New Zealand immigration for business purposes offers an uncomplicated place to do business. It has an efficient, market-oriented economy, an established and secure business environment and no corruption.
New Zealand has a deregulated, decentralised economy directly exposed to international competition, making New Zealand visas an attractive option for business people.
New Zealand is a country with an economic outlook, free market philosophy and political stability that is highly geared for success. The country is a sophisticated, highly technologically aware nation and its people are proven early adopters of a whole range of technologies.
The business structure of New Zealand can be divided into:
• Sole Traders: An individual owns all the assets of the business and is responsible for all of the risk associated with the business.
• Partnerships: The Partnership Act of 1908 governs Partnership businesses in New Zealand.
• Companies: Companies governed by the Companies Act 1993. A company may be incorporated in New Zealand by registering certain documents with the Registrar of Companies and paying a prescribed fee.
Business Conduct
In New Zealand business is controlled by the following 3 government agencies:
• The Takeovers Panel
• The Securities Commission
• The Commerce Commission
Business Tax
The tax year for most businesses is April 1 to March 31. An income tax return must be completed each tax year. There are a number of taxes that New Zealand businesses will or may be involved with.
For all of these taxes your business will need to:
• Have an Inland Revenue (IRD) number;
• Complete and send various tax return forms to Inland Revenue each year;
• Make a number of tax payments each year.
Income tax is payable on the net profit from your business, which is the income earned less any business expenses. The resident business tax rate is flat 33%. Note that income of husbands/wives/partners is treated separately for tax purposes. Goods and services tax (a consumption based tax known as GST) is charged at the rate of 12.5% on all goods and services in New Zealand with a few exceptions including financial services and domestic rents.
Fringe benefit tax is payable on certain items people may receive as part of an employment package (such as subsidised transport and low interest loans). There are also gift and stamp duties, minimal import tariffs and miscellaneous excise duties (for instance on alcohol and tobacco).
There are no capital gains taxes in New Zealand except for some classes of transaction. If your business operates as an employer, you will need to register with the Inland Revenue as an employer and make pay-as-you-earn (PAYE) and other deductions (such as student loan repayments) from your employee's wages each pay day.
Your business will also need to keep wages records, such as a wage book. On a monthly basis your business must notify Inland Revenue of who its employees are, how much they earned and what deductions were made from their wages.
Business Tax and IRD Numbers
A person who already has an IRD number for non-business income or is a sole trader will use the same number business purposes. If the same person wishes to operate his or her business as a company, partnership or trust, he or she will need to get a separate IRD number.
Employing Staff
The employer has to take up certain legal responsibilities while employing staff for a business. The Employment Relations Act 2000 is the principal statute regulating employment in New Zealand. There are also a number of other statutes regulating holidays, minimum wages and minimum working conditions for factories.
Employers are responsible for:
• Making sure their employees are safe at work;
• Identifying all hazards in the workplace;
• Eliminating, isolating or minimising their employees' exposure to any hazards;
• Having procedures for dealing with emergencies at work.
Permits and Licenses
To run a business in New Zealand one requires applying for a business license. A business license or permit is required to own and maintain a business, legally.