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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	Why do business in New Zealand?
	New Zealand is highly geared towards overseas trade and participation in international markets. We welcome and encourage overseas companies seeking to invest in this country. Foreign investment in New Zealand totalled NZ$261,002 million as at June 2007. (Source: Balance of Payments and International Investment Position June 2007 Quarter, Statistics New Zealand). Recent governments have endeavoured to build a sound economy that will provide the best means of attracting foreign investment. The success of economic policies is evident through strong and sustainable growth in gross domestic product, underlying inflation of around 2.5%, and falling unemployment and public debt. Labour market reforms, a de-regulated currency and the exposure of most industry sectors to market forces have further contributed to New Zealand boasting one of the most open and competitive economies in the OECD. The 2007 Economic Freedom of the World annual report (by James Gwartney and Robert Lawson and co-published by the Fraser Institute and other research institutes of the Economic Freedom Network) ranked New Zealand’s economy the third freest in the world, behind Hong Kong and Singapore and has second place in the World Bank ranking of ease in doing business and third place in starting a business. Geographically, New Zealand is well placed to take advantage of increasing trade with Asia and other Pacific Rim countries. Many sectors of the economy are geared towards exporting and import tariffs have been significantly reduced in recent years. In addition, a free trade agreement between New Zealand and Australia extends the domestic marketplace to cover the two countries for most goods and services. Changes in corporate tax and commercial legislation have both improved the attractiveness of and removed many of the administrative barriers to doing business in New Zealand. Few restrictions are imposed on businesses establishing operations in New Zealand, with freedom of choice extending to the type of business, its size and its location. Once established, business links to foreign parent countries are assisted by tax agreements in place between New Zealand and 30 countries, and the free flow of capital both inwards and outwards.