Tourists who visit New Zealand are instantly enamored by its overwhelming beauty, picturesque glaciers, volcanic scenery, and spectacular forests. It is the perfect place for vacationing, filming movies, or living. But what’s the environment like for starting a new business?
Well, thanks to a series of incubators and many incentives including no capital gains taxes, New Zealand is becoming one of the of top spots for startups. With so many reasons, it is hard to pinpoint just a few. Nevertheless, here are some of the main incentives to start a business with a New Zealand address.
1. Ease of starting up
According to the 2016 World Bank Doing Business Survey, New Zealand is ranked as the easiest place to do business and also the most uncomplicated place to start a company. By using the country’s online portals, anyone can start a new business within hours.
Although several types of business structures exist, the most popular are sole traders, partnerships, and limited liability companies. This are similar to other countries, where sole traders operate a business on a personal level but can employ, manage, and control the business and its profits. However, this type of structure places liabilities (including taxes) on the owner.
Partnerships are structures that provide a perfect mechanism for dealing with professionals who work jointly and distributes liabilities among the partners. Limited liabilities are those that create a separate entity and limits the liability of shareholders.
2. Costs of living and doing business
Although it’s a great distance away from the United States and Europe, and air transportation may be more expensive, the opportunities and lack of any capital gains taxes are attractive to anyone who wants to establish a presence in the island nation.
The cost of living is higher for those living in the city. However, salaries are generally higher while transaction costs are relatively low. Even though prices for things like entertainment and clothing are higher when compared to the US, utilities and purchasing power are lower. Anyone looking at the cost of living needs to review specific areas, because the southern part of the island is significantly cheaper to live in than the northern half.
Also, taxes are low, and government incentives are high. This allows new, innovative startups to potentially receive financial assistance for research and development. The government of New Zealand is always looking to invest in organizations that want to sell products and services worldwide, so opportunities are plentiful.
3. Friendly laws for foreigners
Immigration laws in New Zealand are much more lenient when compared to laws in the US. If you are looking to migrate, you will very likely have an easier time, because the country greatly favors entrepreneurs, business owners, and professionals.
Whether you’re looking for a motel for sale in Adelaide, investing in stocks in the global market, or starting up a local business, New Zealand has laws that enable and value investment. There are several types of visas available, including entrepreneur work, investment, global impact, and visas for employees of relocating companies. All of this makes it fairly easy to move, besides the long distance you would be crossing.
Anyone looking to invest qualifies for gaining residency with the country’s two-step process that includes an initial work visa followed by residency. The process starts by submitting an official “expression of interest” where applicants receive a variety of points based on merit, investment power, and other factors. After a couple of years running the business successfully, the business owner may claim residency.