New Zealand client case studies in 2022
Healy Consultants provides NZ resident director, completes accounting and tax obligations for NZ company
Since 2003, Healy Consultants Group PLC assists multinational Clients with business set up in New Zealand, including i) New Zealand company incorporation ii) New Zealand corporate bank account opening iii) company secretary and legal registered office iv) relevant licence applications v) New Zealand tax registration vi) assistance to source office premises and vii) employee recruitment and visas.
In June 2021 my Canadian Client, who is based in Ireland, approached Healy Consultants Group PLC requesting our assistance to renew their New Zealand company, including: i) renewing the legal registered office address ii) filing annual returns iii) filing for Goods and Services Tax (GST) iv) renewing the nominee resident director services and v) ensuring the company meets its New Zealand accounting and tax obligations in a complete, accurate and timely manner.
The company is a business consultancy.
After a brief email and phone exchange, I e-mailed the Client a draft invoice outlining our fees to complete the above services. Our Client duly settled the invoice and we then requested due diligence from our Client in order to begin the engagement.
- Healy Consultants Group PLC’s Financial Controller, Sharon, sent a renewal invoice to the Client outlining our New Zealand services fees. In June 2021, the Client settled the invoice and Sharon sent our Client a receipt confirming this.
- Thereafter, I was assigned to handle this engagement. I provided our Client with a detailed engagement project plan outlining i) the engagement process ii) a breakdown of weekly and monthly deliverables iii) the timeline to complete the engagement and iv) any expected engagement problems and solutions.
- This detailed project plan helps our multinational Client visualise the engagement over the coming months. Consequently, our Clients can prepare the necessary documents to complete the renewal and fulfil the accounting and tax obligations for the company.
Legal registered office address and nominee resident director services
- Our Client wanted to renew their legal registered office address for their New Zealand company. Then, I assisted to renew the legal registered office address within a day by paying the service fee to our affiliated office for using their office address for our client’s business.
- For the nominee resident director, we contacted the individual in New Zealand and paid their service fee to act in this role for the financial year. It took a day to complete. During the company’s incorporation, there was an agreement signed by the nominee director which agree to provide his service for our client’s business.
Annual return and tax filings
- I was tasked with filing the annual returns with the New Zealand Company Registry which I completed within one day via the online government portal and before the due date of 31 July 2021. No information was required from client during the submission.
- Thereafter, I assisted with GST registration and filing with the Inland Revenue Department of New Zealand for our Client’s company. This is completed online, and was completed in three weeks.
New Zealand Accounting & Tax obligations
- Healy Consultants Group PLC filed a dormant income tax return for the company for the financial year end (FYE) by 31 March 2020 as the bank statements provided by the client is incomplete and showing less transaction. Then, my team and I quickly realized the company is active and there are some invoices the company issued during the year.
- We alerted the Client to this, informing them that filing a tax return for an active company is more time consuming and would require i) additional fees and ii) the Client to supply bank statements and a trial balance.
- The Client was slow at paying the additional fees and sending the requested documents. However by November 2021 this was done, and we appointed a tax agent in New Zealand to prepare the financial report for FYE 2020 and 2021 (by 31 March for both years).
- The draft financial report was sent to the Client for approval and e-signature. Once this had been received by the tax agent, the agent resubmitted the tax filing for FYE 2020 and 2021 to the New Zealand IRD. Our client’s entity has zero tax payable in New Zealand.
Engagement completionIt took around eight months to complete this engagement. In February 2022 we sent an engagement completion email to our Client, including:
US corporate bank account for NZ company
- In 2020, our Client approached Healy Consultants Group PLC to open an international corporate bank account for their New Zealand company. The parent company was incorporated in 2014. The entity specialises in titanium 3D printing, providing bespoke manufacturing and engineering solutions to its Clients.
- We provided our Client with a detailed proposal outlining cost breakdown, time frame and accounting and tax liabilities. All fees were agreed upfront so there would be no hidden charges or surprises for our Client.
- Our team sent a draft business plan for our Client’s review, input and email return. The team supplied weekly detailed engagement status updates on country progress.
