Look Through Company Registration in New Zealand

What is Look-Through Company?

Main Features

• An LTC must be a New Zealand Resident.
• There must be five or fewer look-through owners
• Only a Natural Person, Trustee or another LTC can hold shares in an LTC. All the company's shares must be of the same class and provide the same rights and obligations to each shareholder.
• All the owners must elect for the Company to become an LTC.
• Generally an LTC's income, expenses, tax credits, gains and losses are passed on to its owners. These are allocated to owners in the same proportion of the number of shares held by its owners.
• All the profit is taxed at the owner's marginal tax rate. The owner can then choose to offset any losses against their other income, if the loss limitation rule applies.

LTC Guide

Services

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Business or Company Start-up Checklist

Every Entrepreneur after they have decided they would like to start their journey of entrepreneurship have got the same set of questions?

If you arrived on this page, its means that you already have made your mind and would like to register your company. But like many other entrepreneurs, you are still not sure, where to start and what are the things you need to consider before you make this bold move.

Getting your company registered in New Zealand is very easy. As a matter of fact; setting up your business is so easy that New Zealand is voted and ranked 3rd in the ease of doing business category globally. If you interested to read more about this, you can read it on our New Zealand Business Guide page.

At Incorporately; we can help you get your company registered here in New Zealand and in Australia. For more information including pricing; please visit our Company Registration in New Zealand and Australia page.

Here’s the list of recommended resources for your consideration for any startup or new business:

Business Plan:

Company Registration: Now before registering your company, you need to understand that in New Zealand, you can register your company in different ways (Structurally). Following are the different company types:
Sole Trader
Limited Liability Company
Look through Companies
Partnership
New Zealand overseas company
Australian overseas Company
Non profit organisation
Trading Trust

For more info, please visit our New Zealand Company Registration page

List of items you need to consider when you Start your Company:

Company  Name: Try to find very unique while very easy to remember and relevant name for your company. For more info, please visit our Company Name Selection Guide here

Company/Business Domain Name: The moment you register your company name, please register your domain name for your company. For more info, please visit our Domain Name & Registration Guide

Separate Company Bank Account: When you register your company, it is advisable to register your separate bank account straight away. So that from day one, you have all your business transactions in your company account

Company Website: In the age of internet and technology, its not a choice anymore for not having a company website. But if you don’t have time and resources to build your website. Then at-least you should have the holding page with on your website with your company logo and your company contact details (With a message displaying that the website is under construction). You can find some sample of holding pages on this page.

Company Email Address: You definitely need a professional or personalized business email address. Especially when you are trying to setup your accounts with suppliers, partners, bank or insurance providers and your customers. We noticed that people tend not to take you seriously if you are using free (like xtra.co.nz, vodafone.co.nz, clear.net.nz , orcon.net.nz, hotmail.co.nz, yahoo.co.nz or gmail.com etc) email addresses for business purposes. For more information, please visit our business email guide page

Company Phone Number: It might be an extra cost, but its definitely worth it. First because; you need to learn in the very early stage that you need to keep your personal life separate from your business/professional life. What i meant is that, having two numbers means more flexibility and you can chose separate voicemail messages on each of those phones. (Imagine your very important client rang on your personal phone and your call is received via voicemail service with your personal voice message).

Good Company Logo: A good looking, simple and eye catching company logo can help you stand out of all the business and company logos.

Business Cards: You need lots n lots of them. If possible and if you can afford it before you get your business card print, spend some time on your Company Logo. We spent heaps of time, when we were trying to design Logo for Incorporately.

Professional Business Document Templates:

For more info, Please visit our Professional Document Templates for Businesses page.

Going an Extra Mile

Oh you have decided to read through and if you came all the way up-to this section of the page, it means that you are really serious about your business. Here are the list of things recommended which can help to kick start your business.

Marketing Plan:

Local Directory Listing: Did you know that there are over 100 internet directories in New Zealand, some of them are free while some are paid. It is advised that you should spare some time and try to get your business registered in some of those directories.

