There are still a few obstacles that need to be conquered before starting a business venture in New Zealand, and having local assistance available can prove to be a genuine value when establishing a firm in a foreign country.
Here are 5 good reasons for setting up a business in New Zealand.
Beginning a New Business
According to the World Bank and the International Finance Corporation, New Zealand is the country that makes it easiest to launch a new company. It just takes one day to complete a company’s application for registration with the Companies Office (which includes requesting an IRD number and GST registration), which is essential because companies are required to do so.
Managing Permits for Building Construction
There are six steps that must be completed in order to receive a construction permit, with a total time commitment of 89 days. Companies are required to obtain resource consent (planning), construction consent, and an inspection from the District Council. Additionally, companies must obtain approval for their CCTV systems from Watercare and link to the phone system, water supply, and sewer system.
By acquiring a land information memorandum and registering a title through Land Information New Zealand, the process of registering a piece of property can be completed in as little as two days and two steps (LINZ).
As a foreign investor, if you are willing to open your company in New Zealand, or you wanted to operate a business in New Zealand as a foreign resident, you should know about the visa requirements.
Even if you are a foreign resident, you might need to visit New Zealand to set up your business for the first time. So, here are two useful links for you:
Obtaining Access to Electricity
Obtaining electricity is the most challenging aspect of establishing a company in New Zealand since it involves five processes that must be completed over the course of fifty days. Having to deal with the utility supplier can be a time-consuming process, especially in the beginning phases of the operation.
Obtaining Credit While Maintaining the Safety of Investors
Investors in New Zealand are afforded a high level of security thanks to the powerful financial services sector and the strong regulatory environment, both of which make it very simple to get credit. According to the World Bank and the International Finance Corporation, New Zealand is ranked fourth in the world for gaining access to credit and first for protecting investors.
Headline payments predominate in the fiscal context of New Zealand, which significantly simplifies the process by virtue of their prevalence. However, there are other taxes that can be rather time-consuming, such as the levy for the accident compensation corporation (ACC) or VAT returns, which take a combined total of well over 100 days to finish.
Trading Across National Boundaries
Because it is an island nation, the economy places a significant emphasis on border trade that is both quick and effective. There are five documents that need to be prepared when exporting, and six documents that need to be prepared when importing, and the process typically takes 10 days to complete.
Putting Contracts to Use
When enforcing contracts, there are a total of 30 different procedures that need to be completed, which takes 216 days. Although the court costs are a somewhat lesser percentage of the overall claim, they still account for approximately 2% of the total, the cost of the attorney accounts for approximately 22% of the total.
Bringing an End to Insolvency
The process of resolving insolvency takes around 1.3 years and results in an average recovery rate of approximately 83 cents on the dollar.
In New Zealand, there are significant cultural divides between the Maori and the New Zealand European (Pakeha) civilizations, and it is important for businesses to be aware of these distinctions. Aside from that, businesses can anticipate being welcomed in the country in a manner that is both friendly and unhurried.