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How to Form a NZ Company

Posted by Posted in Auckland Tax, Featured Posted on 11-08-2010

Starting out as an entrepreneur
If you are a first-time entrepreneur, you should first determine the structure of your business, such as sole trader, partnership or Limited Liability Company (LLC). This is because each business type is governed by different legal systems and has different tax structures.

Starting a New Zealand company is a simple and straightforward process if you get the right guidance and follow the directions as specified in

Things to do when starting a company
The following is a list of guidelines for you to consider while starting a NZ company:

  • First, choose a relevant name for your company. Ensure that your company name is not identical with or similar to any other company name by searching the Companies Register. It does not matter to have any name you choose if yours is a partnership or a sole trading business, but for a registered company, the name should be unique.
  • You have the option of reserving your company name and twenty days’ time thereafter for registration.
  • You could also check out for company trade marks at the IPONZ (Intellectual Property Office New Zealand) website. By registering your trade mark at the IPONZ, you acquire legal protection for your company and trade mark.
  • Opening a bank account will facilitate easy arranging of loans for your company’s finance requirements.
  • Understand the tax structure of your company. This will help you become eligible for the right business deductions and expenses that you are eligible for. It also helps you in knowing about the records and forms that have to be maintained by your company.
  • Get your company registered with the Companies Office in case of LLC. You’ll be given a Company IRD number and GST registration number.
  • Hiring a lawyer to assist you in legal matters is important.
  • A private company needs to have a shareholder’s agreement (in case of a Corporation) that would be helpful in raising finance and in avoiding funding disputes.
  • Your company should have at least one director (in case of a Corporation).
  • Your company should have a registered office. Giving Post Office Box numbers on your application will lead to an outright rejection of your application.
  • All the necessary forms for registration and incorporation are available with the Companies Office.
  • You may or may not have a constitution for your company.

All set to go!
Once you have made your application for registration of your company, you’ll be given the Certificate of Incorporation, if the Companies Office finds your application eligible for it. Your company is then incorporated under the Companies Act 1993 with effect from the date mentioned in the Certificate.

There are instances where an existing company that is already registered with the Companies Office is sold; in this case only a change of name needs to be effected by the buyer by applying to the Companies Office which is mostly done by lawyers.

Bookkeeping – The Backbone of your Business
A company, to run smoothly, should have a strong accounting system which lays the foundation for it to be successful. As a business company owner, it is your duty to take care of accounting, NZ tax, bookkeeping services and most importantly NZ payroll if you are an employer.

As an employer, your responsibilities are more because you would be deducting PAYE and other deductions from your employees’ salary and remitting the deductions to IRS.  Help is very close at hand for you to meet all your bookkeeping and accounting requirements.

Small Business Accounting Experts
CM Business Services, Auckland, NZ, would be your wisest choice of Auckland accountants to outsource your accounting work. This firm has great expertise and experience in handling all your accounting work, particularly with regard to use of the latest technology like MYOB and QuickBooks software to give you faster and more efficient results. To know more about CM Business Services, call them at 021.415.623 to schedule your FREE one hour consultation.

Happy Ending
To sum up, it is always wise to seek legal and professional guidance when you are starting your own company. This will minimise a lot of your work and worry as you are most likely investing a large amount of time, money, and hopes in your venture.

Auckland Small Business Employers

Posted by Posted in Auckland PAYE, Auckland Tax, Featured Posted on 07-07-2010

Business owner come employer?

For an Auckland small business to run successfully, you need to carry out all your responsibilities of a business owner with dedication and passion. If you are a small business owner as well as an employer, your responsibilities become manifold.

When you are only an owner, you need to focus only on your business growth and of course take care of your small business accounting needs. But, as your business expands, you might feel the need to hire staff to help you manage your business in a more professional manner. When you hire employees, several factors have to be considered and you should have a well laid-out plan about the number of employees you want to hire and their role in your organization etc.