Cloud Apps: Going for Google Apps

Cloud Account Software: Now when you just started your business, you need to keep track of all your expenses, sorting your transactions. Now don’t get scared,  you don’t need to worry about installing the software or license or long training. We are talking about Cloud based accounting software named XERO. For more information, please visit our Xero Accounting Software page

CRM Portal: CRM stands for Client Relationship Management. Today most of the businesses demands for advanced application to manage your clients/customers and to give them best possible customer service. Some of the best CRM applications available today are Salesforce, Zoho CRM, Sugar CRM and Infusionsoft. We can help you get started with any of the above CRM applications.

Smartphone: If you already have one then it PERFECT!! If not, here why you should consider having one. Today smartphones are considered equivalent to the computers. With the right selection of Cloud Applications and smartphone you can take your productivity to the next level, spend more time in the field, meeting more people and clients than spending time in front of your computer.

Domain Registration in Multiple countries: Did you know that you can register your domain in over 100 countries. When it comes to domain registration, kiwis normally registers only .co.nz or .net.nz domains. But if other TLD like .com, .net, .org, .info are available, please don’t hesitate to register them. Cost of register the available domain is fraction of the total cost of buying it back from other companies.

Trademark Registration:

Social Media Usernames Registration: If you already decided to register your trademark; then you should also spend some time on acquiring usernames across all different social media websites. Did you know that there are over 500 social media website (Click here to find the complete list of the websites)

Internet Marketing: There are lots of ways today you can market your business online some of which are but not limited to Google Adwords, Bing or Yahoo, Facebook, LinkedIn, TradeMe, affiliate marketing networks etc. For more info, please visit our Google Adwords & PPC Management page.

Social Media Marketing:

Professional Registered Business Address:

Separate Postal Address: Did you know that on an average over 400,000 kiwis change their address every year. That about 10% of the total New Zealand population every year. Most of the time, we just move within the same city. Having a Permanent postal address for all your mail is a good idea.

Business Insurance: Its a great idea to get enough cover for your business. Although there are many different types of business insurances available in the marketplace but Public liability and professional indemnity insurance are the most common ones. For more information, please visit our Business Insurance Guide for Businesses page.

Payment Portal: Make sure your new business is ready to receive the payments and funds from your clients. Quite often, most business spends all the time and money to build and develop the business but when it comes to receive money they found themselves in deep trouble where clients can’t make a payment via conventional methods. Using Paypal for business account.

Using Coworking Space:

VoIP & 0800 Numbers:

Online Document Signature:

Join local Meetup Group:

Disclaimer: Please note that this is not this is for your reference only. You don’t have to completely follow the steps entirely or solely. Please access your personal and financial situation before making any decision. You can read our Full Company Disclaimer here.

IRD & GST Registration for Businesses

1. GST Registration stands for Goods and Service Tax.

You must register for GST, if you carry out a Taxable activity and if you turnover:

• was over $60,000 for the last 12 months, or
• is expected to go over $60,000 for the next 12 months
• (This equates to $5,000 per month. If your turnover is $5,000 per month and you expect to maintain that level all year, you’ll need to register for GST.), or
• was less than $60,000, but you include GST in your prices, for example taxi drivers who have included 15% in their taxi fares.

2. Voluntary GST Registration

You can still choose to register GST if your turnover is not likely to exceed $60,000.

Benefits of Voluntary GST Registration

• Even if your expense will be greater than your income during startup phase of your business, then you are eligible to claim GST refund.
• You are eligible to claim GST that you already have paid when purchasing goods and services from other businesses.
• You are also eligible to claim back GST for the second hand goods you have purchased from an Non-GST Registered Person/Business
• You can also eligible to claim the GST, if you have paid the GST for buying products and services as an Individual for a Company during Pre-Incorporation stage; after you successfully registered your company.
• Filing GST returns helps you to keep your business accounting records accurate and up to date.
• If you are a new business and just started, other businesses sometimes prefer to deal with a company which is GST registered.
•     If you are an exporter, you are eligible to claim GST on your expenses but your exports will be zero-rated, so you will be in a GST refund position.

3. Things required for GST Registration

1. An IRD number.
2. A BIC (business industry classification) code.
3. A chosen accounting basis.
4. A chosen taxable period.

Click the link to view or download the GST Guide for Businesses

Imp Note: When you register your company online via Incorporately NZ, we can obtain a GST number for you during Incorporation of your new company.

But, if you already have registered your company, you can still apply for Business GST number.

