Ease of doing business
Extensive deregulation over several decades has reduced many regulatory burdens and created one of the world’s most efficient, competition-friendly economies.
The 2013 World Bank Doing Business report ranked New Zealand third in the world for ease of doing business and first for ease of starting a business.
The findings of this report are supported by the 2013 Index of Economic Freedom, compiled by The Heritage Foundation and The Wall Street Journal, which ranked New Zealand the fourth freest economy in the world.
Ready access to banking services
Many of the big international banks are represented in New Zealand through agents or sales offices.
The Reserve Bank of New Zealand, whose main function is to implement Government monetary policy according to annual directives, supervises New Zealand’s banking system. It also registers and supervises other banks.
World class infrastructure
We are a strongly trade-oriented society that has developed sophisticated infrastructure and policies to support companies that do business internationally. We are well connected by efficient technology and logistics. Locally, we have fast digital and wireless networks.
Internationally, we connect to the world through efficient ports, international airports serviced by a wide range of global airline services, and high-capacity submarine fibre-optic cables.
Extensive free trade agreements
New Zealand is a strong advocate for free trade and was the first developed country to enter into a free trade agreement with the People’s Republic of China.
We also have free trade agreements with many other nations, including Singapore, Thailand, Australia, the ASEAN nations and Malaysia. Australia and New Zealand have one of the most open economic and trade relationships between any two countries, effectively giving our exporters duty-free access to 25 million people.
Favourable time zone
New Zealand is located in the Asia-Pacific and the first country in the Organisation for Economic Co-operation and Development (OECD) to wake up each day.
Our time zone is two hours ahead of the East Coast of Australia, our working day spans the afternoon on the West Coast of America and much of the Asian day and breakfast in Europe.
Stable political environment
New Zealand welcomes foreign investment and the Government is proactive in providing an environment that enables investors to relocate and / or collaborate with New Zealand companies.
We are a sovereign state with a democratic, parliamentary government. Transparency International in 2012 named New Zealand the least corrupt nation in the world (together with Denmark and Finland), while the 2012 Global Peace Index ranked New Zealand (together with Denmark) as the most peaceful country after Iceland.
Innovative products and services
New Zealand has a reputation for creating high quality, innovative products and we are active across many markets, including more traditional markets such as agriculture – where it is a world leader – to cutting edge clean technology and IT solutions needed for a sustainable and technology-rich future.
We have taken many ‘firsts’ to the world, from splitting the atom to creating the disposable syringe. Our small domestic market also makes us a great testing ground for new products and services.
New Zealand is a Western nation with a motivated, creative and skilled workforce. We have leading educational institutions, and the number of people with a higher degree at post-graduate level continues to grow.
English is the main language and around 17 percent of New Zealanders speak two or more languages such as Mandarin, Hindi and Korean. We are also known for our excellent people skills, work ethic and can-do attitude.
We are among the leaders in the world in protecting our natural resources and biodiversity.
We lead global research efforts to mitigate greenhouse gas emissions from primary production and, under recent legislation, became the first country in the world to include agriculture in a domestic emissions trading scheme.
We recognise the importance of demonstrating sustainable credentials to people who buy and use our goods, and have strict biosecurity and traceability systems.
We produce up to 75 percent of our electricity from renewable resources such as hydro, wind and geothermal power. This is targeted to rise to 90 percent by 2025 as we further harness our existing resources and utilise emerging energy resources such as biomass and tidal power.
Transparent legal system
The legal system in New Zealand is based on the British model.
There are three branches of the legal system, each with a separate role: the legislature (ie Parliament) makes the laws; the Executive (ie the democratically elected Government) decides on policy and legislative proposals; and the independent judiciary (ie the Courts) applies the law, free from political interference.
This ‘separation of powers’ ensures that the legal system operates in a fair and transparent way.
Partnerships between overseas capital and New Zealand businesses have resulted in outstanding commercial successes. With a Government that actively encourages foreign investment, world class infrastructure to support business activity, and demand for the country’s products and service, New Zealand offers attractive options for corporate, individual and fund investors.
