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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Overview

Geography

New Zealand lies in the South West Pacific ocean, approximately 1500km east of Australia and 7500km south of Hawaii. The country consists of two main islands - North Island and South Island - and a number of much smaller outlying islands. New Zealand has a combined surface area of approximately 270,000km², similar in size to the British Isles and Japan.

Mountains and hill country dominate the New Zealand landscape, with large ranges running through both the North and South Islands. New Zealand has a long coastline relative to its area, and offers varied scenery including fiords, glaciers, lakes, volcanic regions and spectacular beaches, harbours and coastal areas.

Climate

Seasons in New Zealand are opposite to those in the northern hemisphere, with January and February being the hottest months and July the coldest.

New Zealand’s climate varies from sub-tropical in the north, to extremely cold in central alpine areas. However, most areas enjoy a temperate climate, with moist summers and winters and without extremes of temperature. Mean annual temperatures range from 16 degrees Celsius in Northland and Auckland to 13 degrees Celsius in Wellington and 10 degrees Celsius in Southland.

People

New Zealand’s estimated resident population at 30 June 2007 is 4.23 million of whom 76% live in the North Island and 24% in the South Island. The populations of the largest urban regions estimated at 30 June 2006 are:

Auckland	1,303,068
Bay of Plenty	257,379
Canterbury	521,832
Otago	193,800
Waikato	382,716
Wellington	448,956

(Source: 2006 Census, Statistics New Zealand)

New Zealand has a diverse and multicultural society. The approximate racial breakdown of New Zealand is:

European	67.6%	^*
Maori (indigenous people of New Zealand)	14.6%
Pacific Island	6.9%
Asian	9.2%

(Source: Ethnic Groups in New Zealand, 2006 Census, Statistics New Zealand)

There is no state religion and no restrictions on the practice of religion in New Zealand. The population is predominantly Christian, with the major denominations being Anglican, Presbyterian, Roman Catholic and Methodist.

English is spoken throughout the country and is one of the official languages, along with Maori.

Government

As a member of the British Commonwealth of Nations, New Zealand is a monarchy with a democratically elected and fully independent parliamentary government. By constitutional convention, the Governor-General (the Queen’s representative in New Zealand) is obliged to follow the advice of government ministers, although this advice may be rejected in extraordinary circumstances.

New Zealanders voted in a referendum in 1992 to adopt a mixed member system of proportional representation (MMP), similar to that in place in Germany. This system was introduced in the 1996 general election. Under MMP voters have a party vote and an electorate vote. The party vote enables the voter to choose what party they would like represented in Parliament. The electorate vote is for choosing a Member of Parliament to represent the voter’s electorate.

Parliament is the governing body of the nation, usually consisting of a 120 member House of Representatives. Sixty-two members represent the 62 general electorates, 7 members represent the seven Maori electorates and the remaining 51 members are list members. Members are elected nationally every three years. All persons over the age of 18 may vote in elections.

Legal system

New Zealand has a common law system, similar to that in England and many other western countries.

A hierarchical structure of courts exists to rule on the interpretation of legislation passed by Parliament. Most criminal and civil matters are dealt with by the District Court, with large civil matters and the most serious crimes handled by the High Court. A right of appeal exists from the High Court to the Court of Appeal and, with leave to the Supreme Court.

New Zealand has a single legal profession in which most members hold a practising certificate as barrister and solicitor. Judges are appointed by the Crown and there is a strong tradition of independence for judges with various mechanisms to protect that independence.

Currency

New Zealand has a decimal system of currency with the basic unit being the dollar. The exchange rate was floated in March 1985. As of September 2007 one New Zealand dollar purchased:

Australian dollar	0.85
British pound	0.37
Canadian dollar	0.75
Euro	0.53
Hong Kong dollar	5.08
Japanese yen	87.96
Singapore dollar	1.11
US dollar	0.75

Deregulated currency exchange

The law relating to currency exchange has been deregulated in New Zealand so that no restrictions are placed on the amount of funds which may be brought in or taken out from New Zealand.

Infrastructure

New Zealand has well-established national and international transport and communication systems. One domestic airline provides air links between all major towns and cities and over 20 international airlines offer services to New Zealand.

Four container and 12 conventional ports provide access to a comprehensive network of shipping services.

A modern and sophisticated telecommunications network services the country with 74.2% of households having access to a cell phone, 91.6% having access to a telephone and 64% having an internet connection (33.2% broadband access and 30.9% dial-up access) in March 2006 (Source: 2006, Census, Statistics New Zealand).

Business conditions

Time zone
New Zealand lies in a time zone 12 hours ahead of Co-ordinated Universal Time, adjacent to the International Date Line. New Zealand is 2 hours ahead of Sydney, 3 hours ahead of Tokyo, 4 hours ahead of Singapore, 12 hours ahead of London and 17 hours ahead of New York.

Rents
Typical examples of central business district (CBD) rents estimated for June 2006 are as follows:

Auckland

Net Face Rents per m²

Office Prime CBD	NZ$300 per m²
Office Premium	NZ$450 per m²
Retail Prime CBD	NZ$1900 per m²
Industrial Prime	NZ$130 per m²

Wellington

Gross Face Rents per m²

Office Prime CBD	NZ$360 per m²
Retail Prime CBD	NZ$200 per m²
Industrial Prime	NZ$140 per m²

(Source: Jones Lang LaSalle Limited, October 2007)

Working hours
The standard working week for most employees is between 35 and 40 hours. Most commercial businesses are open from 8.30am to 5.00pm Monday to Friday, with many retailers open on Saturday, Sunday and one evening during the week. Banking hours are typically 9.00am to 4.30pm Monday to Friday.

Holidays

There are ten statutory holidays in New Zealand, as follows:

New Year	January 1,2
Waitangi Day	February 6
Easter	Two days in March or April
ANZAC Day	April 25
Queen’s Birthday	One day in early June
Labour Day	One day in October
Christmas Day	December 25
Boxing Day	December 26

In addition, each region has one locally-observed holiday.

Living in New Zealand

New Zealanders enjoy a high standard of living with excellent housing, education and health systems, combined with a solid transportation and communications infrastructure.

There is a wide range of leisure and sporting activities available, taking advantage of New Zealand’s unique natural landscape and environment. Arts, music and cultural pursuits have also flourished in recent times with the establishment of national and regional orchestras, theatre groups, opera and dance companies.

Cost of living

The average weekly household expenditure in New Zealand in 2003/2004 was NZ$888 (Source: Household Economic Survey, 30 June 2004).

Average house prices at September 2007 were as follows:

Auckland region	NZ$512,964
Wellington region	NZ$447,243
New Zealand	NZ$404,089

(Source: Quotable Value Ltd, Property Value Map, September 2007)