New Zealand is recognized as one of the safest countries in the world for investment and business. This state in the southwestern part of the Pacific Ocean is among the three countries with the world’s freest economies, according to a rating compiled by the Canadian Fraser Institute. The anti-corruption Transparency International organization has been reporting for years that there is no corruption in the public sector, therefore the country was ranked the first in the 2013 Transparency ranking. New Zealand has a strong banking system that has successfully withstood the global economic crisis, as well as a low level of bureaucracy, a high level of freedom and strong protection for investors.
The country has a well-developed agricultural and manufacturing sector of the economy, the production of dairy and meat products (in particular, mutton and beef) is the main part of the country’s GDP. In addition, the most attractive spheres for doing business are media (there is no censorship and control), education, FMCG-market, environmentally friendly technologies, banking and financial sectors. The fastest way to deal with the daily routine in various parts of Auckland is to rent a car at East Coast in Auckland.
Despite the fact that New Zealand in the ‘Doing Business 2014’ rating is not the first, to register a company in this country is easier than in the rest of the countries. New Zealand is heading the “Enterprise registration” sub-rating. In order to register a company, you need to go through a single procedure, which will take just several hours.
Company registration is carried out through the Internet – it is necessary to apply for registration in the ‘Companies Office’ online office. Registration requires the following documents:
- Name of the company that meets the requirements of local legislation
- Company Charter
- Memorandum between the shareholders (in the case of a joint-stock company)
- Information on the directors (copies of passports or constituent documents)
- Information on the shareholders (copies of passports)
- Information on the authorized capital (minimal authorized capital is not defined, there are no requirements for its payment)
- Information about the secretary (copy of passport)
- The legal address of the enterprise, as well as documents confirming the right to hold or lease.
When choosing the name of a company, it is forbidden to use the already registered name, or the name, which is completely or partially identical to the registered one. The title should not contain offensive words and expressions, hints of illegal activities. A limited liability company must contain the word “Limited” or “Tapui (Limited)” in the title. The following words are not allowed in company names: “National”, “Royal”, “Bank”, “Insurance”, “Chamber of Commerce”, “State” and “Municipal”.
The company’s registration in New Zealand will cost about NZ $ 160. NZ $ 10.22 costs the reservation of the company name and 150 NZ dollars must be paid for the company’s registration.
Forms of business:
- Sole trader. A sole trader entirely controls his or her business and is fully responsible for the company’s losses and liabilities. This is the simplest organizational and legal form of business, a popular option for self-employed persons. A sole trader does not require any legal or formal registration processes at the initial stage, therefore many enterprises in New Zealand are started as sole. The profit is taxed by means of an individual IRD number at the rate of personal income tax.
- The partnership involves the pooling of assets of several partners (for example, individuals or companies) to conduct joint business for profit. The company cannot act as a legal entity. The separation of the responsibility area of each partner is established in a written partnership agreement. The number of participants in the partnership cannot exceed 25 people. The partnership cannot own real estate in the name of this partnership. Partnership, as well as a sole trader, does not require any other registration, except for taxation. The tax is levied on the profits of each member of the partnership in accordance with the interest in the company.
- The company is a legal entity, which owns all assets and liabilities. It means that the obligations are usually limited to the amount invested in the authorized capital. Each company in New Zealand must be registered with the National Business Register.
- Trust. Trusts are created to protect assets and property planning, and therefore are usually used to manage real estate, rather than the acting business. The trust can be created for certain purposes, for example, for the education of children. Trusts are not taxpayers, however, taxes are required to be paid by the entrusted administrators.
The country has a fairly simple and business-friendly tax system that supports the development of capital, research and international investment. In particular, to date, numerous agreements, to avoid double taxation, have been signed, so the income, received by the company in other countries, is not taxed.
In New Zealand, the corporate income tax rate from 2010/11 fiscal year has been reduced from 30% to 28%. According to www.wikipedia.org , in New Zealand there are no:
- Wage tax
- Social insurance tax (paid voluntarily)
- Capital Gains Tax.
Most businesses in New Zealand do not require any permits. Licensing from state regulators is needed to real estate business, construction, restaurant service, alcohol trade and medicine.
Currently, free trade zone agreements have been signed with China, Australia, Vietnam, the Philippines, Cambodia, Brunei, Indonesia, Hong Kong, Myanmar, Thailand, Malaysia, Laos, Singapore and Chile.
Security, stability, and proximity to the leading financial centers of Asia are just a few of the reasons why foreign entrepreneurs start a business in New Zealand.