Click the link to view or download the  Goods and Service Tax Act 1985

3.1 IRD Number Registration

IRD stands for Inland Revenue Department, is New Zealand government’s department responsible for the collection of approximately 80% of the Crown’s revenue in New Zealand.

Starting a New Business – Your business needs an IRD Number.

If you operates a Business you must have an IRD Number (It is required for Partnership, Company, Non-Profit Organisation, Trust or Estate).

Imp Note: When you register your company online via Incorporately NZ, we can obtain an IRD number for you during Incorporation of your new company.

But, If you already have registered your company, you can apply our Business IRD number online.

Sole trader or Partner, you need Personal IRD number:
You need a personal IRD number as:

• a sole trader
• a partner in a partnership.

3.2 BIC Code: You need a BIC Code (Business Industry Description and Code) for your GST Registration. Click here to view or download the Business Industry Description Code file.

3.3 Account Basis: Your accounting basis is how you claim and charge GST. There are three different options available.

3.3.1 Payment Basis: It is considered to occur when payment is made or received.

3.3.2 Invoice Basis: It is considered to occur when

• An invoice is received or issued or
• you receive or make a payment (whichever comes first)

3.3.3 Hybrid Basis: Hybrid basis is a hybrid of the first two and is only really designed for large exporting businesses that can’t charge GST on what they sell overseas.

Most of the Small businesses prefer to use the Payments basis because the Invoice basis allows for the possibility for having to pay GST to Inland Revenue before the invoice is paid by the customer.

3.4 Taxable Period: A taxable period refers to the frequency at which you have to file your GST returns, and following are the periods available to choose from:

• Once a month
• Once every two months
• Once every six months

4. IRD – Free Tax Seminars and Workshops for Small & Medium Businesses

IRD organises small tax seminars and workshops for SMBs. If have just started your businesses, you should definitely attend one. Even if you have an accountant or tax consultant to look after your accountant; its highly recommended to attend one of these sessions. These sessions are free to attend and are especially designed to help you better understand your tax obligations as a Company.

These seminars covers topics including

• Income Tax
• GST (Goods and Service Tax)
• Electronic Filing
• Record Keeping
• PAYE
• Kiwisaver
• Deductible Expenses and more

These seminars and workshops are being held throughout New Zealand including

Northland
Auckland
Waikato
Bay of Plenty
Gisborne
Taranaki
Manawatu
Whanganui
Hawke’s Bay
Wellington
Nelson-Tasman
Marlborough
West Coast
Canterbury
Otago
Southland

To book your session, please click this link IRD Free Tax Seminars

Important Note: It is always recommended to seek the advice of professional accountant, tax consultant or agent for tax returns and any related matters with Inland Revenue New Zealand.

What is Domain Name?

Types of Domain Names?
TLDs: .com .net .org .info, .co, .me (Anybody can register with no Restrictions)
ccTLDs:  .com.au .net.au (Need ABN Number or Trademark Application Number to register)
.co.nz, .net.nz or .org.nz (Anybody can register with no Restrictions)

How to register a domain in Australia (For Kiwis & Kiwi Companies)?
If you wanted to register a domain in Australia or you own a .co.nz or .net.nz domain and you would like to secure a domain in Australia. You currently have the following choices

• Ask your friend or family member in Australia to register the domain on your behalf or on behalf of your business (Not Recommended)
• You need an ABN Number (Australian Business Number). Only for those who already have a registered company in Australia.
• Apply for Trademark registration in Australia and your Trademark Application number can help you to register a domain in Australia.

Why Register your Company/Business Domain Name?

When you are stating an online small business, you might not think that the domain name registration is very important. It can make a big difference in how successful your website will be. With the right domain name, and by registering with the right company, your business will have a better chance of succeeding. It is the first of many steps you will have to take for a successful online business.

How to select good Company Name?
Half of your domain search and exploration job is already completed if you have finalized your Company Name. Majority of the times, companies choose to use the name of the company as your domain name (For E.g. Google.com owned by Google Inc). Having said that, there are lots of cases where businesses prefer to use domain names which are more relevant to the immediate product or services they offers. (For E.g. Best Plumbing Limited decided to use

Registering your Domain Name? Just like Car registration number plate, if the Domain name if your desired domain name is available then you can purchase the domain just by paying the registration fee. But if the domain is already registered but domain is not is use (Quite often domain investors buys and park the domain) then you can chose to buy the domain at premium price, assuming the domain is meeting all the important criteria give below.

