Set Up Business in New Zealand: Peaceful Yet Energetic Vibes
Why should you set up business in New Zealand? According to Doing Business Survey 2017, New Zealand is the best jurisdiction in the world for starting a business, and that – combined with the other benefits the country has to offer – are just some of the reasons why investors are keen to set up business in New Zealand.
New Zealand has long had a stable and globally competitive economy. It is experiencing a positive economic growth for the past 33 years. It has a wide range of free trade agreements, a pro-competitive regulation, an efficient tax regime and an open political system and investment in innovation on top of that. New Zealand is no doubt a country with an efficient and competitive economy.
Here are some other reasons why you should set up business in New Zealand:
The Generous Business Incentives
The New Zealand government is offering investors generous business set up incentives. This is one of the reasons why it would be beneficial for investors to setup a business base in this country. Among these incentives are The New Zealand Trade and Enterprise Agency. It offers tax credits for research and development expenses which are incurred by a start-up company. It also provides credit insurance which is applicable for up to 80% coverage of the value of the goods and services exported abroad.
An Efficient Banking Sector
Thanks to the country’s efficient banking sector, securing loans in New Zealand is an easy process. This is why the country is the best in the world to secure a loan, according to the World Bank. The local banks in New Zealand are very supportive of the small and medium enterprises established in the country.
16th Best Place in the World for Venture Capital
In 2002, the government of New Zealand established the New Zealand Venture Investment Fund to assist the venture capital market in New Zealand. As a result, there’s a large network of venture capital firms and angel investors ready to finance in New Zealand. This is why the World Economic Forum has dubbed New Zealand the 16th in the world in terms of the availability of venture capital.
Affordable Cost of Living
Compared to other countries like Australia for example, the cost of living in New Zealand is 10% lower. This means housing, transportation and dining in restaurants are a lot more affordable here. While cities like Melbourne and Sydney comparatively ranked 26th and 33rd as the most expensive cities in the world, New Zealand’s Auckland city was only ranked at a 68th position.
Effective Tax Rates & Systems
Running a business in New Zealand, an investor can expect to pay a total effective tax amount which averages 34%. This includes corporation tax, GST and payroll contributions taxes.
New Zealand does not invoke capital gains taxes, inheritance taxes or wealth taxes.