Starting a business in New Zealand
Starting a business isn't easy, but New Zealand is ranked as one of the best countries in the world to start a business. Many start-up companies and inventions worldwide have Kiwi origins. If you have an entrepreneurial heart, why not set up your business in a country that fosters this energy at its core.
Unfortunately, it's not as simple as flying over and just starting your business. You will need a specific visa in order to work in New Zealand, even as self-employed. But if you have an idea that will boost the economy, and financial investment to start it, then you will likely be welcome.
Business visas in New Zealand
If you are already in New Zealand on a visa that allows self-employment, you can start your business and then convert to an Entrepreneur Resident Visa after six months. If you have been running your business less than two years when you apply, you will need to prove you have invested at least $500,000 worth of capital and have created a minimum of three New Zealand-based jobs. This visa is indefinite.
To either start your own business or purchase an existing business, you can apply for the Entrepreneur Work Visa. To qualify for this visa, you will need a thorough business plan that is not more than three months old, score at least 120 points on the Entrepreneur Work Visa scale, and make an investment of NZ$100,000. If your business is science or ICT related, or has exceptional innovation or exporting capacity, then the capital requirement can sometimes be waived. This visa gives you an initial 12 month period for the start-up phase of your business, then an additional 24 months after you prove your business is set up and running. After that period, you can go on to apply for the indefinite Entrepreneur Resident Visa if you qualify.
If you are starting up a socially conscious business, another option for you is the Global Impact Visa, which is in association with the Edmund Hillary Fellowship Programme. You must submit an application and be accepted into the fellowship to be eligible for this visa. There are 100 international places per year, aimed at entrepreneurs who want to make a difference to New Zealand, and humanity as a whole. The application is thorough and relatively costly, at NZ$850.
If accepted, you are required to attend an induction and events throughout your three-year fellowship within New Zealand in addition to running your business. To get the Global Impact Visa, you must also prove you have NZ$36,000 in funds to support yourself, and a good standard of English is essential. The visa allows you 36 months in the country, but after 30 months you can apply to convert to permanent residency provided you have completed the fellowship programme.
All of these visas allow you to bring partners and dependent children. Children can be up to 19 years old for the Global Impact and Entrepreneur Work Visas and up to 24 for the Entrepreneur Residency Visa. You can apply for all online, and fees will also be required.
Once you have your visa, it is advisable to speak to a lawyer, tax professional, and accountant within New Zealand, and possibly even in your home country, to set everything up correctly. You will need to do things like registering your business with the Companies Office and Inland Revenue Department, and see whether you also have any tax obligations in your home country. Procedures can be complicated, especially when in an unfamiliar country.
How to set up your business in New Zealand
Once you have your visa sorted out, there's a checklist you will need to follow to get your business set up:
- Write up your business plan, so you're confident your plans will work
- Choose your business name. Use ONECheck to see if the name is available.
- Choose a business structure - i.e. sole trader, partnership and company. Each structure has different benefits and considerations - and different ways to be registered with the government.
- Get a RealME login. This is a universal login that is used by several different government agencies, including the IRD.
- Get a New Zealand Business Number. This is a unique identifier for your business, and links all your business' information together, including your trading name, phone number and email.
- Secure your business name. You can do this by applying for a registered trademark.
- Look into regulations, like fair trading, consumer guarantees, health and safety and food licensing.
- Register your company with the Companies Office. You can register for a GST number at the same time.
- Register your trademark with IPONZ.
