{"id":5663,"date":"2016-11-22T11:03:53","date_gmt":"2016-11-22T11:03:53","guid":{"rendered":"http:\/\/localhost\/test_manager\/business-tips-doing-business-in-new-zealand\/"},"modified":"2019-07-10T10:29:36","modified_gmt":"2019-07-10T10:29:36","slug":"business-tips-doing-business-in-new-zealand","status":"publish","type":"post","link":"https:\/\/managersoffice.net\/el\/business-tips-doing-business-in-new-zealand\/","title":{"rendered":"Business Tips: Doing Business in New Zealand"},"content":{"rendered":"

MARKET CONDITIONS<\/strong><\/span><\/span><\/p>\n

THE ECONOMY<\/strong><\/span><\/span><\/p>\n

New Zealand has a growing economy, streng thened over the years by adapting to the\u00a0<\/span><\/span>needs of niche markets and dealing with a diverse range of trading partners.<\/span><\/span><\/p>\n

INDUSTRY BASE<\/strong><\/span><\/span><\/p>\n

New Zealand has a diverse industry base. With its vast array of natural resources, the\u00a0<\/span><\/span>country has traditionally been well known for its primary sectors \u2013 agriculture, horticulture,\u00a0<\/span><\/span>forestry, fishing, energy and minerals.<\/span><\/span><\/p>\n

New Zealand also has competitive advantage in food-processing technologies,\u00a0<\/span><\/span><\/span> telecommunications, plastics, textiles, electronics, apparels and plantation forestry products.<\/span><\/span><\/span><\/p>\n

The greatest growth has been in the services sector, and in particular in the<\/span>\u00a0<\/span><\/span>business and finance, communication, property, health, education and tourism services.<\/span><\/p>\n

TRADE<\/strong><\/span><\/span><\/p>\n

New Zealand is a strong supporter of reductions in trade barriers as well as the concept of\u00a0<\/span><\/span>open and multilateral trading systems. It has a special trading relationship with Australia \u2013\u00a0<\/span><\/span>the Closer Economic Relationship (CER), is a member of the Asia Pacific Economic Cooperation\u00a0<\/span><\/span>(APEC) and the Association of South East Asian Nations (ASEAN) and is a\u00a0<\/span><\/span>signatory to the General Agreement on Trade and Tariff. The country is involved in the\u00a0<\/span><\/span>WTO Doha Development Round. New Zealand has also negotiated Free Trade Agreements\u00a0<\/span><\/span>(FTA\u2019s) with China and Malaysia and is currently negotiating FTA\u2019s with Russia, India and\u00a0<\/span><\/span>Korea.<\/span><\/span><\/p>\n

New Zealand is ideally situated to take advantage of the trading opportunities in the Asia\u00a0<\/span><\/span>Pacific region. It has close cultural, commercial and political ties within the region and this\u00a0<\/span><\/span>enhances trading and business partnerships. New Zealand\u2019s main relationships are with\u00a0<\/span><\/span>Australia, the US, the EU, Japan, the Pacific Island countries and China. The country is\u00a0<\/span><\/span>broadening the base of its relationships by strengthening ties with existing partners eg the\u00a0<\/span><\/span>South-east\/South Asia and the Russian Federation, and building ties with newer partners\u00a0<\/span><\/span>eg in the Middle East and Latin America.<\/span><\/span><\/p>\n

INVESTING IN NEW ZEALAND<\/strong><\/span><\/span><\/p>\n

REASONS FOR INVESTING<\/span><\/span><\/p>\n

There are a large number of sound reasons for investing in New Zealand:<\/span><\/span><\/p>\n

Long-term political stability\u00a0<\/span><\/span>Sound economic management and growth\u00a0<\/span><\/span>Low rates of inflation.<\/span><\/span><\/p>\n

Favourable location within the Asia Pacific region\u00a0<\/span><\/span>Highly skilled, diverse workforce.<\/span><\/span><\/p>\n

Technologically advanced business environment with a rapid uptake of communications\u00a0<\/span><\/span>technology.<\/span><\/span><\/p>\n

Open and efficient regulatory systems.<\/span><\/span><\/p>\n

REGISTERING AS A FOREIGN COMPANY<\/strong><\/span><\/span><\/p>\n

A foreign company or similar entity is able to carry out business on its own account (i.e. as\u00a0<\/span><\/span>a branch or subsidiary) provided it has registered in New Zealand. Registration generally\u00a0<\/span><\/span>involves:<\/span><\/span><\/p>\n

Notifying the Companies Office within 10 days of commencing business in New Zealand\u00a0<\/span><\/span>Appointing and authorising at least one local agent to act on its behalf\u00a0<\/span><\/span>Maintaining a registered office in New Zealand<\/span><\/span><\/p>\n

Lodging specific company documents and audited financial statements (if the company is\u00a0<\/span><\/span>large) with The Registrar of Companies.<\/span><\/span><\/p>\n

