Nelson Tasman Settlement Support

A Partnership between Department of Labour and Nelson City Council

Starting or investing in a business

Foreign Direct Investment Regime

New Zealand welcomes and encourages foreign direct investment (FDI) from most countries. The Overseas Investment Act 2005 establishes the framework for the administration of Government policy on foreign investments.

The public policy objectives of the Act include encouraging foreign investment into New Zealand, providing rules that recognise the importance of foreign direct investment and ensuring that the value of sensitive New Zealand assets are recognised and enhanced by an overseas owner.

Overseas Investment Office

The Overseas Investment Office (OIO) is tasked with regulating New Zealand’s foreign investment regime. While one hundred percent overseas ownership can be approved in all industry sectors, some New Zealand-based companies have restrictions relating to foreign ownership.

Controls, in the form of a screening and monitoring process operated by the OIO, are maintained over investment regarded as ‘significant’ - i.e. where an overseas person acquires or establishes (or acquires a 25 percent or more ownership or control interest in):

  • Business or non-land assets in New Zealand worth more than $100 million
  • Non-urban land over five hectares
  • Any land on most offshore islands or land that is or includes the foreshore or seabed
  • Land over 0.4 hectares, which includes or adjoins certain ‘sensitive’ areas
  • Land over 0.2 hectares which adjoins the foreshore.

Land investment

Applications involving land will be approved only if the investor is intending to reside in New Zealand indefinitely or if the investment benefits New Zealand or a group of New Zealanders. In the case of rural land the benefits must be substantial and identifiable.

Will the investment benefit New Zealand?

A range of factors are considered in determining whether an investment will, or is likely to, benefit New Zealand. These include:
1.   Whether the investment is likely to result in:

  • the creation of new job opportunities in New Zealand or the retention of existing jobs
  • the introduction of new technology or business skills
  • increased exports
  • added market competition, greater efficiency or productivity
  • additional investment for development purposes
  • increased processing of primary products

2.   Whether there will be adequate mechanisms in place for:

  • protecting areas of significant indigenous vegetation or indigenous fauna
  • protecting or enhancing significant habitats of trout, salmon, wildlife and game and providing walking access to those habitats by the public
  • protecting or enhancing historic heritage within the relevant land
  • providing walking access over the relevant land or a relevant part

3.   If the relevant land contains foreshore, seabed, or a bed of a river or lake, whether it has been offered to the Crown
4.   Whether the overseas investment will benefit New Zealand - e.g sponsorship of community projects
5.   Whether the investor is a key person from a country where New Zealand will benefit from having improved relations.

New Zealand Trade and Enterprise

New Zealand Trade and Enterprise is the New Zealand Government’s economic development agency. Its specialist unit, Investment New Zealand, works to attract investment into New Zealand with wider benefits to the economy, and can help identify sustainable business prospects and develop tailored investment solutions for overseas investors.
Other government departments and agencies, such as Tourism New Zealand, the Ministry of Foreign Affairs and Trade and the Ministry of Economic Development are also active in promoting foreign investment. Information about the overseas investment regime can be found at www.oio.linz.govt.nz

New Zealand’s Tax System

Different income tax rates exist in New Zealand for different entities.

Inland Revenue (IRD)

Inland Revenue has several resources useful to anyone setting up in business, available at www.ird.govt.nz, or by phoning Inland Revenue on 0800 377 774 and asking them to post the information.

Every business needs an IRD number and a GST (Goods and Services Tax) number if the annual turnover will exceed $40,000. The IR365 booklet ‘GST - do you need to register?’ explains the advantages and disadvantages of registering, and includes a GST registration form.

For any information on GST, phone Inland Revenue on 0800 377 776. Inland Revenue also has tax advisory notices that may be able to help when setting up a business. They can be requested when registering for GST or by phoning Inland Revenue on 0800 377 774.

The Smart Business booklet IR 320 contains information about record-keeping requirements, income tax, provisional tax and other information.

Australians considering business in New Zealand

For those in Australia considering doing business in New Zealand, further information is available on the New Zealand Inland Revenue website, www.ird.govt.nz/yoursituation-bus/australian/business-australian-index.html.

Commercial property

Nelson City

Nelson’s inner city retail area is one of the most attractive in the country. Overlooked by the Nelson Cathedral at the top end of the main street, the inner city provides an attractive setting for cafés with many offering alfresco dining. The Nelson Provincial Museum adds to the contemporary streetscape of upper Trafalgar Street, while the Visitor Information Centre has enhanced the river frontage at the lower end of the street. 

More specialist retail outlets now operate in the main centre, including the Fashion Island precinct. Growth in retail rents has slowed but continues to show increases along the prime shopping areas, with modest growth in fringe areas. 

New inner city developments include two retail or office complexes, one in Wakatu Square and the other in Achilles Avenue. Construction has commenced on an office building on the corner of Halifax and Collingwood Streets and other fringe commercial properties are being redeveloped or extended. Still, demand for office space has declined slightly due to the economic downturn.

