In Healy Consultants' professional opinion, New Zealand company formation is an appealing, tax-efficient way to conduct international trading. The following information will help you determine whether registering your business in New Zealand is the optimum corporate structure to fulfill your corporate objectives:
New Zealand company incorporation is an excellent corporate vehicle to promote to customers, suppliers and investors due to the positive image portrayed by the New Zealand company formation.
If properly structured, a New Zealand non-resident company is legally tax-exempt.
There are no minimum paid up capital requirements with New Zealand company formation.
Incorporating in New Zealand does not require a New Zealand resident director and 100% foreign ownership is permitted.
Company formation in the form of an Offshore New Zealand Financial Company, or OFC, is a legitimate way for entrepreneurs to operate a company in various financial services areas.
New Zealand business set up is simple. According to the World Bank's Doing Business 2012 Survey, New Zealand is ranked third in the world in terms in ease of doing business. The survey measures factors including the procedures for starting a business in New Zealand, time, cost and minimum capital required to start a business. Furthermore, New Zealand is ranked as the world's least corrupt country in the 2012 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians. New Zealand is also ranked 23rd by the World Economic Forum in its Global Competitiveness Report 2012-2013.
A resident New Zealand company is subject to a corporation tax of 28% on income sourced in New Zealand and globally.
Following New Zealand company incorporation, annual audited financial statements and a tax return must be submitted to the New Zealand authorities. Healy Consultants assists clients efficiently and effectively to complete this annual statutory obligation.
It is difficult to open a New Zealand corporate bank account without the client having to travel to New Zealand.
After New Zealand company incorporation, the register of directors and shareholders is available for public viewing on the New Zealand company register. The company profile is can also be viewed on the New Zealand Companies Office website.
Healy Consultants helps clients set up New Zealand companies with ease. Our transparent, logical engagement procedures ensure an efficient New Zealand company setup process, which normally evolves as follows:
Prior to starting a business in New Zealand, our client a) settles Healy Consultants' fees, b) signs and returns our Client Engagement Letter.
Prior to commencing the company setup process, our client provides us all the required due diligence documents.
Healy Consultants drafts a detailed New Zealand company formation engagement plan, mapping out by week each step to engagement completion, optimising transparency and setting Client expectations.
Healy Consultants and our client agree on the corporate structure of the company.
Healy Consultants reserves company name with the New Zealand Registrar of Companies.
Our Client signs Healy Consultants virtual office agreement and email back to us.
Healy Consultants emails to our Client the incorporation forms for signature and email back and incorporate the company.
Healy Consultants assists our client open a corporate bank account with HSBC, ANZ, Standard Chartered or Citibank.
Where possible, Healy Consultants bank account opening team will liaise with the bank to prevent our Client having to travel for an account opening interview.
Following engagement completion, Healy Consultants couriers a full company kit to our client, including original New Zealand corporate documents, unopened bank correspondence and a client feedback survey.
Healy Consultants will assist our Client engineer the optimum New Zealand corporate structure.
LLC Onshore
LLC Offshore
Offshore Financial Service
Can legally trade in New Zealand and issue invoices
Yes
Yes
Yes
Can open a bank account in New Zealand
Yes
Yes
Yes
Enjoys Limited Liability in New Zealand
Yes
No
Yes
Minimum number of shareholders required
1
Parent Company
2
Minimum number of directors required
1
0
2
New Zealand resident director required
Yes
2 local agents required
No
New Zealand company secretary required
Yes
Yes
Yes
Annual Return required
Yes
Yes
Yes
Annual audit required
Yes
Yes
Yes
Submit annual tax return
Yes
Yes
No
Corporate directors allowed
No
N/A
No
New Zealand tax payable
17%
17%
0%
Legal tax exemption if properly structured
Yes
Yes
Yes
Office premises mandatory
No
No
No
Allowed to hire staff in New Zealand
Yes
Yes
Yes
Total incorporation period
1 week
1 week
1 week
Total engagement Cost
US$ 5,750
US$ 5,750
US$ 17,600
Limited liability company (Onshore)
This is the most common entity used to conduct business in New Zealand. As always, the company is a separate legal entity or 'person'. In particular, a company is separate from its owners, shareholders and the persons who run it, the directors. There is no minimum paid up share capital for a New Zealand Limited Company.
Limited liability company (Offshore)
A New Zealand offshore company, if properly structured, can operate tax-free. New Zealand offers a beneficial tax environment without the negative association of being a 'tax haven'.