With the help of New Zealand Trade and Enterprise (NZTE), investment in high-growth New Zealand businesses is made easier and more attractive for international investors, particularly in the agriculture, natural resources and technology sectors.
There are excellent early-onboard opportunities for some of New Zealand’s newer companies to help make a real difference to the growth and strategic direction of the business. Coupled with low business costs, and a stable economy and business environment, corporate investment in New Zealand is also an attractive option for most overseas investors.
New Zealand offers the ideal location, culture and technology
Being an Asia Pacific country, New Zealand is a first-world investment destination with easy access to high-growth economies in the region, including Australia, China and Southeast Asia. NZTE has investment team members in these regions and New Zealand has the advantage of close time zones to make doing business even easier.
The New Zealand stock exchange operates best practice securities trading platforms for foreign investors seeking to raise locally sourced debt and capital.
Innovative and entrepreneurial culture
New Zealand entrepreneurs are known around the world for generating new ideas that challenge the expected. They have can-do attitudes and an ability to make more from less. At the forefront is a group of ambitious, high-growth and internationally focused companies. Many are investment ready and are looking for international capital to fund their growth.
Testing leading edge technology in New Zealand
With the diverse demographic mix of its population and their tendency to be early adopters, New Zealand has always been a good introductory market or testing ground for new products or services from multinational organisations and can be a service centre for high expertise support centres. Some recent examples include:
- Hewlett-Packard’s Global Applications Services Centre. Based in Christchurch, it exemplifies New Zealand as an innovation centre for the Australia and Asia Pacific regions
- Snapper taking world-leading technology for payments using contactless smart media to the world out of Wellington, New Zealand
- IBM’s partnership with Auckland tertiary institution Unitec to create a 400-strong service centre.
New Zealand is a wonderful place to emigrate and live. As a first-world country it provides an enjoyable and affordable lifestyle with a temperate climate and vibrant culture.
Its education system is world class. On the internationally recognised Pearson index of cognitive skills and attainment, which measures education system outcomes, New Zealand ranks consistently in the top 10 in the world, with particular strength in literacy and numeracy.
The publicly funded health system is world class and private medical facilities are widely available. A unique no-fault accident compensation system operates.
New Zealand ranks highly year after year for ease of doing business. World class, globally-linked professional accounting, legal and other professional services are widely available.
With flexible immigration policies and a wide range of visa categories in place catering for investors, entrepreneurs and business managers, it’s easy to invest as an individual in New Zealand.
New Zealand’s large number of small and medium-sized enterprises (SMEs) offer significant opportunities for investors with skills to take smaller scale, successful businesses to larger scale and into international markets.
Simple tax system
New Zealand has a competitive tax system with straightforward compliance requirements. In 2011, the corporate income tax rate was reduced from 30 percent to 28 percent.
In New Zealand there is no payroll tax, no social security tax and no capital gains tax. The country has a simple and straight-forward recoverable goods and services tax (similar to VAT), and tax-deductible business expenses (including research and development) and depreciation.
New Zealand provides strong investor protection and a safe, secure investment environment through robust business laws. The country ranks highly as a place to do business, and in theWorld Bank 2012 rankings, New Zealand ranked third behind Singapore and Hong Kong.
Venture capital and private equity
New Zealand’s funds market is poised for growth with an established pipeline of opportunities. Those looking to diversify a portfolio outside of the usual markets of the United States, India and China will find New Zealand provides a strong mix of stability, opportunities and returns.
New Zealand has a reputation for being a hot-bed of innovation and entrepreneurship. Private equity investments into unlisted New Zealand companies have, on average, doubled over the 18-year investment holding period for investments made by New Zealand and Australian private equity funds between 1994 and 2012.
Venture capital is a growing market in New Zealand. There are opportunities for investors who want to do things a bit differently than in traditional markets, and be more strategically involved with the firms they invest in. There is an increasing trend towards investments that link world-leading, niche speciality New Zealand companies into the networks and operations of larger global businesses.