Doing business

New-Zealand

Print the page Click to print the page

Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
Limited Liability company USD 1	No limit. Under the Companies Act 1993 one or more shareholders and directors (who can be the same person). There is no requirement for a company secretary to be appointed. Limited to the amount of share capital subscribed
Partnership No minimum capital	Minimum: 2. Defined by the Partnership Act 1908 Generally no more than 25 persons, although this may be increased for certain professions. Joint and several between partners for all the debts and liabilities.
Limited Liability Partnership No minimum capital	Minimum: 2 Limited partners only liable to the extent of their contribution to the partnership.
Trust USD 1	Minimum: 1 trustee Trust property

Business setup procedures

Setting up a company	New-Zealand	OECD
Procedures (number)	1.0	5.6
Time (days)	1.0	13.8

Source: Doing Business.

For further information: Consult Doing Business Website, to know about procedures to start a Business in New Zealand.
Companies Office
The competent organization: The administrative formalities must be carried out at the New Zealand Companies office. For more information go to New Zealand Companies office.

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI inward flow (millions USD)	4,993	-1,293	561
FDI stock (millions USD)	51,978.8	64,799.9	70,129.2
Performance Index*, ranking on 141 economies	66	130	-
Potential Index**, ranking on 141 economies	38	-	-
Number of Greenfield investments***	33	30	-
FDI inwards (in % of GFCF****)	17.0	33.8	-
FDI stock (in % of GDP)	40.8	57.7	-

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest New-Zealand

Strong points: New Zealand’s efficient, market-driven economy delivers key benefits to investors, including company stability, numerous free-trade agreements and active government support for investment. The country's strong points are:

- An efficient market-oriented economy;

- A stable and secure environment with modern infrastructures, that supports robust and sophisticated telecommunications, roads, rail, sea and energy networks;

- A highly educated, flexible and multi-skilled workforce;
- Property costs that are amongst the most competitive in the Pacific;
- Free circulation of capital;

- A simple taxation system;

- 100% tax deductibility for corporate research and development;

- One of the world's lowest customs rate.

For further information on investments in New Zealand, refer to Invest New Zealand.
Weak points: The main weak points are its geographical isolation, climate hazards and a limited local market.
Government measures to motivate or restrict FDI: The government has put into place new tax incentives to promote FDI. The 2005 law on foreign investments was simplified and now facilitates foreign investgors' access to the domestic market. Nevertheless, the government amended the Overseas Investment Act so as to better protect "strategic infrastructures" in 2008.

Procedures relative to foreign investment

Freedom of establishment: Guaranteed.
Acquisition of holdings: A majority holding interest in a local company by a foreign investor is legal in New Zealand.
Obligation to declare: The Overseas Investment Act 2005 regulates the acquisitions by overseas persons of 25% or more ownership or control interests in sensitive New Zealand land and significant business assets (over 50 millions euros).For more information, go to Legislations of New Zealand.
Competent organization for the declaration: Land Information New Zealand
Requests for specific authorizations: Section 10 of the Overseas Investment Act 2005 states that a transaction requires consent if it will result in an overseas investment in sensitive land or an overseas investment in significant business assets. Section 57B of the Fisheries Act 1996 states that a transaction requires consent if it will result in an overseas investment in fishing quota.

Finding assistance for further information

Investment aid agency: Investment New Zealand
New Zealand Overseas Investment Commission
Other useful resources: NZ Investment Network.