Exporting services

• transportation
• insurance
• construction
• professional advisory

and often complements the export of products (particularly those requiring ongoing support). 

While issues an exporter of services faces are often the same as those met by an exporter of products, exporting services also raises its own issues – including that there is no physical product for the customer to see. This raises challenges around ownership of intellectual property (IP), structuring the business and employment and rates of payment. 

• Find out more about protecting your IP and confidentiality 

• Find out more about getting paid for your services 

Consider your business and research your target market to identify these risks. Careful planning will help your business prepare to take on the challenges involved in exporting services.

Business structure

You can sell services internationally in a variety of ways.  First you need to decide if your business will provide the services directly in your target market, or whether you will form a subsidiary company overseas. An overseas subsidiary will be subject to overseas company laws, for example relating to the filing of annual returns and financial statements. This will also affect the tax you need to pay in New Zealand and in your target market. 

• Find out more about ways of entering a market

Employment

Next you need to hire people to provide the services. If you want control over work hours, what jobs are done and where, you can enter employment contracts with workers to make them employees of your business. If you are operating a New Zealand registered company you will need to comply with New Zealand employment law obligations. These include paying holiday leave and  ACC levies for the employee, and acting in good faith towards the employee. You will also be responsible for deducting income tax from your employee’s earnings. You should always seek specific tax advice from your trusted advisor. 

• Find out more about employment