New Zealand (NZ)
New Zealand is an English-speaking Pacific country known for high trust institutions, dramatic landscapes, outdoor life, and a pragmatic immigration system built around skills, family, study, and investment.
Capital: Wellington
Region: Oceania
Language: English
Currency: NZD (NZ$)
Cost of living: Expensive (index 75)
Emergency: 111
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Business Setup
Start a business or go freelance in New Zealand.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 Check your visa allows self-employment: some work visas restrict the type of work you can do; visitor visas do not permit self-employment.
- 2 Apply for an IRD number at ird.govt.nz — required before earning income or filing returns.
- 3 Choose your structure: sole trader (simplest, no registration required), limited company (NZ$105 at Companies Office), or other structure based on liability and tax needs.
- 4 Register a business name at Companies Office if operating under a name other than your own (NZ$50–105 depending on process).
- 5 Register for GST if annual taxable turnover exceeds NZ$60,000, or voluntarily if commercially useful (e.g. to claim GST refunds on expenses). GST rate: 15%.
- 6 Set aside income tax (using appropriate tax code) and ACC levies from each payment — IRD recommends provisional tax payments if you expect to owe NZ$5,000+ at filing.
- 7 Keep invoices, bank records, contracts, and expense evidence for 7 years (IRD audit window).
- 8 Check professional licensing and insurance requirements before undertaking regulated work (building, electrical, plumbing, financial advice, healthcare).
Tax registration
Inland Revenue (myIR at ird.govt.nz). Sole traders file income in an IR3 individual return by 7 July each year (or 31 March with a tax agent extension). Companies file separate IR4 company returns and must maintain Companies Office annual returns, director/shareholder registers, and a separate business bank account.
VAT threshold
GST registration is required once taxable supplies exceed NZ$60,000 in any 12-month period. Voluntary registration is available below this threshold. GST rate: 15% on all taxable supplies. File GST returns monthly, two-monthly, or six-monthly depending on turnover.
Invoicing
GST-registered suppliers must issue a tax invoice for supplies over NZ$50, showing: supplier name and GST number, date, description of goods/services, GST-exclusive amount, GST amount, and GST-inclusive total. Non-GST invoices should show legal/trading name, bank details, service description, date, and payment terms. Retain records for 7 years.
Social security
There is no broad social insurance contribution deducted from employment income (unlike Europe). ACC (Accident Compensation Corporation) levies apply — earners levy deducted from wages; self-employed pay a work levy based on earnings (approximately 1.53–2% of liable earnings in 2026). KiwiSaver is optional for self-employed (no employer contribution for self-employed). Plan private income protection, sickness, and retirement savings as there is no employer safety net.
💡 Contractor misclassification, visa work limitations, tax residency (183-day rule), ACC classification, professional registration, and restraint-of-trade clauses are the main traps for expat freelancers. If one client controls your hours, tools, location, and work process, get advice before assuming you are genuinely self-employed — the IRD applies a multi-factor test.
🏢 Business Structures
Sole trader · Sole trader
Self-employed individual
None
Min. capital
1–3 days (IRD number + optional GST registration)
Setup time
Liability: Unlimited personal liability
Setup cost: IRD number application free; no Companies Office registration required to trade in your own name
Best for: Freelancers, consultants, and side businesses. Simplest and cheapest form — income reported in personal IR3 return. No liability protection.
Partnership · General Partnership
General partnership
None
Min. capital
1–2 weeks (agreement drafting)
Setup time
Liability: Partners personally and jointly liable for all partnership debts
Setup cost: NZ$200–2,000 (written partnership agreement strongly recommended; no statutory registration fee)
Best for: Small businesses with 2 or more owners where all partners accept shared liability. Each partner files their own income tax on their share.
Limited company · Limited Liability Company
Ltd company
No practical minimum (NZ$1 is common)
Min. capital
1 day online via Companies Office portal
Setup time
Liability: Limited to company assets; directors may be personally liable for insolvent trading or statutory breaches
Setup cost: NZ$105 online registration at Companies Office (companies.govt.nz); annual return NZ$50/year
Best for: Most serious operating businesses, contractors, and employers. Provides liability separation, professional credibility, and tax flexibility (company rate 28%).
Look-through company · Look-through company (LTC)
Tax-transparent company election
No practical minimum
Min. capital
1–5 days (company formation + IRD LTC election)
Setup time
Liability: Company law limited liability, but tax losses and income flow through to shareholders personally
Setup cost: NZ$105 company registration + NZ$500–2,000 tax advice for LTC election (IRD application)
Best for: Small closely held businesses (maximum 5 shareholders) where tax transparency, offsetting losses against other income, or flow-through of income is beneficial.
Trust · Business or family trust
Trust structure
Trust property (assets) required at formation
Min. capital
2–4 weeks (trust deed drafting and execution)
Setup time
Liability: Trustees have fiduciary obligations and can be personally liable for breach; beneficiaries' liability limited to trust assets
Setup cost: NZ$2,000–5,000+ (trust deed drafting by solicitor; stamping/registration costs)
Best for: Asset protection, estate planning, and income splitting for family businesses. Not a default trading structure — trust tax rate 33% unless distributing to lower-rate beneficiaries.
Branch · New Zealand branch of overseas company
Foreign company branch
No separate capital requirement
Min. capital
1–2 weeks
Setup time
Liability: Overseas parent company remains fully liable for all branch obligations
Setup cost: NZ$150 (Companies Office overseas company registration) + NZ$1,000–3,000 accounting/legal setup
Best for: Overseas companies testing or establishing operations in New Zealand without incorporating a local subsidiary. Parent company documents must be certified.
Incorporated society · Incorporated Society
Non-profit incorporated association
None (member and constitution requirements apply; minimum 10 members)
Min. capital
2–4 weeks
Setup time
Liability: Separate legal entity; officer duties apply; members generally not personally liable
Setup cost: NZ$80 (Incorporated Societies Act registration at Companies Office)
Best for: Clubs, community groups, and non-profit member organisations. Cannot distribute profits to members. Must re-register under Incorporated Societies Act 2022.
Co-operative company · Co-operative Company
Co-operative
Structure-specific (member share capital required)
Min. capital
4–12 weeks
Setup time
Liability: Limited liability subject to company rules
Setup cost: NZ$2,000–10,000+ (legal and accounting setup; constitution drafting)
Best for: Member-owned producer, worker, or consumer ventures. Profits distributed based on trading activity with the co-operative rather than share capital.
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