Offshore Financial Service
An offshore financial services company (OFC) can do business everywhere in the world (except New Zealand). Due to New Zealand’s strong reputation, it has good reputation. An OFC is not subject to Central Bank regulation, and does not have capital reserve requirements. The OFC can operate like a fully functional financial service company, but may not include the word "bank" in its title.
Financial Services Provider
A company seeking to conduct activities related to finance in New Zealand, such as deposit taking, investing and managing money and securities, providing credit, and other financial services must take additional steps before commencing business. A financial services provider (FSP)in New Zealand must register separately with the New Zealand Financial Services Providers Registry in order to operate in the country.
The average fee per Offshore New Zealand finance company engagement amounts to US$7,650, which includes company incorporation, opening a corporate bank account, six months virtual office address, and all New Zealand government fees. Refer to draft invoice embedded in the icon below:
The average fee per New Zealand offshore company engagement amounts to US$5,750, which includes company incorporation, opening a corporate bank account, six months virtual office address, and all New Zealand government fees. Refer to draft invoice embedded in the icon below:
Healy Consultants will open a New Zealand corporate bank account with internationally-recognised banks such as HSBC, Standard Chartered and Citibank. The good international image of the New Zealand corporate banking sector makes a New Zealand corporate bank account an excellent choice for entrepreneurs. The following is an overview of our New Zealand corporate banking services:
Healy Consultants prepares New Zealand corporate bank account application forms on our clients' behalf. In addition, our New Zealand corporate banking staff attend a bank interview acting in a representative capacity for the client to outline the company's business activities and why it requires a New Zealand corporate bank account.
Where possible, Healy Consultants bank account opening team will liaise with the bank to prevent our Client having to travel for an account opening interview.
In general, there is no foreign exchange control in New Zealand. A person may freely hold, use and transfer funds in foreign currencies. However, the transfer of funds in foreign currencies to and from abroad is subject to a reporting obligation to New Zealand’s central bank, The Reserve Bank of New Zealand.
New Zealand bank accounts offer excellent levels of corporate bank account facilities. These include multiple currencies, internet banking, telephone banking, checking accounts, savings accounts, debit and credit cards, fixed term deposits and wealth management services.
Banks will provide finance to a companies doing business in New Zealand if the following conditions are met i) business owners have suitable experience, ii) availability of security, iii) good Business-plan and feasibility study, iv) last 3 years audited financial statements v) project strength and weaknesses analysis (SWOT).
To support their New Zealand company registration, Healy Consultants assist clients with Trade finance and corporate finance tasks including i) obtaining loans, ii) bank guarantees, iii) letters of credit, iv) perferential credit terms, v) finance against trust receipt vi) document against payment and against acceptance are other services provided to support clients starting a business in New Zealand.
New Zealand resident companies are taxed at a flat company tax rate of 28% for both domestic and international income streams. In contrast, individuals are taxed at the normal marginal rates of tax - with the top tax rate being 28%. However, if properly structured, a New Zealand company pays no tax on income derived outside of New Zealand.
There is no capital gains tax imposed after incorporating in New Zealand.
Annual audited financial statements and corporate tax returns are submitted to the New Zealand Inland Revenue service. It is sometimes possible to obtain an audit exemption for small businesses.
Resident companies and individuals settle their tax liabilities using the New Zealand IR3 form for the tax year ending March 31st. IR3 forms must be returned on July 7th, unless done through tax agent or given an exemption.
New Zealand has signed Double Taxation Treaties with several countries, including Australia, Canada, China, France, Germany, India, Indonesia, Ireland, Italy, Japan, the Netherlands, Norway, Russia, Singapore, South Africa, Sweden, Switzerland, Taiwan, the UAE, and the USA.
An individual is considered a New Zealand tax resident if they are in the country for more than 40 days in a given year.
Annually, medium sized business pay corporate income tax, health insurance contributions, social security contributions, tax on interest, property tax, and GST.
Most goods and services in New Zealand incur an indirect Goods and Services Tax (GST) of 15%. Notable exemptions include financial services. If a company's predicted revenue is above $60,000 per annum, then they must register for the GST.
When tax planning in New Zealand, it is essential to acknowledge that non-New Zealand residents are liable to pay New Zealand tax on income derived in New Zealand.
When tax planning in New Zealand, there are a number of non-deductible expenses, including:
If the Company borrows money, the capital part of the loan repayments is not a deductible expense
Income tax that the business pays is not a deductible expense, and tax refunds are not taxable income
Legal fees incurred in setting up a business
Money introduced into the business is not taxable income
The cost of plant and machinery
Improvements to equipment apart from repairs and maintenance
Healy Consultants Compliance Department guides our Client through legal and tax obligations.
