BUSINESS IN NEW ZEALAND
Business immigration to New Zealand in 2024 is a great opportunity for wealthy and enterprising foreigners to enter the global trade markets, "plunge" into the atmosphere of transparent business relations and generally increase the level of welfare. Foreign businessmen are welcomed in the country, and the corporate environment is very professional and friendly. Such concepts as bureaucracy, corruption and government administrative pressure are very rare in New Zealand.
Own business or substantial investments will allow you to immigrate to New Zealand for permanent residence, and in time to formalize New Zealand citizenship. The country has a free market economy, high income level and optimal living conditions. Close relatives of the entrepreneur will be able to find a decent job in New Zealand and get a quality education in prestigious New Zealand universities. The business language in the country is English, which is also of great importance for foreigners.
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How to start a business in New Zealand
Stable dynamic economy, technological opportunities, comfortable investment climate, introduction of innovations and many other positive factors cause a keen interest in New Zealand among entrepreneurs from many countries of the world. The local government understands this very well and seeks to attract businessmen who are able to bring significant benefits for the development of the state.
That is, competition in the country is very high. For a full-fledged and long-term business in New Zealand, a foreigner must first obtain one of the available business visas, each of which provides for the fulfillment of certain conditions. Basically, we are talking about the amount of investment, business experience and a set of a minimum number of points in a special "system of interest" (Expression of interest). Let us highlight the main visas or ways of business immigration to New Zealand.
Types of business visas to New Zealand
Entrepreneur Work visa. The minimum investment amount is at least 100 thousand New Zealand dollars. Sometimes this requirement is waived. For example, if the business is related to science, IT or has a high innovative potential. To obtain a visa, you need to score at least 120 points in the "interest system". The visa allows you to stay in the country for one year, and in case of successful operation of the company for another 2 years, after that you can apply for another visa and get permanent residence.
Entrepreneur Resident Visa. This visa allows you to obtain permanent residence. To obtain it you need to conduct entrepreneurial activity in New Zealand for at least 6 months. The period of validity of the visa is unlimited. In case of application, when the experience of doing business in the country is less than 2 years, you will need the amount of investment from 500 thousand New Zealand dollars and the creation of at least 3 jobs.
Investor Resident Visa 1. The amount of investment within 3 years must be at least NZ$10 million.
Investor Resident Visa 2. Basic requirements – 3 years of business experience and a minimum investment amount of NZ$1.5 million over 4 years. Additional conditions – 20 points in the "system of interest", age under 65 years and at least one million dollars to live in New Zealand.
Read more about all available types of visas and requirements for foreigners for business immigration to New Zealand on the official immigration portal of the country – immigration.govt.nz.
Business registration procedure in New Zealand
In the annual report of the agency Doing Business, out of 190 countries in the world on the ease of doing business New Zealand ranks 1st, ahead of such prosperous states as Singapore and Denmark. In particular, it leads in such indicators as processing building permits, registering property and obtaining credit. This is an indisputable recognition of the attractiveness of investing in New Zealand. The bureaucratic procedure of company registration is minimized.
You can register a business in New Zealand literally within twenty-four hours online through the government website – companies.govt.nz. The cost of reserving a unique name is 10.22 New Zealand dollars, and the company registration itself is 150 dollars. A special form is filled out on the site and after the application is considered, a notification is sent by e-mail, which must be signed by the director and shareholder, and then faxed to the address of the organization – New Zealand Companies Office – within 20 working days.
In a matter of minutes, a certificate of incorporation will arrive by email. Registration of the special identification number (IRD) and sales tax code (GST) is also done online. In any case, a foreigner will certainly need the help of specialized specialists, accountants, legal support and additional consultations.
Forms of ownership and taxes in New Zealand
In order to run a successful business in New Zealand, it is extremely important to choose the form of ownership for the future company. Depending on the scale of activity, the number of owners, the amount of investment and the possibility of further optimization of taxes in New Zealand there are 3 types of business structures:
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Individual entrepreneur
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Partnership
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Company
In each case there are both advantages and disadvantages. Read more here. Be sure to consult with local lawyers and accountants before making a decision. The tax year in New Zealand runs from April 1 to March 31. In general, the taxation system is very transparent and clear.
Tax rates in New Zealand in 2024
Corporate income tax – 28%
VAT (GST) – 15% (9% and 0% reduced rates)
Income tax – progressive rate depending on annual income:
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Annual income from NZ$0 to NZ$14,000 – 10.5%
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Annual income from NZ$14,000 to NZ$48,000 – 17.5%
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Annual income from NZ$48,000 to NZ$70,000 – 30%
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Annual income from NZ$70,000 to NZ$180,000 – 33%
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Annual income over NZ$180,000 – 39%
In the absence of a tax return, income tax in New Zealand is charged at the rate of 45% of total income.
What kind of business to open in New Zealand
There are many directions for doing business in New Zealand. For this purpose, the government creates special programs and provides effective assistance. A big role is played by the choice of region, assessment of competition, financial opportunities and a worthwhile idea. Pay attention to popular industries in New Zealand – information and biotechnology, high-tech manufacturing, tourism, woodworking, agriculture, communications and services. Foreigners can not only start a new company, but also buy a ready-made business in New Zealand, as well as invest in shares or commercial real estate.
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