Doing Business 2018 New Zealand
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Doing Business 2018 New Zealand
Page 1
Doing Business 2018 New Zealand
Economy Profile of New Zealand
Doing Business 2018 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality
control and safety mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the
electricity supply and the transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration
system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-
filing processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the
legal framework for insolvency
Labor market regulation Flexibility in employment regulation and aspects of job quality
Page 2Doing Business 2018 New Zealand
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected
cities at the subnational and regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying
to them through their life cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative
indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit,
protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also
measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market
regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present
the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,
Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves
as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and
regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve
performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region
and with the 190 economies that Doing Business has ranked.
The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets
and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that
have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the
Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these
11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from
governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving
the regulatory environment for business around the world.
The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance
observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is
reflected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business
ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to
two decimals.
More about Doing Business (PDF, 5MB)
Page 3Doing Business 2018 New Zealand
Ease of Doing Business in DB 2018 Rank
Region OECD high income
190 1
New Zealand
Income Category High income 1
DB 2018 Distance to Frontier (DTF)
Population 4,692,700
0 100
City Covered Auckland 86.55
DB 2018 Distance to Frontier (DTF)
0 100
86.55: New Zealand (Rank: 1)
80.14: Australia (Rank: 14)
79.51: Ireland (Rank: 17)
79.29: Canada (Rank: 18)
79.00: Germany (Rank: 20)
77.46: Regional Average (OECD high income)
Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the
indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is reflected on a scale from 0 to 100, where 0 represents the
lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - New Zealand
1 3 1 1 2
1 9
21
28 32
37
56
55
82
Rank
109
136
163
190
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Distance to Frontier (DTF) on Doing Business topics - New Zealand
99.96 100.00
100 94.47
91.08
86.36 84.63
83.97 81.67
80
71.48 71.85
60
DTF
40
20
0
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Page 4Doing Business 2018 New Zealand
Starting a Business
This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited
liability company to start up and formally operate in economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has
start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and employs between 10 and
50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of
local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5
married men. The distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators.
The most recent round of data collection for the project was completed in June 2017. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) business and the procedures are used. It is assumed that any required information is
readily available and that the entrepreneur will pay no bribes.
â—
Submitting all relevant documents and obtaining
all necessary clearances, licenses, permits and
The business:
certificates
â—
Submitting all required notifications and receiving - Is a limited liability company (or its legal equivalent). If there is more than one type
all necessary inspections of limited liability company in the economy, the most common among domestic firms
is chosen. Information on the most common form is obtained from incorporation
â—
Obtaining utility connections for water and
lawyers or the statistical office.
sewerage
- Operates in the economy’s largest business city and the entire office space is
â—
Registering and selling the warehouse after its approximately 929 square meters (10,000 square feet). For 11 economies the data
completion are also collected for the second largest business city.
- Is 100% domestically owned and has five owners, none of whom is a legal entity;
Time required to complete each procedure
and has a start-up capital of 10 times income per capita and has a turnover of at
(calendar days)
least 100 times income per capita.
â—
Does not include time spent gathering information - Performs general industrial or commercial activities, such as the production or sale
â—
Each procedure starts on a separate day (2 of goods or services to the public. The business does not perform foreign trade
procedures cannot start on the same day) activities and does not handle products subject to a special tax regime, for example,
liquor or tobacco. It does not use heavily polluting production processes.
â—
Procedures fully completed online are recorded
- Leases the commercial plant or offices and is not a proprietor of real estate and the
as ½ day
amount of the annual lease for the office space is equivalent to 1 times income per
â—
Procedure is considered completed once final capita.
document is received - Does not qualify for investment incentives or any special benefits.
â—
No prior contact with officials - Has at least 10 and up to 50 employees one month after the commencement of
operations, all of whom are domestic nationals.
Cost required to complete each procedure (% of - Has a company deed 10 pages long.
income per capita)
The owners:
â—
Official costs only, no bribes
â—
No professional fees unless services required by - Have reached the legal age of majority. If there is no legal age of majority, they are
law or commonly used in practice assumed to be 30 years old.
- Are sane, competent, in good health and have no criminal record.
Paid-in minimum capital (% of income per capita - Are married and the marriage is monogamous and registered with the authorities.
â—
Funds deposited in a bank or with third party - Where the answer differs according to the legal system applicable to the woman or
before registration or up to 3 months after man in question (as may be the case in economies where there is legal plurality), the
incorporation answer used will be the one that applies to the majority of the population.
