New Zealand: A natural choice for thriving businesses.
New Zealand is known for its business-friendly environment, strong economy, and ease of business. The country’s open economy, free trade agreements, robust legal framework, and skilled workforce make it an attractive destination for businesses expanding globally.
However, navigating company registration and ensuring compliance often requires local expertise and can prove expensive. Partnering with an Employer of Record (EOR) can simplify the process and ensure compliance, without establishing a local entity.
The business benefits of registering your company in New Zealand
New Zealand offers compelling reasons for international businesses to set up operations. Here’s why:
- Ease of doing business: New Zealand is ranked among the easiest countries to start and run a business due to its efficient regulatory framework and minimal bureaucratic hurdles.
- Transparent legal system: The country has a strong legal framework that protects businesses, ensuring fairness and stability.
- Access to global markets: With free trade agreements across multiple regions, New Zealand serves as an excellent gateway to the Asia-Pacific market.
- Skilled workforce: The country has a well-educated, English-speaking workforce, making recruitment and operations seamless for international companies.
- Stable economy: New Zealand’s stable political environment and strong economy provide a secure foundation for businesses to grow.
All these advantages make New Zealand an excellent business destination. But how can you expand operations here? You have two options; let’s explore both in detail.
What is the difference between standard company registration and expanding through an EOR?
Businesses expanding into New Zealand have two main options. You can either opt for traditional company registration or partner with an EOR.
Here’s a quick comparison:
Aspect | Company registration | Employer of Record (EOR) |
Purpose | Establish a legal entity for long-term operations | Test new markets or manage remote teams |
Control | Full control over operations | Limited control (EOR handles HR/admin) |
Cost | High initial investment (registration, legal fees) | Predictable, bundled service fee |
Compliance | Full responsibility for legal and tax compliance | EOR ensures compliance with New Zealand laws |
Scalability | Complex and time-consuming | Quick and flexible workforce adjustments |
While direct registration offers complete control, using an EOR simplifies the process, especially for businesses seeking a cost-effective and low-risk market entry.
How EOR simplifies New Zealand company registration
Here’s how partnering with an EOR like Multiplier can make the New Zealand market entry seamless:
- Rapid market entry: Start operations within weeks instead of months.
- Compliance management: EORs handle labor laws, payroll taxes, and contract regulations.
- Cost efficiency: Avoid expenses like share capital deposits, legal documentation, and office setup.
- Streamlined payroll: Manage salaries, benefits, and tax filings via a single platform.
- Focus on core business: While the EOR handles administrative tasks, you can concentrate on strategic growth.
While an Employer of Record (EOR) is an efficient solution for many use cases, if your company must bid on government contracts or needs full operational control over employment contracts and compliance, consider company registration.
A step-by-step guide to registering a company in New Zealand
The process of company registration in New Zealand involves multiple steps.
Here’s a simplified roadmap:
Step 1: Choose a business structure
Select a legal structure that aligns with your business goals. The most common options include partnership, companies, and sole traders
- Sole trader: A single owner (with complete liability for income and losses)
- Partnership: Two or more people sharing business responsibilities
- Companies: A separate legal entity with one or more owners (who are not usually held liable for any losses)
Step 2: Reserve a company name
Use the New Zealand Companies Office (online service) to check for name availability and reserve your preferred company name.
Step 3: Register your company
File an application with the New Zealand Companies Office and provide the necessary details, including company structure, directors, shareholders, and registered office address.
Step 4: Obtain a New Zealand Business Number (NZBN)
Once registered, your business will be automatically assigned a New Zealand Business Number (NZBN),which is required for legal and financial transactions. Only entities like trusts, partnerships and sole traders need to apply separately for NZBN.
Step 5: Register for tax and GST
Businesses must register with the Inland Revenue Department (IRD) to obtain a tax number and, if applicable, register for Goods and Services Tax (GST) if annual turnover exceeds NZD 60,000.
Step 6: Set up payroll and employee benefits
Register with ACC (Accident Compensation Corporation) and ensure compliance with employment laws, tax obligations, and worker benefits.
Step 7: Open a business bank account
Most businesses in New Zealand require a local bank account for financial transactions and compliance purposes.
Step 8: Apply for business licenses and permits
Depending on your industry, you may need specific licenses or permits from government authorities to operate legally.
Setting up a company in New Zealand requires adherence to legal, financial, and administrative processes, which can be time-consuming for foreign businesses. While registration is straightforward, navigating tax obligations, compliance, and payroll are ongoing processes that add complexity and administrative workload.
An Employer of Record (EOR) offers a more efficient alternative. It allows businesses to bypass most administrative hurdles while ensuring full compliance with employment laws and tax regulations.
Let’s explore the costs involved in registering a company in New Zealand and see how an EOR like Multiplier can simplify your expansion.
The real cost of registering a business in New Zealand
Understanding the financial requirements is essential. Here’s a breakdown of the costs involved:
- Company registration fee: NZD 90 – NZD 150 (varies based on company type)
- Annual return filing fee: NZD 25 – NZD 50
- Tax registration: Free, but requires proper documentation
- Legal and compliance fees: NZD 500 – NZD 2,000 (These services are optional and may vary based on the service provider)
- Business bank account setup: Fees depend on the bank and account type
- Ongoing accounting and compliance: NZD 1,000 – NZD 5,000 annually
Cost comparison: standard registration vs. EOR
A side-by-side comparison reveals how EORs minimize upfront costs and administrative burdens, making them a cost-effective alternative to standard entity setup.
Cost category | Company registration (NZD) | EOR with Multiplier (NZD) |
Setup fees | $1,000 – $3,000 (when including legal or consultancy fees) | $0 (covered by EOR) |
Legal documentation | $500 – $2,000 | Included |
Payroll & compliance | $300 – $500/month | Included |
Ongoing maintenance | $1,000 – $5,000/year | Included |
Time investment | 3–6 months | 2–4 weeks |
While company registration involves substantial upfront costs and administrative complexity, an EOR offers streamlined services with transparent, recurring fees.
Note: The facts and figures in this article are subject to change and may vary based on your business vertical. Talk to our team for a more precise estimate of your company registration expenses in New Zealand and savings when using an EOR.
Take the stress out of your New Zealand expansion with Multiplier
Skip months of navigating complex regulations—hire top talent in New Zealand quickly and compliantly with Multiplier’s EOR services, without setting up a local entity.
Why choose Multiplier?
- Local hiring expertise: Quickly onboard local talent in New Zealand without entity registration.
- Comprehensive HR solutions: Manage everything from time-off to expense tracking on our intuitive all-in-one platform.
- Compliance assurance: We ensure adherence to employee labor laws and payroll regulations
- Attractive benefits packages: Offer competitive, localized benefits to attract and retain top talent.
- Reliable support: Across time zones, our dedicated team of experts is available for you whenever you need them.
Book a demo today and explore how EOR can help you test the market, reduce costs, and expand into New Zealand, effortlessly.
