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Startup in New Zealand

Updated on Wednesday 16th June 2021

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Startup-New-ZealandAlthough it is true that the process of setting up a business in New Zealand can be initiated through the Internet, that does not mean that it is simple. It is a very important matter, so it is advisable to have the help of our experienced lawyers.
 
This country offers several corporate structures for incorporating an Auckland startup:
 
  • • You can register as a Sole Trader, a perfectly legal entity for freelancers or digital nomads who want to work on their own or as freelancers with a small New Zealand startup,
  • • You can establish a Partnership in case it is more convenient for you to share the costs of operating your business with other partners, eventually,
  • • You have the possibility to incorporate a Limited Liability Company, a suitable legal structure to protect your assets by separating them from your business.
 
The Limited Liability Company (LLC) is the legal structure most chosen by entrepreneurs and investors who hire us to help them when it comes to company formation in New Zealand.
 

The three challenges of setting up a startup in Auckland

 
If you are a foreign entrepreneur looking to enter the Auckland startup community, there are a couple of things to keep in mind. There are three main challenges when it comes to incorporating a company in New Zealand. Investors and entrepreneurs who manage to get ahead of these challenges tend to start their businesses smoothly.
 
The first thing you need to be clear about is that in order to start a business in New Zealand, the company must have at least one director who is a New Zealand (or Australian) resident. If you do not have a local director, our team can help you appoint nominee directors, one of the most common ways to get this hurdle out of the way when incorporating an Auckland startup.
 
The second challenge is that you will need a valid address to link to the business you are starting in New Zealand. This is where virtual offices come in.
 
Virtual offices allow you to have a valid address to move forward in the company formation process in New Zealand. With this, you will have almost everything you need to complete the process, but there is still one last challenge to overcome.
 
After resolving the director and local address issue, the only thing left is to get a tax identification number. This is one of the last steps in the process of setting up a company. Depending on the type of business you have decided to incorporate, you will need an individual tax number or a corporate tax number.
 
As you can see, the process is pretty straightforward in terms of requirements. Even these three "challenges" are easily overcome with our support. Contact our team now if you need more information about company formation in New Zealand.
 
 

How much money do I need to set up a company in New Zealand?

 
One of the most curious elements of incorporating a New Zealand startup process is that there is no minimum capital required. The only thing you have to pay is an amount of NZ$150 at the moment you register your company on the New Zealand government website.
 
However, it is essential to remember that while it is possible to incorporate and establish a new startup in New Zealand for a relatively low initial capital when compared to other countries, you must have sufficient funds to hire staff and market your new venture from day one. Depending on the nature of your business, without the necessary funds, you would have to take on too many tasks and responsibilities as an entrepreneur, diluting your potential and stunting your growth.
 

How to open a bank account for my startup in New Zealand?

 
These are the most common documents you need to open a bank account after going through the company formation process in New Zealand:
 
  • • Company incorporation documents.
  • • Proof of domicile.
  • • Documents of the owners of the company.
  • • Account opening deposit.
 
New Zealand banks may ask for additional documents if required. In addition, the opening amounts for company accounts vary from bank to bank. Therefore, we recommend you speak to one of our experts to find out which bank is best for you based on your needs.
 
The whole process from the moment you start with choosing the type of company you need until you open your bank account and receive your tax information number can be quick and easy. But only if you know the details of every document you need to submit and the requirements you need to meet.
 
For investors or entrepreneurs who do not have time to waste on doing the paperwork by themselves or giving themselves the chance to make a mistake with any document, we always recommend hiring the services of our lawyers in New Zealand so you may incorporate an Auckland startup.
 

Why incorporate a startup in New Zealand?

 

With the right help, starting a business in New Zealand can be accomplished in less than a week. In fact, New Zealand is the easiest country in the world to do business in, as:

 
  • -       The Total business income increased by an average of 5% per year during the 2017-2019 period before the pandemic
  • -       Total R&D expenditure increased by 18% in 2020 from the expenditure in 2019
  • -       New Zealand has over 500 startups despite only having 5 million inhabitants
  • -       New Zealand has one of the best early-stage funding for startup scores, according to the Global Startup Ecosystem Report, with a 0.30 score, while Sydney, a well-known hub, has only 0.25.
  • -       New Zealand is the second-freest economy in the world, according to the Index of Economic Freedom, with a score of 83.9.
 
Contact us now so we can help you get your new business up and running in no time.

Meet us in Wellington


Call us now at +44 203 287 0408  to set up an appointment with our business consultants in Wellington, New Zealand. Alternatively you can incorporate your company without traveling to New Zealand.

As a BridgeWest client, you will benefit from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in New Zealand.

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