Doing business in New Zealand - Grant Thornton

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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
• Queen’s Birthday - 1st Monday in June • Labour Day - 4th Monday in October • Christmas – 25 & 26 December • Provincial Anniversary Day - varies between provinces across the country Economy New Zealand has a relatively deregulated and open economy. It is consistently ranked as one of the easiest countries in which to do business, one of the least corrupt, and having one of the highest levels of economic freedom. Major industries include agriculture, forestry, fishing, horticulture, manufactured goods (including food processing). Major imports include mineral fuels, mechanical and electrical machinery, vehicles, pharmaceuticals, textiles, and plastics. Major exports include dairy products, meat, wood, mineral fuels, machinery, fruit and nuts, wine, fish, wool, horticultural produce, manufactured goods and tourism. Principal trading partner Exports: • Australia • China • USA • Japan • Korea • Europe • Southeast Asia Imports: • Australia • China • USA • Japan • Europe • Southeast Asia New Zealand is a proponent of free trade and is an active member of the World Trade Organisation (WTO). It has completed free trade agreements with ASEAN/Australia, China and Malaysia, and is presently negotiating agreements with India, Russia-Belarus- Kazakhstan, the Gulf Cooperation Council and Korea. It has special trading relationships with Australia (CER), Hong Kong (CEP), Thailand (CEP) and Singapore (CEP), and is a member of the Trans-Pacific Strategic Economic Partnership (P4). Cost of living One of the greatest attractions of New Zealand is the lifestyle it has to offer. Not only do Kiwis seem to enjoy a more relaxed living philosophy but compared with many countries, an enjoyable lifestyle seems to be more obtainable. Auckland and Wellington generally rank high on international livability measures but the cost of living has also increased. The cost of living varies within New Zealand, particularly the cost of housing. Auckland is a more expensive city in which to live and, following the earthquakes in Christchurch, there is a housing shortage in that city. Visas Visitors from many countries do not require a visa for visits of less than three months to New Zealand. Generally, visitors are not allowed to work here. However, visas or work permits are available under various categories for people wishing to work in New Zealand either on a temporary or permanent basis. Australian citizens and permanent residents do not need a work visa to work in New Zealand. Long-term visas are available for migrants bringing valuable skills or qualifications, setting up a business, or making a financial investment in New Zealand. There are also opportunities for family reunification by allowing residents and citizens to sponsor family members for residence. For more information visit: www.immigration.govt.nz Doing business in New Zealand 5
Page 1 and 2: Grant Thornton New Zealand 2012 Doi
Page 3: Foreword If you are planning on doi
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Doing business in New Zealand - Grant Thornton

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