New Zealand Economy Overview

Currency

NZ$ New Zealand Dollar

Working hours

40 hours/week

Public/bank holidays

11 days per year

Capital

Wellington

Languages

English & Māori

Population

4.9 million

Minimum hourly salary

NZ$22.70

Tax year

1st April – 31st Mar

Date format

DD/MM/YYYY

Misclassification penalties

Misclassification fines include back-payments for PAYE, minimum wage, holiday and leave entitlements plus penalties starting at NZ$ 30,000. Directors and managers may be personally fined if involved.

Fun fact

New Zealand was the first country to give women the right to vote and to introduce pensions for the elderly.

With a steady economy that ranks among the world’s top performers, New Zealand offers a variety of exciting opportunities for foreign investors and business owners alike. Boasting a high-income economy, its Gross Domestic Product (GDP) holds a prominent position on the global stage. 

New Zealand has established a strong reputation within business communities, and this reputation is further confirmed by The World Bank, ranking New Zealand in the top three of the most business-friendly countries among 185 economies globally.

In this guide to doing business in New Zealand, we’ll explore why New Zealand’s business-friendly nature makes it an ideal choice for entrepreneurs looking to expand their business to New Zealand.

Overview of New Zealand's Economy

New Zealand is a developed, high-income country with a market-based economy. Despite its geographical isolation and relatively small population of around 5.1 million, New Zealand has a diverse and resilient economy. In 2021, New Zealand’s GDP was approximately NZ$345 billion (US$212 billion), with a per capita GDP of around NZ$68,000 (US$41,800).

Economic Sector Contribution to GDP Key Industries
Services 70% Finance, tourism, and professional services
Agriculture 6% Dairy products, meat, and wool (over 50% of exports)
Manufacturing 10% Food processing, machinery, and wood and paper products

New Zealand is an open, trade-dependent economy. Its main trading partners are China, Australia, the United States, and Japan. The country has free trade agreements with several countries and is a member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). New Zealand has a low unemployment rate, which stood at 3.4% as of December 2022.

The country’s labor market is characterized by a highly skilled and educated workforce. The Reserve Bank of New Zealand (RBNZ) is responsible for monetary policy, with the primary objective of maintaining price stability and supporting maximum sustainable employment. However, New Zealand’s economy faces some challenges, including high household debt levels, a housing affordability crisis, and the need to transition to a low-carbon economy to address climate change.

Overall, New Zealand’s economy is known for its stability, ease of doing business, and strong institutions. The country consistently ranks well in global indices related to economic freedom, competitiveness, and quality of life.

Taxes

Employer Tax: 3% – 6%

Kiwi Saver Scheme

3%

Accident Compensation Corporation (ACC) Levy

0% – 2%

Employee Tax: 3% – 6%

KiwiSaver

3%

Accident Compensation Corporation (ACC) Levy

1.47%

Gross Income (NZD)

Up to $15,600

$15,601 – $53,500

$53,501 – $78,100

$78,101 – $180,000

Over $180,000

Tax Rate

 10.5%

 17.5%

 30%

 33%

 39%

Registering Business in New Zealand

When it comes to doing business in New Zealand, you’ll find the process refreshingly straightforward. After reserving your business name and finalizing your business strategy and plan, all that’s left to do is to register online with the NZ Companies Office, along with IRD (Inland Revenue) and GST (goods and services tax) registration.

In addition to this, it’s also compulsory to have at least one director who holds residency in New Zealand.

Expanding Business to New Zealand from Australia

If you are already running a business in Australia, the New Zealand business registration process becomes even simpler. You have the advantage of utilizing your Australian paperwork, such as your certificate of incorporation, directors’ details, and company constitution, provided by ASIC. 

Furthermore, you can maintain your company name by supplying your Australian Company Number (ACN). While these steps seem straightforward, we highly recommend seeking the guidance of legal professionals when you are doing business in New Zealand. You can benefit from hiring a financial advisor, tax accountant, and/or corporate lawyer to help ensure that the process runs smoothly.

Benefits of Doing Business in New Zealand

If you’re considering expanding your business to New Zealand, you’ll find a variety of advantages. Let’s explore the reasons why New Zealand is such an appealing destination for doing business:

Stable Political Environment

New Zealand boasts a stable political and legal system, providing a secure foundation for businesses to operate.

Ease of Doing Business

The World Bank consistently ranks New Zealand among the top countries for ease of doing business, with efficient processes for starting a business and obtaining permits.

Skilled Workforce

New Zealand offers a highly skilled workforce and a growing culture of innovation and entrepreneurship.

Well Located

Situated in the Asia-Pacific region, New Zealand offers convenient access to key trade markets such as Australia, Asia, and the Pacific Islands, opening trade and investment opportunities.

