Your successful New Zealand expansion hinges on setting up a subsidiary or establishing a subsidiary alternative. Every country’s subsidiary laws differ as well as the time it takes to incorporate and start working.
G-P cuts the time it takes to set up a subsidiary from months to a few days. As a Global Employer or Record, we’ll make it easier for you to start your business in New Zealand by hiring employees on your behalf, placing all liability on our shoulders.
How to Set Up a New Zealand Subsidiary
The New Zealand subsidiary setup process starts with considering various factors such as your industry and location. The nationality of your employees can play a role in how you run your business. Additionally, examine any existing business relationships and determine how you can strengthen them during the expansion.
You’ll also need to choose the best location for your subsidiary’s physical office space. Different cities and regions operate under separate New Zealand subsidiary laws and costs. If you are not working with a global PEO, it’s a good idea to reach out to a legal advisor or accountant who can help you decide on the best location within New Zealand.
Once you determine the best place for your business, the New Zealand subsidiary setup process includes these steps:
- Check and reserve your company’s name
- File your company’s documents
- Lodge director and shareholder consent forms
- Register for employment tax and welfare
- Obtain a business industry code (BIC)
Luckily, New Zealand’s incorporation process is streamlined using the RealMe service. You can receive all your documents to run your new subsidiary through RealMe, which saves you time and effort throughout the registration process.
New Zealand Subsidiary Laws
New Zealand has complicated subsidiary laws you need to know inside and out before officially incorporating. Start by sending shareholder and director details to the Registrar of Companies for their file on your company. You are required by law to update this information annually.
Large companies that are 25% or more controlled by non-residents have additional requirements. These businesses have to file audited financial statements with the Registrar of Companies within six months of their balance date.
Benefits of Setting Up a New Zealand Subsidiary
The most significant benefit of a subsidiary is it can operate independently of your parent company. This structure limits the parent company’s liability in case of any losses or litigation. It also allows you to put your own stamp on your subsidiary. From company culture to management techniques, you can tailor the subsidiary to New Zealand’s overall culture.
Your company will enjoy even greater benefits by choosing an alternative to establishing a New Zealand subsidiary like a global PEO. With a global PEO like G-P, you won’t have to undergo the lengthy New Zealand subsidiary setup process or learn all of the company’s unique laws. Instead, we’ll hire employees through our established PEO and assign them to work for you. As the Employer of Record, the compliance falls on our shoulders, so you can focus solely on running your company.
Other Important Considerations
Before your company decides to expand, you’ll need to set aside specific time and resources. First, you will need time throughout every step of the subsidiary registration process. You may have to travel back and forth to New Zealand or designate an employee who can do so. The registration steps often cost a substantial amount, and you may need to pay to retain the services of an attorney.
Since New Zealand subsidiary laws are complicated, you will have to choose an employee who can learn these laws — or you can hire an expert like G-P.
Let G-P Help With Your Expansion
G-P completely mitigates the concerns of setting up a subsidiary. With us, you won’t have to go through the lengthy subsidiary setup process or learn all of New Zealand’s laws, and you can concentrate on growing your company. Contact us today to learn more about the services included in our comprehensive solution.