New Zealand - Doing Business 2012 Summary
Core Content
The document provides an overview of the business environment in New Zealand as measured by the Doing Business report, which evaluates the ease of doing business across 10 key areas. These areas include starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts, and resolving insolvency. The report compares New Zealand with other economies and presents data based on the ease of doing business index, which ranks economies from 1 to 183. The data reflect the regulatory environment as of June 1, 2011, except for the paying taxes indicators, which cover January–December 2010.
Main Indicators Overview
| Indicator |
New Zealand DB2012 |
New Zealand DB2011 |
Australia DB2012 |
Canada DB2012 |
Germany DB2012 |
Ireland DB2012 |
United Kingdom DB2012 |
United States DB2012 |
Best Performer |
| Starting a Business |
1 |
1 |
2 |
3 |
98 |
13 |
19 |
13 |
New Zealand |
| Procedures |
1 |
1 |
2 |
1 |
9 |
4 |
6 |
6 |
Canada |
| Time (days) |
1 |
1 |
2 |
5 |
15 |
13 |
13 |
6 |
New Zealand |
| Cost (% of income per capita) |
0.4 |
0.4 |
0.7 |
0.4 |
4.6 |
0.4 |
0.7 |
1.4 |
Denmark |
| Paid-in Min. Capital |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
82 Economies |
| Dealing with Construction Permits |
2 |
2 |
42 |
25 |
15 |
27 |
22 |
17 |
Hong Kong SAR, China |
| Procedures |
6 |
6 |
15 |
12 |
9 |
10 |
9 |
15 |
Denmark |
| Time (days) |
64 |
64 |
147 |
73 |
97 |
141 |
99 |
26 |
Singapore |
| Cost (% of income per capita) |
34.4 |
35.1 |
9.9 |
57.5 |
49.7 |
33.1 |
63.8 |
12.8 |
Qatar |
| Getting Electricity |
31 |
29 |
37 |
156 |
2 |
90 |
60 |
17 |
Iceland |
| Procedures |
5 |
5 |
5 |
8 |
3 |
5 |
5 |
4 |
Germany |
| Time (days) |
50 |
50 |
81 |
168 |
17 |
205 |
109 |
68 |
Germany |
| Cost (% of property value) |
79.1 |
80.8 |
9.2 |
143.9 |
49.9 |
91.1 |
72.3 |
16.8 |
Japan |
| Registering Property |
3 |
3 |
38 |
41 |
77 |
81 |
68 |
16 |
New Zealand |
| Procedures |
2 |
2 |
5 |
6 |
5 |
5 |
6 |
4 |
Portugal |
| Time (days) |
2 |
2 |
5 |
17 |
40 |
38 |
29 |
12 |
Portugal |
| Cost (% of property value) |
0.1 |
0.1 |
5.0 |
1.8 |
5.2 |
6.5 |
4.7 |
0.8 |
Slovak Republic |
| Getting Credit |
4 |
4 |
8 |
24 |
24 |
8 |
1 |
4 |
United Kingdom |
| Strength of Legal Rights |
10 |
10 |
9 |
7 |
7 |
9 |
10 |
9 |
New Zealand |
| Depth of Credit Information |
5 |
5 |
5 |
6 |
6 |
5 |
6 |
6 |
Japan |
| Public Registry Coverage |
0.0 |
0.0 |
0.0 |
0.0 |
1.3 |
0.0 |
0.0 |
0.0 |
Portugal |
| Private Bureau Coverage |
100.0 |
100.0 |
100.0 |
0.0 |
100.0 |
100.0 |
100.0 |
100.0 |
New Zealand |
| Paying Taxes |
36 |
38 |
53 |
8 |
89 |
5 |
24 |
72 |
Canada |
| Payments (number/year) |
8 |
8 |
11 |
8 |
12 |
8 |
8 |
11 |
Norway |
| Time (hours/year) |
172 |
172 |
109 |
131 |
221 |
76 |
110 |
187 |
Luxembourg |
| Trading Across Borders |
27 |
27 |
30 |
42 |
12 |
21 |
13 |
20 |
Singapore |
| Documents to Export |
7 |
7 |
6 |
3 |
4 |
4 |
4 |
4 |
France |
| Time to Export (days) |
10 |
10 |
9 |
7 |
7 |
7 |
7 |
6 |
Hong Kong SAR, China |
| Cost to Export (US$/container) |
855 |
855 |
1060 |
1610 |
872 |
1109 |
950 |
1050 |
Malaysia |
| Enforcing Contracts |
10 |
10 |
17 |
59 |
8 |
62 |
21 |
7 |
Luxembourg |
| Time (days) |
216 |
216 |
395 |
570 |
394 |
650 |
399 |
300 |
Singapore |
| Cost (% of claim) |
22.4 |
22.4 |
21.8 |
22.3 |
14.4 |
26.9 |
24.8 |
14.4 |
Bhutan |
| Resolving Insolvency |
18 |
16 |
17 |
3 |
36 |
10 |
6 |
15 |
Japan |
| Time (years) |
1.3 |
1.3 |
1.0 |
0.8 |
1.2 |
0.4 |
1.0 |
1.5 |
Ireland |
| Cost (% of estate) |
4 |
4 |
8 |
4 |
8 |
9 |
6 |
7 |
Singapore |
| Recovery Rate (cents on the dollar) |
78.8 |
79.1 |
80.8 |
90.7 |
53.8 |
86.9 |
88.6 |
81.5 |
Japan |
Key Findings
- New Zealand's ranking on the ease of doing business index is 3rd, and it has remained stable from DB2011 to DB2012.
- In starting a business, New Zealand is among the top, requiring 1 procedure, taking 1 day, costing 0.4% of income per capita, and having 0% paid-in minimum capital.
- In dealing with construction permits, New Zealand ranks 2nd, requiring 6 procedures, taking 64 days, and costing 34.4% of income per capita.
- In getting electricity, New Zealand ranks 31st, requiring 5 procedures, taking 50 days, and costing 79.1% of property value.
- In registering property, New Zealand ranks 3rd, requiring 2 procedures, taking 2 days, and costing 0.1% of property value.
- In getting credit, New Zealand ranks 4th, with a strength of legal rights index of 10 and depth of credit information index of 5.
- In paying taxes, New Zealand ranks 36th, requiring 8 payments and taking 172 hours per year.
- In trading across borders, New Zealand ranks 27th, requiring 7 documents to export and 5 documents to import, taking 10 days to export and 9 days to import.
- In enforcing contracts, New Zealand ranks 10th, taking 216 days and costing 22.4% of claim.
- In resolving insolvency, New Zealand ranks 18th, taking 1.3 years and costing 4% of estate.
Key Information
- The Doing Business methodology focuses on specific areas and does not cover all aspects of the business environment, such as proximity to markets, infrastructure quality, or institutional strength.
- The distance to frontier measure helps assess how far an economy has moved toward best practices.
- The standardized company used for data collection is a limited liability company in Auckland, with 10 times GNI per capita as start-up capital.
- New Zealand has no major reforms recorded in the latest reports (DB2012 and DB2011), but improved its process in 2009, allowing online registration in less than a day.
Main Viewpoints
- New Zealand has a highly efficient business environment with minimal procedures, time, and costs for starting and operating a business.
- The country performs well in investor protection, ranking 1st in the strength of investor protection index and 1st in ease of shareholder suits index.
- Despite its strong performance, New Zealand has room for improvement in areas like getting electricity and trading across borders.
- The Doing Business report serves as a policy tool to identify regulatory reforms that can enhance business competitiveness and economic outcomes.