How to become an employer

First, you need to register with the IRD as a new employer. Registration with the IRD is a simple process, either online or offline. You can register with your IRD number or if you don’t have one, apply for it by filling in IR 595/596 depending on whether you are an individual or non-individual in business. Once you have the IRD number, you can register online by filling in the online employer registration form or offline by filling in IR 334 and sending it to IRD, NZ.      Source:

Once you start hiring employees, the most important thing is to get a Tax code declaration (IR330) filled in by them. Kiwi Saver members should also fill in a KiwiSaver deduction form (KS2). You should enroll your employees in KiwiSaver depending on their eligibility. Employer monthly schedule (IR348) with their employment start date should be sent to IRD.       Source:

Employer-employee relationship

Employment Relations Act 2000 lays the foundation for the employer-employee relationship in an organization. The act specifies clearly the rights and responsibilities of both the employers and employees. As an employer, you need to be well informed about the policies and legislation that govern the sensitive relationship that exists between the employer and the employee.

Your responsibilities as an employer

As an employer, you are faced with many duties and responsibilities that have to be carried out in a meticulous fashion. Necessary salary deductions of your employees, remitting them to IRD NZ and filing employer returns are a few of the important duties of an employer.

You can check out the following page to get more information about the things you should do as an employer:

With several changes to NZ tax coming into effect on 1st October, 2010, you should be aware of all the changes and stay updated with the relevant information on them. Once these changes become effective, you will need to calculate PAYE and other deductions according to the new rates.


While your employees may be trained in several areas of your business, your book keeping and accounting work may be outsourced to an appropriately qualified professional accountant who would work hand in hand with your employees and take over your responsibility of calculating taxes and remitting them to IRD on time.

Outsourcing is a big advantage

By outsourcing, you can not only work for the development of your business, but you can let go of your worry about the complicated accounting procedures related to it. Outsourcing also leads to more productivity and profits as you have more time and peace of mind to focus on your business growth, so hiring a professional accountant will be very helpful to you in the long run. For your accounting needs, contact C M Business Services for a FREE consultation now.

Auckland Payroll NZ

Posted by Posted in Auckland PAYE, Auckland Payroll Posted on 30-06-2010

Need for Auckland Payroll NZ Services

What would you want to do when you are starting out a new business or are trying to restructure your existing business? Quite obviously, you would want to organise your new business well or get the current business improving in many ways, at the same time aiming to focus more on your business growth.

Auckland Payroll is given top priority in any business you own, big or small. If, maintaining precise financial records is imperative for any business to be successful, carrying out your duties as an employer is even more important.

Your registration with the IRD NZ as a new or existing business owner is mandatory. Employer registration is a simple online procedure. Once you start employing staff for your business, you have a few important responsibilities to shoulder.

Responsibilities of an employer

You, as an employer, are responsible for

  • ensuring that your employee fills in a tax code declaration on IR 330. If tax code declaration is not given by your employee, then, you should calculate and deduct tax for that particular employee using the no-declaration rate.
  • all tax deductions that relate to your employees.
  • filing Auckland Payroll returns to IRD within the stipulated deadlines.
  • keeping yourself updated with the latest IRD changes to Auckland Payroll and incorporating them while filing returns.
  • calculating deductions in case your employee has a special deduction rate certificate (IR 23).

Role of tax code in Auckland Payroll NZ

Tax code declaration helps small business owners (who are also employers) with the appropriate tax codes to be used and the rate at which employee deductions will have to be made. PAYE is a monthly or fortnightly remittance to IRD. This remittance depends upon the total salary or wages paid out by you. Tax code also ensures student loan repayments, child support deductions and KiwiSaver deductions if any, to be deducted by you as an employer.

