Below are the two main types of incorporation to consider when incorporating a New Zealand entity which is owned by an overseas parent company.
NZ Company
If owned by an Overseas company this is called a “Subsidiary”.
Tax
- Resident in NZ for tax
Annual Reports
- A subsidiary is required to file audited financial statements relating to its New Zealand business only.
Directors
- As of May 2015 at least one director needs to be a NZ resident
Liability
- Liability of company is up to the initial capital used to create the company
Overseas Company (“Branch”)
Tax
- Generally considered non resident
Annual Reports
- A New Zealand branch of an overseas company must file two separate sets of audited financial statements, one for its worldwide operations and one for its New Zealand business.
Directors
- No limitation
Liability
- A New Zealand branch (being legally the overseas company), bears directly any liabilities that it may incur under New Zealand law.