- Based on our Clients’ requirements, Healy Consultants Group PLC contacted multiple banks in i) USA ii) Switzerland iii) Singapore iv) Malaysia and v) Liechtenstein for the initial introduction of our Client’s business and their need for a non-resident International multi-currency corporate bank account.
Corporate bank account opening
- Before starting the process, our Client i) settled the invoice and ii) provided the completed and signed Healy Consultants Group PLC engagement letter.
- Our Client also provided the required due diligence documents including i) latest passport copy ii) latest 6-month residential proof of address iii) sales and purchase invoices as supporting documents to show the business’s Clients and suppliers iv) latest six-months’ bank account statements and v) business contracts as proof of ongoing business.
International corporate bank account opening
- Healy Consultants Group PLC completed the bank account opening forms and emailed to our Client for signature. The bank in USA requested for i) invoices and ii) contracts of our Client’s New Zealand company’s a) suppliers and b) customers.
- The bank requested additional documents due to the nature of our Client’s business. The information required included i) contracts and invoices of our Clients and suppliers globally and the USA ii) documentary evidence of the source of wealth coming into the account and iii) documentation evidence of the source of funds which will be going through the accounts. Healy Consultants Group PLC liaised with the Client to timely supply this information to the bank.
- Following review of all the provided i) due diligence documents and ii) contracts and invoices of our Client’s suppliers and customers, the USA bank confirmed the account opening application was approved.
- Our Client then i) signed off on the original account opening forms ii) notarized the passport copy and proof of address then iii) couriered both sets of documents to the USA bank.
- Thereafter, the USA bank sent directly i) wire transfer and ii) e-banking instructions to our Client personally for completion.
- Within two weeks, our Client successfully completed e-banking activation and received the internet banking tokens at their New Zealand address.
- Once the above was complete, Healy Consultants Group PLC sent an engagement completion email including i) additional engagement related documents and ii) Healy Consultants Group PLC’s feedback survey.
New Zealand F&B company licence renewed
- Our Client’s company was incorporated on 1 November 2017 in New Zealand. Emirates Leisure Retail is a division of the high-profile Emirates Group, with a wide range of franchising in restaurants, cafes, bars and lounges in the Gulf Co-operation Council (GCC) countries. Headquartered in Dubai, the Client chose to expand their business in New Zealand and register a company, Emirates Leisure Retail (New Zealand) Limited, there;
- Our Client chose New Zealand to operate their business due to the growing market for their business. The country’s food and beverage industry had a combined total revenue of NZ71.7 billion in the last financial year. Furthermore, the New Zealand population has been growing at between two and three per cent annually;
- The Client wished to renew their New Zealand company license from the period 01-11-2019 to 31-10-2020.
- Healy Consultants Group PLC’s Financial Controller Ms. Sharon prepared and e-mailed our Client an Engagement Advancement Proposal document, along with an invoice for our New Zealand company renewal services. We also requested some additional due diligence documents from the Client, such as a copy of the Client’s passport, ID or driving licence and a latest copy of the utilities bill as proof of residential address;
- Healy Consultants Group PLC then prepared and e-mailed our Client a detailed Engagement Project Plan, mapping out a step-by-step strategy to engagement completion.
Renewal to engagement completion
- Once we had received confirmation of funds transfer received from Ms. Sharon, an ATD team member (Ms. Suganthi) was assigned to provide the renewal service, including filing our Client’s annual return;
- After completing annual return filings to New Zealand Companies Office for Emirates Leisure Retail, we sent a Summary of Obligations (SOO) to our Client, indicating that we had completed the filings and services requested by the Client. The SOO included a copy of the filed annual return for our Client’s acknowledgement;
- Our Client Engagements Manager Mr. Petar followed up with our Client to secure a professional reference for our firm.
Appointment of 2 New Zealand resident director
- Our Client is an international vehicle rental company headquartered in Los Angeles, California. They engaged Healy Consultants Group PLC to assist with replacing their existing resident director in two New Zealand companies.
- Our Firm confirmed that our Client’s business activity is low risk and provided a list of nominee resident directors interested to take up the role. In addition, Healy Consultants Group PLC provides supporting documents such as CV, years of working experience and previous work experience to facilitate our Client’s decision making;
- Once our Client confirmed the candidate deemed suitable for their business, Healy Consultants Group PLC’s legal and compliance team immediately prepares legal documents such as i) nominee agreement ii) appointment letter and iii) indemnity agreements.
