New Zealand Offshore Company
New Zealand taxation is assessed on residency, in that all New Zealand companies are taxable; but will not pay tax if the New Zealand “offshore” company is completely non-resident meaning:
- The company is incorporated under the Companies Act 1993;
- The company has no source of revenue in New Zealand;
- The company is controlled and managed out of New Zealand;
- The company does not have ahead office in New Zealand.
With a tax schedule that is residency based, New Zealand companies and other New Zealand corporate structures have the ability to operate onshore and offshore. New Zealand offshore companies companies whose income and profits are sourced from outside New Zealand are exempted from all tax liabilities under law. All New Zealand offshore companies can engage in international trade and commercial activities, establish bank accounts, or invest anywhere in the world and operate as a tax-free offshore company.
In New Zealand, there are three main corporate structures that can be used for offshore business activities; and subject to non-resident status and tax exemptions namely:
New Zealand Limited Liability Company
New Zealand Limited Partnership
- New Zealand General Partnership
The New Zealand Company is an independent legal entity separate from its owners. The NZ offshore company can be incorporated as a New Zealand offshore company with limited liability (Limited Liability Company) or with unlimited liability. Nez Zealand offshore companies set up as limited liability offshore companies must end the company name with the declaration ‘Limited’ or ‘Tapui (Limited)”.
The NZ offshore company is defined and regulated by the Companies Act 1993 No 105, Public Act under which the NZ offshore corporation can be incorporated with a just one director and one shareholder. The company must have a minimum of 1 share issued, of the classes redeemable, preferential shares with conditional, limited or special voting rights, or shares without voting rights. New Zealand Company’s shares must not have nominal or par value.
Unlike the standardized offshore company, New Zealand companies have to maintain a share register, and must hold an annual general meeting though there is no requirement for a supervising council or a board of directors.
The New Zealand Limited partnership entity is a separate and legal entity defined and regularized by the Limited Partnerships acts 2008, therefore, the New Zealand limited partnership has the capacity to perform as any offshore company.
Particulars of the New Zealand Limited Partnership filed with the Companies Registry are not public records and provide privacy for the partners. The application document for formation of a New Zealand non-resident Limited Partnership should include the information details on every partner and proposed partners, the certificate of partnership agreement.
New Zealand companies can operate act, undertake business and transact within and outside New Zealand. All New Zealand companies must have a registered office in New Zealand and in order to maintain active registrations status, the New Zealand companies must files annual returns, and update the Company details with the Companies Office each year.
A carefully structured New Zealand offshore company can be a completely tax exempt company. Once incorporated, the company is generally free to do business, open bank accounts, or invest anywhere in the world, exempt from all taxes.
The cost of New Zealand offshore companies is slightly higher than that of offshore companies in traditional offshore territories, but the ability to use the company both onshore and offshore is advantageous. New Zealand offshore company formation is quick and uncomplicated.