A New Zealand Limited Liability Company shall have one or more shareholders and directors.
A New Zealand Limited Liability Company has no minimum capital requirements.
All New Zealand companies are required to have a registered office in New Zealand and make the following records available for public inspection: i) Certificate of Incorporation and the share register ii) constitution of the company and iii) the full names and residential address of the directors.
A New Zealand Limited Liability Company with foreign (ie non-New Zealand resident) shareholding of more than 25% is required to undergo and audit.
Every company must lodge an annual return in which a director or secretary of the company confirms relevant details for the New Zealand company register including names and addresses of all directors, address of principal place of business and details of shareholders and their shareholdings.
Companies and individuals providing financial services in New Zealand must be registered as a New Zealand financial services provider (FSP) with the New Zealand Financial Services Providers Register. Some activities which define a New Zealand FSP include deposit taking, investing and managing money, assets, and securities, providing credit, and other services.
While New Zealand is often associated with Australia and the two countries have strong ties, it is an independent nation and such associations while conducting business may be offensive to some people.
Being punctual is important in NZ society. Meetings and events start on time so it is advised to arrive prior to your scheduled meetings.
Pressing noses is a traditional Maori greeting and is still practiced in New Zealand today. Being aware of this custom when doing business in New Zealand will help avoid being startled if this form of greeting occurs.
If you have a joint venture partner or New Zealand shareholder, you should choose a partner that actually brings a lot to the table, including local knowledge beneficial to your business in New Zealand.
When starting a new business in New Zealand it is important to find out what registration requirements and licenses apply for the industry your Firm is involved in. For example, a company which which seeks to enter the New Zealand financial services industry must register with Financial Services Providers Registry This can be complex area as different government departments handle registration and licensing for various aspects of your business.
Your joint venture partner or shareholder must not merely be a nominee for the sake of meeting the rules of New Zealand business incorporation. You should choose a partner that actually brings a lot to the table, including local knowledge your business would need in New Zealand.
Government agencies play an important role in all sectors in the country. All businesses deal with government agencies as part of company registration and operating your business in NZ. Foreign companies should exercise restraint and be patient as Government authorities would always have the final say in any matter.
Healy Consultants provides our Clients with i) nominee New Zealand shareholders and ii) nominee directors.
Before the Government approves company registration, our Client must sign a virtual office agreement. A New Zealand virtual office can help facilitate the company's trade with New Zealand and New Zealand-based customers. The virtual office service in New Zealand can include an office address, business phone number, business fax number, receipt and forwarding of courier shipments.
Entrepreneurs completing business formation in New Zealand can benefit from New Zealand’s numerous Intellectual Property laws. Healy Consultants will assist our Clients with trademark and patent registration.
The New Zealand government offers financial grants and other funding incentive programs for entrepreneurs starting a business in New Zealand. Such assistance is available in many categories, including developing your business, staff training, innovation and exporting. Healy Consultants assists our clients locate the grants and assistance programs most relevant to your business.
Healy Consultants offers a comprehensive range of New Zealand research services including i) industrial or business analysis ii) economic and political overview iii) competitor analysis iv) customer analysis v) regulation analysis vi) market entry strategies vii) business partner matching.
There are several options for companies seeking business finance in New Zealand. Healy Consultants asssists Clients to find appropriate financing to support their New Zealand business.
New Zealand comprises of two large islands along with numerous smaller islands. The two main islands are commonly referred to as the North & South Island.
New Zealand is part of the Commonwealth and has Queen Elizabeth II as the Head of State.
New Zealand has extraordinary landscapes and amazing scenery. NZ is a favorite skiing destination for many and is recognized as the capital of extreme sports such as bungee jumping.
The Kiwi is a flightless bird that is found exclusively in New Zealand. Citizens of New Zealand are often referred by the colloquial term ‘Kiwi’s’.
New Zealand and Australia have a very close bond. The two nations share ‘ANZAC Day’, a national day of remembrance for the Australian and New Zealand Army Corps (ANZAC), formed for the First World War. Citizens of New Zealand and Australia are allowed to work in either country.
New Zealanders are passionate about sports, especially Rugby, Cricket, Netball, in which they are considered amongst the best teams in the world. This passion peaks when playing against Australia, their traditional rival.
The Haka is a traditional war cry / dance / challenge from the Maori culture. This has become globally recognized from performances by New Zealand sporting teams such as the All Blacks (rugby) prior to their games.
Perhaps the most famous Kiwi is Sir Edmund Hillary, conqueror of Mt Everest.
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