Why Should You Expand Your Business in New Zealand?

This article is apart of our weekly series associated with the The Global Subsidiary Index. The series is designed to help businesses identify the best countries for establishing a subsidiary based on key operational factors. GEOS provides a data-driven ranking of jurisdictions worldwide, assessing across 40+ criteria to bring you insights into global expansion opportunities.

Each country on the index is scored on an overall score out of 100, with each individual criterion out of 5 or 10. Higher scores indicate a more favorable environment for businesses. By leveraging these insights, companies can make informed decisions on where to establish a legal presence.

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New Zealand has over 50 volcanoes, some still active, surrounded by snowy peaks and rugged coastlines. But it’s not just the scenery that makes it stand out. The country ranks among the world’s most developed, with a high Human Development Index and one of the lowest crime rates anywhere.

This stable footing supports a growing tech industry. Today, tech makes up 8% of the country’s GDP and drives much of its research and exports.

The sector has grown rapidly over the past decade. The number of tech firms earning over $50 million has nearly doubled. These companies now earn most of their revenue from overseas markets, with North America as a key growth area.

With this momentum, New Zealand offers businesses looking to expand a stable and supportive environment full of global growth potential. Choosing to grow your business in New Zealand means tapping into a market with strong global connections and promising growth potential.

A Stable and Innovative Market with Exceptional Quality of Life

New Zealand offers a stable and innovative market with a great quality of life. It scores 82.8 on the GEOS Global Subsidiary Index. It proves the economy is strong and the scene is welcoming for companies thinking of doing business in New Zealand.

The country ranks 10 out of 10 for GDP per capita, showing wealthy consumers. Political risk is very low. Transparent governance and steady pro-business policies earn it a perfect 5 out of 5. Its digital infrastructure is solid, supporting fast and reliable global connections.

The economy faced a tough recession recently. Inflation hit 7.3% in 2022. The Reserve Bank raised interest rates to slow demand. This caused low or negative growth for several quarters. Since late 2022, per capita GDP dropped 4.6%, a deeper hit than the global financial crisis. Now, inflation is back near the 2% target.

The Reserve Bank has cut rates by 125 basis points since August 2024. These cuts should boost spending and business activity. Forecasts predict steady growth and falling unemployment from mid-2025.

Some challenges remain. Household debt is high, about 170% of disposable income. The country depends heavily on agricultural exports. These are vulnerable to weather changes. Trade relies mostly on China, Australia, and the US. The current account deficit is wider than usual but improving.

Public finances stay solid despite pressures. The government deficit should shrink below 2% of GDP by 2026. Public debt remains under 50% of GDP, well below OECD averages. Debt servicing costs are the highest since 2011. The current account deficit peaked at nearly 9% of GDP in 2022. It’s expected to improve with tourism recovery and a new EU trade deal.

New Zealand ranks high for ease of doing business and government integrity. Its political scene is stable and transparent. The current government faces some challenges and low approval ratings. Most expect Labour to return to power in 2026.

Digital infrastructure is a strong point. New Zealand scores 5 out of 5 for communications infrastructure and ranks among the top countries for broadband speed and 5G coverage.)). This makes it a solid base for international companies.

Key points to consider:

• Solid public finances with manageable debt
• Strong business environment with low political risk
• Advanced digital infrastructure for global operations
• Affluent consumer market with high GDP per capita

New Zealand’s economic strengths include a robust export sector, advanced digital infrastructure, and a commitment to sustainability initiatives that support long-term growth.

In short, New Zealand offers stability, solid finances, and reliable governance. It faces some short-term hurdles but remains a smart choice for global businesses.

Competitive Tax & Business Incentives

New Zealand’s tax landscape strikes a good balance between competitiveness and ease for businesses. The corporate tax rate scores 7 out of 10, sitting at 28%), which is solid among OECD countries. Employers face manageable obligations, scoring 4 out of 5, mainly focused on KiwiSaver, a straightforward voluntary superannuation scheme.

The Goods and Services Tax (GST) scores 4 out of 5 for efficiency. It runs at 15% and covers most goods and services. Since 2024, electronic marketplaces need to collect GST on things like accommodation and ride-sharing. This broadens tax coverage in the digital space.

Here are the key points if you’re thinking of doing business in New Zealand:

• Resident companies pay tax on worldwide income, while non-resident companies pay tax on income sourced in New Zealand. Starting in 2025, the OECD’s Global Anti-Base Erosion (GloBE) rules target large multinationals with revenues over 750 million euros.
• Employers pay fringe benefit tax (FBT) on perks like company cars or low-interest loans. Employer contributions to KiwiSaver and approved funds get taxed through superannuation contribution tax (ESCT) at progressive rates.