This has been the most common entity used by foreign investors. However it is generally\u00a0<\/span><\/span>not the most tax efficient structure.<\/span><\/span><\/p>\n

There are a number of legal structures available for setting up a business in New Zealand.<\/span><\/span><\/p>\n

These are essentially the same as those used in the United Kingdom, the United States,\u00a0<\/span><\/span>Australia and other English-speaking countries. The most common structures include:<\/span><\/span><\/p>\n

Companies \u2013 close or limited attribution<\/span><\/span><\/p>\n

Partnerships<\/span><\/span><\/p>\n

Limited partnerships<\/span><\/span><\/p>\n

Trusts<\/span><\/span><\/p>\n

Unit trusts<\/span><\/span><\/p>\n

Sole traders<\/span><\/span><\/p>\n

Non-residents investing in other jurisdictions through a New Zealand Portfolio Investment\u00a0<\/span><\/span>Entity (PIE)<\/span><\/span><\/p>\n

COMPANIES<\/strong><\/span><\/span><\/p>\n

Foreign investors may find a company the easiest structure to use, particularly if opening a\u00a0<\/span><\/span>branch or subsidiary of their existing overseas business.<\/span><\/span><\/p>\n

In New Zealand, a company is regarded as a separate legal entity from its owners and\u00a0<\/span><\/span>therefore provides them with limited liability to the extent of the capital they are obliged\u00a0<\/span><\/span>to contribute.<\/span><\/span><\/p>\n

All companies are regulated by the Companies Act 1993.<\/span><\/span><\/p>\n

CLOSE \/ CLOSELY HELD COMPANY<\/strong><\/span><\/span><\/p>\n

Smaller businesses will generally use a close company or closely held structure as it is\u00a0<\/span><\/span>easier and less expensive to manage and administer.<\/span><\/span><\/p>\n

Close \/ closely held companies:<\/span><\/span><\/p>\n

Must have at least one director.<\/span><\/span><\/p>\n

Must have at least one director who ordinarily resides in New Zealand; or at least one.<\/span><\/span><\/p>\n

Australian resident director who is also a director of an Australian company.<\/span><\/span><\/p>\n

Must have at least one but not more than five shareholders.<\/span><\/span><\/p>\n

May offer shares to existing shareholders or employees.<\/span><\/span><\/p>\n

Are prohibited from offering shares, debentures or other forms of security to the public.<\/span><\/span><\/p>\n

Usually restrict the right of shareholders to transfer shares.<\/span><\/span><\/p>\n

LIMITED ATTRIBUTION COMPANIES<\/strong><\/span><\/span><\/p>\n

These are not closely held companies and include listed or unlisted public companies. A\u00a0<\/span><\/span>listed public company trades through the New Zealand Stock Exchange (NZX).<\/span><\/span><\/p>\n

Limited attribution companies:<\/span><\/span><\/p>\n

Must have at least three directors.<\/span><\/span><\/p>\n

Must have at least two directors who ordinarily reside in New Zealand.<\/span><\/span><\/p>\n

Must have at least one shareholder.<\/span><\/span><\/p>\n

May offer shares to the public.<\/span><\/span><\/p>\n

Must comply with the Companies Act before offering shares.<\/span><\/span><\/p>\n

Place no restriction on the transfer of shares.<\/span><\/span><\/p>\n

REGISTRATION OF A COMPANY<\/strong><\/span><\/span><\/p>\n

Incorporating a company is a straightforward process requiring registration with the\u00a0<\/span><\/span>Registrar of Companies and the lodging of the company name. The company name has to\u00a0<\/span><\/span>include \u2018Ltd\u2019, to show the company\u2019s legal status.<\/span><\/span><\/p>\n

PARTNERSHIPS<\/strong><\/span><\/span><\/p>\n

In New Zealand two or more people, up to a maximum of 20, can establish partnerships.<\/span><\/span><\/p>\n

Partnerships are a popular structure with many small and medium-sized businesses\u00a0<\/span><\/span>because they have low set-up costs and minimal formal set-up requirements, and are\u00a0<\/span><\/span>reasonably flexible for taxation purposes.<\/span><\/span><\/p>\n

In New Zealand partnerships are covered by the Partnership Act and by contract law. The\u00a0<\/span><\/span>partners share profits and costs equally unless specific provisions are made in the\u00a0<\/span><\/span>partnership agreement. The partners are held jointly and severally liable for debts and\u00a0<\/span><\/span>obligations.<\/span><\/span><\/p>\n

The partnership is required to lodge a partnership tax return but is not taxed as a separate\u00a0<\/span><\/span>entity. Each partner lodges an individual tax return, paying tax on his or her share of profit.<\/span><\/span><\/p>\n

LIMITED PARTNERSHIPS (LP)<\/strong><\/span><\/span><\/p>\n

Legislation to allow LPs was brought in to encourage foreign investors to operate in New\u00a0<\/span><\/span>Zealand.<\/span><\/span><\/p>\n

No audit is required unless the partnership agreement requires it.<\/span><\/span><\/p>\n

