New Zealand resident director in 2023
When incorporating a company in New Zealand, our foreign Clients will be required to appoint a resident director in New Zealand. Healy Consultants Group PLC will assist our Clients in fulfilling this statutory obligation.
Under the New Zealand Companies Act 1993, all companies must have at least 1 director who is ordinarily resident in the country. However, the shareholders can be of any nationality, ensuring full 100% foreign ownership. Kindly refer to these important considerations:
Advantages of appointing New Zealand resident director
- By appointing a New Zealand resident director, our Clients will fulfil the statutory requirement and complete the company registration process successfully;
- Healy Consultants Group PLC will prepare nominee director agreement to be signed by both our Clients and the nominee;
- The agreement is to secure the interest of the nominee director. The nominee should remain just a name on the records and does not have any control over the day-to-day activities of the business.
Problems of appointing New Zealand resident director
- For regulated industries such as Financial Service Provider (FSP) companies, the nominee resident director is subject to higher litigation and financial risk due to the high-risk business nature.
- Healy Consultants Group PLC’s New Zealand individual resident director fees amount to US$8,125 per annum in unregulated industries. For Financial Service Provider (FSP) companies and other business entities in regulated industries, our standard fees are US$14,000 but may be tailored according to the complexity of our Clients’ business operations and our assessment of the legal risk to the nominee.
- Healy Consultants does not normally allow Clients to pay Singapore resident director fees by instalments. We normally require full payment up front for the year. However, we may consider half-yearly payments for companies in good standing.
Accounting and tax considerations
- With a resident director, Healy Consultants Group PLC believes that it will be easier for our Client to deal with government tax authorities.
Legal and compliance considerations
- According to the Registrar of Companies, a resident director must i) either live in New Zealand or Australia and ii) be a director for a company registered in the country. The Registrar of Companies interprets “live in New Zealand” as a person who is present in the country for more than 6 months during a 12 month-period;
- There is no limit on the number of directors that a company can appoint. Please note that New Zealand does not allow corporate directorship. In addition, the company will be required to publicly register the particulars of their directors and shareholders;
- Before appointment, Healy Consultants Group PLC will provide our Clients basic KYC documents of our nominee to ensure he meets compliance requirements.
Multi-currency corporate bank account opening considerations
- Appointing Healy Consultants Group PLC’s nominee as the resident director will increase the likelihood of corporate bank account approval;
- Our nominee can represent our Client to travel to the bank for a face-to-face KYC meeting. As such, you will not be required to travel. Please note that additional fees may be included for this service depending on the location of the bank.
Frequently asked questions
Is a resident director required for registration of a New Zealand company?Yes. When starting a new company in New Zealand, it will be mandatory for our Clients to appoint a local individual as the New Zealand resident director.
What will New Zealand nominee director services cost?Our fee for this service will be US$8,125 per annum for simple trading limited liability companies in unregulated industries.
What number of New Zealand local company directors must I appoint?At least 1 director of the company must be resident in New Zealand.
What role will Healy Consultant’s New Zealand nominee resident director play for my company?Healy Consultants’ New Zealand based nominee director will be appointed to merely fulfill the resident director requirement. Therefore, the resident director will be present merely to fulfill the obligation and will, thus play no active role in the company.