Do you want to open a business in New Zealand as a foreigner? This article talks about the pros of running your own company in this jurisdiction. If you want to know about the general incorporation steps and requirements, you can read our dedicated article. Once you are ready to start a business in New Zealand, our team can help you.
| Quick Facts | |
|---|---|
| Entry requirements for EEA citizens | Visa-free entry for short-term stays |
| Entry requirements for non-EEA citizens | Depending on their country of origin |
| Mandatory residency required to open a company in New Zealand as a foreigner | Not the case |
| Residency by investment scheme available (Yes/No) | Yes |
| Minimum investment amount for residency by investment (if applicable) | NZD$5 million for the Growth category and NZD$10 million under the Balanced category. Conditions apply. |
| Relocation with family members for foreign investor residence permit holders | The partner and dependent children (24 years and below) can be included on the visa application. |
| Types of companies available to foreign investors | – limited liability company; – co-operative company; – unlimited company. |
| Full foreign ownership permitted (Yes/No) | Yes |
| Operation costs in New Zealand | Office rental/lease, utilities, business insurance, various subscriptions, etc. (see below for some details). |
| New Zealand payroll costs | – salary; – optional KiwiSaver contributions by the employer; – mandatory employer contributions to the accident compensation scheme. |
| Accounting costs (approx.) | Can start at NZD$1,000 per year per company in the case of small businesses. |
| Employment costs (minimum salary) | Minimum wage of NZD$23.50 per hour (before tax). The rate changes on a yearly basis. |
| Office rental costs (approx.) | Depending on location. Private offices can have prices from NZD200 per person per month. |
| Number of companies incorporated each year (approx.) | More than 50,000 new company incorporations in 2024 (based on quarterly reports). |
| Regulatory environment makes it easy to open a business in New Zealand as a foreigner (Yes/No) | Yes |
Table of Contents
New Zealand offers a good business climate
New Zealand has pro-business policies that focus on ease of doing business and company creation. At the same time, the Government encourages foreign investments and foreign entrepreneurs have abundant opportunities across all industries of interest.
Some of the main advantages for those who open a business in New Zealand as foreigners include the following:
- The business setup process is a simple one, following straightforward steps and offering options to make all the needed submissions online (in most cases);
- Preparing certain documents is mandatory for company creation, however, the process is not burdensome and can be assisted in full by our team who can help you set up a company in New Zealand;
- While certain conditions apply in terms of residency for company directors (those who act as directors must be present in the country for a minimum period each year), there are no restrictions on full foreign ownership;
- The country ranks well in international tops on economic investment environments and ease of doing business (see below).
The infographic below summarizes some of the conditions for foreign investors:
Main issues to consider when opening a company in New Zealand as a foreigner
The country’s business environment is an encouraging one in terms of welcoming foreign entrepreneurs and the existing investment opportunities. As a foreigner, you will have to make sure that your entry into the country for business purposes is supported by the right type of visa and that you meet the minimum requirements that apply in terms of initial business costs.
If you want to start a business in NZ, the amount of money needed to set it up will have to include the one-time start-up costs (such as the business registration ones, and costs for websites, branding, etc.), along with fixed and variable costs.
Foreign business owners are liable for the debts and obligations of their NZ business in the same way as national ones. This means that the entrepreneur will have to ensure:
- The adequate tax payments and yearly financial submission for their business;
- Proper notifications to the authorities (regarding any changes brought to their business, as may be needed from time to time);
- Complete compliance with the business and commercial laws in force, including but not limited to New Zealand’s Employment Act.
We invite you to watch a video about company creation in NZ:
New Zealand is an easy country to do business in
New Zealand occupied first place in the World Bank Group’s Ease of Doing Business Index of 2020. Since then, little has changed and there are many advantages for those who open a business in New Zealand as foreigners.
Below, our team specializing in company creation lists some of the main topics for which New Zealand obtained high scores in the Doing Business Index of 2020:
- The country’s overall score was 86.9, essentially ranking the country at number 1;
- The score for minority investor protection was 86;
- The paying taxes score was 91 (making it easy to handle tax matters here);
- The trading across borders score was also high, at 84.6.
The Doing Business project offers an objective look into the business regulations in more than 150 different economies. If you would like to know more about the advantages you have when you open a business in New Zealand as a foreigner, our team can answer any specific questions.
Contact our team for more information about the local business climate, the regulations for foreign entrepreneurs and for complete assistance when you open a business in New Zealand.