Changes to Auckland Payroll NZ

Recent changes to Auckland Payroll (the changes come into effect on 1st October, 2010) will facilitate easy payment of PAYE online. Employer Monthly Schedule on IR348 and Employer Deductions form on IR 345  can be filed electronically. (Source: )

Technology to minimise manual labour

MYOB payroll is a great solution to all your payroll management tasks. Integrating your payroll data into this efficient software makes things much simpler and less cumbersome for you. Right from paying your employees their salary to filing the necessary returns, tasks become less complicated and consume fewer hours.

Achieving perfect balance

Creating a balance between the struggle to meet all your business requirements necessary for its growth and carrying out all your duties as an employer is something that might daunt you. This is when your outsourcing needs become more prominent than ever before.

For any Auckland Payroll outsourcing assistance, simply call us at 021.415.623 and make the most of a FREE one hour consultation with us. You will only be happy about your decision to entrust us with all the complicated payroll work, so that you have the maximum time and freedom to attend to your business development.

Auckland Tax

Posted by Posted in Auckland Tax Posted on 21-06-2010

Why should you outsource?

When you are just starting out with your own business, you are fine doing your own accounting. As your business expands, you find it difficult to manage both, thereby finding the need to outsource your bookkeeping needs. Outsourcing reduces your workload and helps you concentrate more on your business development. When you outsource, all the complicated pieces of a puzzle fall into place and it solves most of your accounting issues, particularly Auckland tax.

Need help with your Auckland tax issues?

Accounting is not merely numbers and calculations; it’s all about analysis and interpretation of data.  It’s always good to hire a professional accountant to whom you outsource your tax work, as financial legalities are better understood and handled by them. By entrusting a professional accountant with all your bookkeeping work, you get to save more by way of tax because they have a systematic and knowledgeable approach to tax compliance and annual reporting.

Who should file a tax return?

People who are self employed, those that own a rental property and those who get an additional income or income from other countries are usually required to file an Income Tax return. Maintaining accurate financial records is a must for any business; this is important, not only for regular monitoring and development of the business, but also to carry out the most essential duty of a business, namely Auckland tax.

Recent tax changes

With several Auckland tax changes introduced as part of the NZ Budget 2010 with effect from 1st October, 2010, it is imperative to incorporate these changes before calculating and submitting tax returns during this financial year. A few of these include changes in:

  • PAYE for the employer
  • Company tax rates
  • Property tax
  • Capital contributions
  • Provisional tax for some taxpayers
  • GST for businesses

These changes to Auckland tax have been introduced with the prime objective of replacing paperwork with the use of the latest technology. Use of software like Quickbooks and MYOB increases accuracy and efficiency thereby reducing cumbersome paperwork. For more details regarding Auckland tax and all the rules and regulations that go with it, you can visit or contact us at CM Business Services Limited, Auckland for a free consultation.

Stepping stone to success

By outsourcing your Auckland tax work to us, you stand to gain a lot of time and money. You can focus on your business development, leaving us to worry about your tax calculations and returns submission.

Accounting Software – How to Choose…

Posted by Posted in Auckland Accounting Software Posted on 01-06-2010

Which accounting system do you prefer?

There are a number of them currently on the market today. These are just a few that we’ve used. We’ll lay out some facts and will let you decide!

MYOB – By far, the most popular accounting software in New Zealand. There are a number of versions to choose from that will help you improve your accounting system. It also has a payroll version to help you properly meet your obligations as a New Zealand employer. Read more at or go directly to MYOB at

Quickbooks – Not as popular in New Zealand as MYOB, but it gets the job done. There are a number of versions to choose from, and they have recently launched an online version. Great if you want to keep your books offsite and very secure. Read more at or go directly to

Xero – This is an online accounting software package that allows a number of users to access your data. You can can easily import your banking and credit card information, balance accounts, and generate reports. It also allows and processes multi-currency transactions. Read more at

If you would like help to determine which is the best fit for your business, give us a call at +64 21 415 623 begin_of_the_skype_highlighting              +64 21 415 623      end_of_the_skype_highlighting.