Overview of Company Registration in New Zealand

New Zealand is very popular amongst tourists all around the world but it also can be an attractive location to launch a business. New Zealand offers a business-friendly environment and it is located in the South Western Pacific Ocean and has various prospects for business growth. Company Registration in New Zealand is beneficial for startups and entrepreneurs who are looking to grow their businesses globally. New Zealand is one of the countries with the easiest business regulations and the Government is very supportive of the development of financial enterprises. Additionally, having one of the most business-friendly environments in the globe and being the least corrupt nation in the world, New Zealand also offers simple access to business funds. So if anyone wants to set up a company in New Zealand then it will be a great option.

Can Anyone Apply for Company Registration in New Zealand from India?

Yes, non-citizen foreigners including Indians can register a Company in New Zealand & carry out business. However, you must have the relevant visa to start a business/invest in the country, which may require living there first. While foreigners can register a Company and start a business in New Zealand, they must follow the local, state, national laws & regulatory bodies. The Companies Register in New Zealand is the main regulatory authority for governing & registering companies. You can register a business online with the Companies Register but to do so most applicants need to get verified & a login from RealMe.

RealMe is an identity verification system that the Government of New Zealand uses across multiple agencies and it makes online registrations very easy, but it requires submitting your New Zealand citizenship or immigration details & a photo. Foreign Business entities registered in other nations like India, need to apply to set up a business in New Zealand.

Different Types of Company Structures in New Zealand

Before the Company Registration in New Zealand, you need to choose the type of Company Structure first that best suits the way you want to operate your business. There are 3 main types of companies in New Zealand:

1. Limited Liability Companies: These are the most common type which you can often recognise because they have Ltd, Limited or Tapui (Limited) at the end of their name. This type of company has full responsibility for all of its legal and financial obligations and it is the liability of the shareholders of the Company that is limited. LLCs are incorporated under the Companies Act, 1993. Shareholders are only liable for:

• Money owing on their shares;
• Personal guarantees they have given to lenders or creditors like banks or suppliers.

2. Co-Operative Companies: It is a specific type of Limited Liability Company and it’s purpose is to serve the common needs of its members or shareholders by providing them with commercial services. Co-Ops must be under the majority control of the members who are actively trading with the Co-operatives. The structure of this company is very extensive, their members can be suppliers, customers or employees. These types of companies operate across a range of sectors including manufacturing, financial services, agriculture, education, health, wholesale, retail, horticulture, and community services. They often have the word “co-operative” in their company name.

• Co-Ops have transacting shareholders this means shareholders who supply goods or services to the company, buy the company’s goods/services or enter into commercial transactions with the company;
• Co-ops have member representation on the BODs (Board of Directors);
• It must have atleast 60% of voting rights held by transacting shareholders;
• It have a constitution that includes a description of the co-op’s activities and this must be filed;
• Typically return a portion of their profits to shareholders as rebates or shares instead of rebates.

Registering a Co-op Companies as a company in the same way as other limited liability companies. At the same time, or afterwards they can register as a co-operative company under the Co-operative Companies Act, 1996 which allows them to use Co-operative in their company names.

3. Unlimited Companies: Unlimited Companies’ shareholders have ultimate liability meaning they must pay any debts the company can’t pay and this liability is included in the Company’s constitution. Unlimited Companies are used to meet very specific often foreign, legal requirements.

3 Different ways an overseas company can operate in New Zealand

The three different ways a foreign company can operate in New Zealand are:

• Set Up a New Zealand Subsidiary: The overseas company owns 100% of the shares & the subsidiary is registered on the Companies Register.
• Establish a Business (branch) for its New Zealand operations: The business is not a separate legal entity but is governed by New Zealand Law.
• Become a New Zealand Company: The Overseas company leaves its nation of incorporation & transfers its incorporation to New Zealand.

Benefits of Company Registration in New Zealand

The following are the benefits of Company Registration in New Zealand:

• It is recognized as a true onshore financial centre, which is not blacklisted by any jurisdiction or authority in the globe;
• New Zealand has a common law system & the majority of legislation including trust law is founded on British Law;
• This country has a well-developed infrastructure including progressive & strong economy and experienced reliable professionals service overseas clients;
• New Zealand repealed its entire Banking Act in 1995 & thereby facilitated free entry into the business of financial services. It has DTAA with various nations;
• It’s safe country and offers long-term security. It has a Westminster-style Government & together with its administration is stable & competent;
• It’s also a member of the OECD and WTO (World Trade Organization).

Eligibility Criteria For New Zealand Company Registration

The following is the eligibility criteria for Company Registration in New Zealand:

• Number of Directors: At least or a minimum of 1 director is required for Company Registration in New Zealand.
• Number of Shareholders: At least or a minimum of 1 Shareholder is required for New Zealand Company Registration.
• Registered Office Address: Having a registered office is important for New Zealand Company Registration.

Documents Required to Register a Company in New Zealand

In order to register a Company in New Zealand, the following documents are required:

• Company constitution;
• Information or details about the Directors & Shareholders;
• Copy of Passport & visa for non-resident business person;
• Board of Directors’ resolution and their committees as well as the Minutes of all Meetings;
• Application form for New Zealand Company Registration.

Process to Register a Company in New Zealand

The following is the step-by-step process for registering a Company in New Zealand:

• Choose the Name and Business Structure: Before starting the registration process, you need to check online whether the chosen name is available for the Registration, and you can reserve the Company Name on the Companies Register website too. Similarly, you can also check whether a particular domain name, Trademark & any other social media usernames are available.
• Create a RealMe Account: This account will help you complete the Company Registration process online. If you have New Zealand citizenship, then you can complete the entire process online while others with immigration documents may need to get verified in person to open an account in RealMe.
• Collect all Relevant Information: This comprises of your company’s contact details in New Zealand, Directors, Shareholders, physical address and company constitution, if related to your business structure. All companies in New Zealand need to have a physical address before registering.
• Register your Company: When you have reserved your company name or click on the application links, then you will get an email from the Companies Office. Remember that you must set up on RealMe to move forward. If you have directors or shareholders, you will need to also submit their consent forms.
• Certificate of Incorporation: If approved, you will get a Certificate of Incorporation and your company will be listed on the official website of Companies Office.

All companies will get a unique New Zealand Business Number which helps the Government to know your business. Partnerships & Sole Traders will need to apply for one via the NZBN website. Once registered, companies must meet their industry-specific regulations which include obtaining licenses & permits from the applicable local or regional authorities. The need for licenses/permits will depend on the business type you have. Also, remember one thing before starting a company in New Zealand, it is important that you have the appropriate VISA to stay and work in the nation. You will be asked for your immigration documents & citizenship during the setup process.

Why to Choose Whizseed for New Zealand Company Registration?

New Zealand company registration is a simple procedure and advantageous in many ways. Setting up a business in New Zealand is relatively low with the help of Whizseed. New Zealand company registration involves registration and reservation of a business name, obtaining a NZBN, providing a company constitution, filling out the application form and obtaining an Income Tax and GST license. If you choose our services for New Zealand company registration we will help you out from beginning to end with good customer support services.