Company law in New Zealand is primarily governed by the Companies Act 1993. This act sets out the rules and regulations for the incorporation, operation, and dissolution of companies in New Zealand. New Zealand offers various types of business entities, and the procedure for incorporating a company involves specific forms, documents, and fees. Here's an overview of New Zealand's company law, types of business entities, the procedure for company incorporation, and taxation under New Zealand tax laws:

Types of Business Entities:

1. Limited Liability Company (LTD): The most common form of business entity in New Zealand is a limited liability company (LTD). LTDs offer limited liability protection to their shareholders, meaning shareholders are generally not personally liable for the company's debts.
2. Sole Trader: A sole trader is an individual who operates a business on their own. It's the simplest form of business ownership, but the individual has unlimited personal liability for business debts.
3. Partnership: A partnership involves two or more individuals or entities running a business together. Partnerships can be general partnerships or limited partnerships, with varying degrees of liability for the partners.
4. Trust: Some businesses are structured as trusts, where assets and operations are managed by a trustee on behalf of beneficiaries.

Procedure for Incorporation of a Company in New Zealand:

1. Company Name Reservation:

• The first step is to reserve a company name with the New Zealand Companies Office. This can be done online, and the name must be unique and not misleading.

2. Appointment of Directors:

• At least one director must be appointed for the company. Directors must be individuals who are at least 18 years old and not disqualified from being a director.

3. Shareholder Information:

• Provide information about the shareholders of the company. A New Zealand resident director may be required.

4. Registered Office:

• A registered office address in New Zealand must be provided.

5. Constitution:

• Companies can adopt a constitution, which outlines the rules governing the company's internal affairs.

6. Filing Forms:

• File the required forms with the New Zealand Companies Office, including Form 1 (Application to Incorporate a Company) and Form 2 (Consent to Act as Director and Shareholder). These forms can be filed online.

7. Registration Fee:

• Pay the registration fee, which varies depending on the method of filing and the type of company.

8. Certificate of Incorporation:

• Once the registration is approved, a Certificate of Incorporation will be issued. The company is now officially registered.

Taxation under New Zealand Tax Laws:

1. Goods and Services Tax (GST):

• New Zealand imposes a 15% GST on most goods and services. Registered businesses charge GST on their supplies and can claim input tax credits for GST paid on business purchases.

2. Corporate Income Tax:

• Companies in New Zealand are subject to a flat corporate income tax rate, which as of my last update in September 2021, was 28%. However, it's essential to check for any changes in tax rates.

3. Personal Income Tax:

• Individual shareholders may be subject to personal income tax on dividends received from the company.

4. Other Taxes: New Zealand has various other taxes, including fringe benefit tax (FBT), withholding tax, and a bright-line test for property sales.

Please note that tax laws and rates may change, so it's crucial to consult with the Inland Revenue Department (IRD) in New Zealand for the most up-to-date information on taxation and compliance requirements. Our tax experts are here to help you for the latest development and making compliance.Additionally, the specific forms, documents, and fees for company incorporation may change over time, so it's advisable to check with the New Zealand Companies Office for the latest requirements.