There are three main ways of doing business in New Zealand – as a sole trader, in a partnership, or as a company. Use our links to learn more about operating a business and business conduct in New Zealand.
Sole traders
A sole trader owns all the assets of the business and is solely responsible for all the business's risks, obligations and debts.
Business partnerships
If you want to operate a business with other people in New Zealand, you can establish an ordinary or special partnership under the guidelines established by the Partnership Act 1908.
Companies
The Companies Act 1993 provides the basic rules for establishing and operating a company in New Zealand. Any person may, either alone or together with another person, apply for registration of a company.
What constitutes a company?
- A company must have:
- a registered name
- one or more shares
- one or more shareholders with limited or unlimited liability for the obligations of the company
- one or more directors
- A company may have a constitution and, in certain circumstances, a constitution can be adopted to alter the Act's rules to suit a company's individual requirements.
- A company is a legal entity in its own right, separate from its shareholders, and continues in existence until it is removed from the Companies Register.
- A company may enter into contracts with its shareholders.
- Under the Financial Reporting Act 1993 only companies that are 'reporting entities' need to prepare and register financial statements. Reporting entities are companies that issue shares, overseas companies, subsidiary companies or companies with at least one subsidiary.
- Companies with assets valued at $450,000 or with a turnover of $1 million must also file financial statements.
- Companies that offer securities, including shares, to the public, and overseas-owned or overseas-controlled companies, must be independently audited.
- Unless otherwise agreed, contracts entered into by the company do not impose liability on individual members.
- A company has access to the Australian market under CER (Australia New Zealand Closer Economic Relations Trade Agreement).
Freephone: 0508 266 726 (O508 COMPANIES)
Visit New Zealand Companies Office
