Foreign entrepreneurs who want to open a company in New Zealand can opt for the complete services offered by our team. This article provides useful information about the business climate in New Zealand, types of companies, and other important details that might help in making a proper business decision in this country.
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Types of companies available in New Zealand
Here are some of the most popular business structures available in New Zealand:
- the limited liability company is the most popular business structure in New Zealand. This can be incorporated without minimum share capital; however, shareholders must pay attention to the costs involved;
- the co-operative company is a form of limited liability company where it is permitted for the shareholders to be suppliers and/or employees. At least one director is needed for this business structure;
- the sole proprietorship is also a suitable business option in New Zealand. This structure is flexible and simple, mostly chosen by entrepreneurs wanting to act on their own;
- limited and general partnerships are available in New Zealand. A partnership agreement must include details about the activities, liability, rules, and many more;
- international investors also open branches in New Zealand. The incorporation starts with presenting a decision from the parent company indicating the branch opening.
These are some of the popular business structures available in New Zealand. Entrepreneurs can also set up trusts, liaison offices, joint ventures, or non-profit organizations. Additional details on company formation in New Zealand can be provided by our local specialists.
How to register a company in New Zealand
Company formation in New Zealand is a process that can be supervised by one of our specialists. The process begins with the verification and reservation of the desired trade name. It follows:
- opening a corporate bank account,
- preparation of Articles and Memorandum of Association,
- obtaining the Inland Revenue Department (IRD) number, which is the tax ID of the firm,
- completing the standard form with the official platform provided by the New Zealand Companies Office.
Forming a company in New Zealand is a process that can be carried out quickly online, with all the documents prepared. We advise you to appoint one of our local agents to represent you in this endeavor.
Taxation in New Zealand
If you want to set up a company in New Zealand, it is best to know information about the tax system in New Zealand. Here are the main taxes imposed in this country:
- 28% is the corporate income tax imposed on company profits in New Zealand;
- the personal income tax in New Zealand ranges from 10.5% to 39%, the latter rate being imposed on incomes above USD 180,000;
- 15% is the Goods and Services tax (the alternative to VAT). A reduced rate of 9% applies to long-term accommodation and other services in New Zealand;
- there is no inheritance tax in New Zealand, no capital gains tax;
- there is a so-called Resident Withholding Tax in New Zealand, of 28% rate imposed on interests and dividends.
Are you ready to start a business in New Zealand? We can act as company representatives and take care of all the procedures and formalities imposed. Please contact our team and explore the company formation services we provide in detail to our local and international customers.