Page 5Doing Business 2018 New Zealand
Starting a Business - New Zealand
Standardized Company
Legal form Limited Liability Company
Paid-in minimum capital requirement NZD 0
City Covered Auckland
Indicator New Zealand OECD high Overall Best Performer
income
Procedure – Men (number) 1 4.9 1.00 (New Zealand)
Time – Men (days) 0.5 8.5 0.50 (New Zealand)
Cost – Men (% of income per capita) 0.3 3.1 0.00 (United Kingdom)
Procedure – Women (number) 1 4.9 1.00 (New Zealand)
Time – Women (days) 0.5 8.5 0.50 (New Zealand)
Cost – Women (% of income per capita) 0.3 3.1 0.00 (United Kingdom)
Paid-in min. capital (% of income per capita) 0.0 8.7 0.00 (113 Economies)
Figure – Starting a Business in New Zealand and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
99.96: New Zealand (Rank: 1)
98.23: Canada (Rank: 2)
96.47: Australia (Rank: 7)
95.91: Ireland (Rank: 8)
91.35: Regional Average (OECD high income)
83.46: Germany (Rank: 113)
Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a
business. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Page 6Doing Business 2018 New Zealand
Figure – Starting a Business in New Zealand – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
0.5 0.35
0.3
Cost (% of income per capita)
0.4
0.25
Time (days)
0.3
0.2
0.15
0.2
0.1
0.1
0.05
0 0
1
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 7Doing Business 2018 New Zealand
Details – Starting a Business in New Zealand – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Apply online for registration with the Companies Office (including IRD Less than one day NZD 10.22 name
number application and registration for GST) (online procedure) reservation + NZD
Agency : New Zealand Companies Office 150 company
To reserve a company name online, entrepreneurs can visit the New Zealand Companies incorporation
Office Web site (www.companies.govt.nz). A new company’s name must be unique and
can be reserved for up to 20 working days with the Companies Office. To be incorporated
under the Companies Act 1993, a company must have a name reserved by the Registrar
of Companies, at least one share, at least one shareholder, at least one director, a
registered office, and an address for service.
The applicant(s) can then apply for company registration online by completing forms on
company details and paying the registration fee. When the application is processed, the
founder(s) will receive a notification by email along with the appropriate director and
shareholder consent forms, which are generated by the Companies Office. The applicant
must then fax the signed director and shareholder consent forms within 20 working days,
after which the application will expire. The certificate of incorporation will be issued via
email in a few minutes when the last consent form is accepted.
Promoters can apply online for a company IRD (Inland Revenue Department) number
and register for the GST (Good and Service Tax) at the same time as incorporating a
company online with the New Zealand Companies Office. The list of the information
needed when applying for a company IRD number and registering for GST is as follows:
- Contact details
- The date the company will begin employing
- The number of employees and contractors (including the number of employees that will
have a student loan)
- IRD number – The IRD number of each Director and all individual shareholders that are
NZ residents, Main Business Activity, Place of Business and Postal Address, Trading
Name of the company (if different from the Business Name), Company Contact details, a
Business Industry Description and Code, and whether or not the Fringe Benefit Tax for
employees is applicable.
- GST number – GST accounting method, frequency of filing returns, business activity
code, details of how you would like refunds to be paid, whether or not the company will
be making tax exempt supplies, Business Industry Description and Code, and whether or
not the company will be making imports/exports and ACC uses the business activity code
to calculate levies for personal injury cover and residual claims (see
www.businessdescription.co.nz for more information).
Since July 1st, 2008, it is mandatory to file most documents with the Companies Office
online. Starting in November 2014, clients now have the ability to pay the incorporation
prescribed fees using internet banking.
Takes place simultaneously with previous procedure.
Page 8Doing Business 2018 New Zealand
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all
required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with
Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of
quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of
data collection was completed in June 2017. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
â—
Submitting all relevant documents and obtaining
The construction company (BuildCo):
all necessary clearances, licenses, permits and
certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s
â—
Submitting all required notifications and receiving largest business city. For 11 economies the data are also collected for the second
all necessary inspections largest business city.
- Is 100% domestically and privately owned; has five owners, none of whom is a
â—
Obtaining utility connections for water and
legal entity. Has a licensed architect and a licensed engineer, both registered with
sewerage
the local association of architects or engineers. BuildCo is not assumed to have any
â—
Registering and selling the warehouse after its other employees who are technical or licensed experts, such as geological or
completion topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure
upon its completion.
