Doing business in New Zealand - Grant Thornton

Country profile
Geography and population
New Zealand is situated in the South
Pacific Ocean, approximately 1,500
kilometres east of Australia. It covers
an area of 270,000 sq km (similar in
size to the British Isles) and comprises
two main islands, the North Island
and South Island. The landscape is
varied and often spectacular, which
makes New Zealand a popular tourist
destination.
New Zealand’s population is around
4.4 million. About three-quarters of
New Zealanders live in the North
Island and about half live in the four
largest cities of Auckland, Christchurch,
Wellington, and Hamilton.
New Zealand is a multi-ethnic
country, comprising around 68% of
people of European descent, 15%
Maori (tangata whenua, the indigenous
people), 10% Asian and 7% Pacific
peoples. This ethnic diversity is
projected to increase, with the Asian
population in particular increasing to
14% over the next 15 years.
Political system
New Zealand is a constitutional
monarchy with Queen Elizabeth II
as its sovereign head of state. New
Zealand does not have a constitution
that is embodied in a single document
or Act of Parliament, but rather the
constitutional law is contained in a
mixture of legislation, the Treaty of
Waitangi, case law and unwritten
conventions having their origins in
English law.
Constitutional power is vested in the
Crown, represented by the Governor-
General. All legislation that is approved
by Parliament must receive Royal
Assent from the Governor-General in
order to be given legal effect.
Legislative power is vested
in a parliamentary system with
representatives (Members of
Parliament) elected every three years
to one central government. Since
1996, New Zealand has used the
mixed member proportional (MMP)
representation voting system. The
National Party leads the present
Government, with support from ACT,
United Future, and the Maori Party.
Executive power is exercised by
the Cabinet, formed by the party
that controls the majority of votes in
Parliament. Cabinet is led by the Prime
Minister (currently John Key), who is
traditionally the leader of the governing
party or coalition.
Legal system
The legal system is based upon common
law and statute. New Zealand’s
common law has developed from and
is reliant upon English law principles.
However, many common law principles
have been codified by statute.
The court system is hierarchical.
Trials are conducted in either the
District Court (the lower jurisdiction)
or the High Court. Appeals may be
made to the Court of Appeal and,
with leave, to the Supreme Court. A
Disputes Tribunal is available as a lowcost
alternative for settling small claims.
Language
English is one of New Zealand’s two
official languages, and is universally
spoken. The other official language is
Maori (Te Reo).
Business hours/time zone
Normal business hours are 8.30am
to 5.00pm Monday to Friday. Many
retailers are also open on weekends
and one or more evenings. Trading
is permitted on all days, with the
exception of Good Friday, Easter
Sunday, Christmas Day and until
1.00pm on Anzac Day (25 April).
Certain businesses are exempt from
these restrictions. Banking hours are
normally 9.00am to 4.30pm Monday to
Friday, but retail branches are open in
the weekends in all large retail shopping
centres.
New Zealand’s time zone is GMT
+12 hours and +18 hours US Eastern
Standard Time. New Zealand adopts
daylight saving during the summer
months, from the last Sunday in
September until the first Sunday in
April.
Public holidays
New Zealand public holidays are as
follows:
• New Year - 1 and 2 January
• Waitangi Day - 6 February
• Good Friday
• Easter Monday
• Anzac Day - 25 April
Doing business in New Zealand 4