New Zealand

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New Zealand

General information about the jurisdiction

New Zealand (an official name is the Kingdom of New Zealand) is an island state in the Pacific Ocean, a part of the United Kingdom, was one of the first state proclaimed nuclear-free status.

New Zealanders are anxious to the environment, which allowed saving wonderful natural places and scenic landscapes. Wild jungles and small coves live peacefully together here, which attracts nature lovers from all over the world.

You should also remember about such benefits of New Zealand as territorial principle of taxation, the most convenient procedure of registration and high level of confidentiality.

1. Legislation

Company activity in New Zealand is regulated by Companies Act 1993.

2. Company formation

2.1 Types of companies

The legislation provides some corporate forms entrepreneur, partnership (one of the partner must have unlimited liability), Look Through Company (LTC), Limited Liability Company, trust. Foreigners prefer Limited Liability Company (Limited, Ltd) and LTC.

2.2. Limited Liability Company (Ltd):

  • The minimum authorized capital – not established. Payment by the moment of incorporation in not required.
  • Shares – registered with par value. Bearer shares are not allowed.
  • Director – at least 1 individual or legal person, no residency required. 
  • Members – at least 1, individual or legal person, no residency required. 25 members maximum. 
  • Secretary – not required.
  • Confidential information: information about directors and shareholders if the nominee service is used. 
  • Company is obliged to keep and submit an annual financial report. Companies, in which most shareholders are non-resident or more than 25% of shares are owned by non-residents, have to be audited (it is recommended to use nominee members who are residents of New Zealand).  
  • Registered office in New Zealand is required. 

Look Through Company (LTC) is a novelty of New Zealand legislation, which structurally differs from Limited Liability Company that should have not more than 5 shareholders (who are non-residents). The source of income of the company can not be in New Zealand. Under these conditions, the company pays no corporate tax and its members pay taxes on the profit.  

3. Taxes

Corporate tax - 28%. If the company is used in conjunction with foreign trust, it is possible to reduce tax rate to 3.3%

VAT – 12.5%

4. Currency control

None

5. Agreements on avoidance of double taxation

New Zealand concluded lots of agreements on avoidance of double taxation, but not with Ukraine.

6. Features

New Zealand is not included in lists of tax havens of any state.