(calendar days)
â—
Does not include time spent gathering information The warehouse:
â—
Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or stationery.
though procedures that can be fully completed - Will have two stories, both above ground, with a total constructed area of
online are an exception to this rule approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
â—
Procedure is considered completed once final meters (9 feet, 10 inches) high and will be located on a land plot of approximately
document is received 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
warehouse is valued at 50 times income per capita.
â—
No prior contact with officials
- Will have complete architectural and technical plans prepared by a licensed
Cost required to complete each procedure (% of architect. If preparation of the plans requires such steps as obtaining further
income per capita) documentation or getting prior approvals from external agencies, these are counted
as procedures.
â—
Official costs only, no bribes
- Will take 30 weeks to construct (excluding all delays due to administrative and
regulatory requirements).
Building quality control index (0-15)
â—
Sum of the scores of six component indices: The water and sewerage connections:
â—
Quality of building regulations (0-2) - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
â—
Quality control before construction (0-1) is no water delivery infrastructure in the economy, a borehole will be dug. If there is
no sewerage infrastructure, a septic tank in the smallest size available will be
â—
Quality control during construction (0-3)
installed or built.
â—
Quality control after construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
â—
Liability and insurance regimes (0-2) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
â—
Professional certifications (0-4) 1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
gallons) a day.
- Will have a constant level of water demand and wastewater flow throughout the
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
the sewerage connection.
Page 9Doing Business 2018 New Zealand
Dealing with Construction Permits - New Zealand
Standardized Company
Estimated value of warehouse NZD 2,745,021.40
City Covered Auckland
Indicator New Zealand OECD high Overall Best Performer
income
Procedures (number) 11 12.5 7.00 (Denmark)
Time (days) 93 154.6 27.5 (Korea, Rep.)
Cost (% of warehouse value) 2.3 1.6 0.10 (5 Economies)
Building quality control index (0-15) 15.0 11.4 15.00 (3 Economies)
Figure – Dealing with Construction Permits in New Zealand and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
86.36: New Zealand (Rank: 3)
84.39: Australia (Rank: 6)
78.16: Germany (Rank: 24)
76.99: Ireland (Rank: 30)
75.14: Regional Average (OECD high income)
72.87: Canada (Rank: 54)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for
dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component
indicators.
Figure – Dealing with Construction Permits in New Zealand – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
1.6
90
80 1.4
Cost (% of income per capita)
70 1.2
60
Time (days)
1
50
0.8
40
0.6
30
0.4
20
10 0.2
0 0
1 *2 *3 4 5 6 7 8 9 10 * 11
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 10Doing Business 2018 New Zealand
Figure – Dealing with Construction Permits in New Zealand and comparator economies – Measure of Quality
15.0
15 14.0 14.0
13.0
11.4
Index score 9.5
10
5
0
New Zealand Australia Canada Germany Ireland OECD high income
Details – Dealing with Construction Permits in New Zealand – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain resource consent (planning) from District Council 30 days NZD 4,787
Agency : District Council
If the warehouse considered in the Doing Business case study does not comply with
zoning regulations, this procedure would take 100 days and cost NZD 15,000.00.
2 Obtain geo-technical study / soil test 15 days NZD 3,000
Agency : Private firms
BuildCo will request a soil test for the structural calculations for the foundation.
For the warehouse, as described in the case study, the standard penetration test is what
would most likely be done, which is a simplified procedure for this type of study, since
the warehouse is not a very complex project. Soil testing helps to determine the
properties of the soil, which can vary from place to place. The soil investigation helps to
determine the bearing capacity of the land, which in turn helps to determine the load
capability, the type and depth of foundation, in order to make sure to select a suitable
construction technique.
3 Obtain works over CCTV approval by Watercare Services 7 days no charge
Agency : Watercare Services Ltd.
Application for works by Watercare Services can happen at the same time as the
application for Resource Consent. Physical connection cannot take place until a Resource
Consent is Granted.
4 Obtain building consent from District Council 30 days NZD 41,000
Agency : Unitary Authority: Auckland Council
By law, a Building consent is required for any new structure. The recent certificate of title
and the detailed plans showing the site, the foundations, drainage and bracing must be
included.
Fees for issuing a building consent vary, and there will be some government levies
included. The Building Act specifies that applications be processed within 20 working
days.
The Development and Infrastructure contribution paid to the Auckland City Council does
not include any contribution towards water and wastewater. This is done directly by the
utility agency.
5 Receive foundation inspection by a building inspector from the Auckland 1 day no charge
Council
Agency : Unitary Authority: Auckland Council
Private certified inspectors were abolished in 2006. Because of the current lack of
experienced certifiers at the local government’s district council level, there may be delays
in obtaining council inspections.