The quality and diversity of visitor accommodation on offer has increased with the upgrade of The Rutherford Hotel in Nelson and a range of options from boutique accommodation to luxury lodges.

The Nelson City Council is working on a strategy for unified development of the inner city. It aims to better co-ordinate development, deliver the sustainable urban design that residents expect and look more broadly than just the central business district to the waterfront and the valleys.

In Stoke several buildings have been removed to make way for the extension of an existing supermarket while ‘big box’ retail choices expand in the Stoke environs.

Richmond

Richmond has the region’s only shopping mall with more than 70 shops, including two supermarkets, a food court, department stores and specialty stores. This has led to Richmond becoming a shopping destination, with the added attraction of free parking.

The Richmond retail shopping strip has been extended by the redevelopment of several buildings at the western end of Queen Street. Richmond has a diverse retail base, with national retail chains and franchises, ethnic dining, homewares, specialty and bulk goods stores.

Croucher Street has recently been redesigned to give central Richmond a focal point for community gatherings and events, with Sundial Square. In surrounding areas land is still available for commercial development. Residential properties continue to be converted for commercial uses. Demand for new or larger premises appears to be coming mainly from owner-occupiers. Some demand from small office tenants has led to the conversion of industrial premises into small office suites.

Business resources

Nelson and Tasman’s many useful resources for new and established businesses, with highlights, are listed below.

Business Development Company

Lead provider of New Zealand Trade and Enterprise funded courses

  1. Business skills training, advisory and advice, including the government-funded Enterprise Training Programme
  2. Business assessment and review service
  3. Support and information to assist with growth and development
  4. Business Network - development of sector/clusters in a variety of key industries to enhance their businesses and provide growth opportunities
  5. Post training/follow-up coaching

Telephone:    + 64 3 545 6566
Email:  info@bdc.net.nz
Website:        www.bdc.net.nz

Nelson Tasman Chamber of Commerce

A membership-based service for Nelson and Tasman promoting local businesses, networking and offering business seminars.
Telephone:    + 64 3 548 1363
Email:  info@commerce.org.nz
Website:        www.commerce.org.nz

Management Focus

An online resource with a range of materials and tools covering leadership, systems, customer expectations, using information effectively, working with staff and utilising new technologies.
www.managementfocus.org.nz

Nelson Regional Economic Development Agency (EDA)

The EDA’s mission is to facilitate smart sustainable economic growth of the region that enhances economic vitality and diversity taking into account the region’s cultural and environmental values. The EDA’s website highlights the many activities the agency manages and is involved in helping drive the region’s economy.
Telephone:    + 64 3 545 6858
Email:  info@eda.co.nz
Address:         PO Box 370, Nelson 7040
Website:        www.eda.co.nz

Employers and Manufacturers’ Association

Assistance with Human Resources, occupational health, employment law, employee relations
Telephone:    + 64 3 548 4528

Nelson Tasman Tourism

Nelson Tasman Tourism’s mission is to market and develop the region as a visitor destination while providing a quality experience to visitors and achieving economic and social benefits for suppliers, businesses and the community.
Telephone:   + 64 3 546 6228
Email:  info@nelsonnz.com
Website:        www.nelsonnz.com

Nelson Enterprise Loan Trust

Provides loans to small businesses and community ventures.
Telephone:    + 64 3 548 7284
Email:  info@nelt.org.nz
Website:        www.nelt.org.nz

Nelson Marlborough Institute of Technology

Part-time to full-time degree, diploma and certificate courses.
Telephone:    + 64 3 546 9175
Email:  info@nmit.ac.nz
Website:        www.nmit.ac.nz

Nelson Tasman Business Trust

Free, confidential assistance including:

  1. Individual consultations with business owners
  2. Business Mentors New Zealand -  mentoring from experienced business people
  3. Business Health Check - from experienced business executives
  4. Talent Team Referrals for a one-off appointment with a business consultant
  5. Training for people with a business idea or start up
  6. Business Network meetings for new and established businesses
  7. Nelson Business Directory Database, promoting Nelson products and services

List your company and products on www.nelsonbusinessdirectory.co.nz
Address          PO Box 1278, Nelson 7040
Email:  info@ntbt.co.nz
Telephone:    + 64 3 539 0824   
Website:        www.ntbt.co.nz

Richmond Unlimited

Markets and promotes Richmond as an attractive and convenient destination for shopping, service and/or to establish a new business.
Telephone:    + 64 3 544 4898
Email:  ru@tasman.net

Our Town Motueka

Promotion, business and community development in Motueka.
Telephone:    + 64 3 528 4488
Email:  ourtownmotueka@xtra.co.nz

Uniquely Nelson

Supported by Nelson City Council and city businesses to promote and enhance the vitality and commercial viability of Nelson city. Offers networking and communication opportunities and co-ordinates special promotions and events.
Telephone:    + 64 3 546 8405
Fax:     + 64 3 546 8403
Email:  uniquelynelson@ts.co.nz

New Zealand Trade and Enterprise

Business support and export advice.
Telephone:    + 64 3 546 8084
Website:        www.nzte.govt.nz