How to Start a Company in New Zealand: Step-by-Step Guide

How to Start a Company in New Zealand: Step-by-Step Guide

New Zealand is consistently ranked as one of the easiest countries in the world to do business. With a stable economy, transparent regulations, and a supportive environment for entrepreneurs, it is an attractive destination for both local and international business owners.

Why Start a Business in New Zealand?

  • Ease of doing business – Ranked among the top countries globally for business-friendly regulations.
  • Stable economy – Low corruption, transparent legal system.
  • Access to international markets – Close ties with Australia and Asia-Pacific.
  • Skilled workforce – English-speaking, highly educated population.
  • Low setup costs – Affordable registration and compliance fees.
  • Supportive government programs – Grants, loans, and advisory services for startups.

Step 1: Choose a Business Structure

Common options in New Zealand include:

  • Sole Trader – Simplest structure, owner has unlimited liability.
  • Partnership – Shared ownership; partners jointly liable.
  • Limited Liability Company (LTD) – Separate legal entity; protects personal assets.
  • Trust – Often used for asset protection and family businesses.

Most entrepreneurs opt for a Limited Liability Company (LTD) for liability protection and credibility.

Step 2: Reserve a Company Name

  • Must be unique and approved by Companies Office.
  • Avoid misleading names or names identical to existing businesses.

Step 3: Register Your Company

  • Submit online registration with the New Zealand Companies Office, providing:
    • Company name
    • Registered office address
    • Directors’ and shareholders’ information
    • Constitution (optional)
  • Once approved, you’ll receive a Certificate of Incorporation.

Step 4: Obtain an IRD Number

  • Required for tax purposes and payroll.
  • Apply through the Inland Revenue Department (IRD).

Step 5: Open a Business Bank Account

  • Required for separating personal and business finances.
  • You’ll need company registration documents and director identification.

Step 6: Register for Taxes

  • Goods and Services Tax (GST) – Mandatory if annual turnover exceeds NZD 60,000.
  • Income tax – Company tax rate is 28%.
  • PAYE (Pay As You Earn) – Required if hiring employees.

Step 7: Obtain Licenses & Permits (If Required)

Depending on your business type, additional licenses may be required:

  • Food, health, or alcohol-related businesses
  • Tourism, transport, or finance
  • Import/export permits

Step 8: Maintain Compliance

  • File annual returns with the Companies Office.
  • Keep accurate accounting records.
  • Lodge tax returns with the IRD on time.

Costs & Timeline

  • Company registration: NZD 150 – 200 online.
  • IRD number: Free.
  • Legal/accounting support: NZD 500 – 2,000+ if using a professional.
  • Timeline: 1–5 business days for company incorporation.

Final Thoughts

New Zealand offers a fast, affordable, and transparent pathway to start a business. Its business-friendly environment, low bureaucracy, and access to international markets make it ideal for startups and investors alike.

For foreign entrepreneurs, consulting a local accountant or business advisor is recommended to ensure compliance with tax, legal, and employment regulations.