6 Receive structural inspection by a building inspector from the Auckland 1 day no charge
Council
Agency : Unitary Authority: Auckland Council
A detailed inspection of the timber structure of the building is required before the roof
cladding and building wraps are installed.
7 Receive plumbing inspection by a building inspector from the Auckland 1 day no charge
Council
Agency : Unitary Authority: Auckland Council
An inspection of plumbing works in any part of the building is required.
8 Receive cladding inspection by a building inspector from the Auckland 1 day no charge
Council
Agency : Unitary Authority: Auckland Council
An inspection of the building wrap and cavity construction is required before the
cladding is installed.
Page 11Doing Business 2018 New Zealand
9 Receive fire protection inspection by a building inspector from the 1 day no charge
Auckland Council
Agency : Unitary Authority: Auckland Council
An inspection of any installation of a fire-related product is required in order to check for
compliance with the building consent and the building code.
10 Obtain water and sewerage connection 28 days NZD 13,008
Agency : Watercare Services Ltd.
The request for water and wastewater service connections is processed within 10 days
after receipt of the application. BuildCo will be provided with a quote to be paid (1 day)
and the approval to connect to the services is issued within 2 days.
The water meter is installed by Watercare’s approved contractor within 15 days, as is the
connection to the sewerage system.
An Infrastructure growth contribution must be paid for all new building. This
contribution is paid directly to WaterCare. It is a fixed rate cost.
Receive final inspection for a code compliance certificate (CCC) 25 days no charge
11 Agency : Unitary Authority: Auckland Council
Within 5 days of the request for a code compliance certificate, there is final inspection is
conducted to confirm that the building work covered by the approved building consent
has been completed and that it complies with the consent and the building code. The code
of compliance certificate itself is delivered within 20 days.
Takes place simultaneously with previous procedure.
Page 12Doing Business 2018 New Zealand
Details – Dealing with Construction Permits in New Zealand – Measure of Quality
Answer Score
Building quality control index (0-15) 15.0
Quality of building regulations index (0-2) 2.0
How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0
Free of charge.
Which requirements for obtaining a building permit are clearly specified in the building List of required 1.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees
to be paid;
Required
preapprovals.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in Licensed 1.0
compliance with existing building regulations? (0-1) engineer.
Quality control during construction index (0-3) 3.0
What types of inspections (if any) are required by law to be carried out during construction? Inspections at 2.0
(0-2) various phases;
Risk-based
inspections.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0
inspections are
always done in
practice.
Quality control after construction index (0-3) 3.0
Is there a final inspection required by law to verify that the building was built in accordance Yes, final 2.0
with the approved plans and regulations? (0-2) inspection is
done by
government
agency.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0
always occurs in
practice.
Liability and insurance regimes index (0-2) 2.0
Which parties (if any) are held liable by law for structural flaws or problems in the building Architect or 1.0
once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer;
Professional in
charge of the
supervision;
Construction
company; Owner
or investor.
Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is 1.0
structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance required by law
or Decennial Insurance)? (0-1) to obtain
insurance ;
Insurance is
commonly taken
in practice.
Professional certifications index (0-4) 4.0
What are the qualification requirements for the professional responsible for verifying that the Minimum number 2.0
architectural plans or drawings are in compliance with existing building regulations? (0-2) of years of
experience;
University degree
in architecture or
engineering;
Being a
registered
architect or
engineer.
Page 13Doing Business 2018 New Zealand
What are the qualification requirements for the professional who supervises the construction Minimum number 2.0
on the ground? (0-2) of years of
experience;
University degree
in engineering,
construction or
construction
management;
Being a
registered
architect or
engineer;
Passing a
certification
exam.
Page 14Doing Business 2018 New Zealand
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of
tariffs and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology
for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
â—
Submitting all relevant documents and obtaining
The construction company (BuildCo):
all necessary clearances and permits
â—
Completing all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the economy’s
receiving all necessary inspections largest business city. For 11 economies the data are also collected for the second
largest business city.
â—
Obtaining external installation works and possibly
- Is 100% domestically and privately owned; has five owners, none of whom is a
purchasing material for these works
legal entity. Has a licensed architect and a licensed engineer, both registered with
â—
Concluding any necessary supply contract and the local association of architects or engineers. BuildCo is not assumed to have any
obtaining final supply other employees who are technical or licensed experts, such as geological or
topographical experts.
