Companies in New Zealand

New Zealand is a remote state located in the southwestern part of the Pacific Ocean. The country is divided into the North and South Islands and covers an area of 268,680 sq. km. The population of New Zealand is 4.2 million people. The political system of the state is based on the principles of constitutional monarchy and parliamentary democracy. The country is one of the territories belonging to the Kingdom of New Zealand.

Despite its small size, New Zealand is not inferior in development to the most popular, economically demanded countries. It is a country with an impeccable reputation, and at the same time offering conditions for business that are usually offered by offshore zones, so beloved by entrepreneurs for the confidentiality of operations and the absence of taxes. The "non-offshore" reputation of New Zealand is also ensured by the established level of taxation, it should be noted that in its "pure" form it is very impressive: VAT - 12.5%, corporate tax - 28%.

New Zealand is a member of the OECD. The banking structure of the state is characterized by stability and loyalty to traditions. The country has an Agreement on avoidance of double taxation with more than 30 countries of the world.

Organizational and legal forms of companies in New Zealand.

Since 1993, the Companies Act has regulated LLCs.

In 2008, the Partnership Act allowed the registration of companies of the form LP.

There are other forms of companies, but LLC and LP are the most popular in New Zealand.

Important: Any company registered in New Zealand automatically becomes resident, therefore, it instantly acquires the obligation to provide all financial and administrative reports to the appropriate services.

LP (Limited Partnership)

Description.

Limited Liability Partnership. The most common form of partnership for transnational business. One of the partners has unlimited liability, the area of responsibility of the second partner is limited by the amount of his contribution. Optimal structure for investment activity.

Institution.

To register a partnership, a minimum of two founders, individuals or legal entities of any residency, is required. Use of nominee services is allowed.

Control.

An LP must be managed by an individual who must be a resident of New Zealand. Nominee CEOs are allowed.

Partners.

Both individuals and legal entities, residents of any country, can act as partners. The number of limited partners is no more than 25.

Authorized capital.

There are no minimum paid-up capital requirements. Usually, the size of the authorized capital is determined by the Partnership Agreement, where LP participants can draw up and change it on their own. The standard capital is 1000 NZD.

Reporting.

An LP form company is required to file an Annual Return. There are no requirements for the submission of financial reports to the register of enterprises for LP, however, this does not relieve the founders from the obligation to draw up and store all necessary documents. Tax returns are submitted every 12 months.

Taxation.

An LP registered in New Zealand does not pay tax to the country if it does not carry out profitable activities in its territory. Tax liabilities are transferred to each individual partner, at the time of sharing the profits of the partnership.

Holding meetings.

New Zealand jurisdiction requires meetings of Limited Partnerships to be held annually. Requirements for the method of communication (telephone conversation, live communication) and the place of the meeting are not put forward.

Confidentiality.

Information about the real beneficiary of the company is available only to the registered agent and is confidential. The open register contains information about the shareholders, directors and founders of the LP partnership, this information is publicly available.

Name.

At the end of the company name, the phrase Limited Partnership must be spelled out in its entirety or as an abbreviation - LP. Without proper licenses, the use of the following words in the name is not allowed: "Bank", "British", "Trust", "England", "Irish" "Assurance", "Insurance", "British", "Building Society", "European". Special instructions exist for the terms "National", "International", "Holding", "Group", etc.

Opening of the LP company.

Company registration takes from 15 to 18 business days. Receipt of a full package of documents - 7-8 weeks.

Documents required for company registration:

• Company registration certificate, certified by the Apostille of New Zealand.
• The company charter/memorandum of association signed by the founders.
• Protocol on the appointment of the director and the distribution of shares.
• Two general powers of attorney, one of which is certified by Apostille.
• Nominee service agreement (if applicable).
• Certificate/s of interests.
• Stamp of the company.