Incorporately NZ can not only help you register your domain name but can also help you to select or choose the right domain name. Our comprehensive domain registration package can help you to register domain of your choice in over 50 countries.

Recommended Things

• Register as many domain options as you can. If your desired domain is already registered, try to register other TLDs or ccTLDs for the same name. (E.g. You registered yourcompany.co.nz, try to search & register other TLDs like .com, .net, .org or .info and ccTLDs like .net.nz, .org.nz, .co.uk etc)
• Register your domain for more than 2 years
• Try to register Domains, which are simple, short and easy to pronounce.
• Try to register domains from the Dictionary words. Generic words are really good and good domain can bring you tons of organic traffic.
• Make sure when you selecting your domain, your nature of business/company is self explanatory like BestElectrical.co.nz, BestPlumbing.co.nz, Bestcarpet.co.nz or Bestcleaning.co.nz.
• Always use the same email address as your business/company domain name. It help you bring more traffic to your website when you share your email address with your prospects and other people.
• If good or dictionary keywords domains are available in your niche then you should register that domain and which you can use it to bring more traffic to your website. (For E.g. you registered Bestplumbing.com domain and you found & registered plumbing.com domain. You can use plumbing.com domain to divert all the traffic to your main website or use it for marketing purposes (Like Radio Ads etc).

Not Recommended Things

• Make sure domain don’t have dash “-”.
• Make sure your domain don’t have numbers or digit. Because it can be confusing for your customers and visitors especially when you are giving your domain details over the phone. (For E.g. DigitalOne.com or Digital1.com) It can be really hard to change the domain later on, so spend bit more time. Choosing wrong domain can be fatal and can do harm than benefit (For E.g. Repeat Customer goes to DigitalOne.com instead of visiting Digital1.com and quite possibly your competitor own the other domain and redirecting traffic to his own website)

Marketing of your Domain or Website?
There are multiple ways of market your domain or website and some of them are listed below:

• Offline Marketing including Business Cards, Paper or Magazine Ads, Brochure or leaflet distribution etc
• Online Marketing
• By using SEO (Search Engine Optimization)
• By using Online Advertisement

Please Contact Us for more information and pricing.

Trademark Search & Registration

What are Trademarks?

A Trademark is anything used to distinguish the goods or services of one company from those of their competitors. A trademark is defined in the Trade marks Act 2002 as “any sign capable of being represented graphically and distinguishing the goods of one person from those of another…” and can be a word, name, symbol or Logo, signature, colour, shape or figure, sound, smell, picture, even just a letter or any combination of these; as long as it is distinctive.
What is IPONZ?
IPONZ stands for Intellectual Property Office of New Zealand, IPONZ is the government agency responsible for granting and registration of intellectual property rights including Patents, Trademarks, Designs and plant variety rights. IPONZ was established in year 1870. According to the current statistics, on an average there are over 6000 Patent and 17000 Trademark applications  filed every year.

Why does businesses need a Trademark?
Businesses generally spends considerable amount of time and energy on selecting good business names. Choosing the right name for the company or perhaps a product can help you stand out of the competition.

Trademarks are effective and valuable assets of your company. Securing your trade marks should be an important decision before you consider registering a new name for your company or for the “Products or Services” to be launched. For those who have a current business its still not too late to register and safeguard their trade mark.

Trademarks help your customers, suppliers, partners and other companies to identify your products & services and to verify the reputation & business goodwill accumulated over its trading years.

Quite often other businesses and competitors decide to copy or try to use the similar name which can have negative impact on your business turnover. But if you own the trademark you can not only stop other but you can also sue them for the damages and loss of income.

How should you select your Trademark?
To protect your Business Name or Brand

Preliminary Search & Research
Before finalizing your Trademark, its a good idea to search for the existing trademarks, names, brands, products or services and also search for the close variations. There’s possibility that your desired trade mark already being registered or in process of registration.

Domain Registration
If you are convinced that your new business should also own the Trademark of your Company Name or Brand Name and you are confident that there are not any existing goods or services are using that name; then we would also recommend to register your Domain(s).

Incorporately NZ can help to register your Trademark & Domain Registration. Please Contact Us for pricing and more details.