Investors who open a cryptocurrency company in New Zealand follow the regular steps for incorporation and, in addition to these, the ones needed for registration with the authorities.Additionally, if the company intends to offer virtual asset services, obtaining a Virtual Asset Service Provider (VASP) license in New Zealand is mandatory.
A crypto exchange license in New Zealand is required for NZ based trading platforms. It is also important to note that, when you choose to open a company in New Zealand in the cryptocurrency sector, adherence to the Financial Markets Authority’s (FMA) guidelines is crucial, especially if your services are related to regulated financial products.
Our New Zealand company formation experts are able to assist investors who wish to open a cryptoasset company, as well as complete the needed registration.Whether you are looking to set up a company in New Zealand to operate as a crypto exchange or to engage in initial coin offerings (ICOs), our legal advisors provide thorough guidance to ensure full compliance with the applicable laws
Our team assists investors who are interested in company creation in New Zealand irrespective of the business field in which the company will activate. You can reach out to us from the earliest stages of company formation, as soon as you decide to open a company in New Zealand and need assistance when drawing up the Articles of Association and making the registration with the Companies Register.
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Steps needed to open a cryptocurrency company in New Zealand
Company formation in New Zealand is a straightforward process composed of several essential steps:
- Business name: the first step is to reserve an available business name; the reservation of the name is subject to a fee;
- Incorporation documents: these are the company’s constitutive documents that include relevant information about the business, its name, address, and industry, as well as its founders;
- Business registration: a company is registered with the New Zealand Companies Office following a special application for this purpose;
- Additional registrations: this is the step during which business-specific licenses are obtained and needed registrations with the authorities are made, such as obtaining a crypto exchange license in New Zealand. If your business deals with virtual assets, applying for a Virtual Asset Service Provider (VASP) license in New Zealand is also essential. Moreover, depending on the specific activities of your business, additional compliance with the Financial Markets Conduct Act 2013 might be required, particularly if your services are classified under the financial markets regulations.
The steps described above are required for opening a limited liability company, the most commonly used business form and suitable for those investors who wish to open a cryptocurrency company in New Zealand. When you open a business in New Zealand, particularly one involving cryptocurrencies, it’s essential to keep up-to-date with the evolving legal landscape, as regulatory bodies frequently update guidelines to address emerging risks in the financial sector.
Investors should note that all New Zealand companies must have at least one director who lives in New Zealand (be present for more than 183 days in 12 months, in most cases). This requirement is essential for ensuring that your company maintains a strong local presence and adheres to New Zealand’s corporate governance standards.
For the incorporation of other types of companies, such as branches, our team can give you specific details.
Starting a business in New Zealand involves several steps, each important and relevant to the creation of the company. Once the corporation is duly registered with the Companies Office, our team can also answer questions about other matters of interest, such as hiring staff in New Zealand intellectual property protection, the duties and liabilities of directors and shareholders, and more. These aspects are essential for the long-term success and compliance of your business, particularly in a highly regulated industry like cryptocurrency.
Corporate taxation in New Zealand
The taxation of crypto companies includes the following:
- Corporate income tax: 28% standard corporate income tax rate for resident companies;
- Withholding tax: the taxation of dividends is generally exempt from withholding tax;
- Social security contribution: in general, the minimum employee contribution rate is 3% of the gross pay;
- No GST: cryptoassets are not subject to the goods and services tax;
- Others: fringe benefits tax applicable to certain employers with rates starting at 49.25%.
Our New Zealand company formation agents can give investors more details about taxation. Understanding the tax obligations from the outset can help avoid potential legal issues and optimize the company’s financial planning.
The crypto exchange license in New Zealand
Companies are registered with the Financial Service Providers Register (FSPR). This is a register that allows clients to view information on companies offering financial services. Registering with the FSPR is a mandatory step for any financial service provider looking to operate legally within New Zealand, including those dealing with cryptocurrency exchanges.
Additionally, these NZ-based trading platforms need to belong to a dispute resolution scheme. Participation in such a scheme ensures that your company has a structured process for resolving customer complaints, which is crucial for maintaining consumer trust and regulatory compliance.
Companies dealing with cryptocurrencies are also subject to anti-money laundering rules. This compliance can be ensured by obtaining a Virtual Asset Service Provider (VASP) license in New Zealand, which provides a legal framework for operating in this sector. Failure to comply with AML (Anti-Money Laundering) regulations can result in significant legal penalties, making it essential for companies to implement robust AML policies and procedures.
If you start an NZ crypto trading platform, our team can help you with the registration process, which can be seen as the equivalent of applying for and obtaining a crypto exchange license in New Zealand.
Cryptocurrencies are not legal tender in New Zealand and thus are not regulated as such.
Other conditions can apply for initial coin offerings (ICOs) that involve crypto assets classified as financial products. ICO projects must adhere to the regulations outlined in the Financial Markets Conduct Act 2013, particularly regarding disclosures and offers to the public.
Our team can give you more details on the Financial Markets Authority Act of 2013 which includes relevant provisions about crypto assets. This Act is critical for understanding how financial products are regulated in New Zealand and ensuring that your business complies with all relevant legal requirements.
Contact us if you want to open a cryptocurrency company in New Zealand.
We also offer services related to virtual offices, which can be suitable for companies involved in the cryptoassets business.