HOW DO YOU SET UP AN LTC?

LTCs: How do you set up or form an LTC* in New Zealand? It’s quite straightforward:

1. Form a company

2. Complete an LTC election and send it to IRD. You can also send it via myIR

3. File your annual returns with IRD and NZCO^

However, there are a few decisions you’ll need to make:

• Who will be the company directors?
• How many directors will you have?
• Who will be the shareholders? 
• How many shares will they own? (We recommend at least 100)
• What will be your company name?
• Will you have a website, and if so, is a suitable domain name available (which ties in with your company name)?
• What will be the address of your registered office? (Your home address is likely suitable)
• Will the company be an LTC?
• Will the company be registered for GST? (If it owns rental residential property: No).
• Will the company be an employer?
• Will you maintain your own NZ Companies Office records? (We can help you with that)
• Will you file your annual NZ Companies Office return? (And we can help you with that)

If this all sounds a bit daunting, don’t panic.  There is lots of helpful info at companies.govt.nz, and they have a toll-free hotline.

Note that prices for company setup vary wildly in the marketplace, hence it pays to shop around.  While we don’t incorporate companies, we can help you set it up or refer you to trusted partners.  Please contact us for assistance

* Look-Through Company

^ New Zealand Companies Office