What are the required documents you will need as a foreign investor to register your new business in New Zealand?
Does the ease of doing business truly favour foreign investors expanding into New Zealand?
What is the step-by-step process for registering a business in New Zealand? Are they advantages one should look forward to?
Whether you are starting a coworking space or a logistics company in New Zealand, you have to incorporate it. The same thing applies if it’s a real estate agency.
In our previous article, we discussed the advantages and disadvantages of starting a new business in Switzerland, but today, we shall look at how to register your new business in NZ.
When it comes to going global with your business, there are factors to consider. The first few factors to consider are ease of doing business, the impact of a language barrier and the business-friendliness of the local regulations. Another one is how easy it is for your type of business to adhere to local policies.
Before we go further to discuss how to register your new business in “The Land of the Long White Cloud” which is the most common translation for Aotearoa – the Maori name for New Zealand, let’s look at the ease of doing business in NZ as shown by the Doing Business Report of 2022.
The Easy of Doing Business in New Zealand
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How does the Ease of Doing Business Index work? The Ease of doing business index ranks countries across the globe against each other based on how the regulatory environment is super-friendly to business operations and stronger protections of property rights. Economies with a high rank (1 to 20) have simpler and more friendly regulations for businesses.
This is one of the first few factors companies look at before moving their investment to a new country. Most African countries aren’t attracting investors because they rank so poorly in the IFC World Bank, Doing Business Report.
In 2020, the Doing Business Report published by IFC World Bank for the twelfth time in a row has ranked New Zealand as No. 1 for the “ease of starting a business.” Taking the 1st position out of 190 countries is no easy fit.
If this unbiased report about how friendly the business environment in NZ is to foreign investors is not enough to convince you to invest in New Zealand then I wonder what will.
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The impact of the COVID-19 pandemic on the real estate market in Auckland is now mind-blowing. It is now cheaper to buy a house in London or San Francisco than in Auckland.
What does that tell you as an investor? It means that real estate investment in Auckland is increasing. Sounds like a good time to sell your house in Auckland.
How about the New Zealand export market? The export market of NZ has grown by 9.6% in September 2021 since last year. Impressive development, right?
Let’s talk about the pros of launching a new startup in Auckland like a digital marketing agency, real estate agency, product sourcing agency, logistics company, fintech company, etc.
What Are the Best Cities to Do Business in New Zealand?
The best cities to start a business in New Zealand are known for their high economic activities. Another interesting fact about the largest cities in New Zealand is their openness to foreigners who want to invest. Below are the top most amazing cities in New Zealand where you can start a new business and flourish:
- Palmerston North
5 Advantages of Starting a New Business in New Zealand as a Foreigner
If you’ve been wondering why you should register your new business in New Zealand. Here are the major advantages of starting a brand new company in NZ:
- Super-fast business registration process
- You can own 100% of your business even as a foreigner
- There’s political stability in NZ as the Prime Minister, Jacinda Ardern has always done everything to defend the interest of her citizens to the extent of challenge Australia Prime Minister, Scott Morrison
- Companies in New Zealand can easily access the Asia-Pacific markets for efficient trade deals
- There’s no language barrier as a greater population of New Zealand residents hear and speak English.
Americans considering starting a new business in NZ won’t find it difficult to adapt because of the numerous opportunities that abound in the country.
What Does the New Zealand Business Registration Process Look Like?
Picking the perfect business structure under which you can incorporate your startup in New Zealand is not something you trivialize.
You must be crystal clear about your choice of the legal structure before you contact a legal practitioner to help you register your new business in New Zealand.
How do you know the best legal structure for your type of business? Depending on your commercial intent and the number of risks involved, you can choose any of these business structures below:
- Public Limited Company
- Limited Liability Company
- Look-through Company
- Limited Partnership
- Foreign Trust
- Branch Office
- Representative office
Any business that carries a high amount of risk will need liability protection. You can’t afford to toy with that if you wish to stay in business for a long time. Customers looking for the best place to buy gold will most likely patronize a company that is duly registered in New Zealand.
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Once you’ve chosen a legal structure for the business, the next thing is to hire a reliable attorney in New Zealand to help you draft your company’s constitution. Find and identify with all the relevant organizations in your industry. Get all your documents ready and proceed to obtain your tax identification number from the Inland Revenue Department.
What Are the Documents Required to Register Your New Business in New Zealand?
The business registration process in New Zealand is not as hard as it is in the United States.
How much does it cost to register your new business in New Zealand? According to the information we gathered from the New Zealand Companies Office, it costs $10 (plus GST) to reserve a company name and $114.39 (plus GST) to apply to incorporate a company.
Below are the documents you are to present to the NZ Companies Office during your business registration process:
- Company contact and address details
- Details about company directors, shares and shareholders
- Tax registration number
- Details of your company’s activities
If more documents are required from you, the law firm you hired to fast-track the business process in New Zealand will inform you. In addition to that, consider getting the perfect business insurance policy that can protect your company, properties and workers.
Now that you have mastered how to register your new business in New Zealand, how do you get a corporate bank account? Let’s get to it.
How to Open a Corporate Bank Account in New Zealand
To open a bank account in New Zealand from overseas, the basic requirement is that you must have a visa that allows you to stay in the country for the time being. The three categories of visas that qualify you for a bank account in New Zealand are residence visa, student visa and work visa.
The next requirement is that you must have an ID and proof of address.
The five types of visas issued by New Zealand are the ETA, New Zealand visitor visa, student visa, work visa and resident visa.
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Some amazing fintech apps can help you open a business bank account in New Zealand from overseas before you move to New Zealand. In another article, we covered how to register your business in Germany this year without necessarily hiring a consultant.