of employment. Alternatively, the employer may guarantee any or all of those costs
	the employee must be in good health and of good character. If the intended period of work in New Zealand exceeds two years, medical and x-ray examinations and police clearances from the country of citizenship and any other country where the employee has spent more than five years will be required
	the employee must hold a valid passport which expires later than three months after the proposed date of departure
	an application form must be completed and a fee paid (unless there is a fee waiver).

Establishing a business in New Zealand

Those intending to establish their own business in New Zealand can apply for a long term business permit. As well as satisfying English language, health and character requirements, an applicant must show that:

	they have sufficient funds to run their business and support themselves and their family
	they have a sound business plan with realistic financial forecasts, and their business will be of benefit to New Zealand
	they have not been involved in any business failure in the last five years, and have never been involved in any business fraud or wrongdoing
	they have the relevant business experience or other expertise, as well as occupational registration where necessary.

The long term business permit has an initial period of nine months and can be extended to a total of three years if an applicant shows reasonable progress in setting up his or her business. The applicant may also later become eligible to apply for residence under the entrepreneur category (see below).

New Zealand residence

The principal goal of New Zealand’s immigration policy can be summed up as economic growth with social cohesion. Four strategic objectives underpin this goal:

	building New Zealand’s human capital
	fostering international linkages
	encouraging enterprise and innovation
	maintaining social cohesion.

At the same time, the policy also aims to maintain provision for migrants to enter New Zealand for social and humanitarian reasons.

There are currently four main categories under which New Zealand residence can be obtained:

	skilled migrant category
	investor category
	entrepreneur category
	family category.

There are also other categories such as the “employees relocating businesses” category and the humanitarian category.

The skilled migrant category will be relevant to a large proportion of prospective migrants. The investor category is for skilled business persons with capital to invest in New Zealand. The entrepreneur category is for those who have successfully established a business in New Zealand, often with a long term business permit (see above). The family category is reserved for persons with a family connection to a New Zealand resident.

Skilled migrant category

Under the skilled migrant category, prospective migrants are assessed and ranked under a points system. If an applicant gains sufficient points to meet a pass mark, residence is granted subject to English language, health and good character requirements.

The skilled migrant category operates on a quota system, and therefore the pass mark may vary. Acceptable pass mark levels are made public every two weeks. Applicants will be awarded points for qualifications, work experience, age, whether the applicant has a job offer, and various settlement factors. Applicants may not be over 55 years old, and must meet English language requirements.

Investor category

Applicants in the investor category of residence must have NZ$2 million to advance to the New Zealand Government for five years. They must have at least five years’ business experience, and demonstrate that they intend, and have the ability, to settle successfully in, and contribute to, New Zealand. They must also meet English language, health and character requirements, and be aged 54 or under when they apply.

After two years in New Zealand, investors under this category can choose to withdraw up to half of the funds advanced to invest in a suitable business. The business must satisfy certain criteria regarding it being a sound investment that will benefit New Zealand. The remaining funds advanced will be returned at the end of the five years, together with interest based on the rate of inflation.

Returning residents visas

Successful applicants for residence are issued a residence permit, as well as a returning resident’s visa valid for two years. A returning resident’s visa allows a permanent resident to leave New Zealand temporarily but continue his or her residence status after returning to New Zealand.

At the end of the initial two year period, a permanent resident can apply for an indefinite returning resident’s visa, which allows multiple trips in and out of New Zealand indefinitely. The granting of indefinite returning residents’ visas to an applicant and his or her family depends on:

	the time spent in New Zealand during the first two years, or
	the applicant holding New Zealand tax resident status, or the applicant having successfully established a business which has been trading for at least a year, or having an acceptable level of investment in New Zealand, or the applicant and his or her family having established a base in New Zealand.

Eligibility for a returning resident’s visa may have significant consequences for an applicant wishing to conduct business or work outside New Zealand after becoming a New Zealand resident.

Immigration section last updated June 2005