Competitive business costs
The New Zealand Advantage
New Zealand’s business-friendly taxation system supports capital development, research and development and international investment. Flexible labour policies, and competitive property and telecommunications costs also attract multinational investment projects to New Zealand.
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Efficient business start-up
Starting up a business in New Zealand is fast and efficient, taking just three days.
New Zealand ranks second in the world for ease of doing business, according to the World Bank index, 2010.
Deregulated labour market
New Zealand’s deregulated labour market is based on voluntary union membership, individual employment contracts, and proactive recruitment of skilled overseas workers.
Immigration New Zealand provides facilitation services for businesses sourcing or relocating international staff.
In March 2009 the government announced it would review the Overseas Investment Act, in order to maintain a liberal foreign investment environment and to reduce compliance costs where feasible. The first part of the review was completed in July 2009. For more information, visit the Treasury website.
Competitive energy and communications
New Zealand’s deregulated energy sector and natural resources have provided the country with one of the lowest electricity costs for industrial users over the past few years.
Businesses also benefit from competition between several major telecommunications providers. Fixed-line business exchanges are equivalent in price to North America. Multiple new entrants in the broadband market are increasing the variety of technologies and services provided in urban areas.
Key business cost facts
» Ranked 3rd in the world on absence of bribery and corruption (World Competitiveness Yearbook 2010).
» Ranked 1st in the world on absence of protectionism (World Competitiveness Yearbook, 2010).
» Compulsory employer social security contributions as a percentage of an income equal to GDP per capita for NZ is 1.21 percent. This is ranked 3rd globally behind Qatar and South Africa (IMD World Competitiveness Yearbook 2010).
» Office rental rates average US$293 per square meter per annum (World Competitiveness Yearbook, 2010).
» Ranked 15th in the world on flexibility of employment (World Bank ‘Doing Business in 2010’ Survey – New Zealand).
