Overview of the formation of a companyin New Zealand?

The formation of your company in New Zealand is a process that involves the registration of a new company under the laws of the state. After incorporation, the company is considered a distinct legal entity and is seen as a person by the laws. Enterslice will make it easier for you to get the foundation of your business correctly and comply with the rules. The New Zealand Companies Act of 1993 is the law that controls the operation and formation of companies in New Zealand, and our experts in Enterslice have vast experience in registering or forming companies around the world. When writing a company in New Zealand, one of the starting factors to consider is the type of business structure to establish the business.

Types of in New Zealand Business Structure for Startups

CFO Services

Sole Proprietor

It is a company that a single owner has incorporated. Any individual with a business plan can set up a sole proprietorship in New Zealand with our experts to help you form a business in New Zealand.

CFO Services

Limited Liability Company

If you want to set up a limited liability company, we can help you provide a company number, file annual company tax returns, and maintain financial statements. Enterslice helps your company to get necessary papers signed for registration.

CFO Services

Partnership

When registering as a partnership business, the business partners are jointly liable for all the profits and losses. Hence, Enterslice helps you prepare the necessary papers required for partnership registration per the partnership laws.

Our Services help you in the Formation of a Company

Financial modeling Services

Legal Compliance

Enterslice Service provider helps you comply with the New Zealand Companies Act, 1993 laws to form a company in New Zealand and other state laws in choosing a unique company name, registration, and deciding on the company type per your requirements.

Financial modeling Services

Preparation of required necessary papers

Enterslice assists in preparing the necessary Paper works for registration of the company tax obligation, helps in the creation of shareholder and partnership agreements, prepares the required Paper works for director and shareholder appointment, including consent forms and resolutions, outlining the rights and obligations of shareholders and various other necessary papers as are necessary for the formation of the company in New Zealand.

Financial modeling Services

Tax Implication

Our expert team evaluates which tax structure aligns with your financial goals. It helps you obtain an Inland Revenue Department number for any tax-related obligations and the required IRD number for earning income, benefiting, investing, or opening a bank account. Our experts will assist in filing the tax returns and other relevant taxes.

Financial modeling Services

Customization of Business Solution

Our service will help you assist with specific business considerations or unique challenges your business may face and mitigate the risk of losses. It will help business strategies promote business operations and ensure financial protection. We also help you stay updated about the latest regulations for business aspects.

Choosing a Unique Company Name

Selecting the right company name is a crucial step in forming the company, so our team of experts guide and ensure your chosen name is unique and aligns with New Zealand regulations.

1.Research and Idea

After considering the nature of the business you are looking for, the target audience, and future growth, we will help you find or form a name that will not match any other company. Our experts thoroughly research this, check if your preferred name is available, and ensure no identical or too similar names are registered. We also researched the cultural connotations and sensitivities associated with your chosen name.

2. Consider Future Expansion

Our experts will analyse or research your name's scalability and determine whether it will suit your business structure if it expands in future. Your business name stands out in the market to set your brand apart and aims for a respectful and inclusive name. Our expert, thorough research about the names and their impact in the future will provide a unique, legally compliant, and strategically chosen name to represent your business effectively and impact your business success.

3. Legal Compliance

Our team will ensure your chosen name complies with New Zealand’s requirements and help you avoid names that may be misleading or resemble existing trademarks. Under the New Zealand Companies Act 1993, a name cannot be reserved if it is identical or almost identical to that of another registered company. Our team will help you stick to the regulations while registering or forming a name because your company name is a significant asset. Think wisely by using it as your registered company name.

4. Confirm Regulatory Approval

Our expert team double-checks with the New Zealand Companies Office and provides legal advice to ensure your chosen name adheres to specific regulations or restrictions. Once we confirm the availability and legality of the name, we proceed to reserve and register your desired name for the company formation process because a well-decided name contributes to a strong brand identity and can positively impact your business’s success.

Benefits of Formation of Company in New Zealand

Limited Liability

Incorporating a company in New Zealand provides limited liability protection to the company’s shareholders because the shareholders' assets are not at risk when the company incurs debts or liabilities instead of a shareholder liability correlated to the value of their investment. Also, if a company is a separate legal entity from its shareholders, it can provide greater flexibility and ease of business. The personal assets are generally shielded if the company faces financial or legal challenges. Limited liability encourages investment by minimising the risk associated with the business.

