New Zealand is currently ranked as the best place in the world in terms of its ease of doing business, according to the World Bank’s 2020 rankings. In addition, it is also the least corrupt out of 180 countries as seen by its first-place ranking in Transparency International’s 2020 Corruption Perception Index. These two factors exemplify and illustrate the comprehensive and transparent governance and regulatory framework that is present in New Zealand’s business and political environment. This helps to reassure investors and business owners alike since it gives them the certainty that they crave in doing business. In addition, it is easy to register company in New Zealand since there are few requirements to do so and the process can be completed relatively quickly. Foreigners face few additional requirements or hindrances when it comes to New Zealand company registration since full foreign ownership is also allowed in New Zealand. With all these factors, New Zealand has become an attractive place for businessmen who are looking for a new place to register their business. Even though it is easy to register a company in New Zealand, let Tetra Consultants bring you through how to register a business in NZ to ensure that you remain compliant with all regulations, and you can legally register your New Zealand company within 5 weeks.
Types of business entities in New Zealand
There are a few types of business entities available to you. Ultimately, the business entity that best suits your company will depend on various factors, such as the level of liability protection, degree of control, tax and reporting obligations, and nature of business activities that your business will undertake.
Some common business structures include:
Limited Liability Company:
- The most common form of business entity in the country, it is also the one that is most popular with our foreign investors. This is because it is quick and easy to incorporate and offers liability protection. Since it is a separate legal entity from its parent company, it allows your company to separate the assets of your newly incorporated New Zealand company and your parent company, preventing creditors of either company from having a claim on your other companies or assets.
Limited Liability Partnership:
- A structure that is relatively less common globally but present in other reputable jurisdictions such as Singapore and the United Kingdom, it combines elements of a traditional partnership with limited liability companies. Like a traditional general or limited partnership, it is easier to incorporate and manage than a corporation since the governance of the business entity is done through a partnership agreement. It is also taxed based on the partners’ personal income as opposed to corporate income tax. However, unlike these partnerships, a limited liability partnership offers liability protection.
- Foreign offices such as a branch or representative offices are another option for investors who already own a company in another jurisdiction. They are typically cheaper to manage as opposed to incorporating a wholly separate entity, but this does come at a trade-off.
- Branch offices do not offer any liability protection.
- Representative offices are limited in the scope of activities they can undertake and may only conduct non-profit generating activities in the country, making them more suitable for market research or data collection activities.
How do I register a company in New Zealand?
Tetra Consultants advises you to read through this guide to fully understand the steps required on how to register a business in NZ.
By systematically following the six steps below, you can expect to start conducting business with your New Zealand company within 5 weeks.
[ps2id id=’step1′ target=”/]Step 1: Choosing a suitable corporate entity
- After understanding your business activities and long-term objectives, our team of experts will recommend the most suitable business entity for you to conduct your business. Prior to incorporating a New Zealand company, you will be advised on the optimum paid-up share capital, corporate structure, legislations, and whether there is a need to apply for any licenses to operate your business.
[ps2id id=’step2′ target=”/]Step 2: Registration of preferred company name
- Tetra Consultants will help you to register business name in NZ with the New Zealand Companies Office.
[ps2id id=’step3′ target=”/]Step 3: Preparation of supporting documents
- If needed, our team will provide a nominee director for your company. We will also draft a nominee director agreement and provide KYC documents.
- Our team will also assist with renting a local office address. The registered office will be used to maintain all corporate records and official documents.
- In most cases, the directors, shareholders, and Ultimate Beneficial Owners are required to provide basic KYC documents. Some of these documents include certified true passport copies, proof of address, bank reference letter, and CV for our internal due diligence checks.
- Tetra Consultants will also draft Articles of Association, business plan, and other incorporation documents as required by your business entity.
- Your Articles of Association drafted will include key information about your company and its directors, the amount of subscribed share capital, share classes, duration of the company, and other information with regards to your business activities.
[ps2id id=’step4′ target=”/]Step 4: Filing for registration
- We will then proceed to file for registration with the New Zealand Companies Office.
- After receiving approval, your company will be given a company registration number by the Companies Office.
- Tetra Consultants will then courier the Certificate of Incorporation, Memorandum and Articles of Association, and other corporate documents to your preferred address.
- According to your business activities, we will also assist in acquiring a valid business permit and license where necessary.
[ps2id id=’step5′ target=”/]Step 5: Corporate Bank Account Opening
- Thereafter, Tetra Consultants will proceed to open a corporate bank account for your New Zealand company. Our team will contact various reputable New Zealand banks best suited for your business. The banking partners we work with include BNZ, ANZ, and Westpac NZ.
- If needed, our nominee director can also be your local representative to open the bank account on your behalf.
- The opening of a corporate bank account will be completed within 4 weeks after company incorporation.
- Upon approval, Tetra Consultants will courier the internet banking token and access codes to an address of your choice.
[ps2id id=’step6′ target=”/]Step 6: Tax obligations
- Our tax team will also assist with the tax registration for your new company by preparing the tax registration form.
- Once this form is signed by all shareholders and directors, Tetra Consultants will submit the same to the Inland Revenue Department (IRD). The IRD will then send a confirmation letter to the company’s registered office address.
- Our team will then proceed to secure a myIR account with the IRD. This will allow our international clients to file tax returns online, through the government’s online portal.
How can Tetra Consultants assist you to register a business in NZ?
We offer a full suite of services to make New Zealand company registration as smooth a process as possible:
- Company registration with New Zealand Companies Registry
- Provision of New Zealand nominee director
- Local company secretary and registered address
- Opening local or international corporate bank account
- Financial license application (if required)
- Tax registration
- Annual accounting and tax services