Time required to complete each procedure
- Owns the land on which the warehouse will be built and will sell the warehouse
(calendar days)
upon its completion.
â—
Is at least 1 calendar day
The warehouse:
â—
Each procedure starts on a separate day
â—
Does not include time spent gathering information - Will be used for general storage activities, such as storage of books or stationery.
- Will have two stories, both above ground, with a total constructed area of
â—
Reflects the time spent in practice, with little
approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
follow-up and no prior contact with officials
meters (9 feet, 10 inches) high and will be located on a land plot of approximately
Cost required to complete each procedure (% of 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
warehouse is valued at 50 times income per capita.
income per capita)
- Will have complete architectural and technical plans prepared by a licensed
â—
Official costs only, no bribes architect. If preparation of the plans requires such steps as obtaining further
â—
Value added tax excluded documentation or getting prior approvals from external agencies, these are counted
as procedures.
The reliability of supply and transparency of - Will take 30 weeks to construct (excluding all delays due to administrative and
tariffs index (0-8) regulatory requirements).
â—
Duration and frequency of power outages (0–3)
The water and sewerage connections:
â—
Tools to monitor power outages (0–1)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
â—
Tools to restore power supply (0–1)
is no water delivery infrastructure in the economy, a borehole will be dug. If there is
â—
Regulatory monitoring of utilities’ performance no sewerage infrastructure, a septic tank in the smallest size available will be
(0–1) installed or built.
â—
Financial deterrents limiting outages (0–1) - Will have an average water use of 662 liters (175 gallons) a day and an average
wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
â—
Transparency and accessibility of tariffs (0–1)
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
Price of electricity (cents per kilowatt-hour)* gallons) a day.
- Will have a constant level of water demand and wastewater flow throughout the
â—
Price based on monthly bill for commercial
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
warehouse in case study
the sewerage connection.
*Note: Doing Business measures the price of
electricity, but it is not included in the distance to
frontier score nor the ranking on the ease of getting
electricity.
Page 15Doing Business 2018 New Zealand
Getting Electricity - New Zealand
Standardized Company
Price of electricity (US cents per kWh) 12.2
Name of utility Vector Limited
City Covered Auckland
Indicator New Zealand OECD high Overall Best Performer
income
Procedures (number) 5 4.7 2 (United Arab Emirates)
Time (days) 58 79.1 10 (United Arab Emirates)
Cost (% of income per capita) 72.4 63.0 0.00 (Japan)
Reliability of supply and transparency of tariff index (0-8) 7 7.4 8.00 (28 Economies)
Figure – Getting Electricity in New Zealand and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
98.79: Germany (Rank: 5)
84.44: Regional Average (OECD high income)
84.22: Ireland (Rank: 35)
83.97: New Zealand (Rank: 37)
82.31: Australia (Rank: 47)
66.89: Canada (Rank: 105)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting
electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Page 16Doing Business 2018 New Zealand
Figure – Getting Electricity in New Zealand – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
80
50 70
Cost (% of income per capita)
60
40
Time (days)
50
30 40
30
20
20
10
10
0 0
1 *2 3 4 5
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Figure – Getting Electricity in New Zealand and comparator economies – Measure of Quality
8 8
8 7.4
7 7 7
7
6
Index score
5
4
3
2
1
0
New Zealand Australia Canada Germany Ireland OECD high income
Page 17Doing Business 2018 New Zealand
Details – Getting Electricity in New Zealand – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Request new connection account from distribution utility (Vector) and 21 calendar days NZD 0
receive site visit
Agency : Vector Electricity Network
Vector is the lines company servicing the greater Auckland Region. Vector installs and
maintains the reticulation network which is generally located within the public domain
and carries out the works necessary to connect customers. Vector charges the customer
monthly line charges according to published rates. These are recovered by the customer's
chosen retailer through the retailer's invoice.
Once Vector receive a new commercial connection request it is logged into its customer
management database and issued to the service provider for an indicative price to be
provided. This indicative price is a desktop estimate and is provided within 1 week from
the enquiry. Upon receiving an indicative price if the customer then wishes to proceed
they will pay a 'design fee' and Vector will complete a detailed design and price for their
connection project
2 Submit connection application to retailer and sign supply contract 6 calendar days NZD 240
Agency : Mercury Energy
Application can be submitted via faxed form or via telephone with the business center.
The business team then runs a credit check on the customer. Depending on the credit
check, the retailer will decide whether the customer has to provide a bond or not. This
supply contract can be received either online or by mail (as per customer’s instructions).
