Things You Need to Know Before Opening a Business in New Zealand

Business in New Zealand

New Zealand is named the easiest country to start and do business in. So, if you’ve been thinking of excellent and profitable business ideas for ages, then do not hesitate. That’s the sign that you should breathe life into those ideas.

Once your business is up and running, make a great first impression to your customers by having your employees wear stylish corporate uniforms. Your startup company will be perceived positively with uniforms because they emanate professionalism and high-quality customer service.

Moving on, here’s your guide on how to open a business in New Zealand:

1. Business Structures

Once you already have a name for your company, think of a business structure. You can choose among a Sole Trader, a Partnership, and a Limited Liability.

Small businesses usually start with the Sole Trader structure, in which the trader (or owner) runs the business on their own. If you’re choosing this structure, it means that you’d be fully in charge of the management, and all the business’s taxes and debts will be shouldered by you. You’re also allowed to hire employees.

If the business is planned by a group of professionals, then the Partnership structure is suitable for you. In this structure, the company doesn’t have to pay income tax. Rather, the partners personally pay taxes from the income they’ve shared.

Limited Liability establishes your business as a separate, formal legal entity. Owners would be working with shareholders, board members, and creditors. This structure is New Zealand’s most successful, and sole traders usually upgrade to this structure after their businesses have grown. Registering a limited liability company comes with a fee of NZ$150.

2. Registrations

You’d need to register your business to a few government agencies. Use Real Me login, an online platform also used by several agencies to streamline registration processes.

After that, you need to secure a New Zealand Business Number (NZBN). Companies automatically get this, but if yours is a sole trader or partnership business, you have to register online for an NZBN, which is free of charge.

Your website should be registered; the Domain Name Commission has a list of authorized registrars where you can register your own domain. As for your company name (for a limited liability business), reserve it to the Companies Office, and make sure to incorporate your company within 20 working days after your reservation. Sole traders and partnerships should also register to the Companies Office.

As for your trademark, the Intellectual Property Office will do assessments before you can apply for one. After approval from the office, then you may register your trademark.

If you’re earning over NZ$60,000 yearly, you need to register to the Inland Revenue for the Goods and Services Tax. The structure of your business will determine whether you need an individual tax number or a company tax number.

3. Learn About the Local Regulations and Restrictions

It is important to look into your local government’s regulations regarding business operations. These regulations state which business is allowed and not allowed in your location. You can start by browsing their website. Skipping this step may result in unwanted surprises, so do not forget about this.

4. Open a Bank Account and Hire a Lawyer and Accountant

Having a separate bank account for your business is convenient. Hire an accountant to get financial advice constantly, as well as a lawyer who can help address your legal concerns. Their expertise will be beneficial for your business.

Now that you’re equipped with the necessary knowledge on putting up a business, you can start gathering all the requirements so that you can have smooth operations.

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