How to Open a Small Business in New Zealand

Start a business in New Zealand

Opening a small business in New Zealand is an easy process. While some businesses hire legal counsel to aid in the process, it is not a requirement. New Zealand offers lots of resources for businesses that are just getting started. There are free online classes, quizzes, templates and more. Registration is an important part of starting your business as it helps establish that your business exists and provides a way for you to pay the taxes you owe on goods or services sold.

Things You'll Need

• IRD596 registration form
• Goods and services tax registration form

Instructions

1. Create a business plan to help you map out where your business is heading by determining which opportunities your business will pursue in order to grow and prosper. If you are unfamiliar with a business plan, the New Zealand Business government site offers several free courses for building business plans (see Resources).

2. Investigate the market in which you will be doing business. Conduct focus groups to determine whether people are interested in the goods and services you will be offering. The larger the market the better the opportunity for a newcomer to make it.

3. Take the free course entitled "Are you ready to be in business?" The course is offered online through the New Zealand Trade and Enterprise website (see Resources).

4. Pick a unique name for your business and determine your business structure. Is your business a company, a partnership or are you a sole trader? A business will typically begin as a partnership or sole trader before growing into a company.

5. Search the company name database administered by the Ministry for Economic Development to find out if your business name is already in use (see Resources). Skip this step if your business is a sole trader or a partnership. These business types are not yet stored in a national database.

6. Check the Yellow Pages either in your phone book or online to ensure that you are the only one with your business name (see Resources). Google is also a good resource for searching business names. The more unique your name is the easier it should be to secure it for your business.

7. Complete form IR596 and mail it to the Inland Revenue to receive an IRD number (see Resources). The IRD number is used to identify your business in New Zealand.

8. Register for the Goods and Services Tax (GST) through Inland Revenue. This registration does not have be completed in your first year unless you plan to have an income greater then NZ$60,000. You also do not need to register as an employer unless you plan to have or already have employees.

References

• Business.govt.nz: Starting a Business
• Inland Revenue: GST Goods and services tax

Resources

• Business.govt.nz: Your Business Plan
• NZ Trade and Enterprise: Are you ready to be in business?
• Ministry of Economic Development: New Zealand Companies Office: Search for a company
• New Zealand Yellow Pages Online
• Inland Revenue: Forms and Guides: IRD Number Application