Nominee director service in New Zealand
Tetra Consultants offers nominee director service in New Zealand for our international clients. Our full-service package includes New Zealand company registration, nominee director services, provision of local company secretary and registered office, opening a corporate bank account and more.
If you are intending to expand your company into New Zealand, you may have come across phrases such as “New Zealand nominee director” and “New Zealand resident director”.
What is a nominee director?
- Per the legal requirements laid out by the New Zealand Companies Office, all New Zealand businesses must have a director who is a resident of New Zealand. A nominee director then refers to a qualified individual who is appointed as your New Zealand entity’s resident director.
- Tetra Consultants understands that searching for a suitable candidate to take up the role of nominee director in New Zealand is time-consuming and challenging. Hence, we serve to bridge this gap by providing a cost-effective nominee and resident director service in New Zealand, so that all our clients can fulfil the minimum office holder requirements in New Zealand.
Resident director in New Zealand requirements
- A director is deemed “resident” under the New Zealand Companies Act if he lives in either New Zealand or Australia.
- In addition, the director must be present in either New Zealand or Australia for more than 183 calendar days per year.
- The applicant must also be at least 18 years of age to be a director.
- He or she must also have no recent criminal record or undischarged bankruptcy.
Advantages of using Nominee Director Service in New Zealand
- Appointing a representative director in New Zealand will enable your business to not only be able to remain compliant with local regulations requiring a New Zealand resident director, but also allow you to save overhead costs. This is especially true for foreign investors who may have to incur additional expenses during the business set-up process when searching for a resident director to fulfil company formation requirements.
- When opening a New Zealand corporate bank account for your newly established entity, most local banks will require the local director to visit a local branch for KYC verification. At no additional fees, our qualified New Zealand representative director will attend the interview on your behalf. This will minimize engagement delay and secure corporate bank account numbers at the soonest.
- For business owners seeking personal privacy, signing up for representative director service in New Zealand will allow you to maintain anonymity, as the nominee director’s identity does not need to be disclosed to the public in the register of directors and shareholders.
- Engaging a Nominee Director service will allow you to meet the director residency requirements set out by the New Zealand Companies Office without the nominee interfering in the day-to-day operations of your company, allowing you to maintain full control of your business.
- Tetra Consultants is able to provide the full suite of services for your New Zealand company to remain compliant with local corporate regulations.
Risks of appointing a nominee director in New Zealand?
- Despite the many benefits, there are a few risks involved in the engagement of nominee director services. The main risk is that the nominee director in New Zealand is legally allowed to take part in the business’ decision-making processes, as local law allows all directors to do so.
- However, the nominee director appointed by Tetra Consultants for your New Zealand company will be prohibited from interfering in the daily operations of your business if required. Our legal team will lay out the terms of the appointment clearly in the Nominee Director Agreement, which will be signed by all parties involved. As such, unless otherwise specified, will be able to maintain authority over your NZ business.
Risks undertaken by a nominee director in New Zealand
- There are also some risks that will be undertaken by the nominee director himself or herself when agreeing to fill the role. In the event of the New Zealand company committing a legal offence or a failure to fulfil legal duties by any of the parties, the nominee director will also share liability and legal consequences together with the company or the company’s other directors. The nominee director will not be exempt from the full repercussions of the New Zealand law. This applies for limited company and limited partnership entities too.
- In particular, for New Zealand firms providing financial services or who are operating in other regulated industries, the nominee resident director will face higher financial risk and stronger legal liability as the nature of the business is considered high-risk.
- However, Tetra Consultants will ensure that the nominee director appointed for your business is a reputable and qualified individual who has gone through our strict KYC and due diligence checks and observe the company’s activities closely to ensure strict compliance with all local requirements and laws. Hence, Tetra Consultants will aim to counter and mitigate all disadvantages and risks of appointing a nominee director, as far as possible.
Why choose Tetra Consultants’ New Zealand nominee director services?
- The nominee director appointed by Tetra Consultants will go through strict KYC checks and be knowledgeable of the local New Zealand regulations, such that he or she is able to assist your business in maintaining full compliance with all laws including accounting and the filing of annual return taxes.
