New Zealand

An island nation in the south-western Pacific Ocean, located off the east coast of the Australian continent on two major islands and a large number (700) of adjacent smaller islands. Acquired the status of an independent dominion in the British Empire in 1907

Capital

Wellington

Official language

English and Maori

Government

Constitutional monarchy

Currency

New Zealand Dollar (NZD)

Economy

New Zealand is one of the most economically advanced countries in the region. This is an industrial-agronomic country. New Zealand has one of the leading places in the world in export of oil, meat, wool and cheese. Light Industry is mostly developed.

Legal system

Common law

Corporate law

  • Companies Act 1993, Amendment Regulations, 2001
  • Income Tax Act 2007
  • Taxation of Limited Partnerships Act 2008

Types of companies

  • Private LLC
  • Public LLC
  • General and Limited Partnerships
  • Branch of a foreign company
  • Trust

Private LLC

  • New Zealand does not have requirements of minimum share capital and there is no need to specify authorized and paid-up capital.
  • Every company must keep a register of shareholders and hold annual general meetings.
  • The company must have at least one director, one shareholder and a legal address. Director and shareholder can be the same person, if it is the sole shareholder/director.
  • It is not required to form a board of directors or supervisory board.
  • Limited Liability Companies must file annual reports with the updated information to maintain the Company. Director of the company must ensure that the company keeps accounts, and annual financial reports are filed. Reports are subject to verification by the auditor, unless shareholders decide otherwise at the annual general meeting.

Trust

  • There are several types of trusts, including Trading Trust and common Trust. Trading Trust can be used as an alternative to limited liability companies. Its activities are governed by trust deed, that may specify wide powers of the trustee and his ability to act at his own discretion. Income derived by a trustee is distributed at the beneficiary's tax rate, retained earnings are taxed at the trustee's rate (currently 33%) and, therefore, can be paid to the beneficiary tax-free.
  • If a non-trading foreign trust derives income, that is paid to non-residents of New Zealand, this income is tax-exempt, if the source of income is outside New Zealand. Also the foreign trust can apply agreements on avoidance of double taxation signed by New Zealand.

Taxation of companies

Companies that do not derive profit from the territory of New Zealand, do not pay income tax and value-added tax on income from foreign sources.

Agreements on avoidance of double taxation

Australia, Austria, Belgium, Britain, Germany, Denmark, India, Indonesia, Ireland, Spain, Italy, Canada, China, Malaysia, Mexico, Netherlands, Norway, slave Emirates, Poland, Republic of Korea, Russia, Singapore, United States of America , Taiwan, Thailand, Fiji, Philippines, Finland, France, Czech Republic, Chile, Sweden, Switzerland, South Africa, Japan.