Incorporation

The Corporate & Compliance practice area focuses on helping businesses follow the rules and regulations set by New Zealand law. One important part of this area is Incorporation, which is the process of creating a new company.

What is Incorporation?

Incorporation means turning a business idea into a legal entity, like a company. This is important because it protects the owners' personal assets. For example, if a company faces financial trouble, the owners usually won’t lose their personal belongings, like their house or car.

Why is Incorporation Important?

Incorporating a business can offer many benefits:

• Limited Liability: Owners are not personally responsible for the company’s debts.
• Credibility: A registered company can appear more trustworthy to customers and suppliers.
• Tax Benefits: Companies may have different tax rates and advantages compared to individuals.

How Does the Incorporation Process Work?

In New Zealand, the incorporation process involves several steps:

1. Choose a Company Name: The name must be unique and not too similar to existing companies.
2. Register with the Companies Office: This is done online, and you will need to provide details about the company and its directors.
3. Set Up Company Rules: These are called the company’s constitution, which outlines how the company will operate.
4. Get an IRD Number: This is necessary for tax purposes.

Who Can Help?

Lawyers and legal advisors in the Corporate & Compliance practice area can guide you through the incorporation process. They can help ensure that all legal requirements are met, making the process smoother and less stressful.

Incorporation is a vital step for anyone looking to start a business in New Zealand. By understanding the process and seeking professional help, you can set your business up for success while staying compliant with the law.