- By engaging Tetra Consultants’ nominee director service Singapore, you will also be able to maintain full authority and control over your business, as the nominee director we appoint will not be able to interfere in the daily operations and running of your business as per the terms of the Nominee Director Agreement.
- In addition, unlike other firms, we do not charge our international clients with deposits and there are no hidden costs. All payment terms will be transparently stated clearly in the appointment letter prior to the start of the engagement.
How can Tetra Consultants provide New Zealand nominee director service?
- Tetra Consultants’ compliance team will provide suitable nominees who possess experience in and knowledge of corporate governance and annual reporting/filing. The nominees will go through rounds of our enhanced due diligence checks before receiving our approval to be your company director. The nominees are either our in-house employees or long-term partners, and the majority of them are professionals in the industries of accounting, tax or law.
- After beginning the engagement, Tetra Consultants will provide you with the KYC information of the New Zealand nominee director, including his or her passport copy, proof of residential address, non-criminal records and resume.
- Tetra Consultants’ legal team will also draft a nominee director agreement and statutory declaration. This will be signed and agreed upon by all parties involved. This is to ensure that the company is fully under your management and that you are indemnified as well. Unless requested specifically by our clients, our nominee director service New Zealand will not involve the nominee playing a significant role in your business operations.
- After the nominee director fee is settled, Tetra Consultants will move on to register the New Zealand company and appoint the New Zealand nominee director with the ACRA.
- The nominee director in New Zealand will not have access to your corporate bank account. This is to ensure that you can conduct business without worrying about your funds being mishandled.
Required documents for nominee director service in New Zealand
- As the New Zealand resident director will ultimately be subject to litigation and fiduciary risks, Tetra Consultants’ compliance team will require the following information for our due diligence checks:
- Identity documents of the Ultimate Beneficial Owners (UBOs) and non-resident directors.
- Documents of the parent company (in the event a corporate shareholder is appointed)
- Nature of intended business activity
- The dormant or active status of the New Zealand company
Contact us to find out more about New Zealand nominee director services. Our team of experts will revert within the next 24 hours.
What is a nominee director NZ?
- It is a third-party qualified individual appointed to fulfil NZ resident director requirements. A director is deemed “resident” by the NZ Companies Office if he lives in either New Zealand or Australia and is present in either New Zealand or Australia for more than 183 calendar days per year.
Can a non-resident be a director of a NZ company?
- No, The New Zealand Companies Office requires all NZ companies to have a resident director NZ. However, special cases may receive an exemption from this rule on a case-by-case basis. This will be based on the applicant’s specific history of ties to NZ and qualifications for the role.
What do nominee directors do?
- Nominee directors act as the director for a business, via a nominee director agreement.
- A nominee director also does not hold any shares in the company and will not be involved in your everyday business operations or have access to your corporate bank account.
- Unless specifically requested, most nominee director roles will also be passive. This means that despite being appointed as an office member of the company, a nominee director is prohibited from making decisions or performing duties at his sole discretion. He is only allowed to act based on instructions given by the Ultimate Beneficial Owner (UBO) of the company.
Can you have a nominee director?
- Yes, you can. Simply appoint a qualified individual who passes the relevant KYC checks and complies with the jurisdiction’s regulations for nominee director requirements, and your business will have a nominee director to act as your director.
- Tetra Consultants assists our international clients to fulfil KYC checks through a hassle-free process.
How do I appoint a nominee director in New Zealand?
- Tetra Consultants will assist our international clients to appoint a reputable nominee director in New Zealand. Tetra Consultants’ compliance team will first shortlist a qualified individual with experience in corporate governance and annual reporting and filing and conduct KYC checks.
- Once engaged, Tetra Consultants will provide you with the KYC documents of the New Zealand nominee director, including his passport copy, proof of address, non-criminal records and CV.
- Tetra Consultants’ legal team will also draft a nominee director agreement and statutory declaration to be signed by all parties. After the settlement of the nominee director fee, Tetra Consultants will proceed to register the New Zealand company and appoint the New Zealand nominee director with the Companies Office.