- Healy Consultants Group PLC liaise with both our Client and our local affiliate to ensure all the above is completed in a timely manner to prevent engagement delay.
Appointment of directors
- Once the documents are signed, Healy Consultants Group PLC proceeded to file for change of directors with the New Zealand Companies Office. The authorities required our local affiliate to sign the consent forms for the appointment to be official. Within one business day, Healy Consultants Group PLC successfully appointed new resident director for both New Zealand companies.
Challenges and Solutions
- After the appointment of new resident directors, our Client required the nominee to travel to a bank for KYC purposes. Without additional fees, our nominee settled the above within three business days.
- Within a short span of time, Healy Consultants Group PLC has successfully appointed new nominee resident directors for our Client’s two New Zealand companies. All these were completed while making sure either party is adequately indemnified and remunerated;
- We are proud to assist our Client to change his corporate structure and wish the company all the best in future endeavors.
New Zealand resident director service and corporate bank account opening
- In August 2018, our Client approached Healy Consultants Group PLC for nominee director services and a resident corporate bank account in New Zealand. The company was incorporated by an entrepreneur in USA;
- The main products offered are pet supplies to clients all over the world.
- We provided our Client with a detailed proposal outlining costs breakdown, time frame, and accounting and tax liabilities. All fees were agreed upfront so there would be no hidden charges to our Client;
- Healy Consultants Group PLC prepared a quality draft business plan for our Client review, input and email return; Healy Consultants Group PLC supplied weekly detailed engagement status updates on country progress;
- Based on our Clients’ requirements, Healy Consultants Group PLC prepared nominee director agreement and bank account opening forms for his New Zealand company.
Nominee director services and corporate bank account opening
- Before starting the process, our Client i) settled the invoice; and ii) provided the completed and signed engagement letter;
- Our client also provided due diligence documents including i) latest proof of address ii) latest 6-months bank account statements iii) latest passport copy iv) sales and purchase invoices as supporting documents to show the business’s clients and suppliers and v) business contracts as proof of ongoing business;
- To incorporate a new LLC in New Zealand, our client was legally required to appoint a resident director who can be a citizen or a foreign national with a valid residency permit. Moreover, the resident director needs to have a local address in New Zealand where he is currently residing. Healy Consultants Group PLC provided a professional nominee director to our client;
- The nominee director has been a sales specialist and has a work experience of 20 years. He is a New Zealand citizen and has been a right fit for the corporate structure of my client. We provided all the professional details of our nominee director to our client for his review and approval. After securing the same, we appointed the new director within 2 business days;
- Healy Consultants Banking team was discussing with multiple New Zealand banks to open a corporate bank account for the business. The banks were reluctant to open a business bank account for our Client considering the low initial deposit;
Challenges and solutions: ASB corporate bank account opening
- Healy Consultants liaised with the ASB bank officer to proceed with the corporate account application. Within 2 weeks, Healy Consultants Group PLC exchanged the requested KYC documents with the HSBC Bank officer and liaised with the Client to sign forms;
- Our Client and the bank officer discussed the i) potential business activity of the company; ii) details of expected incoming and outgoing transactions; and iii) KYC on the directors, shareholders and UBOs;
- After 3 weeks and multiple follow ups from the Healy Consultants Banking team, the ASB bank account application was approved, and the bank account numbers were emailed directly to our Client. Within 2 weeks thereafter, our Clients also received the internet banking tokens directly at their Indian address.
- Throughout the engagement, Healy Consultants Group PLC has aggressively and skillfully negotiated with multiple banks in New Zealand. We timely responded to all unforeseeable challenges due to the nationality of our client;
- Every week, Healy Consultants Group PLC provided our client a detailed engagement status update, outlining tasks to be completed, problems encountered and suggested solution.
