In last week’s article, we learned that New Zealand was ranked among the Best Countries for Business list in Forbes Magazine in 2018, adding to i=the country’s appeal to those who would love to do business here. As Zegal shares, there are many other attractions for entrepreneurs in the country, with one of them being a number of grants available to support the country’s business owner. New Zealand’s Ministry of Business warns that you should never pay fees for someone to find grants for you. Those who require this are usually running a scam. Information on the grants and other help offered for New Zealanders is readily available to anyone. In this week’s article, we will continue to look at a few of the grants offered to Kiwi business owners and learn what you need to do to qualify.
The Project Grant
This grant is another offered by the government agency known as Callaghan Innovation. For those who are trying to expand their research and development, this grant can help to undertake bugger and more challenging research and development projects. The purpose of a project grant is to help the entrepreneur:
- Build his or her expertise in research and development by giving their business the chance to push through any boundaries and discover new technical or scientific comprehension.
- Open new avenues on a research and development project that will create a new or much better product, device, system, service, or process.
- Build his or her business into a substantial and stable research and development performer.
- Grow his or her investment in research and development.
In order to apply for this Project Grant, your company must be registered under the Companies Act and the Limited Partnership Act, and either be a “Māori incorporation or trust established under the The Ture Whenua Māori Act, a trust set up to manage assets as part of a Treaty of Waitangi settlement, a Māori statutory body, or a business controlled by one or more of these entities.” As explained last week, your business should also meet any due diligence and financial requirements that are needed to qualify for this grant. You will also need to have been performing research and development for under three years, or have spent under $800K a year on research and development for the last three years.
Businesses that are given this grant will receive 40% of their eligible research and development costs. If you have been given multiple grants or have a larger project this number may be reduced. This grant is also available only for research and development that is conducted in the country, and payment can be received either monthly or quarterly in arrears.
The Growth Grant
As the name suggests, this grant was for the growth of already established businesses in New Zealand. It has since been replaced with the R&D Tax Incentive and is no longer taking applications. According to the Ministry of Business, this tax incentive is designed to help businesses that are conducting eligible research and development in the country. It was created to “help more businesses innovate and contribute to a stronger, more productive economy that benefits all New Zealanders.”
As we stated in last week’s article, there are many other grants available to those living in New Zealand who wish to start a business or have already established one. We will look at even more of them in later articles. Receiving grants can help save you a lot of money in the process of building your business. Of course, you can also save a great deal by choosing to maintain a dedicated office space to draw in more clientele. Shared office spaces such as those offered by Offix gives those who are looking for office space to rent in Wellington an affordable option that still has all of the advantages of a traditional office.