A company in New Zealand
New Zealand is an island country located east of Australia. As an association kingdom, it is connected by a personal union with Great Britain. Although this country is not considered a typical offshore location, nor is it considered a tax haven, it still offers entrepreneurs many facilities typical of such jurisdictions. It should be emphasized that this small country won the global Doing Business ranking in 2018. Among its advantages we can mention not only a very stable economy, but above all an extremely favorable tax system, which makes it currently one of the most attractive countries to do business in the world.
Company registraration in New Zealand, and available legal forms of doing business
In New Zealand, it is possible to open a company using traditional forms of business, such as Limited Company (LLC) or Joint Stock Company (JSC), these solutions result from New Zealand’s interconnectedness with Great Britain. However, the country’s legal system provides for special ways to open a company using a trust institution or establishing an LTC company – Look Through Company. LTC is a legal form characteristic of New Zealand. The company is founded in the same way as traditional capital companies, but its income is taxed at the level of shareholders, which means that no additional corporate income tax is paid. Such a company also has legal personality and is subject to the regulation of capital companies.
Establishing a company in New Zealand and registration time
The maximum time to establish a company is 20 days. The company is registered in New Zealand in stages. The whole procedure begins when the company name is booked in the company register. The next step is submitting the application for company registration and the 20 day period is counted from that moment. If the required documents are not provided within that time, the application will be canceled. For successful establishment of a company, you must also register the company’s directors and register for tax purposes. However, in practice, the registration time is shorter and can take up to 2 days. In addition, no share capital is required in New Zealand at the time of registration.
Opening business in New Zealand at a distance
Opening a business in New Zealand at a distance is possible. This condition is favorable because most of the registrations are made online. However, it must be remembered that the company must have a physical address in New Zealand, where the company’s books and registers will be kept and correspondence will be sent. Use of virtual office services will be helpful in this respect. In addition, New Zealand law requires you to have a locally registered agent. This requirement also applies to the director who must be a resident of New Zealand or Australia. A person who is not a resident of one of these countries may become a director after fulfilling several conditions, including an AML (anti-money laundering) certificate.
Taxes in New Zealand
New Zealand residents pay tax on income from both domestic and non-domestic activities, while non-residents pay tax only on income from New Zealand. The standard CIT rate is 28%. The tax can be paid in three installments per year, and the final settlement with the Tax Office is at the end of the budget year, which in New Zealand falls on March 31. The standard VAT rate is 15%, and VAT registration is mandatory for companies whose turnover exceeds NZD 60,000.
In addition to VAT, some products may be subject to customs duties ranging from 5% to 10% of the product value. In addition, there are no in New Zealand: inheritance taxes; taxes on capital gains; there are no taxes on employee remuneration; no social security and health insurance contributions are payable, except for accident insurance; there are no taxes set by local governments, except for the existing property tax rate. Thus, setting up a company in New Zealand and running a business is definitely less expensive than in Poland. However, it should be remembered that Poland has signed an agreement with New Zealand on the avoidance of double taxation.
Free Zones in New Zealand
The New Zealand Trade and Entrepreneurship Agency offers tax breaks to start research and development up to $ 430,000 a year, this is accomplished by reducing corporate income tax to 15%, which makes registering a company in New Zealand attractive. It is also possible to obtain a four-year tax exemption, during which only income from New Zealand is taxable.
In addition, the Energy Efficient Conservation Authority offers loans and financing options for energy-efficient corporations that use conservation, fuel economy and transport. As part of government assistance, it is possible to use the Venture Investment Fund, which supports the development of the venture capital market in New Zealand. In addition, the World Bank places New Zealand as the best borrowing region around the world.
Ready made company in New Zealand / purchase of a company in New Zealand / purchase of a company in New Zealand
It is also possible to buy a company formation in New Zealand that is already registered. As a rule, a ready-made company in New Zealand exists for a relatively short time, did not run business before and was created for its subsequent sale. It is widely recognized that buying a company in New Zealand that already exists and that has cash flow can be a good way to start a business in New Zealand.
