Setup your business in New Zealand

Why Choose New Zealand?

New Zealand is well known to most readers and requires little introduction. It is a safe, stable and secure country which offers considerable benefits to those involved in international tax planning.

New Zealand lies in the South Pacific Ocean and consists of two large islands and a number of smaller islands. Granted autonomy in 1947, New Zealand has a progressive economy that is based largely upon banking and finance. It has undergone substantial structural reform since 1984 and as a result has experienced economic liberalisation. There have been several reforms, such as the removal of interest and exchange controls allowing the free flow of capital in and out of the country. The government has implemented various changes to encourage greater investment in New Zealand. With the overall tax incentives highlighting the positive attitude of the government to place New Zealand amongst the best international financial centres.

With the increased use of New Zealand as a trust domicile there has been a corresponding rise in interest in New Zealand companies. These Key Facts provide an overview of the New Zealand corporate regime, the tax treatment of New Zealand companies with non-resident Shareholders earning non-New Zealand source income, and our fees for providing a range of corporate services.

Advantages for using New Zealand

• Able to provide an offshore type trust structure onshore
• It is an English-speaking country
• It enjoys political and economic stability
• It is an independent British Commonwealth country
• The legal system is based on English common law
• Its Trust Law is similar to that of other common law jurisdictions
• The legal and banking profession is of a high standard
• It has well developed communication, commercial and business infrastructure
• New Zealand is a full member of the Organisation for Economic Co-operation and Development (O.E.C.D)
• New Zealand is not perceived as a harmful tax jurisdiction by the O.E.C.D whilst providing many of the advantages of an offshore tax jurisdiction
• New Zealand represents a fresh approach to offshore asset protection
• New Zealand is a signatory to the 1922 Hague Convention and can thus provide documents under apostil seal

Taxation of New Zealand Companies

A company resident in New Zealand is assessable on worldwide income whether derived from New Zealand or elsewhere, subject to the provisions of the Income Tax Act, 1994. A company not resident in New Zealand is liable only in respect of income derived from New Zealand.

A company is resident in New Zealand if any one of the following four tests is satisfied:

It is incorporated in New Zealand.

Its Directors exercise control in New Zealand.

It has its centre of management in New Zealand – the place from where the company as a whole is managed on a regular basis.

It has its head office in New Zealand – the office from which the business of the company is directed and carried out.

All companies operating in New Zealand whether they are resident, non-resident or a branch of a non-resident company are taxed at the flat rate of 28% on their annual taxable profit.

An overseas company may commence business in New Zealand as a “branch operation” and will be taxed at the flat rate of 28%.

New Zealand’s network of tax treaties can be used in international tax planning.

Security

New Zealand is unrivalled in its security, possessing both internal political and regional stability. In a troubled world it does not present itself as a terrorist target.

Advantages for using New Zealand

• Able to provide an offshore type trust structure onshore
• It is an English-speaking country
• It enjoys political and economic stability
• It is an independent British Commonwealth country
• The legal system is based on English common law
• Its Trust Law is similar to that of other common law jurisdictions
• The legal and banking profession is of a high standard
• It has well developed communication, commercial and business infrastructure
• New Zealand is a full member of the Organisation for Economic Co-operation and Development (O.E.C.D)
• New Zealand is not perceived as a harmful tax jurisdiction by the O.E.C.D whilst providing many of the advantages of an offshore tax jurisdiction
• New Zealand represents a fresh approach to offshore asset protection
• New Zealand is a signatory to the 1922 Hague Convention and can thus provide documents under apostil seal

SC & Associates can provide you
Resident Nominee Director and Resident Corporate Nominee Shareholder

The reason for this is that if more than 25% of the shares, or a majority of Directors are resident outside New Zealand then the company has to produce annual audited accounts that are filed with the company annual return – client’s option and decision.

A Company that is formed and registered in New Zealand under the New Zealand Companies Act 1993 (NZ Company) as well as a body corporate that is incorporated and registered outside New Zealand but is carrying on business in New Zealand (Overseas Company) are required to file an “Annual Return” in a designated month and pay the required annual filing fee.

A Company is not required to file an Annual Return in the calendar year of its incorporation. Companies can apply to the Registrar to vary the month in which they file their Annual Return. A “Shuttle Annual Return” is sent by the Registrar to the company’s address for communication, or its registered office one month before the return is due to be filed, or there is also the option to file the Annual Return on-line with the Companies Office.

The information within the shuttle Annual Return is obtained from the New Zealand Companies Office database. The process of requiring an Annual Return is an important way of verifying the information contained in this database. Where the information on a shuttle Annual Return needs to be updated, follow the instructions on the form. Date of Annual Return. The Annual Return is completed upon this date. It must be a day in the month the return is due. All information must be correct as at this date.

How We Can Help You!

It is usual for a trust to be created by the execution of a formal written deed. Following execution of the trust deed a trust will come into existence upon settlement of the initial property.

SC & Associates is able to assist with preparation of all of the appropriate documentation and provide the following services:

Initial advice and liaison with professional advisers;

Drafting the trust deed and letters of wishes (or deed of retirement and appointment of trustees, as the case may be);

Formation of underlying companies to hold trust assets;

Preparing and reviewing documentation relating to commercial transactions;

Start registering your NZ Company Today!

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Selecting an appropriate trustee to administer the trust.

Registration process!

When you order any of our company formation products, you’ll get FREE support from our lawyers to help answer your NZ Company day-to-day management questions.

Start your New Zealand Company registration with SC & Associates today.

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