New Zealand is a South Pacific jurisdiction with a favorable environment for conducting and protecting business, including through the setting up a trust. Registering a company in Wellington or any other New Zealand city has the following advantages of the jurisdiction.
Advantages of a company in New Zealand
In New Zealand, registering a company means access to the following benefits:
- stable political and economic environment;
- the simplicity of the process of incorporation and maintenance of business;
- equal business opportunities for residents and non-residents;
- the relatively low tax burden on business;
- availability of options for the protection of assets;
- the average cost of hiring local workers who are sufficiently qualified.
Types of companies in New Zealand and other forms of business
It is possible to open a business in New Zealand in one of several forms:
- A limited liability company is a form of doing business in which the financial and legal liability of the participants is limited to the amounts of their contributions. This legal entity can be registered even by a single member, including a non-resident. Only one resident director will be required for the company.
- A joint-stock company is a form of business suitable for attracting external financing. A business can be established even by a single member, with liability always limited only to the number of shares held. Shares can be freely alienated and offered to third parties. Stricter registration and record-keeping requirements apply to JSCs.
- A limited liability partnership is a form of business based on a partnership agreement between a minimum of two persons, including (1) one resident partner who is fully responsible for the results of the partnership and manages it and (2) one or more partners, whose liability is limited to the number of contributions to the partnership.
- A branch is the easiest business option for a non-resident company that plans to test local market opportunities before investing more significant sums. A branch requires only registration but does not acquire the status of a legal entity. The parent company is fully responsible for its activities.
- A trust is an option that, in certain forms, offers opportunities for integration into an existing corporate group, acting as an effective tax planning tool. An essential nuance of trust regulation is the need to comply with AML rules.
The process of registering a company in New Zealand
You can register a company in New Zealand by following a series of interrelated steps:
- Selection and reservation of a unique name for the company.
- Search and registration of the legal address.
- Preparation of constituent documents and registration forms. Submission of the package of documents to the registrar for review. Entering information about the new company to the New Zealand Companies Registry.
- Registration to pay taxes and mandatory social contributions.
- Opening bank account(s).
- Obtaining licenses for certain types of businesses.
Legislation and regulatory environment
New Zealand law is based on the Anglo-Saxon legal system. It was formed primarily under the influence of Great Britain, as New Zealand is a former British colony and a current member of the Commonwealth.
The local government generally creates all the conditions for starting a business. Among other things, this manifests itself in the absence of minimum share capital requirements and residency of shareholders and is simple enough to comply with the enterprise’s accounting rules. It should also be noted that, in practice, the amount of share capital must be commensurate with the business’s objectives. New Zealand is open to innovation and incentivizes businesses in specific sectors. Professionals from Prifinance are ready to advise in detail on setting up a subsidiary in New Zealand.
New Zealand’s tax system
The decision to open a business in New Zealand should be considered along with the following information about the jurisdiction’s tax system:
- Corporate tax – 28%
- Personal income tax – 39%
- Goods and services tax (similar to VAT) – 15%
- Withholding tax (for non-residents) – (1) dividends – 30% (2) interest – 15% (3) royalties – 15%
- Capital Gains Tax – not applicable.
How can Prifinance specialists assist
Suppose the request “New Zealand to create a company” or “New Zealand to buy a company” appears on the agenda. In that case, the lawyers of Prifinance are ready to assist in every possible way to realize this task, including through the following legal services:
- formation and implementation of a purchase/registration roadmap;
- drawing up and executing all necessary documents;
- support of negotiations with representatives of all local authorities, as well as banks;
- providing comprehensive legal assistance to address any issues that may arise during further business activities.
The Prifinance lawyers have already completed more than 11,000 registration projects and will be happy to apply this experience to the successful launch of a new project.