It can be signed, scanned and sent back or mailed back. The customer has a choice of
some 8 retailers such as Mercury Energy or Contact Energy.
3 Receive and pay estimate from Vector and obtain external works 28 calendar days NZD 39,500
Agency : Vector Electricity Network
Contract is emailed and posted to the customer. The contract is then signed and returned
to Vector who approve with the contribution received from the customer as requested in
the contract. The project is then issued to the Service provider responsible to complete
the onsite work. All approvals and resource consents are requested by the Service
Provider who schedules the work dependent on the expected date of these consents being
issued. This work is then coordinated and completed by the Service provider in
coordination with the customer. The customer dictates the dates for the work to be
completed. The utility also obtains a specific Resource Consent application for crossing a
road (from Auckland Council).
4 Submit certificate of compliance to retailer and request meter installation 8 calendar days NZD 0
Agency : Electrician
Electrician must issue a Certificate of Compliance (CoC) to customer and retailer when
doing any fixed wiring work, including fitting new power points. CoC's are not issued for
maintenance work, such as replacing sockets and light fittings or repairing appliances.
The CoC indicates that the work done is electrically safe and has been carried out in
accordance with New Zealand’s electrical safety standards and codes. It also shows they
have tested their work once completed. A CoC guarantees that the work has been
completed by a licensed electrician; meets safety standards set by law, and has been
tested. The retailer has private meter distribution contractors who do the installation
5 Request and receive final inspection and turn-on of electricity supply 1 calendar day NZD 0
Agency : Vector Electricity Network
The customer, electrician or retailer requests livening of the supply. Vector will then
inspect the COC before livening the supply through to the customer fuse pillar on the
boundary. The inspector will then liven the customer premises when the installation is
complete, including the meter installation.
Takes place simultaneously with previous procedure.
Page 18Doing Business 2018 New Zealand
Details – Getting Electricity in New Zealand – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 7
Total duration and frequency of outages per customer a year (0-3) 2
System average interruption duration index (SAIDI) 2.0
System average interruption frequency index (SAIFI) 1.1
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 1.0
Mechanisms for monitoring outages (0-1) 1
Does the distribution utility use automated tools to monitor outages? Yes
Mechanisms for restoring service (0-1) 1
Does the distribution utility use automated tools to restore service? Yes
Regulatory monitoring (0-1) 1
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of Yes
supply?
Financial deterrents aimed at limiting outages (0-1) 1
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages Yes
exceed a certain cap?
Communication of tariffs and tariff changes (0-1) 1
Are effective tariffs available online? Yes
Link to the website, if available online The retail market is
competitive in New
Zealand, with many
players involved.
Each retailer
provides its own
tariffs, available
online or upon
request on their
respective website.
Vector Limited
(transmission
network) provides its
tariffs online at
http://vector.co.nz/ele
ctricity/business-
pricing
Are customers notified of a change in tariff ahead of the billing cycle? Yes
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff
index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 19Doing Business 2018 New Zealand
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to
purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land
administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency
of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for
the project was completed in June 2017.See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the
immovable property (number) parties to the transaction, the property and the procedures are used.
â—
Preregistration procedures (for example,
The parties (buyer and seller):
checking for liens, notarizing sales agreement,
paying property transfer taxes) - Are limited liability companies (or the legal equivalent).
â—
Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. For 11
business citya. economies the data are also collected for the second largest business city.
- Are 100% domestically and privately owned.
â—
Postregistration procedures (for example, filling
- Have 50 employees each, all of whom are nationals.
title with municipality)
- Perform general commercial activities.
Time required to complete each procedure
The property (fully owned by the seller):
(calendar days)
- Has a value of 50 times income per capita, which equals the sale price.
â—
Does not include time spent gathering information
- Is fully owned by the seller.
â—
Each procedure starts on a separate day - though - Has no mortgages attached and has been under the same ownership for the past
procedures that can be fully completed online are
10 years.
an exception to this rule
- Is registered in the land registry or cadastre, or both, and is free of title disputes.
â—
Procedure is considered completed once final - Is located in a periurban commercial zone, and no rezoning is required.
document is received - Consists of land and a building. The land area is 557.4 square meters (6,000
â—
No prior contact with officials square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
located on the land. The warehouse is 10 years old, is in good condition, has no
Cost required to complete each procedure (% of heating system and complies with all safety standards, building codes and legal
property value) requirements. The property, consisting of land and building, will be transferred in its
â—
Official costs only (such as administrative fees, entirety.
duties and taxes). - Will not be subject to renovations or additional construction following the purchase.