Local councils charge property taxes based on property values. There are no transfer taxes or stamp duties in New Zealand. Residential Land Withholding Tax (RLWT) applies to some property sales by offshore persons to manage foreign investment.

Overall, New Zealand balances a fair tax rate with clear rules. It creates a stable, business-friendly environment. Compliance stays simple, which helps encourage investment. To fully benefit from New Zealand’s business-friendly environment, it is essential to complete all required tax registrations and incentive applications.

Skilled Workforce & Favorable Hiring Regulations

New Zealand scores well for talent availability, with Engineering, Finance, and Sales all rated 4 out of 5. Most workers speak English well, making communication smooth. This solid foundation helps businesses find the right people easily.

The country scores a perfect 10 out of 10 for employment law clarity. The hiring laws are straightforward and fair, which makes managing staff simpler. Employers find them easy to follow, speeding up hiring and firing processes. Unions score 4 out of 5, they exist but generally cooperate without causing major disruptions. This balance keeps workplaces stable and productive. It’s important for employers to stay up-to-date with the latest changes in employment regulations and workforce requirements to ensure ongoing compliance and best practices.

Here’s a quick overview of the workforce and education levels:

• The tech sector exported $17 billion in 2023, showing strong demand for skilled workers.
• New Zealand ranks fourth in the OECD for adults with a bachelor’s degree, but only 5% hold a master’s, which is low internationally.
• About 19% of adults didn’t finish secondary school, a rate similar to the UK and the Netherlands.

Employment law protects workers by guaranteeing minimum rights. These include:

• Four weeks of paid annual leave and sick leave
• A safe, discrimination-free workplace
• Written employment contracts and at least minimum wage pay
• Regular rest breaks

Employees can also request flexible hours and have the right to join unions without pressure. Employers must consult workers in good faith before making changes like cutting hours or restructuring roles. This open communication helps avoid surprises and builds trust.

Unions have a long history in New Zealand and play a key role in balancing worker rights with employer needs. Together, these elements create a fair and stable work environment.

Overall, New Zealand offers a well-educated workforce backed by clear, practical hiring laws. This combination creates a stable, business-friendly environment that encourages flexibility and cooperation.

How to Set Up a Business in New Zealand

Setting up a business in New Zealand doesn’t have to be complicated. With a clear plan, you’ll be up and running before you know it.

Choosing the Right Legal Structure

Building a strong business in New Zealand begins with selecting the right legal setup. It shapes your taxes, liability, and how you run things. Picking the right setup helps you avoid surprises down the road.

Most businesses stick to three main types: sole traders, companies, or partnerships. Each has its own benefits and responsibilities.

• A sole trader means you’re running the show solo. You take on all the income and losses personally. It’s simple but offers no protection from business debts. Self employed individuals are considered sole traders and must meet specific registration requirements.
• A company is its own legal entity. It protects owners from personal liability for debts. The most common type is a Limited Liability Company (Ltd), which is a popular limited company structure for those seeking limited liability. It’s straightforward to set up but needs a resident Nominee Director if no one lives in New Zealand. This setup works well for most international businesses.
• A partnership means sharing responsibility with one or more partners. You split income, losses, and control. It works well if you want to share risks and decisions.

Beyond these, other structures exist but usually need expert advice. Unlimited companies make shareholders fully liable for debts. These are rare and used for special cases.

• Co-operatives are owned and run by members who use their services. Profits go back based on use, not investment size. Co-ops boost buying power and can work across many sectors.
• Trusts hold property for beneficiaries but aren’t businesses themselves. They often support business setups. Setting up a trust requires professional help to get it right.
• Charitable trusts focus on supporting charities. It’s best to get advice to see if this fits your goals.
• Incorporated societies fit clubs and community groups. Members don’t take on personal liability, making them a good choice for nonprofits.
• Limited partnerships have general partners with full liability and limited partners liable only up to their investment.

There are also industrial societies, friendly societies, building societies, and credit unions that serve specific purposes. If your needs are unique, it pays to talk to a professional. Any organisation must be registered with the appropriate authorities to gain legal recognition. That way, you can pick the structure that fits you best.

Business Type and Classification

Choosing the right business structure for is a key decision when starting a business in New Zealand. The main options are sole traders, partnerships, and limited liability companies, each with its own advantages and responsibilities.

A sole trader structure is the simplest, giving you full control but also making you personally liable for any business debts. Partnerships allow two or more people to share ownership, profits, and responsibilities, but partners are also personally liable for the business’s obligations.

A limited liability company (LLC) is a popular choice for many businesses in New Zealand. This structure creates a separate legal entity, which means owners (shareholders) are generally protected from personal liability for company debts.

It also offers more credibility and flexibility for growth. The Companies Office provides helpful resources and tools to guide you through the process of choosing the best structure for your business.

