New Zealand Subsidiary Entity Set Up
New Zealand Entity Set Up
Setting up an entity in a foreign territory can be difficult and comes with many complexities and requirements. In New Zealand, foreign subsidiary entities hold the same company standing as any other conventional company in the country and are treated as equals with domestic businesses. They enjoy independence from their parent company and are subject to all national laws of New Zealand.
The registration process comes with some variation (depending on the company type), but it is generally straightforward and can be done with little difficulty. Once that is done, however, setting up a subsidiary in New Zealand involves a heavy workload.
Tax processing, filing accounts, law compliance, workforce management, payroll, recruitment… all these matters must be managed effectively, which can eat up your time, money, and resources.
You can lighten this load by partnering with Bradford Jacobs, an Employer of Record (EOR) company. We use our Professional Employer Organisation (PEO) international recruitment specialists to obtain your new personnel, and our EOR experts handle all legal and compliance requirements.
How to set up a New Zealand Subsidiary
- Decide on the company type that suits the nature of your business, your business goals and matches your capabilities to meet establishment requirements.
Common company types include a Limited Liability Company, a Public Limited Company, a Sole Trader/Proprietorship, The Limited Partnership, a branch office, a representative office, and a trust.
- Acquire a RealMe login for company incorporation, as well as an online services account.
- Obtain a business address in New Zealand and prepare the documents for registration.
- Open a local bank account in New Zealand and deposit the appropriate share capital.
- Prepare the appropriate registration documents and have them translated to English.
- Appoint one resident director for company incorporation.
- Reserve the company name.
- Notarize and legalize the registration documents at a notary’s office.
- Register your company at the Companies Office.
- Register all directors and shareholders with the Companies Office within 20 days of incorporation.
- Company details will be made available on the Companies Register.
- Register company for a Goods and Services Tax, an Inland Revenue Number and as an employer.
- Register with the KiwiSaver funds.
- Receive a Certificate of Incorporation, an Inland Revenue Number, and a Good and Services Tax number.
- Acquire the necessary commercial licenses to start operations.
Benefits of setting up a Subsidiary in New Zealand
New Zealand is one of the best business destinations in the world, with many benefits to establishing an entity, which include:
- Subsidiaries in New Zealand are taxed the same as any other resident company.
- New Zealand is ranked first in the world for Ease of Doing Business, according to the World Bank Report (2020).
- Subsidiary entities in New Zealand also benefit from double tax treaties, in which withholding tax payments to foreign residents and companies are significantly reduced or exempted, depending on the treaty.
- New Zealand boasts a strong economy, with its strongest industries being agriculture, construction, and tourism.
- Businesses can enjoy access to large markets in Asia, with over 70 per cent of New Zealand’s exports are to Asia-Pacific countries. Many goods and services also enjoy preferential access to these markets.
- New Zealand placed 5th out of 160 countries for business friendliness, according to Forbes Best Countries for Business (2019).
- New Zealand also has a world-class education system, with their universities placing in the top 3% globally, according to the QS World University Rankings (2021).
New Zealand places high value on innovation, with many of the companies established in the country making their sectors stand out both locally and globally. Particularly, sectors such as food and beverage, wood processing, advanced transportation, technology, and tourism have all been affected, producing top-quality products and services for world markets.