Business
New Zealand — Business: Limited Company
All New Zealand companies must have at least one director who lives in New Zealand, or who lives in Australia and is a current director of a company incorporated in Australia, in which case the Australian Company Number is given at registration. The Registrar treats someone present in New Zealand for more than 183 days in a 12-month period as satisfying the 'lives in New Zealand' test, and also looks at the person's connection and ties to New Zealand. A company must also keep its information on the Companies Register correct through the annual return. Company name rules are in the Companies Act 1993.
Why this matters
A limited company provides liability protection and tax benefits, making it an attractive option for entrepreneurs and small business owners.
Key facts
- A company needs at least one director who lives in New Zealand, or who lives in Australia and is a current director of an Australian-incorporated company.
- The Registrar treats someone present for more than 183 days in a 12-month period as living in New Zealand, and also considers their ties to New Zealand.
- The annual return keeps the company's register information correct.
Steps
- Step 1: Choose a Business Structure — Determine whether a limited company is the most suitable business structure for your needs. Consider factors such as liability protection, tax implications, and ownership structure.
- Step 2: Register the Company — Register the company with the Companies Office, providing required documentation, including the company's name, address, and details of the directors and shareholders.
- Step 3: Obtain an IRD Number — Apply for an IRD number from Inland Revenue, which is required for tax purposes.
Common mistakes
- Appointing only overseas directors — at least one must live in New Zealand, or in Australia under the Australian-company option.