LPs comprise at least one general partner and one or more limited partners. The general\u00a0<\/span><\/span>partner is liable for the actions of the partnership and for this reason it is prudent to use a\u00a0<\/span><\/span>New Zealand tax resident limited liability company as the general partner. The general\u00a0<\/span><\/span>partner\u2019s details are registered at the Companies Office on public record but the limited\u00a0<\/span><\/span>partners can maintain anonymity.<\/span><\/span><\/p>\n

With the exception of their capital at risk, the limited partners cannot be liable for the\u00a0<\/span><\/span>actions of the partnership. However, this immunity only applies provided a limited partner\u00a0<\/span><\/span>does not become involved in the management of the partnership. Limited partners can\u00a0<\/span><\/span>become involved with some aspects of the decision-making process at the strategic level\u00a0<\/span><\/span>without compromising their limited liability.<\/span><\/span><\/p>\n

All the partners are required to file New Zealand tax returns.<\/span><\/span><\/p>\n

An overseas partner should obtain tax advice in relation to their home tax jurisdiction to\u00a0<\/span><\/span>verify whether any losses will be accessible and whether any tax paid in New Zealand will\u00a0<\/span><\/span>be available as a tax credit in their country of tax residence.<\/span><\/span><\/p>\n

The legislation requires a written partnership agreement to be executed as there is no\u00a0<\/span><\/span>statutory default for a deemed partnership agreement.<\/span><\/span><\/p>\n

Manager\u2019s Office
\n<\/strong><\/span><\/span>Financial Dept<\/strong><\/span><\/span><\/p>","protected":false},"excerpt":{"rendered":"

New Zealand follows a free-enterprise system with an orderly marketing of products and is dependent on international trade.<\/p>","protected":false},"author":1,"featured_media":7872,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":""},"categories":[153],"tags":[],"yoast_head":"\nBusiness Tips: Doing Business in New Zealand - Manager's Office<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/managersoffice.net\/el\/business-tips-doing-business-in-new-zealand\/\" \/>\n<meta property=\"og:locale\" content=\"el_GR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Business Tips: Doing Business in New Zealand - Manager's Office\" \/>\n<meta property=\"og:description\" content=\"New Zealand follows a free-enterprise system with an orderly marketing of products and is dependent on international trade.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/managersoffice.net\/el\/business-tips-doing-business-in-new-zealand\/\" \/>\n<meta property=\"og:site_name\" content=\"Manager's Office\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Managers-Office-131795126893693\" \/>\n<meta property=\"article:published_time\" content=\"2016-11-22T11:03:53+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-07-10T10:29:36+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/managersoffice.net\/wp-content\/uploads\/2016\/11\/new-zeland-flag.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"300\" \/>\n\t<meta property=\"og:image:height\" content=\"193\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@ManagersOffice\" \/>\n<meta name=\"twitter:site\" content=\"@ManagersOffice\" \/>\n<meta name=\"twitter:label1\" content=\"\u03b5\u03ba\u03c4\u03b9\u03bc\u03ce\u03bc\u03b5\u03bd\u03bf\u03c2 \u03c7\u03c1\u03cc\u03bd\u03bf\u03c2 \u03b4\u03b9\u03b1\u03b2\u03ac\u03c3\u03bc\u03b1\u03c4\u03bf\u03c2\">\n\t<meta name=\"twitter:data1\" content=\"6 \u03bb\u03b5\u03c0\u03c4\u03ac\">\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Organization\",\"@id\":\"https:\/\/managersoffice.net\/#organization\",\"name\":\"Manager's Office\",\"url\":\"https:\/\/managersoffice.net\/\",\"sameAs\":[\"https:\/\/www.facebook.com\/Managers-Office-131795126893693\",\"https:\/\/twitter.com\/ManagersOffice\"],\"logo\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/managersoffice.net\/#logo\",\"inLanguage\":\"el\",\"url\":\"https:\/\/managersoffice.net\/wp-content\/uploads\/2021\/01\/MOFLogoSEO.jpg\",\"width\":160,\"height\":160,\"caption\":\"Manager's Office\"},\"image\":{\"@id\":\"https:\/\/managersoffice.net\/#logo\"}},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/managersoffice.net\/#website\",\"url\":\"https:\/\/managersoffice.net\/\",\"name\":\"Manager's Office\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/managersoffice.net\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":\"https:\/\/managersoffice.net\/?s={search_term_string}\",\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"el\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/managersoffice.net\/business-tips-doing-business-in-new-zealand\/#primaryimage\",\"inLanguage\":\"el\",\"url\":\"https:\/\/managersoffice.net\/wp-content\/uploads\/2016\/11\/new-zeland-flag.jpg\",\"width\":300,\"height\":193},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/managersoffice.net\/business-tips-doing-business-in-new-zealand\/#webpage\",\"url\":\"https:\/\/managersoffice.net\/business-tips-doing-business-in-new-zealand\/\",\"name\":\"Business Tips: Doing Business in New Zealand - 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