Cash flow
Cash flow

Tax Advantage

In New Zealand, incorporating a company has several tax advantages, as the corporate tax rate for companies is 28%, which is lower than a personal tax rate. Hence, it is more efficient for a business. Also, the companies can carry forward the tax losses to offset future taxable income, reducing their overall tax liability. The tax paid by the company on its profits can be credited against the personal tax liability of the shareholders at the time of receiving a dividend.

Increased Credibility

Incorporating the company can help increase a business's credibility and professionalism. It will also help in attracting potential investors, customers and partners. Forming a firm adopts a broader purpose and gives you, and your investors greater confidence as new and more consistent reporting methods are developed. The potential investors feel more comfortable with an established company. The increased credibility can facilitate better business relationships and potentially attract more opportunities for collaboration or credit for contributing to the company's overall success.

Cash flow

Appointment of Directors and Shareholders at the time of the Formation of the company

When forming a company in New Zealand, appointing directors and shareholders is a crucial aspect influencing governance and ownership. Our Enterslice teams ensure a seamless process for appointment by providing a service to understand your business needs, its goals and the needs you require from directors or shareholders, provide guidance on the selection and appointment of directors, and ensure compliance with eligibility requirements set forth by the New Zealand Regulations. We help prepare the necessary papers for the appointment and consent forms and confirm the appointment process aligns with New Zealand’s legal requirements and regulations. Our team of experts tailor the governance structure to meet the explicit needs and objectives of your business by defining their roles, responsibilities and decision-making process and provides expert advice on best practices for effective governance and strategies for optimising the roles and outlining the rights and obligations of each shareholder and promoting a clear understanding among stakeholders. We communicate clearly between directors and shareholders, promoting transparency and harmonious working relationships within the company.

risk

Steps for the Formation of Company in New Zealand

1. Choosing a type of Business Structure

There are various types of businesses available in New Zealand. You must first choose a type of business among sole traders, limited liability companies, limited partnerships, etc., based on your business events, necessities and long-term business goals, so our Enterslice team helps you choose. It will recommend a suitable legal entity for your business.

2. Choosing a Unique Name for the Business

Selecting the right company name is an essential step in forming the company, so our team of experts ensure your chosen name is unique and aligns with New Zealand regulations by doing thorough research, checking the availability and double-checking with the New Zealand Companies office. Also, legal advice to ensure your chosen name adheres to regulations or restrictions mentioned by New Zealand and then register a chosen name.

3. Appointment of Director

The appointment of directors and shareholders is a crucial aspect that influences governance and ownership, so our expert service ensures a seamless process for this essential step by providing guidance on the selection and appointment of directors and ensuring compliance with legal requirements. We assist in identifying and appointing shareholders based on your business structure and ownership preference.

4. Deciding a Registered Office

We ensure that you have a registered office, which is a legal requirement when forming a company in New Zealand, so our experts streamline the process by providing a solid footing for your business, and we ensure that the chosen address complies with regulatory standards and guide you in selecting a suitable physical address for your registered office.

5. Drafting the Constitution

Drafting a robust constitution is integral to a well-structured company. Hence, our experts help you to prepare a constitution to meet the unique needs of your business and engage in an in-depth discussion to understand your business goals and values, and d=align with the company acts and other relevant New Zealand regulations, which will reflect your company’s values, voting mechanism and divided policies or rules.

6.Taxation Requirements

Obtaining the Inland Revenue Department number is an essential step in the company formation process in New Zealand, so our specialised service provider ensures a smooth and efficient process from obtaining the IRD number to giving a brief understanding of the tax requirements and helping in identifying the appropriate tax obligations based on your business structure and activities. Also’ it guides on the initial tax obligations and guides maintaining accurate financial records for paying taxes.

7. Bank Account Setup

Setting up a bank account is crucial in forming a company in New Zealand. It involves choosing a suitable bank, gathering required Paper works such as company registration details and identification and helping your company complete the bank’s application process.

8. Compliance

Our team of experts ensure ongoing compliance for sustaining the success of your company, so our team will help to keep your business in line with the latest regulations, keep a check on tax compliance, financial records, and company record keeping and assist you in applying for all the relevant business licenses needed to operate your business in New Zealand.

