We analyze the top five factors that contributed to New Zealand’s historic first-place finish in the World Bank’s 2017 Doing Business report. Here are five compelling arguments for why New Zealand is the best place in the Asia-Pacific area to set up shop if you’re in the process of launching a new company but can’t decide where to base your operations.
1) An Economic Climate That Is Favorable
New Zealand is a small country, but its stable economy and promising future have made it a popular destination for entrepreneurs. The 3.3% annualized increase in GDP over the past year is indicative of a sustained expansion in consumer expenditure over the past year.
You’ll be in a great position to capitalize on the region’s current economic boom. Furthermore, the New Zealand government appears to be both willing and competent to encourage industry and entrepreneurship.
New Zealand’s government has historically provided generous funding to startups, in addition to providing mentoring and low-cost legal advice to business owners as they establish and grow their enterprises.
Check out the complete process and guidance on how to get a New Zealand visa for Spanish Citizens.
New Zealand also has a long history of cordial ties with its Asia-Pacific neighbors. The Closer Economic Relations deal, a Free Trade Agreement, which was established as a result of the country’s close ties to Australia, is only one example.
In essence, this means that neither Australia nor New Zealand will impose tariffs on goods moving in either direction. Ideal if you plan on entering other markets down the road. The future success of your company depends heavily on these two criteria.
2) Simple Obligations Under the Law
When it comes to establishing a company in New Zealand, entrepreneurs need not worry about being stymied by onerous regulations and legal hurdles.
It’s possible that the rules that apply to you as a sole trader or an employee of a larger firm will differ slightly from those that apply to a corporation, a limited liability partnership, or a partnership.
There are a number of administrative steps that must be taken before a firm can begin operations. These include registering to pay Goods and Services Tax (GST), registering as an employer, and applying for an Inland Revenue (IRD) number.
However, all of the necessary forms to launch a company can be filed digitally in a few short hours.
3) An Encouragement-Pleasant Environment for New Businesses
When you decide to take the plunge into business ownership, you should have as much backup as possible. For this reason, it’s crucial to be part of a supportive network.
The New Zealand startup ecosystem appears to be equipped to meet this need, what with its abundance of available coworking spaces and its welcoming, tightly knit network of similarly minded individuals.
Any time you could use some guidance, a sympathetic ear, or just someone to bounce ideas off of, you won’t have a problem finding them. The information shown here is just the tip of the iceberg; for more on the New Zealand startup scene, check out our comprehensive guide.
4) A tax code that is easy on the pocketbook
Taxes are a necessary evil in modern society. Taxes are a major worry for small businesses because of their financial impact. Profit from the sale of products and services is the basis for calculating an organization’s taxable income.
That depends on your business structure and annual revenue. A New Zealand visa for Swedish citizens can be obtained on arrival. But if you want a business visa, then you should apply it online.
Thankfully, New Zealand has a tax climate that is lenient. Self-employed people and those in partnerships can get a 6.7% tax break, and those with yearly incomes of less than NZD 38,000 can take advantage of a range of refunds available to sole traders and partners.
5. Striking a Balance Between Work and Family Life
It may seem counterproductive to ask about work-life balance while starting a business. Remember that you’ll need to put in your absolute best effort if you want to succeed in the often harsh world of startups.
However, you should think about how to be productive in a more significant and concerted approach, and striking a good work-life balance is one such solution.
Environment, family obligations, and social isolation are just a few of the things that might cut into a person’s productivity. Your unique way of living is an important consideration.
It’s possible that your productivity can increase and that you’ll be able to work more efficiently to assist your ideas to take off if you maintain a healthy work-life balance that includes time to recover.
New Zealand is ranked first in Asia and the Pacific and sixth in the world for Work-Life Balance by the HSBC Expat Explorer Survey. It’s no secret that New Zealand is an excellent location for a business, with an abundance of outdoor activities and opportunities to get to know the locals.
Thus, it has never been simpler to launch a company in New Zealand. To be successful in a new market, your business must also take care of all of its legal requirements.