Company Formation in New Zealand
Top 5 Advantages of New Zealand
- Politically and economically stable
- Comprehensive Free-trade Agreements (FTA's)
- Competitive business cost
- Competitive energy and communication
- Highly efficient transportation system and logistics connections
How long does it take to register a Company in New Zealand?
- 1-3 days for formation since it’s done online
- Note: Filing for the director and shareholder consent forms will be done after registration.
What are the steps to register a company in New Zealand?
The registration process of a company in Company Formation in New Zealand is very simple. The experts of LegalBison will assist you throughout every step of it:
- Initial consultation and agreement
- Payment of the full invoice
- [IF REMOTELY]: Notarization of POA by client
- Preparation of registration documents
- Document signed at the notary
- Official register validity: immediately
How high are the corporate income tax in New Zealand?
Resident companies are assessable for both domestically and internationally-derived income.
- Regardless of citizenship, however, most companies are taxed at a flat rate of 28% for corporate income tax.
- Tax will also be withheld for dividends at 33% rate.
What Double-tax treaties has New Zealand?
New Zealand encourages better and open trade by entering into Double Tax Agreements (DTA) with the ensuing jurisdictions:
Australia, Austria, Belgium, Canada, Chile, China, Czech Republic, Denmark, Fiji, Finland, France, Germany, Hong Kong, India, Indonesia, Ireland, Italy, Japan, Korea, Malaysia, Mexico, Netherlands, Norway, Papua New Guinea, Philippines, Poland, Russian Federation, Samoa, Singapore, South Africa, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, United Arab Emirates, United Kingdom, United States of America, and Vietnam
Currently, DTAs are being negotiated with Luxembourg, Portugal, Saudi Arabia, and Slovak Republic.
VAT in New Zealand
In New Zealand, VAT is named GST and is a flat rate of 15%.
Without VAT number
- It’s almost impossible for a company not to be GST registered because of the required threshold.
- But you may opt still not to register for GST if you think your company will not earn as much as $60,000 for 12 months.
- You cannot apply for refund, however, if you are not GST registered.
With VAT number
- Goods and Services Tax (GST) is New Zealand’s form of VAT
- Companies that are likely to exceed $60,000 annual turnover are required to register for Goods and Services Tax (GST). They can also choose the frequency of filing their GST returns (monthly, every two months of every six months)
- GST refund is possible.
- GST on all goods and services are at a flat rate of 15%
- Do you want to buy a ready-made company or start a new one?
- Can you travel or do you want to do everything remotely?
- How is your planned business activity regulated in Australia?
- Shelf companies or ready-made companies are also available in New Zealand which allows you to start business almost immediately.
Documents to provide
- Certified copy of passport
- Original or certified copy of recent Utility Bill as proof of address if these documents are not issued in the English language, certified translations are required
- Right after registration:-Director consent form-Shareholder consent form
- Note: When an agent or a solicitor (with Power of Attorney) is signing for the shareholder, the former must present an authorization to sign wile the latter must present a certification of non-revocation
- Article of Association (Constitution) is not necessary. If you want one, we can draft or buy a ready-made one.
Information needed to get started
- 3 options of your desired name for the company and a company contact email address
- Names, addresses and emails of all shareholders and board members
- Short description of your companies’ activity
- The whole incorporation process can be conducted remotely. No travel necessary. Notarization of documents is necessary.
- A Power of Attorney (POA) from (all) partners/shareholders is needed
- The POA is sent to you by us based on the services you want
- You have to certify the POA by a notary and in some cases legalize it by apostille (some countries need full legalization)
- Once you have the POA on your hands, we double-check, and you send us the original form (physical document!) via courier to our address.
Accounting and auditing
- New Zealand requires either the nomination of a tax representative (usually an accountant) or register a tax agent for companies who shall maintain its tax records and prepare their financial reports
- All companies all also required to register for and get their IRD numbers
- You report to Inland Revenue
- Companies who are required to file their financial reports are those that have more than $30 million annual revenue or assets of more than $60 million for each of the last two accounting years
- Companies exempted from filing financial reports are either inactive companies (no economic activity) or small companies which do not belong to a group which derived income and expenditure do not exceed $30,000
What are the residential requirements in New Zealand?
- There are no residential requirements for a private limited company
- Anyone can register a company in New Zealand without any requirements and restrictions as to residency as far as the shareholder/s are concerned
- 100% foreign ownership as well as directorships are allowed
FAQs about New Zealand
- 0% tax
- Perfect to begin with
- Easy process
- Very business friendly
- Competitive tax rates
- A growing EU economy
- Very low tax
- Foreigner friendly
- Everything remote
- Lowest tax rate in the EU
- Favorable for business
- Simple and fast
- 2-3 days incorporation
- Ideal for trade
- Flat tax rate