Singapore-based consultant sets up New Zealand Trust
Our Client, Richard, is a successful English consultant based in Singapore. When Richard approached us he was in the process of starting up a new business venture with a partner in Australia, and wanted to find a way of protecting his assets against this new business risk. Richard owned a property in Singapore and had also purchased two properties in Australia for investment purposes. Richard had also inherited an estate from his late mother, which he wished to protect.
Richard approached Healy Consultants’ Singapore office to seek advice on the most appropriate ways to protect his assets. Having made his requirements clear, it was apparent that an offshore trust would be the most appropriate, and tax-efficient way, for Richard to fulfill his objectives. Thus, during an introductory telephone call Aidan Healy, managing director of Healy Consultants, explained to Richard the benefits and disadvantages of offshore trust setup, and the accounting, legal and regulatory implications of doing so. It was decided at this point that a New Zealand trust would be the optimum solution for Richard.
A New Zealand trust is legitimately exempt from New Zealand tax provided it is managed by a New Zealand-resident Trustee, that the source of income for the trust is outside of New Zealand and the beneficiaries are not resident in New Zealand. Assets held in a New Zealand trust are also protected from courts, making them an effective way for a Settlor to protect assets from circumstances such as bankruptcy and creditor claims.
With these requirements clarified, Aidan sent Richard an e-mail detailing costs and time-frame for the New Zealand trust setup process. By return, Richard signed and returned to our standard Client Engagement Letter, along with the required due diligence and settled the fees for the Trust setup.
An important aspect establishing a trust is close cooperation and communication between Settlors and Trustee. With Healy Consultants acting on behalf of the New Zealand-resident Trustee, and Richard as the Settlor, it was important that we keep a channel of communication open during the initial stages of the engagement, when the goals of the Trust are set out and put into the Trust Deed document. With this in mind, the first concrete step in the engagement was for Richard and Healy Consultants to come up with clear goals for the Trust. During a morning meeting in our Singapore office, both parties outlined the expected rules of the Trust, following which our staff prepared a draft Letter of Wishes, which spells out the duties expected of a Trustee in the management and distribution of the Trust assets. This document also included laws covering trusts and Trustees’ responsibilities, and at this stage we passed the draft document to our New Zealand resident Trustee for comments and amendments, once she had run the document through a New Zealand lawyer.
With these comments on board, Healy Consultants finalised the Letter of Wishes, which was e-mailed to Richard for his approval and signature. It was now possible to draft a detailed Trust Agreement, based on the guidelines and principles of the Letter of Wishes. Healy Consultants was also officially appointed as bank signatory to the Trust’s corporate account. Again, the Trust Agreement was e-mailed to New Zealand for comments and amendments (on this occasion there were none), and once the document had been finalised, it was again ready for Richard’s signature.
Richard was at this time planning his new business venture, and was traveling extensively between Singapore and Australia, so we arranged to e-mail the Trust Agreement to him in Australia, and he printed it out, signed it and arranged for it to be couriered to our Singapore office within one week. With this step complete, Healy Consultants couriered a complete Trust pack to our New Zealand Trustee, and upon acceptance of this the Trust setup was complete.
The next phase of the engagement was to open a corporate bank account for the Trust, with Healy Consultants as bank signatory. It was decided that the bank account should be opened in Hong Kong to ensure it is a legitimately tax-exempt structure, and so Healy Consultants’ Banking Team in Hong Kong prepared an account opening application pack, while our Singapore-based Marketing and Media Team prepared a Business Plan highlighting the Trust’s goals and objectives, as well as information on the Settlor and Beneficiary. The Business Plan and bank account application form were then e-mailed to the New Zealand Trustee for her signature and return to us. Once received, our Banking Team visited the Hong Kong bank, submitting the application and signed Business Plan.
Within one week, Healy Consultants received account opening approval, and advised Richard of the same on the same day. Over the following two weeks we received PINs for Internet banking and ATM cards, followed by the cards themselves, which were then couriered directly to New Zealand for safekeeping by the Trustee.
Advertising agency established in Wellington
Our Client, Peter, is a Singapore-based Australian entrepreneur with a background in product branding and marketing. He wanted to set up an advertising agency in New Zealand, offering niche corporate design and branding services to Clients in that country and Australia. Peter found Healy Consultants following a Google search and he made initial contact by e-mail through our website to explain his business objectives in New Zealand. Based in Singapore, Peter then visited Healy Consultants’ Bideford Road office to discuss the various aspects of incorporating a company in New Zealand, including the legal, tax and accounting implications of doing so.