Strong Trade Relations

New Zealand has a network of strong trade agreements with key markets worldwide, providing businesses with access to a wide range of export opportunities and reducing trade barriers.

Low Corruption Levels

New Zealand consistently ranks among the least corrupt countries globally, offering businesses a corruption-free environment to operate business in.

Innovative Business Environment

New Zealand encourages innovation and entrepreneurship, with initiatives such as research and development grants, tax incentives for startups, and support for emerging industries.

Business Expansion Options in New Zealand

Businesses can expand into New Zealand through various entry methods, each offering their own advantages and considerations.

New Zealand Employer of Record (EOR)

The New Zealand EOR becomes the official legal employer of your New Zealand team. This method is fast and efficient, making it perfect for companies that need to quickly deploy staff on the ground. 

An EOR handles payroll, benefits, taxes, and compliance with local labor laws, allowing businesses to focus on their core activities. They may also provide additional services, such as New Zealand talent acquisition and visa support.

LEARN MORE

Recruitment Agencies

Recruitment agencies in New Zealand help businesses expand by connecting them with skilled local talent across various industries.

Remote People provides recruitment solutions that simplify hiring and ensure compliance with New Zealand labor laws.

For businesses looking to grow in New Zealand, Remote People offers the expertise and resources needed to build a local workforce quickly and effectively, making it a practical solution for market expansion.

LEARN MORE

New Zealand Professional Employer Organizaton (PEO)

Using a Professional Employer Organization (PEO) or Employer of Record (EOR) service provider allows businesses to expand into New Zealand without establishing a legal entity.

Instead, the PEO/EOR acts as the employer of record for the company’s employees in New Zealand, handling payroll, benefits, and compliance matters. This option offers flexibility and scalability for businesses entering the New Zealand market, but it also involves renouncing some control over some of your HR and administrative functions.

Partnering with a professional employer organization (PEO) allows companies to employ local staff in New Zealand without the need to establish a legal entity. This approach is quicker and less expensive, making it ideal for businesses testing the New Zealand market or those with limited operations.

PEOs handle administrative tasks and ensure that companies comply with New Zealand regulations, reducing the complexity and risk associated with hiring local employees.

LEARN MORE

Subsidiary Incorporation

Incorporating a subsidiary in New Zealand involves establishing a separate legal entity that is owned and controlled by the parent company. This option provides limited liability protection and allows for greater autonomy in decision-making and operations. However, it also requires compliance with New Zealand company law, taxation, and reporting requirements.

Branch Registration

Registering a branch office in New Zealand involves establishing a local presence for the parent company without creating a separate legal entity. This option may offer cost and administrative advantages, but it also exposes the parent company to unlimited liability for the branch’s activities. Branch registration requires compliance with New Zealand regulations, taxation, and reporting obligations.

Business Opportunities in New Zealand

New Zealand presents a wealth of business opportunities for investors and entrepreneurs, driven by its stable economy, business-friendly environment, and emphasis on innovation and sustainability. With a skilled workforce, excellent quality of life, and a prime location in the Asia-Pacific region, it stands out as an attractive investment destination.

Business Opportunity Reasons
Agritech • Strong agricultural sector with a focus on innovation and sustainability
• Opportunities in precision farming, animal health, and agri-robotics
• Government support for agritech research and development
• Potential to export agritech solutions to global markets
Renewable Energy • Government commitment to a low-carbon economy and 100% renewable electricity by 2030
• Abundant renewable resources including hydro, geothermal, and wind power
• Opportunities in energy storage, smart grid technologies, and green hydrogen production
• Growing demand for clean energy solutions
Film and Creative Industries • Internationally recognized film industry
• Attractive tax incentives and government support for film and television production
• Skilled workforce and state-of-the-art production facilities
• Opportunities in post-production, visual effects, and animation
• Growing demand for content from streaming platforms and international markets
Technology and Innovation • Thriving startup ecosystem and supportive innovation policies
• Strong research and development capabilities in biotech, nanotech, and software development
• Opportunities in artificial intelligence, blockchain, and the Internet of Things (IoT)
• Collaboration opportunities with leading universities and research institutions
Tourism and Hospitality • Unique natural landscapes and outdoor recreation opportunities
• Strong tourism infrastructure and well-developed transportation networks
• Growing demand for eco-tourism and sustainable travel experiences
• Opportunities in luxury accommodation, adventure tourism, and cultural tourism
• Potential for developing new tourism products and experiences

With a successful mixed-industry economy, close ties within the APAC region, and a highly skilled workforce, New Zealand is an ideal location for international investment and business expansion.

Get in touch to learn how Remote People can help you expand into New Zealand.