Starting a business in New Zealand: A guide for Indian residents with requirements, fees, and opening a business account

New Zealand is well known for tourism, but it can also be an attractive location to launch a business. The country offers a business-friendly environment, an online registration process and access to Australia. If you are thinking of starting a business in New Zealand, read on to learn more about the process and what to expect- especially when it comes to visas.

Table of contents
Can you register a company in New Zealand from India? Different types of companies in New Zealand Requirements to start a New Zealand company from India What does it cost to run a New Zealand company Starting costs for setting up the company Taxes and Government Fees Starting a business account for a New Zealand company Moving to New Zealand from India

Can you register a company in New Zealand from India?

Yes, non-citizen foreigners, including Indians, can register a company in New Zealand and carry out business. However, you must have the relevant visa to start a business or invest in the country, which may require living there first. This article covers visa requirements at the end of the article.

While foreigners can register a company and conduct business in New Zealand, they must abide by the local, state and national laws and regulatory bodies. The Companies Register in New Zealand is the primary regulatory authority for governing and registering companies. You can register a business online with the Companies Register, but to do so most applicants need to get verified and a login from RealMe.¹

RealMe is an identity verification system that the government of New Zealand uses across multiple agencies. It makes applying and registering online easy, but it requires submitting your New Zealand citizenship or immigration details and a photo. Read through the how to apply section of the RealMe website to get started.

Overseas business entities incorporated in other countries, like India, need to submit an application to set up a business entity in New Zealand. The requirements section of the article will go over how you need to register an existing foreign business.

Before you start registering your company in New Zealand, let’s take a look at the different company structures to choose from.

Different types of companies in New Zealand

The government of New Zealand requires business entities to fall within specific structures, which then determine rules, taxes and regulations. There are pros and cons of each type of structure - with some better for small businesses while others are better suited for scaling up and shareholders. The primary types of structures in New Zealand are made up of the following:²

• Sole Proprietorship is the basic business structure where one person, or the sole trader or proprietor, is responsible for setting up and running the business. This also means they are responsible for the debts and obligations of the business. This type of business is usually easy to set up.
• Partnerships are business entities with more than one business partner who own and participate in the business. Depending on the type of set-up, the partners can benefit from the profits of the business while also being held responsible for debts.
• Limited Liability Company is considered a separate and independent legal entity with one or multiple owners. Owners of an LLC are generally not personally responsible for sharing all the losses of the business. Their liability, or responsibility, is limited to the amount they have paid for their shares. This type of company protects the individual owners more than other structures.

Other business structures include unlimited companies, cooperative companies, trusts, limited partnerships, industrial and provident societies. Each business has a different roadmap so identify a structure that works best for yours - now and in the future.³

Requirements to start a New Zealand company from India

If you have an existing business abroad and want to set it up in New Zealand, here are the steps:⁴

1. Reserve your company name - this will require being set up with RealMe, and paying $10 NZD to the Company Register. The company name you reserve must match the incorporated name abroad.
2. Provide contact details: you will need to provide information on your business, such as an email address and physical address in New Zealand, the date you started the business in New Zealand, shareholder details, financial statements, annual filings and more. You can also provide the contact details for the main domestic point of contact.
3. Complete the application for overseas companies.
4. Pay $130 for the registration fee.
5. Await approval. If you are approved you will be sent a Certificate of Registration.

If you are starting a company brand new in New Zealand, here are the steps to take:⁵

1. Decide on the business structure and choose a name. There is a tool online to check whether the chosen name is available for registration, and you can reserve the company name on the Companies Register website too. Similarly, you can check whether a specific domain name, trademark, and social media usernames are available.
2. Set up a RealMe account. The RealMe account will help you complete the company registration process online. If you have New Zealand citizenship, you can complete the entire process online, while others with immigration documents may need to get verified in person to open a RealMe account.
3. Gather all relevant information. This includes your company contact details in New Zealand, directors, shareholders, physical address and company constitution, if relevant for your business structure. All companies in New Zealand need to have a physical address before registering.
4. Register your business. Click on the link sent to you in the email from the Companies Office when you reserved your company name or click on the application link. Keep in mind you must be set up on RealMe to move forward. If you have directors or shareholders you will need to also submit their consent forms.
5. Await your Certificate of Incorporation. If approved, you will receive a certificate of incorporation and your company will be listed on the Companies Office website.

All companies will receive a unique New Zealand Business Number which helps the government identify your business. Sole traders and partnerships will need to apply for one through the NZBN website.

Once registered, companies must meet their industry-specific regulations, which include obtaining licenses and permits from the appropriate local or regional authorities. The need for licenses or permits will depend on the type of business you have.

Remember, before starting a company in New Zealand, it is critical that you have the appropriate visa to stay and work in the country. You will be asked for your citizenship and immigration documents during the setup process.

