Can we Start a New Business in New Zealand as a Non-Resident?

ewew Zeicy in NAsYes, it is possible for non-residents to start a business in New Zealand. However, there are certain requirements and considerations that non-residents should be aware of.

Starting a business in a new country can be an exciting and rewarding experience, but it can also be a daunting task, especially for non-residents. If you’re considering starting a business in New Zealand as a non-resident, here are a few things to keep in mind.

Visa

Non-residents who want to start a business in New Zealand will need to obtain a visa that allows them to work in the country. There are a number of visa options available, including the Entrepreneur Work Visa, which is specifically designed for entrepreneurs looking to start a business in New Zealand.

Company registration

Non-residents will need to register their businesses with the Companies Office in New Zealand. This process includes choosing a company name, registering the company, and obtaining a New Zealand Business Number (NZBN).

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Taxation

Non-residents who start a business in New Zealand will need to pay taxes on their business income. It’s important to understand the tax requirements and obligations of running a business in New Zealand and to seek advice from a tax professional if necessary.

If you are a non-resident business owner in New Zealand, you may be subject to tax on your business income earned in New Zealand. However, the tax treatment of your business income will depend on the nature of your business and your business activities in New Zealand.

If you are carrying on a business in New Zealand through a permanent establishment (PE), such as a branch or an office, you will be taxed on the income earned from that PE in the same way as a resident business. A PE is a fixed place of business through which the business is carried on.

Taxation Policy in New Zealand

In case you are not carrying on a business through a PE in New Zealand, but are earning income from a business activity in New Zealand, you may be subject to non-resident withholding tax (NRWT) on that income.

NRWT is a tax that is withheld from the payment made to you and is a final tax on the income. NRWT is generally withheld at a rate of 15% of the gross payment unless a lower rate applies under a tax treaty between New Zealand and the country in which you are resident.

If you are carrying on a business in New Zealand through a PE, you will also be required to file a tax return and pay tax on your business income. You will be required to register for and pay Goods and Services Tax (GST) if your annual GST turnover is more than NZD 75,000.

It is important to note that the tax treatment of your business income may be different if you are carrying on a business through a partnership or a trust in New Zealand. Also, it is advisable to seek professional advice to determine your tax obligations in New Zealand.

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Legal considerations

Non-residents will need to consider any legal requirements or regulations that apply to their specific business, such as obtaining licenses or permits. It may be helpful to seek advice from a legal professional to ensure that all necessary steps are taken.

Overall, starting a business in New Zealand as a non-resident is possible, but it requires careful planning and compliance with the necessary requirements and regulations. It may be helpful to seek advice from professionals, such as immigration lawyers, tax professionals, and business advisors, to ensure that the process goes smoothly.