Are you thinking of expanding your business overseas? Is New Zealand a country that comes to mind? If not, then you should definitely reconsider your options.
New Zealand is one of the hottest countries to live in. By “hottest”, we mean the most sought-after and not hot in terms of weather. The quality of life in this country is second to none, and New Zealanders are some of the happiest people in the world.
But what does that have to do with expanding your business? Well, when we think about the business climate, we also have to take a look at the social.
It’s heavily known that New Zealand is a preferable country for many immigrants, but what about business owners? To get to the answer, we have to take a look at the reasons that advocate for it. So, without further ado, let’s start.
1. A Strong and Stable Business Climate
The first thing any business owners that look to expand their business to the country look for is the business climate. Despite the country having an insignificant population compared to other markets, New Zealand has been ranked as one of the best countries to expand your company.
Since consumer spending is constantly on the rise, the calls for new and existing businesses to migrate to the country have seen a steady rise of 10% since last year.
Not only that, but government grants encourage people to both open companies and expand their existing ones to the island. This new wave of economic growth and success overshadows many of the insignificant flaws such as geographical location.
The county also has an excellent infrastructure and maintains an even better relationship with the rest of the Asia Pacific countries surrounding it. Australia is one of their closest economical partners, where New Zealand has signed a trade agreement and an agreement for free trade and access to nearby markets.
Knowing all of this is of utmost importance before expanding to New Zealand. And fortunately, these are excellent signs that you should act upon.
2. Very Straightforward Legal Requirements
We all know the difficulties of entering foreign markets, let alone expanding companies to these markets. Some of these difficulties are closely tied to the host countries’ legal system and legal requirements.
Many countries throughout the world have very straight legal requirements for businesses that wish to expand on their market. While we won’t get into the reasons why this happens, it is without a doubt a problem that is oftentimes a deal-breaker.
Fortunately, for New Zealand, this isn’t the case. The country is very open to new companies expanding on the island. That’s evident through the countries’ very loose legal requirements.
To expand your business here, all you need to do is register to pay GST (Goods and Service Tax). You will also need to register as an employer so you can employ people. And lastly, you will need to apply for an IRD (Inland Revenue number).
Ticking all thee boxes will allow you to expand your company on the island and function and operate as a business. And to make things easier, you can do all of that online.
Another thing we should mention is that you should be familiarized with the culture and people of the country. We understand that this might be your last priority, but it’s good to have a resource to read up on the latest happenings and dealings within the country. So if you’re interested in one, then you can learn more about it.
3. A Forgiving Tax System
Tax is very much an important factor to know before signing all the documents of expansion. But what is New Zealand’s tax system and how forgiving is it?
It goes without saying that a forgiving tax system will do you more good than harm. So, small businesses oftentimes sweat on the idea of not making enough money because of paying tax.
Every country has a tax on income. And every country taxes businesses based on their net profits for the year. However, very few businesses have edicts that effectively give business discounts.
Fortunately, New Zealand is one of those countries that give a 6.7% discount for self-employed positions. This means that if you expand your businesses and are self-employed, then you can enjoy some of these discounts.
Also, the country has a forgiving tax for companies that make less than NZD 38,000 annually,
4. Excellent Life-Work Balance
A lot of people dream of an excellent life-work balance. In most cases, it is the employees that dream of this and not the employers. But in the case of New Zealand, well things are quite different.
Expanding your business on the island isn’t an easy task. Let’s not kid ourselves, you will likely have to work very hard to cement yourself on the market.
However, the business environment favors companies and startups and doesn’t employ the usual cutthroat system.
It will work only in your favor to have your new employees happy and safe. But little do you know that the country is one of the best at doing just that.
For example, New Zealand is ranked at number 6 on the list of countries with the best life-work balance. The country is also ranked at number 1 on the same list, but for Asia Pacific countries.
What this means is that you won’t have a hard job of keeping your employees happy. A happy employee is a productive employee, and you will need productive people to help you breach the market.
New Zealand is an awesome option to expand your business. The reasons for that are many and very significant. The straightforward legal requirements and the overly positive business climate make it possible for you to expand your company on the island with relative ease.
Also, the favorable and forgivable tax system is enough to tempt many companies to open their own offices on the island. With a population of just over 4.8 million, the home market might not seem as exciting as some other countries. But the opportunistic trade agreements with other countries of the region open to countries freely to other markets.