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New Zealand company registration

Healy Consultants Group PLC
04 March, 2014

New Zealand company registration has become a popular choice of international investors. As New Zealand has consistently been ranked as the least corrupt country in the world, a New Zealand company can depend on the local laws to resolve all business disputes legitimately. There are many advantages to New Zealand company setup, including:

1.    A limited liability New Zealand company formation can be incorporated in the country within a week with a share capital of only US $1. Plus, you will not be required to travel for New Zealand company registration;

2.    New Zealand company registration requires only one shareholder and one director. The shareholders are not required to be residents in the country;

3.    A local New Zealand business setup allows foreign entrepreneurs to invest in any New Zealand business setup sector, regardless of their nationality;

4.    A New Zealand company formation faces no capital or exchange controls; funds can be easily transferred to or from abroad;

5.    An offshore Financial Service Provider (FSP) and an offshore company formation are legally tax exempt; 

6.    English is the official language in the country; New Zealand company registration, consequently, becomes very easy. Plus, conversing in English helps a foreign investor in working with local employees and customers;

7.    NZ ranks 1st in the world in regards to absence of protectionism. Hence, a New Zealand company formation of a resident firm can easily engage in import/export activity;

8.    A New Zealand company formation benefits from the country’s double taxation agreements with 37 countries like Australia, China, Germany, Singapore and USA which minimize withholding tax on payments abroad;

Foreign investors planning to do business in New Zealand should consider the following tax and accounting regulations:

1.    Annual tax returns must be filed by the 7th of July every year. However, this deadline can be extended on request;

2.    Financial statements submitted by firms with 25% foreign ownership structure will require a proper audit;

3.    A local subsidiary of a foreign firm is taxed only on its NZ resident income while a local New Zealand company formation is taxed on its worldwide income;

4.    A New Zealand company formation pays a corporate tax at a flat rate of 28% on profits derived from its business activities;

5.    Standard GST (Goods and Services Tax) or VAT is charged at a rate of 10%;

6.    A New Zealand business setup must pay Fringe Benefits Tax (FBT) on all benefits provided to employees; different plans are available for such payments;

7.    A New Zealand company formation has to abide by the Emissions Trading Scheme which levies taxes on a resident firm based on the amount of greenhouse gas emitted;

8.    The government does not levy any capital tax or stamp duties on resident firms;

9.    NZ has signed double taxation agreements with 37 countries like Australia, China, Germany, Singapore and USA to minimize withholding tax on payments abroad;

10. NZ has signed a free trade agreement with the ASEAN nations. Consequently, there is a removal of tariffs on 99% of exports from the country to Indonesia, Malaysia, the Philippines and Vietnam;

With the modern, developed economy, New Zealand offers an excellent business environment for any foreign entities operating in the country. Also, a New Zealand company enjoys easy access to the massive Chinese and Australian consumer market due to FTAs signed with these countries. Foreign investors can enjoy the open business environment while rest assured that their businesses are well protected by the country’s developed law system.

About the Author

Healy Consultants Group PLC

Since 2003, Healy Consultants assists international Clients with company incorporation services worldwide. Our services include: company registration, opening of corporate bank account, accounting and tax services, legal services, jurisdiction comparisons...more.

To inquire more information about global business set up; call us on +65 6735 0120 or email us at email@healyconsultants.com


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