Register a Company in New Zealand
Introduction
New Zealand is regarded as an advanced economy and ranked 4th in the 2022 Index of Economic Freedom. While New Zealand is regarded as a trade-dependent nation, its service sector is its largest contributor to its economic output followed by the manufacturing, construction and mining sectors.
Economic Climate of New Zealand
New Zealand’s economy is regarded as a highly developed market and this is resultant in it being ranked as the 51st largest economy in the world by nominal GDP. New Zealand is heavily dependent on international trade and some of its biggest trading partners include Australia, Canada, China, the European Union, Japan, Singapore, South Korea, and the United States of America. Its economic strength is also evidenced in the strength of its currency as it is regarded as the 10th-most traded currency in the world.
To encourage investments within the country, New Zealand has regularly sought free trade agreements with other countries to boost its competitiveness. This has resulted in its biggest trading deal known as the Closer Economic Relations (CER) Agreement with Australia. This agreement created a single market for both nations and allows for free trade between citizens of both nations and mutual recognition of professional qualifications. Another free trade deal is the New Zealand-China Free Trade Agreement which has tripled the rate of New Zealand’s exports to China. New Zealand also brokered a free trade agreement with Singapore, Chile and Brunei known as the P4 Agreement and this has also significantly increased the demand for New Zealand’s exports.
To further encourage foreign investment, New Zealand created the Overseas Investment Office and this has increased foreign ownership of New Zealand-based firms to 33%.
Steps to Register a Business in New Zealand
New Zealand is renowned for being a relatively easy place to start a business with the business registration process being straightforward. The country also has a well-developed banking system with ease of access to funds and business-friendly regulatory systems. Are you an entrepreneur looking to start a company in New Zealand. Here are ways for how to register a company in New Zealand.
Business Structure
The first step to registering a business in New Zealand is determining the business structure. Common business structures in New Zealand include Sole Traders, Partnerships, Companies and Trusts. Understanding and determining the structure of a business is done by visiting the Business website of New Zealand
Business Name
After the business structure has been decided, the next step is to choose a business name. Business owners have to ensure the chosen business names are unique and conform to the naming laws of New Zealand. Hence, confirmation of name existence and registration of chosen name cost $10. This process takes 2 hours and once approved, a name can only be reserved for a maximum of 20 working days. In the event of a rejection, a reason is stated and the individual is advised to make the necessary corrections and submit again. The name check process is done at this website, while the name reservation process is done via the Companies Office website
Business Registration
After a business name has been chosen and reserved, the business registration process can then be commenced and this cost $118.74. This is done by submitting the required documents either physically at the Companies Office or uploading them online on the website
Inland Revenue Department Number
Upon confirmation of the business registration, the next step is to get an Inland Revenue Department (IRD) number for tax purposes and this process takes a maximum of 10 working days to be completed. The details needed by the Inland Revenue Department include company name, company address, contact number and contact person, which is submitted through the IR433 form. This is done through the website of the Inland Revenue Department.
Goods & Service Tax (GST)
The registration for GST is optional for all businesses, albeit, businesses that are guaranteed to earn more than NZ$60,000 annually are mandated to register for GST. This is also done via the Inland Revenue Department website
Tax Registration
There are other tax registrations to be done, but this is usually determined by the structure of the business. They include Pay as You Earn (PAYE), Fringe Benefits Tax (FBT) and Resident Withholding Tax (RWT). The requirements for each of these taxes can be gotten via the Inland Revenue Department’s Website
Employment Agreement
For businesses that intend to have employees, they would need to create and submit their employment agreement to the New Zealand Ministry of Business, Innovation and Employment. The employee agreement generally contains the roles and job description of the employees and the terms of the employee such as proposed salary, working hours, insurance, benefits, etc. This ensures that the employment contracts align with the employment and labor laws and this is done via the website of the Ministry of Business, Innovation and Employment.
Licenses & Permits
Dependent on the structure and industry of the business, the business owners may need to get additional permits before the operation can commence. This is accessible at this website
Documents Needed To Register A Business
The following are the documents needed to complete a business registration in New Zealand:
- Proof of Identity (Passport Data page, Driver’s License)
- Proof of Identity of all Directors
- Proof of Residential Address (Electricity Bill, Financial Statement)
- Company Address and contact details
- Objects of Incorporation
- Declaration of Holding Company