- Has no trees, natural water sources, natural reserves or historical monuments of
â—
Value Added Tax, Capital Gains Tax and illicit
any kind.
payments are excluded
- Will not be used for special purposes, and no special permits, such as for
residential use, industrial plants, waste storage or certain types of agricultural
Quality of land administration index (0-30)
activities, are required.
â—
Reliability of infrastructure index (0-8) - Has no occupants, and no other party holds a legal interest in it.
â—
Transparency of information index (0–6)
â—
Geographic coverage index (0–8)
â—
Land dispute resolution index (0–8)
â—
Equal access to property rights index (-2–0)
Page 20Doing Business 2018 New Zealand
Registering Property - New Zealand
Standardized Company
Property value NZD 2,745,021.40
City Covered Auckland
Indicator New Zealand OECD high Overall Best Performer
income
Procedures (number) 2 4.6 1.00 (4 Economies)
Time (days) 1 22.3 1.00 (3 Economies)
Cost (% of property value) 0.1 4.2 0.00 (5 Economies)
Quality of the land administration index (0-30) 26.0 22.7 29.00 (Singapore)
Figure – Registering Property in New Zealand and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
94.47: New Zealand (Rank: 1)
79.31: Canada (Rank: 33)
76.81: Regional Average (OECD high income)
76.29: Ireland (Rank: 40)
74.17: Australia (Rank: 51)
65.71: Germany (Rank: 77)
Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering
property. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Figure – Registering Property in New Zealand – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
1 0.07
0.06 Cost (% of income per capita)
0.8
0.05
Time (days)
0.6
0.04
0.03
0.4
0.02
0.2
0.01
0 0
1 2
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 21Doing Business 2018 New Zealand
Figure – Registering Property in New Zealand and comparator economies – Measure of Quality
30
26.0
25 22.7
21.5 22.0 21.0
Index score 20.0
20
15
10
5
0
New Zealand Australia Canada Germany Ireland OECD high income
Details – Registering Property in New Zealand – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain a Land Information Memorandum Less than a day Auckland Council fee
Agency : Auckland Council (online procedure) from NZD 289
The Land Information Memorandum (LIM) is not a legal requirement for registration, but (standard service) to
it is an essential contractual requirement in practice. The LIM provides information on NZD 389 (urgent
the legality of the building, building permits, restrictions on land use, rates, special
service). Both prices
characteristics of the land, drainage, etc. LIMs are issued by local authorities. LIMs are
include the General
either issued within a day if ordered online through urgent procedure, or might be issued
Service Tax of 15%,
and sent in 10 days if the standard procedure is selected.
which is removed
from the total cost
Most conveyancing is done by lawyers, but there is still an option for legal entities to calculation.
register transfers though a (i) licensed conveyor or (ii) themselves.
2 Register title through Land Information New Zealand Less than a day NZD 80 registration
Agency : Land Information New Zealand (online procedure) fee per transfer (for
The Land Information New Zealand (LINZ) platform is an online property registration online registration)
system. Confirmation is usually returned online within minutes. LINZ currently operates Note: the LINZ plus NZD 1,500 for
a dual system:
performance conveyancer fee.
standard for paper
- An online land title registration system.
based registration,
- A paper based registration system (via LINZ processing centers). 90% are registered
within 10 working
days. Currently
It is possible to register manually through one of the Land Titles Offices. In this case, it transactions are
would take 10 working days and cost NZD 176 (plus NZD 20 counter fee per now being
instrument). Conveyancers and or lawyer's fees, if used, would be approximately NZD processeed in 8-12
1,500. There is a cost to the vendor, which involves selling a property through a real working days.
estate agent, which would cost up to 4% of the purchase price. A person could privately
advertise the sale of their property. The lawyer/conveyancer is required to certify that
documents are correct and in order for registration . The documentation shall include:
The documentation shall include:
- Personal identification
- Written authority for the conveyancer/lawyer to register the property electronically
- Signed transfer of property
-Tax Statement from the buyer and the seller: After the Land Transfer Amendment Act of
2015, both parties of the transaction have to submit a Tax Statement which contains
details of the title being transferred, the buyer or seller, if the land has a home on it, if the
parties are New Zealand Citizens (or local companies), visa holders, whether any
exemption applies (the main one being where the property is a person’s main home) and
confirmation as to whether the person/entity is tax resident anywhere else in the world.
The Tax Statement must include the IRD (tax) number
Takes place simultaneously with previous procedure.
