New Zealand Limited Company
New Zealand
New Zealand limited companies are quick to incorporate (typically <24 hours via the Companies Office online portal) and inexpensive (~NZD 130 incorporation fee). The 28% flat corporate-tax rate sits in the middle of OECD averages. Critically, the 2018 reform mandates that at least one director be a NZ resident OR resident of an enforcement-country (effectively only Australia qualifies in practice) — a major structural barrier for fully non-resident-owned NZ companies, often addressed via an Australian or NZ-resident nominee director (NZD 2,000-5,000/year). NZ has no capital gains tax and no imputation cross-border (residents only), making it well-suited for active operations rather than passive holdings.
Formation Details
- Setup Time
- 1 days
- Setup Cost
- $80
- Annual Cost
- $1,000
- Corporate Tax
- 28% flat
- VAT Threshold
- $36,000
- Nominee Directors
- Not allowed
- Public Register
- Yes
- Residency Required
- At least one director must be a NZ resident OR a resident of an enforcement country (Australia from 2018 reform). Major structural barrier for fully non-resident-owned NZ companies.
- Banking Difficulty
- Moderate
Economic Substance Requirements
- Physical Office
- Not required
- Local Director
- Required
- Minimum Staff
- —
- Annual Local Spend
- —
Mandatory NZ-resident OR Australia-resident director (post-2018 reform). Registered NZ office address required (can be registered agent). No minimum share capital. No mandatory company secretary post-Companies Act 1993.
Annual Maintenance Breakdown
Typical recurring costs after formation. Most jurisdictions have additional variable costs (accounting fees, professional tax prep, statutory audits) not shown here.
| Item | Annual Cost (USD) | Notes |
|---|---|---|
| Companies Office annual return | $30 | NZD 45 annual return fee. |
| NZ / Australian resident director (nominee) | $3,000 | NZD 2,000-5,000/yr depending on provider and structure complexity. Mandatory for non-resident-owned companies. |
| Registered office service | $250 | NZD 200-400/yr. |
| Accountant + IRD filings | $1,500 | NZD 1,500-3,000/yr depending on complexity. |
Banking Pairing Recommendations
Providers commonly used with this entity type for business banking.
US Person Considerations
NZ Limited companies owned by US persons are CFCs; Form 5471 required. The US-NZ tax treaty provides 5%/15% dividend withholding rates and reduced rates on interest and royalties. NZ has no capital gains tax, but US persons remain subject to US capital-gains tax on share / interest disposals.
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