New Zealand's company registration is genuinely fast and cheap, and unlike Australia next door, it doesn't require a resident director at all, a real point of difference if you're weighing the two side by side. Here's what it takes to start a business in New Zealand in 2026.
1. Which business structure fits you?
Before you register anything, it helps to know what you're actually choosing between.
- Sole Trader. No separate legal entity and no company registration required, though you must notify Inland Revenue you're self-employed and get a personal IRD number. Personally liable for all business debts.
- Limited Company (Ltd). New Zealand's most common business structure: at least one shareholder and one director, limits personal liability, and carries more credibility with banks and clients.
New Zealand also offers a look-through company (LTC) option, a company structure taxed like a sole trader or partnership, with profits and losses passed through to shareholders at their personal tax rates. It requires filing an annual IR7 return and suits specific situations where pass-through taxation is genuinely advantageous.
2. Register your business
Sole traders and partnerships can register for a free New Zealand Business Number (NZBN) directly. Incorporating a Limited Company goes through the Companies Office (you'll need a RealMe login), and companies receive an NZBN automatically as part of registration. The government incorporation fee is NZD 118.74 excluding GST, or NZD 136.55 including GST; name reservation is a separate $10 plus GST. The whole process typically takes about a week for foreign investors once documents are ready.
3. Check licenses and permits
New Zealand doesn't issue a single national business license. What you need depends on your industry; check with the relevant regulator for anything beyond standard Companies Office registration.
4. Understand New Zealand taxes
Corporate tax is a flat 28% on company profits, applying equally to resident and non-resident companies. New Zealand runs a full imputation system, meaning company tax already paid is credited against shareholders' tax on dividends, which avoids taxing the same profit twice. GST is 15% standard, required once turnover is expected to exceed NZD 60,000 a year (registration itself is free). New Zealand has no general capital gains tax, no inheritance tax, and no wealth tax, a structural feature more than a headline rate, and one that shapes how founders here often think about long-term equity rather than just annual profit.
5. Stay compliant
Get an IRD number for tax purposes (free, essential for every business). GST returns are filed every 1 to 6 months depending on your chosen cycle, electronically through myIR, with payments due by the 28th of the following month. Income tax returns are due by 7 July (or 31 March if you're filing through a tax agent). If you expect to owe more than NZD 5,000 in tax, you'll make quarterly provisional tax payments rather than a single annual bill.
New Zealand business costs at a glance
| Item | Cost |
|---|---|
| Sole trader / NZBN registration | Free |
| Company name reservation | $10 + GST |
| Company incorporation (Companies Office) | NZD 118.74 (NZD 136.55 incl. GST) |
| Corporate tax, flat rate | 28% |
| GST, standard rate | 15% |
| GST registration threshold | NZD 60,000 turnover |
Frequently asked questions
Does New Zealand require a resident director for a Limited Company?
No, unlike Australia next door, New Zealand has no resident director requirement at all.
How much does it cost to incorporate a company in New Zealand?
NZD 118.74 excluding GST (NZD 136.55 including GST), plus a separate $10 name reservation fee.
What's the corporate tax rate in New Zealand?
A flat 28% on company profits, applying equally to resident and non-resident companies.
When do I need to register for GST in New Zealand?
Once turnover is expected to exceed NZD 60,000 a year. The standard GST rate is 15%.
Does New Zealand have capital gains tax?
No, New Zealand has no general capital gains tax, no inheritance tax, and no wealth tax.
Fees and rates above come from the Companies Office and Inland Revenue (IRD) as of 2026, and they do change over time, so double check before you file. None of this is legal or tax advice. Talk to a New Zealand-qualified accountant or lawyer about your specific situation.