Page 22Doing Business 2018 New Zealand
Details – Registering Property in New Zealand – Measure of Quality
Answer Score
Quality of the land administration index (0-30) 26.0
Reliability of infrastructure index (0-8) 8.0
What is the institution in charge of immovable property registration? Land Information
New Zealand
In what format are the majority of title or deed records kept in the largest business city—in a Computer/Fully 2.0
paper format or in a computerized format (scanned or fully digital)? digital
Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions Yes 1.0
and the like)?
Institution in charge of the plans showing legal boundaries in the largest business city: Land Information
New Zealand
In what format are the majority of maps of land plots kept in the largest business city—in a Computer/Fully 2.0
paper format or in a computerized format (scanned or fully digital)? digital
Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0
cadastral information (geographic information system)?
Is the information recorded by the immovable property registration agency and the cadastral Single database 1.0
or mapping agency kept in a single database, in different but linked databases or in separate
databases?
Do the immovable property registration agency and cadastral or mapping agency use the Yes 1.0
same identification number for properties?
Transparency of information index (0–6) 4.0
Who is able to obtain information on land ownership at the agency in charge of immovable Anyone who 1.0
property registration in the largest business city? pays the official
fee
Is the list of documents that are required to complete any type of property transaction made Yes, online 0.5
publicly available–and if so, how?
Link for online access: http://www.linz.go
vt.nz/land/land-
registration/prepa
re-and-submit-
your-dealing
Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5
immovable property registration in the largest business city made publicly available–and if
so, how?
Link for online access: http://www.linz.go
vt.nz/about-
linz/fees/survey-
and-title-fees
Does the agency in charge of immovable property registration commit to delivering a legally Yes, online 0.5
binding document that proves property ownership within a specific time frame–and if so, how
does it communicate the service standard?
Link for online access: http://www.linz.go
vt.nz/land/land-
registration
Is there a specific and separate mechanism for filing complaints about a problem that No 0.0
occurred at the agency in charge of immovable property registration?
Contact information:
Are there publicly available official statistics tracking the number of transactions at the No 0.0
immovable property registration agency?
Number of property transfers in the largest business city in 2016:
Who is able to consult maps of land plots in the largest business city? Anyone who 0.5
pays the official
fee
Page 23Doing Business 2018 New Zealand
Is the applicable fee schedule for accessing maps of land plots made publicly available— Yes, online 0.5
and if so, how?
Link for online access: http://www.linz.go
vt.nz/land/land-
records/types-
land-records
Does the cadastral or mapping agency commit to delivering an updated map within a Yes, online 0.5
specific time frame—and if so, how does it communicate the service standard?
Link for online access: http://www.linz.go
vt.nz/land/landonl
ine
Is there a specific and separate mechanism for filing complaints about a problem that No 0.0
occurred at the cadastral or mapping agency?
Contact information:
Geographic coverage index (0–8) 8.0
Are all privately held land plots in the economy formally registered at the immovable property Yes 2.0
registry?
Are all privately held land plots in the largest business city formally registered at the Yes 2.0
immovable property registry?
Are all privately held land plots in the economy mapped? Yes 2.0
Are all privately held land plots in the largest business city mapped? Yes 2.0
Land dispute resolution index (0–8) 6.0
Does the law require that all property sale transactions be registered at the immovable Yes 1.5
property registry to make them opposable to third parties?
Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5
Is there a specific compensation mechanism to cover for losses incurred by parties who No 0.0
engaged in good faith in a property transaction based on erroneous information certified by
the immovable property registry?
Does the legal system require a control of legality of the documents necessary for a property Yes 0.5
transaction (e.g., checking the compliance of contracts with requirements of the law)?
If yes, who is responsible for checking the legality of the documents? Registrar;
Lawyer.
Does the legal system require verification of the identity of the parties to a property Yes 0.5
transaction?
If yes, who is responsible for verifying the identity of the parties? Lawyer.
Is there a national database to verify the accuracy of identity documents? Yes 1.0
For a standard land dispute between two local businesses over tenure rights of a property High Court
worth 50 times gross national income (GNI) per capita and located in the largest business
city, what court would be in charge of the case in the first instance?
How long does it take on average to obtain a decision from the first-instance court for such a Between 1 and 2 2.0
case (without appeal)? years
Are there any statistics on the number of land disputes in the first instance? No 0.0
Number of land disputes in the largest business city in 2016: The Courts of
New Zealand
publishes
statistics about
cases but they do
not differentiate
property cases
from other types
Equal access to property rights index (-2–0) 0.0
Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0
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