How to Do Business In New Zealand? – Super Business Manager

Doing business in New Zealand involves several key steps, from establishing your legal structure to understanding visa and tax requirements.

Here is a general outline of how to approach it:

Develop a Business Plan: Clearly define your business idea, market, competitors, operations, and financials to ensure viability.
Market Research: Understand the local New Zealand market, including your target audience and competitors.

You need to choose the structure that best suits your needs. The most common options are:

Sole Trader: The simplest structure. You and your business are the same legal entity, meaning you are personally responsible for all debts and obligations.
Partnership: Two or more people share the responsibility for income, losses, and control. Partners have joint and several liability.
Company (Limited Liability Company – LLC): A separate legal entity from its owners (shareholders). This offers limited liability, meaning shareholders’ personal assets are generally protected from business debts. Companies must have at least one director who lives in New Zealand or Australia and is a director of an Australian-incorporated company.

Key Registrations:

Choose and Secure Your Name: Use tools like the New Zealand Companies Office’s ONECheck to see if your preferred name is available as a business name, trademark, and domain name.
New Zealand Business Number (NZBN): A unique identifier for your business. Companies get one automatically; sole traders and partnerships can register for one online.
Inland Revenue Department (IRD) Number: You will need an IRD number for tax purposes.
Register for GST (Goods and Services Tax): If you expect your turnover to exceed NZ$60,000 in any 12-month period, you must register for GST (currently 15%).

If you are a foreigner planning to operate a business in New Zealand, you will need the appropriate visa. Options often include:

Business Visitor Visa: For short trips (up to 3 months) to conduct business activities like attending meetings, negotiating contracts, or exploring investment opportunities. This visa does not allow you to work for a New Zealand employer.
Entrepreneur Work Visa / Entrepreneur Residence Category: For experienced businesspeople looking to establish or buy a business in New Zealand and eventually apply for permanent residency. This typically has requirements related to investment amount, business growth, job creation, and English language skills.
Investor Visas: For those who intend to invest a significant amount of capital into a New Zealand business.

It is highly recommended to check the latest and most appropriate visa requirements directly with Immigration New Zealand.

Income Tax: New Zealand tax residents pay tax on their worldwide income. Non-residents only pay tax on New Zealand-sourced income.
- Company Tax Rate: A flat rate of 28%.
- Individual Income Tax: Progressive tax rates apply (up to 39%).
Goods and Services Tax (GST): A consumption tax, currently 15%, added to most goods and services.
Employer Obligations: If you hire staff, you must manage PAYE (Pay As You Earn) withholding tax, KiwiSaver contributions, and other deductions.
Double Tax Treaties (DTTs): New Zealand has DTTs with many countries to prevent a business or individual from being taxed on the same income twice.

Licenses and Permits: Depending on your industry (e.g., hospitality, transport, finance), you may need specific licenses, permits, or professional certifications.
Hiring Staff: Familiarize yourself with New Zealand employment law, including minimum wage, holiday entitlements, and employment agreements.
Banking: Open a separate New Zealand bank account for your business to simplify financial management and tax compliance.
Professional Advice: It is strongly recommended to seek advice from a New Zealand-based lawyer and accountant to ensure you comply with all local laws and optimize your tax structure.