During the meeting, Peter outlined his objectives in greater detail – he planned to relocate with his wife Marie to Wellington (New Zealand), where he would set up a company with himself as the sole shareholder and director. The company would need assistance with opening a corporate bank account, as well as help preparing financial statements and submitting tax returns going forward. Since he was an Australian citizen (and his wife a New Zealander), Peter did not require our assistance to obtain residence or employment visas for either of them. At the Singapore meeting, Peter signed our Client Engagement Letter and provided the personal due diligence which Healy Consultants uses for internal purposes as part of our ‘Know Your Client’ policy. Having also agreed engagement costs based on the engagement scope outlined by Peter, he arranged a telegraphic transfer to Healy Consultants’ bank account, therefore enabling our team to begin the engagement in earnest.
Although establishing a company in New Zealand is more simple than in many jurisdictions, Peter required our assistance because he was still under contract to his Singapore employer and was traveling heavily for them. It was therefore difficult for him to devote sufficient time to the administrative aspects of company setup. Healy Consultants’ first task was to conduct a company name search with the New Zealand Companies Office. Peter had indicated his three preferred company names, and we were able to reserve his top choice accordingly, allowing us to move to the next phase – registering the company with the corporate structure indicated by Peter in the Client Engagement Letter.
Peter wished to be the sole shareholder and director of the New Zealand company, a structure which is permitted under New Zealand company law. Healy Consultants therefore submitted Peter’s details to the New Zealand Registrar of Companies (ROC), which responded on the same day by e-mail with a consent form for Peter to sign. We arranged for Peter to sign this in Singapore, and once done it was then returned to us and forwarded to the ROC for processing. The ROC sent a Certificate of Incorporation for Peter’s new company by e-mail the same day it was received, and this was forwarded to Peter for his reference. In addition, Healy Consultants sent Peter a printout from the New Zealand Companies Register, indicating the details available to the public regarding the company and Peter as shareholder/director.
With the New Zealand company now a legal entity, the next step was to open a corporate bank account to enable it to trade. Again, since Peter was still tying up loose ends in Singapore, he was grateful that Healy Consultants was able to open a corporate bank account in New Zealand without his presence. To open the bank account, Healy Consultants completed a corporate bank account application form (certified at the bank’s local branch in Singapore), which Peter signed (as the sole signatory) in our Singapore office. We had also drafted a business plan to support the application, including details of the company’s activities (products, services and target Clients), a market analysis and brief financial projections. This was also signed by Peter in Singapore.
We then prepared a complete bank application pack, including the signed and certified documents above as well as the new company’s corporate documents, and these were then delivered to the New Zealand bank for processing. Within two weeks, Healy Consultants’ banking team had received approval of the corporate account, with the good news being passed onto Peter in Singapore.
Accounting and tax support
The next step was to register the company at the Inland Revenue Department (IRD) in Wellington, which issued an IRD number. Healy Consultants then registered the company for goods and services tax (GST), which is mandatory for companies whose annual turnover exceeds NZ$40,000 (US$30,500).
By this phase of the engagement, Peter had left his job in Singapore, and though he was busy arranging to ship his personal effects to New Zealand, he was also able to devote more time to getting the business up and running as a viable concern. He had used industry contacts to launch a marketing campaign in New Zealand, and his other priority was to establish a temporary physical presence in Wellington until he could find a suitable office premises. With this in mind, Peter agreed to use our full Virtual Office in Wellington, serving as a cost-effective, fully functioning office in the heart of the city for a short-term (three month) period. This would allow him to meet potential Clients, as well as use the services of a secretary who would field telephone calls and forward messages to Peter, wherever he was in the world.
Peter has maintained a close relationship with Healy Consultants since then. He is settling into life in New Zealand and his company is beginning to reap the benefits of Peter’s international marketing and branding expertise. Our work with Peter’s company continues, too, our latest task being to assist with completing an annual tax return and submitting it to the IRD at the end of the company’s financial year.