Requirements in Limited Liability Company at the time of Formation

A Limited Liability Company is a legal entity distinct from its shareholders and partnership, and the foreigners can own 100% of the shares. It is stated that regardless of whether it is an onshore or offshore business, this business structure is the most common business entity in the country. The company can sign contracts and have ownership over resources on its own. The shareholders cannot be held liable for the liabilities and debts of the LLC because their only contribution is to the company’s capital. You are obligated to apply for licenses to conduct business in New Zealand. Enterslice will help you set up an LLC with no minimum paid-up share capital at a decided registered office with at least one company secretary, director and shareholders.

risk
risk

Ensuring Ongoing Compliance

Enterslice service provides comprehensive support to keep your business in line with the latest and up-to-date regulations. We assist in preparing and submitting annual returns to the New Zealand companies' offices. We also ensure compliance with financial reporting requirements, including the preparation for the submission of annual financial statements and guidance on ongoing tax compliances. We help your business stay updated with the changes in employment laws to ensure your business practices align with New Zealand Regulations. We also allow your company to conduct compliance audits to assess whether your company is meeting all regulatory compliances, manage the renewal of all the other business licenses, and ensure your company is operating by the laws of New Zealand to minimise the risk and foster a positive relationship among all the authorities.

Challenges Faced by the Small Business in New Zealand

financial_report_sec

Unpredictable Economic Conditions

Enterslice helps prepare prior decisions about unpredictable economic conditions because businesses face several unexpected financial decisions. It becomes difficult for small business companies to meet them with limited costs. This will make it difficult for a firm to plan and invest confidently. These factors have contributed to a feeling of insecurity among many workers. The result is that consumers are spending less and saving more, leading to reduced requests for goods and services, which is a slowdown in economic growth.

financial_report_sec

Cash Flow and Funding

Funding and financing can become challenging for small businesses and startups, including our conservative banking sectors, which can make it difficult to attract investors, so our team of experts in Enterslice have taken initiatives to try and address these issues by providing a strategy to connect the business with potential investors. To preserve the smooth functioning of the cash flow and funding, our team of experts plan an approach for your company to attract funds by gaining investors' confidence.

financial_report_sec

Rising competition from overseas businesses

Businesses are increasingly faced with competition from overseas companies in the global market because, in some cases, foreign companies produce goods and services at a lesser cost due to a higher rate of investment in their business to attract customers, which will create business competition. However, with Enterslice's high quality, innovations, and modern technology, your company can offer additional value by focusing on producing high-quality products and services.

Let’s connect with our best team of Business Experts.

If you have any queries or issues in forming a business in New Zealand and require a service for guidance, feel free to reach out. Our experts will assist you immediately.

lets_connect

Essential requirements of Sole Traders at the time of Formation

Acquiring the Inland Revenue Department Number

Enterslice helps acquire the IRD number, which is essential for Sole traders to identify the appropriate tax obligation and pay the taxes on time. Depending on your business activities, you may also be required to pay taxes or GST as per the latest tax regulations.

Intellectual Property Protection

Enterslice guides protecting your intellectual property, including trademarks and copyrights, to safeguard your brand and innovations, and Sole trader cannot advertise using their names.

Hiring of Employees

Enterslice advises the sole trader on whether to hire employees, and Sole traders can only hire employees when registered as an employer in IRD.

Keeping Business Records

Enterslice helps your company keep records of all the financial transactions and business expenses, and you can also claim back eligible expenses to reduce their tax bills by showing the invoices and receipts as evidence.

Request a Call

Ready to take the next step? Book a 1:1 call with us to discuss your financial goals and how our CFO services can help you achieve them.

necessary papers required at the time of the Formation of the Company in New Zealand

Proof of Registered Company Address

You must provide the company address and details for a new company registered under the New Zealand Companies Act 1993. Enterslice helps confirm the legal requirements for a registered office address and conducts periodic compliance checks to ensure the registered office continues to meet legal requirements.

Article of Association

The Article of Association defines rules for the company's internal operation and mentions the relations between the people inside the company, such as shareholders, directors, etc.

Memorandum of Association

Enterslice helps in preparing an MOA to explain the company's authorities and the terms under which it works, including the company’s laws and regulations that the company needs to undertake.

Prospectus

Enterslice helps prepare the prospectus, which provides all information about offering securities. It discloses the company’s operations and the purpose of delivering the securities.

