New Zealand's Companies Office moves fast, and unlike Australia across the Tasman, it asks for no resident director at all, which tends to be the first thing overseas founders notice when comparing the two. Here's how the process runs in 2026.
1. Sole trader, Limited Company, or look-through company
Most people setting up here choose between two main options, with a third worth knowing about.
- Sole Trader. No separate legal entity, no company registration needed, though you do have to notify Inland Revenue that you're self-employed and get a personal IRD number. All business debt is yours personally.
- Limited Company (Ltd). The structure most New Zealand businesses end up using: at least one shareholder and one director, personal liability capped, and generally taken more seriously by banks and clients than an unincorporated setup.
There's also the look-through company (LTC), a company that's taxed more like a sole trader or partnership, with profits and losses flowing through to shareholders at their own personal tax rates. It comes with its own annual IR7 return and tends to suit fairly specific situations where that pass-through treatment actually pays off.
2. Registering the business
Sole traders and partnerships can get a free New Zealand Business Number (NZBN) directly, no company involved. Incorporating a Limited Company goes through the Companies Office, which requires a RealMe login, and the company gets its NZBN automatically as part of that registration. The government's incorporation fee is NZD 118.74 excluding GST, or NZD 136.55 with GST included, and reserving a name costs a separate $10 plus GST. For foreign investors with documents ready to go, the whole process usually wraps up in about a week.
3. Licenses and permits
There's no single nationwide business license in New Zealand. What you need depends entirely on your industry, so check with the relevant regulator for anything that goes beyond the standard Companies Office registration.
4. Corporate tax, GST, and how NZ taxes differently
Corporate tax sits at a flat 28% on company profits, applied the same way to resident and non-resident companies alike. New Zealand runs a full imputation system, so tax the company has already paid gets credited against shareholders' tax on dividends, which keeps the same profit from being taxed twice. GST runs at a standard 15%, and registration becomes necessary once turnover is expected to top NZD 60,000 a year (registering costs nothing). One thing that sets New Zealand apart structurally: there's no general capital gains tax, no inheritance tax, and no wealth tax, which tends to shape how founders here think about building equity over the long run rather than just chasing annual profit.
5. Staying compliant
Every business needs an IRD number for tax purposes, free to get and essential regardless of structure. GST returns go in every 1 to 6 months depending on the filing cycle you pick, filed electronically through myIR, with payment due by the 28th of the following month. Income tax returns are due 7 July, or 31 March if a tax agent is filing on your behalf. Expecting to owe more than NZD 5,000 in tax pushes you onto quarterly provisional tax payments instead of one lump sum at year end.
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.