CM Business Services Rss

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.

Post a comment