Requirement of Partnership Business Structure for the Formation in New Zealand

A partnership company is formed when two or more partners decide to run a business together, so a partnership business structure has the benefits of shared responsibilities and liability. A general partner will be responsible for reviewing or looking at the business's daily operations and will be held liable for the debts and obligations incurred by the companies. The limited partner is only responsible for investment, not over the control of the operations. Hence, the service provider's team in Enterslice helps draft a partnership agreement, distribute shares and roles or responsibilities among the partners, establish profit-sharing ratios, etc. We outline the partners' rights and obligations, including voting mechanisms and profit sharing. We also define the roles and responsibilities of each partner for promoting a harmonious business environment.

Our Success Story

Over the 20+ years in the Formation of Company services provided by our experts and contributing to countless success stories of businesses in all types of business structures, we have helped form businesses by maintaining legal compliance, making strategic decisions, and accelerating action plans. Our expertise in registration and planning & and our commitment to understanding your unique business needs have consistently resulted in growth in the business world.

success_story_img

Additional Consideration at the time of the Formation of the Company

Commitment

Employment Contracts and HR Policies

Enterslice assists in drafting employment contracts and establishing human resources policies to ensure a legally sound and harmonious working environment for your company. Our experts help you prepare the policies for the smooth functioning of the business.

Commitment

Health and Environmental Compliance

Enterslice ensures compliance with health and safety regulations, fostering a secure working environment for your employees. We advise on environmental laws and best practices to promote sustainable and responsible business operations.

Commitment

Data Protection and Privacy

Enterslice helps provide insights into data protection and privacy laws, and we also help your company establish practices that safeguard customers' and employees' information.

Protecting Intellectual Property at the time of Formation of the Company

Enterslice guides protecting your intellectual property, including trademarks and copyrights, to safeguard your brand and innovations. Protecting intellectual property is critical for your business to make it more unique for the world. When forming a company, you need to consider your business's name to protect against infringement of trademarks. You must register the trademark, design, and patents to save it legally. Copyright protection exists automatically on your original works, so to help assert the copyrights, it’s good to register it.

financial

Frequently Ask Questions

Yes, a foreigner can open a company in New Zealand.

Once you have reserved the company name, you have twenty working days to complete the company's incorporation.

The New Zealand resident companies are taxed on their worldwide income, non-resident companies are taxed on their New Zealand source income, and the New Zealand corporate income tax rate is 28%.

Every company must have at least one shareholder.

Yes, you must register the company to meet legal or tax obligations.

In a sole trader business structure, you can start without registering, and depending on your business, you need specific licenses and permits to operate legally.

To create a company, you must conduct market research, prepare a business plan, pick your business location, and name and register your business.

A limited liability company presents a limited liability to the shareholders, and the company is responsible for its liabilities.

There is at least one director and shareholder required to form a company.

Unlimited companies are companies where the liability of shareholders on behalf of the company is complete. It means that shareholders are responsible for all business debts and liabilities.

Unlimited companies are not subject to many regulatory requirements, making it easier to operate flexibly.

The penalty for not registering the company will be imposed, and the company’s owner will be liable for the issues.

With the services by Enterslice, your registration with the company becomes easy in New Zealand.

The corporate tax rate for companies in New Zealand is 28%, which is lower than the personal tax rate. It is more tax efficient for a business to be carried on through a company than through a sole proprietorship, as the business profit will be subject to a lower tax rate.

Our team of experts in Enterslice helps you register a company in New Zealand online.

Digital Transformation Advisory

Enterslice provides a service of formation of business in New Zealand through experienced professionals by utilising their skills and knowledge in tailoring the governance structure to meet the specific needs and objectives of your business, physical inspections, observation, examination, and assist in the creation of necessary papers related to business by using a technology or tools which helps in time-consuming and reliability in work. Enterslice offers ongoing support for any changes in directorship or shareholding, ensuring your business remains compliant and adaptable to evolving circumstances. We also conduct periodic compliance checks to ensure that the appointments and structures align with regulatory changes. It also fosters clear communication between directors and shareholders, promoting transparency and a harmonious working relationship.

risk

We partner with more than 100+ companies

-- Testimonials

Don't take our word for it

In the news

×

Get Expert Guidance

Get Started Live Chat