Your business classification will also affect your tax obligations and registration requirements. For example, a limited liability company must register with the Companies Office and obtain a New Zealand Business Number (NZBN), which is essential for dealing with government agencies like Inland Revenue.

The NZBN acts as a unique identifier for your business, streamlining interactions with regulators and making it easier to manage your tax and compliance responsibilities. Taking the time to decide on the right structure and classification will set your business up for success and ensure you meet all legal and tax obligations in New Zealand.

Incorporation & Compliance Essentials

New Zealand scores 5 out of 5 for original paperwork, thanks to minimal bureaucratic hurdles and straightforward notarization and certification procedures.

Registering a company in New Zealand is quick and straightforward. The online registration process usually completes within a few days. However, the full incorporation timeline, including preparing documents, certification, and meeting post-registration requirements, typically takes about one to two months. When preparing documents for incorporation, it is recommended to consult an accountant for advice on legal compliance and choosing the right business structure.

The paperwork involved scores high for ease. Notarization and certification steps are simple, with minimal bureaucratic hurdles. Required documents often include a company constitution, which outlines the rights, responsibilities, and powers of stakeholders, and it is advisable to seek legal advice when establishing or amending it.

Here are some recent stats to give you an idea of the business landscape as of May 2025:

• Over 744,000 companies are currently on the register.
• In May alone, about 5,600 new zealand companies were incorporated.
• Around 3,900 companies were removed from the register that month.
• About 270 companies entered liquidation, receivership, or voluntary administration.
• The register also includes over 14,600 financial service providers.
• Nearly 1.8 million financing statements are registered on the Personal Property Securities Register (PPSR).
• The register includes various organisations, such as charities and trusts, in addition to companies.

When registering, you will need to provide director details as part of the process. Company governance in New Zealand requires directors to meet specific legal responsibilities, including reporting accurate information to the Companies Office.

If you’ve decided to set up a company, you can register online through the Companies Office. The process is low cost, easy, and requires a RealMe login. You can even register for GST at the same time, which simplifies getting your business up and running. For the most up-to-date information and access to registration tools, always refer to the official government website.

Business Name and Registration

Selecting a business name is one of the first and most important steps when starting a business in New Zealand. Your business name must be unique and not already registered by another company.

The Companies Office offers an online search tool to help you check the availability of your chosen name before you proceed. Once you’ve settled on a name, you’ll need to register your company with the Companies Register, providing key details such as director information, shareholder details, and your business address.

The registration process is straightforward and can be completed online, making it easy to get your business up and running quickly. You’ll also need to register for tax purposes, including Goods and Services Tax (GST) if your turnover is above the threshold, and apply for any industry-specific licenses or permits required by the Zealand government. Using online accounting software can help you manage your finances, track expenses, and stay on top of your tax obligations from day one.

Both sole traders and limited companies should also consider protecting their intellectual property, such as trademarks, patents, and copyrights, to safeguard their business assets and brand. The Companies Office and other government agencies provide guidance and resources to help you through each step of the registration process, ensuring your business is fully compliant and ready to operate in New Zealand’s dynamic market.

Streamlined Expansion from Australia

Australian businesses find it easier to expand into New Zealand. The close economic ties between the two countries streamline many processes. This cuts down on paperwork and red tape.

Because of this, New Zealand is a popular next step for Australian companies. Setting up operations here is faster and simpler than in other markets. This helps businesses save time and reduce costs as they grow.

Financial & Banking Considerations

New Zealand scores 5 out of 5 for financial infrastructure. Its banking system is strong and gives easy access to international financial services. This makes handling money and cross-border payments simple for businesses.

The country ranks 7 out of 10 for tax and accounting complexity. It follows clear and strict accounting standards with thorough reporting rules. If you appoint a Nominee Director, they need full access to tax and accounting information. That way, they can manage the personal risk they take on. Hiring professional accountants can help ensure proper bookkeeping, compliance with regulations, and effective financial planning from the start.

Overall, New Zealand offers solid financial systems and clear tax practices. Together, they help keep business operations smooth and compliant.

Things To Consider When Expanding into New Zealand

Immigration & Work Permits for Foreign Employees

New Zealand offers several visa options for foreign workers. The Immigration Complexity Score of 4 out of 5 reflects the fairly streamlined pathways available, especially for skilled migrants. However, clear documentation and strict adherence to criteria are required. However, you do need clear documents and must meet specific criteria.

Most work visas are temporary, but some can lead to residency. Some visas require a job offer before you apply and limit the type of work you can do. Others let you work for almost any employer without a job offer. Your visa will explain what’s allowed. 

If you’re a New Zealand or Australian citizen, you don’t need a visa to work here.

