Our company formation specialists in New Zealand can help you open any type of company in this country.
| Quick Facts | |
|---|---|
| Types of companies | Limited Liability Company Co-operative company Unlimited company |
| Minimum share capital for LTD Company | 1 share of NZ$1 |
| Minimum number of shareholders for Limited Company | 1 |
| Time frame for the incorporation (approx.) | Less than 1 week |
| Corporate tax rate | 0.28 |
| Dividend tax rate | Different rates apply: 0% – 33% for resident companies 0% – 15% – 33% for non-resident companies |
| VAT rate | 15% standard rate (in some cases 0%) |
| Number of double taxation treaties (approx.) | 40 |
| Company registration documents | Company constitutive documents, director and shareholder appointment documents, director and shareholder registers, etc. |
| Company registration costs | 9,000 NZD |
| Do you supply a registered address? | Yes |
| Company annual fees | NZD 30,000 plus GST |
| Annual accounting and bookkeeping fee | Between NZD 8,000 and 10,000 |
| Local director required | Yes |
| Foreign-ownership allowed | Yes |
What types of companies can I open in New Zealand?
The following types of companies/entities are available to those who are interested in business registration in NZ:
- The sole trader or sole proprietorship, which is suitable for one-man businesses; in terms of how to set up a company in New Zealand, this business form is simple to form; the downside is that the entrepreneur is liable for all the debts of the business;
- The partnership, which implies at least two members in the business. The partners are liable for the debts of the partnership, and this may also mean that one founder is liable for the partner’s debts;
- The limited liability company, which is the most common business form in New Zealand and implies at least one shareholder and one director. The founders are not liable with their own assets as in other cases and this business form has more credibility, making it preferable for those who register a business in New Zealand. It is more regulated that the partnership or the sole trader;
- The subsidiary, branch, and representative office are options for foreign companies interested in doing business in New Zealand.
What requirements must I follow when I register a business in New Zealand?
The Company Law provides for various requirements for registering a company in New Zealand based on the chosen business form. It is important to know that New Zealand allows for full foreign ownership no matter the type of company.
Foreign entrepreneurs who want to start a business in New Zealand must complete the following steps:
- choose a business name for company registration in NZ: this needs to be unique and file it for approval with the Companies Register; it is important to check the availability and a special online tool allows investors to check for availability not only for the business name but also for usage as a trademark, web domain and social media;
- have a local address for registering a business in NZ: this will be used as a legal and correspondence address for the company;
- members: register the shareholder(s) and the director(s) with the Trade Register in New Zealand; this is mandatory when you set up a company in New Zealand;
- incorporation documents for registering a business in New Zealand: have the company incorporation documents drafted, notarized and filed with the Trade Register;
- mandatory registrations; obtain an Inland Revenue Department (IRD) number for taxation purposes and register for the goods and services tax (the GST) number when the company is expected to earn more than NZD 60,000 per year (about 34,812 US Dollars).
- post-registration steps: apply for the necessary business licenses in accordance with the industry the company will operate in.
Our consultants can help foreign investors with the preparation of the incorporation documents when they want to open a company in New Zealand.
How much does it cost to open a company in New Zealand?
Investors can expect a one-time payment for the following:
- Director and shareholder due diligence: NZD250 per person;
- Company formation and registration (company constitution drafting, shareholding structure formation, director appointment, others): 9,000 NZD;
- Customs special licenses and fee payments, when the company is required to do so (mandatory for all businesses that import goods in the country): NZD2,500.
To these set-up fees, the following should also be taken into account:
- Annual company fee (includes the registered office service, annual filing services, and record keeping): NZD 30,000 plus GST;
- Detailed annual accounting and bookkeeping according to law: NZD 8,000 – 10,000 plus GST. The price varies according to the scope of the business and the total number of transactions.
Can you help me open a bank account in New Zealand?
Yes. Upon request, our team can help you open a bank account in New Zealand. This does not mean that you will not be required to be personally present to sign the final bank documents; however, it is a service that provides:
- Initial and ongoing liaison with the chosen bank;
- Supplying the documents required for the bank account opening process (once a legal entity has been established).
This service has a fee of NZD 2,500 plus GST.
Can I hire foreign staff in New Zealand for my new company?
Employing resident staff (individuals who are either New Zealand citizens or temporary/permanent residents) is simple; however, it is also possible to hire foreign staff by taking into account the following:
- The foreign national must be eligible for an Accredited Employer Work Visa (AEWV). This is the type of visa used for skilled roles or in-demand ones. For example, it may be used by a new IT/computer company that will hire foreign programmers;
- New companies in New Zealand may receive the required accreditation from the immigration agency to employ foreign workers without a minimum operating period. For this to be possible, the company owners will have to prove the viability of their business (via a business plan and other documents – a step that can be aided by our team);
- Pay the required fees to obtain the aforementioned accreditation, which can be within the NZD 2,000-4,000 range (plus GST).
What taxes must I pay for the company?
The current values for the most important taxes in New Zealand are listed below by our company incorporation specialists:
- 28% is the standard corporate income tax for companies; it also applies to branches in the country;
- 0% or 33% is the withholding tax rate on dividends applicable to resident and non-resident companies and individuals;
- 15% is the standard goods and services tax rate (the equivalent of the value-added tax) applicable to certain types of goods and services; a reduced rate of 0% can also apply.
If you are interested in setting up a company in New Zealand, our agents can give you more details about the taxation principles.
If you are interested in starting a business in New Zealand and need help, do not hesitate to contact us for a personalized offer. We can help you open a company in New Zealand.