Changes in the law for overseas funds invested in New Zealand companies
New Zealand is a highly capital-flowing country and has been accepting overseas investments in New Zealand's domestic business, with Australia, the United States, Chinese mainland, Singapore, Malaysia, Hong Kong, and other sources of funding, although in recent years New Zealand has also been cautious about foreign investment, with some More sensitive land and business related to the national economy and people's livelihood of New Zealand, if you want to accept overseas funds to enter, you need to apply to New Zealand's overseas investment office in advance, after approval before the merger, otherwise, even if the transaction is completed, must be a gray "refund."
In 2020, the world is extraordinary, the new crown epidemic swept the world, New Zealand's tourism and education export industry has been seriously affected, many companies direct income zero. So the New Zealand government has also launched a timely "law" change for entities in New Zealand that need to be adapted when seeking overseas funding.
All overseas funds, if you need to invest in sensitive business companies in New Zealand (in this case, sensitivity is not "yellow gambling poison" and so on, but such as forestry, energy, water conservancy, dairy and so on related to the national economy and people's livelihood):
More than 25% of assets or businesses
The existing foreign capital increase exceeds 50%, 70%, or 100% of the original shareholding
OIO (Overseas Investment Office) is required.
The Office of Overseas Investment is also using new testing and approval methods to deal with infringing foreign investment. The test method, called National Interest Assessment, needs to be "tested" when foreign investment targets sensitive businesses or risky assets.
For some very small businesses, OIO is not concerned, for example, foreign investment to buy a restaurant in New Zealand, please feel free, no one cares. But it's not that easy for foreign investors to buy a Pak n Save.
The official English website for the change in the law is here, https://www.linz.govt.nz/overs ... t-act
A brief introduction to New Zealand's Overseas Investment Act
Overseas investment projects, or investment proposals, must first be approved and reviewed by the New Zealand Overseas Investment Office if:
Deal amounting to more than NZ$100 million - Great business
Purchased New Zealand assets or businesses created to support more than NZ$100 million - great business
When investing in sensitive land - Sensitive land
When investing in sensitive land interests, including leases, or shares in companies that control the land, Sensitive land
Fishing rights within the exclusive marine economic zone - Fishing Quota
The references to "sensitive land" include:
Any non-urban land with a total area of more than 5 hectares (e.g. farms, forest farms, beaches)
Specific islands
Lakes, beaches, protected areas, reserves, historic sites
If it's a farm, such as a ranch, then you'll have to accept stricter additional terms and conditions
In 2020, the world is extraordinary, the new crown epidemic swept the world, New Zealand's tourism and education export industry has been seriously affected, many companies direct income zero. So the New Zealand government has also launched a timely "law" change for entities in New Zealand that need to be adapted when seeking overseas funding.
All overseas funds, if you need to invest in sensitive business companies in New Zealand (in this case, sensitivity is not "yellow gambling poison" and so on, but such as forestry, energy, water conservancy, dairy and so on related to the national economy and people's livelihood):
More than 25% of assets or businesses
The existing foreign capital increase exceeds 50%, 70%, or 100% of the original shareholding
OIO (Overseas Investment Office) is required.
The Office of Overseas Investment is also using new testing and approval methods to deal with infringing foreign investment. The test method, called National Interest Assessment, needs to be "tested" when foreign investment targets sensitive businesses or risky assets.
For some very small businesses, OIO is not concerned, for example, foreign investment to buy a restaurant in New Zealand, please feel free, no one cares. But it's not that easy for foreign investors to buy a Pak n Save.
The official English website for the change in the law is here, https://www.linz.govt.nz/overs ... t-act
A brief introduction to New Zealand's Overseas Investment Act
Overseas investment projects, or investment proposals, must first be approved and reviewed by the New Zealand Overseas Investment Office if:
Deal amounting to more than NZ$100 million - Great business
Purchased New Zealand assets or businesses created to support more than NZ$100 million - great business
When investing in sensitive land - Sensitive land
When investing in sensitive land interests, including leases, or shares in companies that control the land, Sensitive land
Fishing rights within the exclusive marine economic zone - Fishing Quota
The references to "sensitive land" include:
Any non-urban land with a total area of more than 5 hectares (e.g. farms, forest farms, beaches)
Specific islands
Lakes, beaches, protected areas, reserves, historic sites
If it's a farm, such as a ranch, then you'll have to accept stricter additional terms and conditions
