If you want to make your brand a global household name, you’ll need to export. But first you’ll need to be clear what exporting is, and be sure you’re ready for it.
Exporting means making your goods or services in one country and selling them in another. Most people would realise that making shoes in New Zealand and selling them overseas is exporting. But you can export in less obvious ways too. Maybe you’re already exporting.
If you have a client overseas, you’re an exporter, even if you don’t sell physical things.
Exporting for business involves goods or services going overseas, a client, and money changing hands. Just because something goes overseas doesn’t make it an export. If you send chocolate fish to your homesick Kiwi friend in London, that’s not exporting. If you take samples of industrial pipe to a trade show, that’s not exporting.
Exporting can grow your business and make it more competitive. Benefits include:
But exporting brings challenges too, such as:
Getting expert advice and planning well can help manage challenges and risks, eg having good export and risk management plans.
Successful exporting takes resources and commitment. You’ll need:
Check if you’re ready to export by adding to your business plan. A plan will help you identify where you are, where you’re going and how you’ll get there.
Exporting is exciting but challenging. It takes time, money, and commitment — maybe more than you’re ready for. Use this assessment to check if doing business overseas is for you. We’ll tell you whether:
Here’s a broad idea of what exporting involves. Not everything will apply to every business, and you may need to consider other details not listed here.
Depending on the country and the structure you choose, you may have to do some or all of the following things when you set up overseas.
If you set up a brand-new company, you’ll need to register it for tax, GST, payroll taxes, superannuation, and so on.
Ask the companies office in the relevant country if you need to provide accounts for auditing or other purposes.
Setting up a bank account overseas can be more complicated than many people realise, and can take weeks. For example, you’ll need to get documents certified and perhaps translated. You may have to be at the bank in person.
New Zealand banks don’t always have strong relationships with overseas banks, so your local bank may not be able to support you fully.
You might be able to get your money out through a management fee, a royalty or software licensing.
You’ll have to pay withholding taxes or dividends on royalties. If you send a dividend from Australia to New Zealand, your Australian company won’t have to pay tax. But your New Zealand company may have to pay tax when it pays out the dividends to shareholders.
You might need a resident director, a director who lives in the other country. For example, Australia requires resident directors.
You might need a lawyer in the other country to check standard terms and conditions, or an accountant to advise on tax.