Registering with multiple government agencies is required when starting a business or working as a self-employed individual to access their services and comply with legal and tax obligations. Here’s a brief overview of the process and the required steps.
RealMe® is a secure sign-in service that employs identical username and password credentials for various online government amenities, such as:
- verifying the eligibility of a job seeker to work in New Zealand
- submitting an annual return to the Companies Office
- registering a trademark.
However, a separate login is required for Inland Revenue’s myIR online service.
Where to use RealMe — Department of Internal Affairs
*RealMe® is a registered trade mark of the New Zealand Government and New Zealand Post.
The NZ Business Number (NZBN) is an exclusive identification code that can be acquired by any enterprise operating in New Zealand. In the long run, the NZBN is expected to emerge as the primary identifier for all businesses.
Registering the NZBN will transform the way companies interact with each other and with the government. Utilising it will expedite your dealings with suppliers, clients, other businesses, and government entities. Your NZBN enables companies that you transact with, either as a buyer or seller, to obtain your information promptly and precisely, such as for billing or placing orders.
Upon registration of a business in New Zealand, it is automatically assigned an NZBN.
To obtain your NZBN, you or your accountant can visit the NZBN website, provided you have the following:
- A RealMe login
- An IRD number for the sole trader, partnership or trust that you’re enrolling for an NZBN
- Basic particulars differ based on the type of business structure you have. Refer to the NZBN website to discover the specific data required.
Register for an NZBN — NZBN
Get a RealMe login — RealMe
Making business easier
Anna operates as a sole trader and specialises in the sale of face oils. She recently secured a lucrative contract to supply a significant retailer. To streamline her operations, she decides to apply for a New Zealand Business Number (NZBN). Anna provides her postal address, phone number, mobile number, and website information, which becomes publicly accessible.
When engaging with the retailer, Anna provides her NZBN. This allows the retailer to promptly access her particulars, facilitating speedy and efficient transactions such as invoicing and stock verification. Furthermore, because her NZBN is unique to her, Anna doesn’t have to fret about being mistaken for one of the retailer’s other boutique beauty brands.
Establishing an online myIR account is the simplest approach to interacting with Inland Revenue. This will enable you to:
- Maintain current personal and business particulars
- Examine your tax, KiwiSaver, and other Inland Revenue accounts
- Determine your obligations regarding filing income tax returns
- Submit business returns, including employer returns and GST
- Assess tax payment options.
The tax implications of your earnings are determined by the business structure you select, whether it’s a sole trader, partnership, or company. Check out our suggestions on picking the appropriate structure for your situation,
Choose Business Structure tool
- Income tax is paid by individuals on the profits of their businesses.
- To obtain an IRD number, complete the IRD number application – individual (IR595) form.
Living in New Zealand and not a new arrival – IRD number application — Inland Revenue
- Every partnership is required to obtain its unique IRD number, but each partner must declare their share of profits and losses in their respective personal tax returns.
- If your partnership does not have an IRD number, you can apply by completing the IRD number application for resident non-individuals (form IR596).
Tax residency status for companies — Inland Revenue
- A company must obtain its own IRD number.
- You can apply for an IRD number through the Companies Office when registering your company.
If your turnover in the past 12 months was over $60,000 or you expect it to be over $60,000 in the next 12 months, you are required to register for GST. However, if your business earns $60,000 or less annually, you can choose to register voluntarily, but you will need to file regular GST returns.
After registering, you can easily manage and pay GST through myGST, a newly introduced section of Inland Revenue’s myIR service, accessible online.
To register online, access myIR and provide the following details:
- Your IRD number
- A business industry classification (BIC) code
Register for GST — Inland Revenue
Find your BIC code — Business Industry Classification Code website
If you start hiring employees or contractors who receive schedular payments, you must register as an employer with Inland Revenue, regardless of whether you employ your spouse or partner.
During the registration process, you will also be asked whether you need to register for Fringe Benefit Tax (FBT) and the Employer Superannuation Contribution Tax (ESCT).
Are you an employer — Inland Revenue
Getting schedular payments — Inland Revenue
Register for myIR — Inland Revenue
Employer superannuation contribution tax (ESCT)
In case you are interested in hiring staff, such as permanent, fixed-term, or casual employees, you might have to register as an employer with Inland Revenue.
Find out about Registering as an employer on the Inland Revenue website.
Once Inland Revenue receives your income figures, they will be passed on to ACC to determine if you need to pay ACC levies and the amount of the levy. To ensure accurate calculation of your levy, it may be necessary to inform ACC of the type of business you operate.
Your first levy invoice will be issued after the completion of your first year in business. Subsequently, you will receive an invoice every year, typically in July or August.
If you opt to establish a limited liability company, as opposed to operating as a sole trader or partnership, you are required to reserve the company name and submit an application for listing on the Companies Register.
To begin registering, you must have a RealMe login, which will allow you to access the Companies Office website where you can:
- Verify if your preferred business name is available by searching the Companies Register
- Reserve the name of your company
- Register your company
- File annual returns, which include contact information for the company and its directors.
How to start a company — Companies Office
RealMe — Department of Internal Affairs
Choosing the right business structure
All companies operating in New Zealand are obligated to file an annual return with the Companies Office every year to verify that they are still operating as a company. Failure to file the annual return annually may result in your company being removed from the national Companies Register.
Companies Register — Companies Office
An annual return is not a tax return and comprises the following information:
- The company’s address(es)
- The names and addresses of its directors and shareholders
- Information about its ultimate holding company, if applicable
- General filing details, such as the month in which the company submits its annual return.
There is a fee for filing an annual return, and you can do so online on the Companies Office website. To register for a Companies Office account, you must have a RealMe® login if you haven’t already done so.
File your annual return online — Companies Office
RealMe — Department of Internal Affairs
*RealMe® is a registered trademark of the New Zealand government and New Zealand Post
It is crucial for all businesses, including those that are self-employed, to safeguard their intellectual property (IP), such as their brand, logo, or inventions.
The New Zealand Intellectual Property Office (IPONZ) website enables you to register the following:
- patents: to protect inventions
- trade marks: to protect brands, identity and logos
- designs: to protect product appearance
- plant variety rights (PVR): to protect new plant varieties.
Certain forms of intellectual property are better safeguarded by maintaining confidentiality. Use our checklist to identify your IP assets and discover easy approaches to protect them.
Are you struggling with accounting and business management for your business? We are here to help! Get in touch with us to discuss how our expert services can support your business’s success. Contact us today to schedule a free consultation and see how we can add value to your operations.