What does it cost to run a New Zealand company

The costs to run a company in New Zealand are different for each type of structure and depend on multiple factors like size, scale, customers and industry. Overall, here are some of the expenses to think about when opening a company:

• Employee salaries: Salaries can be one of the largest costs for a business, and the amounts can differ depending on where your employees are located. The Inland Revenue website can help employers understand their costs and responsibilities.
• Office maintenance: Every registered company in New Zealand needs a physical address. This can mean finding a space and setting up an office, which can be a substantial expense. You can save if you work remotely or from home, but the costs for computer equipment or a coworking membership should be considered.
• Insurance and taxes: Make sure you are complying with all local, state and national regulations and have the appropriate insurance policies. The same goes for paying taxes, and hiring a tax accountant can be helpful, especially if you spend time outside of the country.
• Professional services: Hiring local professionals like lawyers and tax accountants can help keep your business compliant with New Zealand’s regulations. They can also guide you as your company grows and if it diversifies.

There are many other costs you may run into when running a company in New Zealand. It is strongly advised to keep all your records up to date and expenses noted to make accounting easier at the end of the fiscal year.

Starting costs for setting up the company

Here are the general starting costs and fees for setting up a company in New Zealand:⁶

Service	Fee (excluding GST)
Reserving a company name	$10 NZD
Company incorporation	$118.74 NZD
Company annual return	$49.74 NZD
Financial statement filing	$175 NZD
Overseas company registration	$130 NZD

This list does not contain all the charges a business can encounter, simultaneously the self-employed or sole traders may avoid certain fees. Speak to your accountant to ensure you have made all the necessary payments to start your business.

Taxes and Government Fees

Companies registered in New Zealand must comply with New Zealand laws on corporate taxes. Currently, the New Zealand corporate income tax rate is 28%.⁷

New Zealand has a GST of 15% that applies to most goods and services. Registering for GST with the Inland Revenue Department (IRD) is required if your annual revenue is above $60,000 NZD. The department allots a unique IRD number for your company, identifying your company for all tax-related events.⁸

There are other taxes businesses may face, such as those on some imported goods, non-cash benefits for employees and an employer’s contribution to a superannuation fund. Speak to a tax accountant to navigate the taxes for your business.⁹

Starting a business account for a New Zealand company

Opening a business banking account in a New Zealand bank is an essential part of starting a company in the country. A local bank account will allow you to make payments to staff, receive payments from clients and develop a relationship with a bank if you need financing.

Thinking of opening a regular bank account in New Zealand? Check out our full guide to opening a bank account in New Zealand.

Some of the top banks in New Zealand are Australia and New Zealand Banking Group (ANZ), Auckland Savings Bank (ASB), Westpac, and Bank of New Zealand (BNZ). You will likely need to show your certificate of incorporation, identification for all owners and partners and proof of address to open an account. Start-ups may find attractive banking packages offered, like 12 months of no transaction or monthly account fees.¹⁰

Online banking has made opening and managing business bank accounts convenient. However, it can still cost a lot to make international transfers with a bank due to fees or expensive exchange rates.

Want a better way to send business transfers to India? Take a look at the Wise Business Account.

The Wise Business Account: An Account for Going Global

Save money on international transfers with the Wise Business Accountin New Zealand. You can send money at the mid-market exchange rate to different countries- which makes payments to suppliers, freelancers or colleagues simple and easy.

The Wise Business Account lets you also provide local bank details in multiple currencies, so clients can make payments in the currency that is easiest for them. It’s the same fast and secure way to send money with Wise that you know- but now for your global business.

Our online process lets you open and verify your New Zealand business account from India. Over 300,00 businesses already use Wise Business each quarter. Join now and see how seamless managing money for your business can be.

Business categories supported on Wise 👉

Moving to New Zealand from India

New Zealand offers four distinct visas for opening and running a business for non-citizens. These visas are for entrepreneurs and start-up founders too.¹¹

• Entrepreneur Resident Visa This visa is for self-employed people who have already been living in New Zealand for at least 6 months. This visa allows them to continue living and operating their business in New Zealand on a permanent basis.
• Global Impact Work Visa is for innovative entrepreneurs selected by the Edmund Hillary Fellowship for creating and supporting innovative ventures in New Zealand.
• Global Impact Permanent Residence Visa allows people on a Global Impact Work visa to live in New Zealand permanently.
• Entrepreneur Work Visa this visa is for experienced business people who want to work for their own business in New Zealand. Applicants must have a business plan and $100,000 NZD to invest.

Make sure to read the fine print when looking through the requirements for each, as some visas require you to have already been in the country.

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The article is solely intended to provide general information and is not intended to be financial, legal, business or immigration advice. Each business is unique, so consult with professionals who will be able to provide you with appropriate guidance for your business needs.

Sources used for this article:

1. Starting a company
2. Prominent business structures in New Zealand
3. Other business structures in New Zealand
4. How to set up an overseas company in New Zealand
5. Incorporating a company
6. Companies Office Schedule of Fees
7. Corporate Tax - New Zealand
8. GST - New Zealand
9. Other taxes - New Zealand
10. ANZ Business Current account
11. Appropriate New Zealand visas for running a business in New Zealand

Sources verified on 2 December 2023.

Cover photo by Patrick Pellegrini on Unsplash.