The Factors That Influence Business in India VS New Zealand
Both India and New Zealand are economically well-developed countries, with markets conducive for both local and foreign investment and with politically stable climates. If you compare India vs New Zealand, you will discover that both countries are different in many ways like climate, demographics, geography, and also how businesses are run there. We will study the factors in both countries that play a significant role to make it easy for you to select the country best-suited for starting your business.
The following factors influence the way business run in these two nations:
Location and Climate
India
The country is located at the head of the Indian Ocean, thus giving it a strategic advantage in establishing contact with other parts of the world. India has close contact with Europe, West Africa, West Asia, and Southeast and East Asia. Investors can leverage the advantage of India’s access to the markets of these regions. Most of the regions have moderate climatic conditions and therefore suitable for agriculture, manufacturing, or other types of businesses.
New Zealand
It is situated in the South Pacific Ocean, with its closest neighbour being Australia. It happens to be among the most isolated regions in the globe, with long flights required to reach other countries. Some parts of New Zealand have an extreme cold or subtropical climate, but being close to the coast, most regions have moderate temperatures favourable for growing crops and conducive for other businesses.
India gives you access to many South Asian countries and lets you grow more than New Zealand which just gives access to Australia. So, if you want to expand to a larger consumer base, then India is the country to go to India vs New Zealand choice.
Business Prospects
India
India is one of the most suitable places for investment, with business-friendly laws and a readily available labour force and the maximum people under 30 years of age. The taxation system is very friendly, and the government is very encouraging towards foreign investors. India also has a well-developed infrastructure with an efficient transport system. The central government’s intervention is not necessary for foreign direct investment into a limited or private limited company. The operational costs of a business are also much lower than in other countries since basic amenities are available at lesser costs. Indians being more educated and skilled than in earlier times are eager to work in sectors other than agriculture or daily wage jobs. This presents an excellent chance for businesses to generate employment and enhance productivity.
New Zealand
A country is an excellent place for investment, with an open-market economy, and the government simplifying rules and tax laws to make it easy to start a business. International and domestic infrastructure is excellent here. There is also the easy availability of a literate and flexible workforce. New Zealand has many times been hailed as the easiest country to do business in the world. And with the infrastructures and the favourable economy, it is always a great idea to start a company in New Zealand if you have done your research.
Taxation System
India
With the introduction of the Direct Taxes Code and the Goods and Services Tax (GST), the Indian Tax system has become very friendly for businesses. The GST Bill has made it easier to move products across India. Tax filing procedures in India are efficient, and the process takes around only two days. The Indian government grants various tax exemptions, along with other benefits to startup companies.
New Zealand
Here you have to pay income tax on the amount you earn, and Goods and Services Tax on the things you buy. There are tax concessions for self-employed individuals or in partnerships. Even though the taxation process is straightforward, certain taxes like VAT returns or Accident Compensation Corporation levy (ACC) are very time-consuming.
Industries
India
The country’s major industries are textiles, iron and steel, jute, sugar, cement petrochemicals, paper, automobile, banking, insurance, and information technology. Startups have grown enormously in recent years boosted by several international investors and the Indian government’s Make in India campaign.
New Zealand
The main industries are textiles, food processing, machinery, tourism, mining, finance, and transportation equipment.
Company Incorporation
India
The process for incorporating a company in India is simple and efficient. It takes only seven days to register your company. You can complete the whole procedure online without having to visit government offices.
New Zealand
It takes less than a week to register your company in New Zealand. However, it takes an average of four weeks to open a corporate bank account here.
Both India and New Zealand are countries with huge potential, and by comparing the factors influencing business in India vs New Zealand, you should go for the country which specifically fits your business needs.
3E Accounting is one of the leading providers of Company setup services in India and has guided several entrepreneurs to register and run their businesses successfully. We offer accounting, taxation, documentation, compliance, and other related services to businesspeople enabling them to focus stress-free on the other core areas which need their attention.