Here are some key points about working visas:

• The working holiday visa is for people aged 18 to 30 (or up to 35 for some countries) with a working holiday agreement. You can work for up to 12 months but can’t take permanent jobs. The main goal should be holidaying, with work as a side thing.
• If you’ve worked in viticulture or horticulture for at least 3 months on a working holiday visa, you can apply to extend your stay by another 3 months.

New Zealand’s visa system offers flexible choices, but you need to follow the rules and provide the right paperwork.

Cost of Living & Office Space

New Zealand’s tech scene is growing fast in several key regions. Wellington, Auckland, Christchurch, and Waikato all play major roles.

Gaming company PikPok started small in Wellington and now has hundreds of employees. CEO Mario Wynands says gaming is now a serious career option, with games on almost every device. Events like TechWeek help showcase jobs in gaming, AI, and cyber security. The focus is on keeping local talent in New Zealand.

Data science firms like Dragonfly in Wellington also highlight the need to retain young scientists. Interest from U.S. scientists looking to work here is rising, offering a chance to attract top talent.

Here’s a quick look at the main tech hubs:

• Wellington: High concentration of knowledge jobs, home to gaming and data science companies.
• Auckland: The tech powerhouse, generating over half the sector’s GDP with strengths in fintech, health IT, and creative tech.
• Christchurch: Innovation hub with iconic Kiwi brands and a base for multinational expansions.
• Waikato: Fast-growing region known for agritech and ICT companies.

Regulatory & Compliance Risks

New Zealand has strong regulations and expects businesses to follow strict rules. Compliance reporting scores a solid 6 out of 10, so staying on top of requirements is important. It is essential for businesses to understand and fulfill all legal obligations related to taxes, employment, and data protection to ensure full compliance.

Here’s what businesses need to keep in mind:

• File regular reports covering finances, employment, and operations.
• Follow employment laws carefully to stay in good standing.
• Protect personal data under the Privacy Act 2020. This law sets clear rules on collecting, storing, and using personal information.
• Inform people about what data you collect, why you collect it, and how you use it.
• Keep data secure and control who can access it inside and outside your organization.
• If a serious privacy breach happens, notify the Privacy Commissioner right away. This helps protect individuals and maintain trust.

Bottom line, New Zealand holds businesses to high standards in compliance and data privacy. Staying informed and acting fast helps you avoid penalties and build trust with customers.

Talent Availability & Scaling Considerations

New Zealand scores 5 out of 5 for language, thanks to strong English skills. About 90% of people speak English. Other common languages include Te Reo Māori (3%), Samoan (2%), and Hindi (2%). 

Salaries are competitive, scoring 7 out of 10. Companies need to budget carefully but can expect skilled and reliable workers. Finding the right balance between salary and talent is key to growing smoothly.

All in all, New Zealand delivers a skilled workforce that communicates well and expects fair pay.
This helps businesses scale while keeping quality high.

Unique New Zealand Expansion Insights

New Zealand’s digital government uses the latest tech to keep up with change. You can register your company online and handle compliance digitally, which speeds up setup and cuts down on paperwork.

Collaboration drives much of this progress. Over 50 senior leaders from more than 20 agencies work together to build a smooth, connected system for businesses and citizens. The country also partners internationally to share knowledge and solve common problems.

Remote and flexible work is widely accepted and supported by a strong infrastructure. This makes it easy for global teams to stay connected and productive.

The business culture mixes directness with collaboration. It combines a casual vibe with professionalism. Understanding this balance helps you fit in and build strong relationships.

A couple of key points stand out:

• Digital government services focus on user needs, making things simple and accessible.
• Close collaboration across agencies creates a seamless experience for businesses.

All in all, the digital-first approach, flexible work culture, and clear business style make it a great place to grow your business in New Zealand.

How GEOS Simplifies Your Expansion into New Zealand

GEOS manages the setup and compliance of your business in New Zealand, so you can focus on growth.

Comprehensive Entity Setup & Compliance Management

New Zealand’s economy might be small, but it’s mighty. That’s why GEOS offers full support, from company registration to ongoing compliance, tax, and accounting services. They also handle Nominee Director appointments to keep you covered. With GEOS, setting up and managing your business is simple and smooth.

AI-Powered Global Expansion Support

GEOS makes things easier with Geovanna, a digital assistant. She speeds up incorporation, keeps you on track with local rules, and manages complex compliance tasks. This ensures fewer hold-ups and more consistent growth.

Is New Zealand the Right Fit for Your Business?

New Zealand scores 82.8 on the GEOS Global Subsidiary Index. Firms with revenues over $50 million have nearly doubled in the past decade. While small globally, New Zealand offers great opportunities for smart companies.

📩 Reach out to GEOS for a growth plan that’s made just for your business.

This article does not constitute legal advice.