Understand the Jurisdictions Setup Requirement Before Proceed Your Register Company in New Zealand
New Zealand is a country that depends heavily on international trade, especially with neighbouring countries such as Australia, China, Japan, the United States and others to name just a few. Known as a peaceful, politically stable country, New Zealand is ranked first out of the 189 economies in the world for the ease of doing business according to the World Bank.
New Zealand is a beautiful country full of potential, helped along by its geographically strategic location which allows the country to have easy access to the Pacific Island markets. Investors who decide to found a business and register a company in New Zealand can rest assured that there are strong intellectual property and regulatory systems in place working to protect their business.
New Zealand’s strong and stable economy allows for plenty of potential and a low rate of unemployment. Some of the main sectors that New Zealand is focused on developing economically include infrastructure, transport, tourism and the digital economy.
The most common types of business structures in New Zealand that investors opt for when choosing to register a company in New Zealand include sole trader, partnership and the limited liability company.
Business structures in New Zealand
Sole Trader – Investors who choose this option are the ones who are operating the business on their own. A sole trader is responsible for the entire business function, managing the business, owning the business, running the business and is also liable for all the taxes and debts that are incurred by the business. The sole trader option is a good way for investors to begin their business journey in New Zealand, and then later choose to progress to a different business structure as the company and business grows and the need for expansion arises.
Partnership – The partnership business structure is the most common option selected by investors who are venturing or are already established in the farming industry in New Zealand. The partnership structure can be an effective one in terms of sharing the business operation costs, where all costs incurred by the business are taken on equally by each partner in the business.
A Limited Liability Company – A limited liability company is considered a formal and legal entity in its own right, and is separate from its shareholders and owners. Registering for a limited liability company can be done via the Companies Office in New Zealand for a fee. The limited liability company option is one of the most popular and successful business structure forms in New Zealand.
Selecting a business structure is merely the first step. Registering a new business in New Zealand comes with its own start-up considerations that investors need to take into account. Start-up considerations that investors need to take into account include:
- Checking what the rules of the local authority are
- Setting up tax numbers
- Due diligence to find out as much information as possible about the local markets.
Do you want to find out more about what is needed to register a company in New Zealand? Get in touch with 3E Accounting today and see how our panel of experts can help you get started on the right track for your business.