New Zealand has recently made its immigration process more challenging for those wishing to build a new home in the country and establish a business. However, if you can jump through the hurdles successfully the prize is probably as good as it gets. Especially for the business opportunities that will be open to you and the lifestyle available to you and your family. These chances increase dramatically if your potential business is likely to be export orientated (visible or invisible).
New Zealand ranked fifth in ‘Forbes Best Country to do Business In Register’[i]
• GDP Growth 3%;
• GDP per Capita $42.900;
• Trade Balance/GDP -2.7%;
• Population of 4.5 mils;
Like its close trading partner Australia, it is a relatively young country with a strong, stable, and diverse society and is amongst the Asia-Pacific’s wealthiest countries. It has strong property rights and contract security backed by an independent judiciary that is efficient and well-functioning. In 2017 out of a list of 180 countries it was ranked first by Transparency International’s Corruption Perception Index[ii] It has a fair and globally competitive tax system:
• the highest rate of income tax is 33%;
• highest corporate tax is 28%;
• overall tax burden corresponds to 31.2% of total domestic income;
If one takes the last three years of government spending it equals 40.7% of national output (GDP) with average budget surpluses of 1.2% of GDP. This lies alongside a public debt equal to 26.4% of GDP.[iii] It has an excellent business environment with the government providing efficient regulatory policies. It is particularly welcoming to the entrepreneur, not only is it one of the most competitive but government acts as a facilitator creating a dynamic business landscape favorable to start-ups providing flexibility in licensing and other areas important to their growth. While over the last four decades it has transformed itself into a dynamic manufacturing and industrialized free market economy it retains a thriving export-focused agricultural industry. The value of imports and exports combined correspond to 51.3% of its GDP. Openness to trade is a well-established feature of its economy. Its most important trading partner is China and prominent in negotiations for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership that includes eleven countries.[iv]
The ‘Heritage Foundation’ ranks New Zealand third in its 2019 ‘Index of Economic Freedom’ just behind Singapore and Hong Kong.
Rule of Law
• Property Rights 95.0
• Government Integrity 96.7
• Judicial Effectiveness 83.5
• Business Freedom 91.0
• Labor Freedom 86.7
• Monetary Freedom 87.5
• Government Spending 50.4
• Tax Burden 71.0
• Fiscal Health 98.6
• Trade Freedom 92.4
• Investment Freedom 80.0
• Financial Freedom 80.0 [v]
In our next update, we will be looking at where NZ expects to see its future economic growth and discuss the opportunities. Keep visiting to view our regular country updates.
Scale-Up New Zealand is set to speed up innovation and the growth of innovative businesses in Aoteoroa New Zealand.
Would you like your business to network better with funders, incubators, accelerators, multinationals and other businesses, both in NZ and overseas?
In April 2019 Callaghan Innovation will launch Scale-Up New Zealand, a free online platform that will showcase NZ’s vibrant innovation ecosystem to the world.
What is Scale-Up NZ?
Created from a model that is hugely successful overseas, Scale-Up NZ will make it faster and easier for ambitious businesses to find and connect with the people, capital and other help they need to innovate and grow, here and offshore. It will also create opportunities for investors and multinationals to connect with innovative NZ businesses.
The platform will enable users to find the accurate information they need, when they need it, in multiple ways. Users can get the inside track by diving into verified details of the latest investments, deals and start-ups, and can navigate the ecosystem to explore new technology and business trends. For more in-depth analysis users can browse for specific information using the platform’s comprehensive search feature. They will also be able to use advanced search options to filter companies by business model, funding stage, location, product stage and more.
Users will be able to find key contacts for businesses they’re interested in and ask for facilitated introductions to key people – extending networks and helping create connections that matter. Contact requests will be mediated to ensure their mutual value.
Similar networks overseas are growth engines for ambitious companies and national economies. In Aotearoa New Zealand, Scale-Up NZ will supercharge innovation and help build world-beating businesses and a better future for our children.
If you want your company’s profile to be published on Scale-Up NZ, you can now access the site to upload your business details, providing your company or entity meets one or more of the following eligibility criteria:
• Your company is innovative, ambitious and was founded or is headquartered in NZ. It should offer something new or operate in a unique way and intends to grow, evolve or disrupt the status quo.
• Investors are individuals or business entities that invest in innovative NZ companies.
• Incubators support seed and early-stage start-ups, and actively invest in and help commercialise complex technologies. Incubators should aim to take concepts to the next level by building a business around the technology and taking it global.
• Accelerators operate a company development programme for a batch or cohort, in which companies are selected for participation. These programmes last for a defined period that usually concludes with a demo day or pitch event.
• Entrepreneurship programmes offer a company or founder development programme that focuses on entrepreneurial skills and/or supports the commercialisation of innovation.
• Co-working spaces are office complexes that encourage collaboration between resident companies.
To be included in Scale-Up NZ, you must be a legitimate, active and registered business or entity, searchable on a register administered and maintained by the NZ Companies Office (including the charitable trust, incorporated society and limited partnerships registers).
To upload your company details, you will need to complete the following steps:
• Visit the Scale-Up NZ website
• Click on ‘Sign up for free’ to create an account, using either a Google or LinkedIn account
• Once you have created your account, click on your profile in the top right corner and then select ‘Add your company’
• Follow the instructions to upload information about your organisation (please don’t include any commercially sensitive data or information that you don’t want to be seen publicly).
The Scale-Up NZ team will then review your uploaded content to ensure it meets our data standards, and will contact you if any clarification or changes are needed. Your profile will not be published on the platform until it is formally launched in April.
If you have any issues uploading your company information, please contact the Scale-Up NZ team.
Register your interest
If your company does not meet the required criteria (or you do not represent a company), you will still be able to access and use the platform to find and connect with the companies profiled on Scale-Up NZ, once we formally launch.
Register now to be kept in the loop about Scale-Up NZ and our launch in April.
For more information, please contact the Scale-Up NZ team