Starting a Business in New Zealand: A Simple Compliance Cheat Sheet
So, you’re ready to turn your idea into a real business - exciting!
Before you dive in, it helps to understand the basics of compliance, tax, and registration in New Zealand. This quick guide walks you through the essentials so you can start smart and stay compliant from day one.
1. Choosing Your Business Structure
How you set up your business affects everything from tax to liability. The main options in NZ are:
Sole Trader – The simplest setup. You and the business are the same legal entity. Easy to start and manage, but you’re personally liable for debts.
Partnership – Two or more people share ownership and profits. Each partner is personally responsible for business debts.
Limited Liability Company – A separate legal entity that protects your personal assets. Offers credibility and easier access to funding, but comes with extra reporting obligations.
Trust or Incorporated Society – Suitable for charities or community organisations with specific legal purposes.
Most small to medium businesses register as limited liability companies for the protection and structure it provides.
2. Registering Your Business
You can register online at companiesoffice.govt.nz.
When you register, you’ll need:
A company name (check it’s available first)
At least one director living in NZ or Australia
A registered office and address for service
To apply for an NZBN (New Zealand Business Number)
Once registered, Inland Revenue (IRD) will automatically issue your company IRD number for tax purposes.
3. GST - Do You Need to Register?
GST (Goods and Services Tax) applies to most goods and services sold in NZ.
You must register for GST if:
Your business earns $60,000 or more per year, or
You expect to earn that much within the next 12 months.
Even if you’re below the threshold, voluntary registration can help you claim GST on business expenses and appear more credible to suppliers and clients.
GST returns are usually filed every two months, though small businesses can opt for six-monthly.
4. Understanding Your Tax Obligations
As a business owner, you’ll likely deal with several types of tax:
Income Tax - Paid on your taxable income each year. Companies, trusts and individuals are taxed at different rates. Check the current tax rates here: https://www.ird.govt.nz/income-tax/income-tax-for-individuals/tax-codes-and-tax-rates-for-individuals/tax-rates-for-individuals
Provisional Tax - Once you’ve been trading for a while, you may need to pay tax in instalments during the year instead of one lump sum at the end.
GST Returns - Filed regularly, usually every two months.
PAYE Tax - If you hire staff, you must register as an employer and withhold PAYE tax on wages.
Your accountant can help you estimate what to set aside so there are no surprises come tax time.
5. Other Essentials for New Businesses
Set up a business bank account to keep personal and business finances separate.
Get accounting software like Xero – it’s easier to manage invoices, expenses, and GST.
Register with ACC for business cover.
Keep good records — invoices, receipts, and mileage logs must be retained for seven years.
6. Getting the Right Advice
Starting strong can save you years of stress later. At Town & Country Accountants, we help new businesses set up correctly from day one - registering your company, managing GST, sorting your accounting systems, and explaining exactly what’s due and when.
We make it simple, transparent, and human - so you can focus on growing your business with confidence.
Ready to Get Started?
Let’s chat about your business idea and build the right foundation together.