Onshore or offshore investment in New Zealand – Biotech versus an NZOFC


New Zealand is an English speaking and democratic country in the British Commonwealth of Nations. It has a free market economy, political stability, a world-class education system, and strong research, business and entrepreneurial communities. New Zealand offers the foreign investor the opportunity for attractive onshore investments and a legal vehicle to operate a New Zealand offshore finance company, an NZOFC, on its shores. Onshore investments in New Zealand can deal locally or be tied to New Zealand’s healthy export economy. Offshore investments in New Zealand will take advantage of business opportunities and what are essentially banking customers around the world, but not in the country.

New Zealand

New Zealand is located in the South and West Pacific Ocean on two large islands. The majority of New Zealanders are of European descent, and by far the most widely spoken language is English. It is a developed country with high international rankings for economic freedom, lack of corruption and education. International surveys of the world’s most livable cities still place New Zealand’s urban areas at or near the top of the list. Its heritage from the British Empire is further evidenced by the fact that its head of state is Elizabeth II, the Queen of England. The Queen is represented by the Governor General, but administrative power rests with the New Zealand Cabinet.

New Zealand is well known in the business world for having a culture of innovation and a stable political environment, especially when it comes to doing business. New Zealand consistently ranks first in Ease of Doing Business surveys. The different factors combine to make New Zealand a great place to invest. Specifically, there are a number of business areas where New Zealand stands out. These are biotechnology and agricultural technology, creative activities such as digital and creative arts, fashion design, publishing, textiles and digital content.

Specialty manufacturing is thriving in New Zealand with companies specializing in cleantech, defense, light and heavy engineering, plastics, composites, and metals technologies. Much of this stems from the country’s strong teaching and research base.

An economic strength of New Zealand is its food and beverage industry which has tripled its exports over the past two decades. Its technical strength can be seen in its computer and software industry. New Zealand deals with wireless infrastructure, health information technology, transportation, logistics and supply chain management technology, as well as communication technologies with geospatial applications.

With a healthy environment and large forests, New Zealand has a thriving export business of timber and other forest products. The other aspect of New Zealand’s healthy environment and natural beauty is that the country is a tourist destination that attracts over two million visitors a year and billions of tourist dollars.

Consultancy services

During the wave of deregulation that swept through many developed countries in the 1980s, New Zealand developed advisory services to help the business and social environment adjust. These advisory services are particularly useful for those who wish to invest onshore in New Zealand to establish licensed offshore companies based there. Whether it’s investing in world-class biotech research aimed at genomics, reproduction, cloning, or molecular techniques to improve animal productivity, there is a local industry in New Zealand ready to help. interested investor.

For those who wish to do business internationally but with New Zealand as a base, there is a particularly interesting option. It is the bank which is not a bank. It is a New Zealand offshore financial company, an NZOFC. This type of transaction can accept interest-bearing deposits, grant loans, offer credit and debit card services, provide trust services, and more. An NZOFC can effectively function as an offshore bank. However, he cannot do business in New Zealand. In addition, since it is governed by a different set of laws than banks, it cannot be called a bank. An interesting aspect of an NZOFC is that it is not subject to any capital requirement and is not regulated by the Central Bank of New Zealand.

Useful information for investors is that companies doing business in New Zealand are generally taxed. However, a New Zealand special purpose corporation that is an offshore company can be set up to be the trustee of a non-resident New Zealand trust. This type of offshore business agreement is not taxable in New Zealand except to the extent that income is earned in the country of New Zealand.

As with many offshore company installations, an international trading company based in New Zealand will typically do business around the world, hold bank accounts, and invest anywhere outside of New Zealand. Such a business will be a tax-free offshore company.

Once incorporated, the business is generally free to do business, open bank accounts, or invest anywhere in the world. If a business wants to take advantage of the kind of asset protection features often available overseas, pairing the business with a trust is helpful.

If an investor is interested in the bank that is not a bank, namely a New Zealand offshore financial company, such an institution can be licensed and trained by any person regardless of nationality. Constituents do not need to be resident in New Zealand, although it is not uncommon for an NZOFC to have at least one shareholder, officer or manager who is a resident of New Zealand solely because they there may, at times, be issues which are more easily dealt with by someone physically present in the country.

When investing in New Zealand or choosing to license an offshore company in New Zealand, the investor will generally want to consider the business opportunities available both onshore and abroad. Since the tax benefits or the asset protection and privacy features of an offshore business are important, a business executive may well choose a full “offshore” route. To the extent that business opportunities in the country of New Zealand are attractive, managers will be able to seek advice on onshore investment opportunities rather than overseas.

Source by Geir Holstad

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