For over a decade, Healy Consultants efficiently and effectively assists our Clients with New Zealand company registration. So, if you are a foreign investor contemplating how to set up a New Zealand company formation, the following information will assist your firm determine the optimum New Zealand company formation corporate solution to fulfill your objectives.
Advantages of New Zealand company registration
- A limited liability New Zealand company formation can be incorporated in the country within a week with a share capital of only US $1. Plus, the Client will not be required to travel to complete the company registration process;
- New Zealand company registration requires only one shareholder and one director. The shareholders are not required to be residents in the country;
- New Zealand has consistently been ranked the least corrupt country in the world. Consequently, the foreign entrepreneurs can depend on the local laws to resolve all business disputes legitimately;
- A local New Zealand business setup allows foreign entrepreneurs to invest in any New Zealand business setup sector, regardless of their nationality;
- A New Zealand company formation faces no capital or exchange controls; funds can be easily transferred to or from abroad;
- An offshore Financial Service Provider (FSP) and an offshore company formation are legally tax exempt;
- A New Zealand business setup enjoys easy access to the massive Chinese and Australian consumer market due to FTAs signed with these countries. Also, different trade treaties with USA, Russia and India are currently being negotiated;
- English is the official language in the country. Consequently, company registration becomes very easy. Plus, conversing in English helps a foreign investor in working with local employees and customers;
- NZ ranks 1st in the world in regards to absence of protectionism. Hence, a resident firm can easily engage in import/export activity;
- The country is 6th best in the world for registering Intellectual Property. It is a signatory to WTO’s Agreement (TRIPS) which protects resident companies from IP rights violations;
- A New Zealand company formation benefits from the country’s double taxation agreements with 37 countries like Australia, China, Germany, Singapore and USA which minimize withholding tax on payments abroad;
- Lastly, New Zealand has a metropolitan outlook with the government being welcoming towards foreign workers. Religious beliefs of people are well respected and they are offered protection of the law. Foreign workers, consequently, won’t have to forsake their traditional roots.
Disadvantages of New Zealand company registration
- A New Zealand company formation faces a high corporate tax burden (28%);
- An resident limited liability New Zealand company formation is required to have at least one local director while a listed one must have at least three directors, two out of whom must be NZ residents;
- Following New Zealand business setup, opening a corporate bank account will require the Client to travel to the country;
- All NZ resident firms are mandated to properly audit their financial statements if at least 25% of firm’s share capital is contributed by a foreign investor;
- A New Zealand company formation will face relatively high labor costs; the average monthly salary for a skilled worker is US $3,200 (excluding bonus);
- The country is isolated from rest of the world with a time zone GMT+12. Consequently, flight times to Europe and US can take between 16 – 24 hours.