Guide on opening a business bank account in New Zealand

Whether you’re a trustee or tech entrepreneur, setting up a business bank account simplifies taxes and record-keeping to enhance operational efficiency. Depending on your business structure, it might be a legal requirement, too.

The good news? You don’t need to be a finance guru to create one. This post will cover who needs a business account, plus its primary benefits and considerations. We’ll also outline how to set up a business account in New Zealand and compare the top competing options.

Table of contents
Who needs to open a business account in New Zealand? How to open a business bank account in NZ Requirements For non-residents Benefits Factors to consider Business bank accounts options Final thoughts FAQS

Who needs to open a business account in New Zealand?

If you’re flogging a few old vinyls on eBay, a business account probably isn’t necessary. But should you start a serious commercial endeavour, setting one up is a shrewd move.

Sole traders

Also known as a contractor, the sole trader is not legally obligated to create a business account.¹ But that doesn’t mean they shouldn’t. For the busy sparkie, chippy, or freelance creative, a business account separates personal and work expenses to alleviate record-keeping headaches.

Partnerships

A partnership is when 2 or more people agree to share control, ownership, and profits/losses of a business. Unlike a company, it’s not a separate legal entity. Setting up a business bank account separates finances to improve transparency between stakeholders and simplify record-keeping.

Trusts

A trustee manages assets for beneficiaries. Kiwis often set up trusts to shield assets, plan estates, or minimise tax obligations. If you plan to establish a trust, opening a business bank account will facilitate the segregation of funds, streamline taxation, and minimise risks.

Companies

A company is a separate entity from its owners or shareholders, meaning their personal assets aren’t at risk should things go pear-shaped. Running a company on a personal bank account would be a bookkeeper’s nightmare; a business account is a no-brainer here.

How to open a business bank account in New Zealand

You’ve gathered the paperwork and found the ideal business account for your needs. Follow these 3 simple steps to set it up.

1. Fill out the application form, either online or in person
2. Upload the required documentation, using the RealMe verified identity service
3. Wait for the bank to verify your details, then approve your application

A business account can take as little as 10 minutes to set up.

Once your account is ready, set up online banking, activate your business card, and sync any accounting software. Remember to use your business account for all business-related transactions, and never use it for personal spending.

Requirements to open a business account in New Zealand

Every business bank account has similar setup requirements, many of which are legal provisions. You may encounter minor variations, especially between different business structures, such as sole traders and trusts.

Nonetheless, here are some documents you might be expected to provide, depending on the business account provider:²

• A New Zealand Business Number (NZBN)
• Tax details, including your 8 or 9-digit IRD number
• ID such as a government-issued passport and/or driving licence, usually provided in person at a branch or online through the RealMe verified identity service
• Your business name and address
• Documents to verify your address, such as utility bills, rates, rental agreements, or vehicle registration
• A Certificate of Incorporation (for a company or partnership)
• Contact details, including a New Zealand phone number registered in your name.

Existing customers might get to skip ID verification steps.

Can I set up a New Zealand business account as a non-resident?

A non-resident can open a New Zealand business account. However, expect to hop through more hurdles than the locals, such as providing proof of your New Zealand work status and a Certificate of Incorporation from your home country, translated into English if required.

A simpler solution might be to open a Wise Business account in your home country for your Kiwi commercial ventures. Wise Business has low fees and uses the mid-market exchange rate so foreign businesses can save on international transfers, such as paying staff and suppliers or receiving invoices.

1. Head to the Wise Business Account website
2. Click “Register”
3. Enter your personal details
4. Enter your business details
5. Wait for us to verify your details
6. Link Wise Business to your Wise Personal account, if you have one.

Setting up a business in New Zealand as a foreigner is easier with Wise on your side. Of course, you must still comply with all the usual regulatory requirements for starting a New Zealand business.

Benefits of opening a business account

From record-keeping to future-proofing growth, there are many compelling reasons to open a business account in New Zealand.

• Legal compliance: Don’t fall foul of the law. Setting up a business account is a legal obligation if you’re starting a trust, partnership, or company.
• Credibility: A business account shows clients and suppliers you mean business. You’ll build more trust in your brand by projecting a professional image.
• Record-keeping: Sorting tax-deductible expenses from personal splurges is a time-consuming pursuit. A dedicated business account for all work-related transactions streamlines bookkeeping.
• Taxation: Your accountant doesn’t want to comb through discretionary spending either. A separate business account makes filing taxes simpler, especially when linked to specialised accounting software.
• Performance Tracking: A business account makes tracking income and expenses easy, allowing you to keep close tabs on your cash flow.
• Efficiency: Rapid record keeping and simplified taxes make your business leaner and more efficient. That frees up time to focus on growth.
• Loans: Got plans to expand? A business account provides concrete evidence of your finances to build a solid credit rating and secure loans.

Factors to consider when setting up a business bank account

From fee structures to foreign exchange rates, there are many things to consider.

Start by evaluating your business needs. Do you deal with cash, process a high volume of EFTPOS transactions, or frequently send money overseas? These factors can determine which business account works best for you.

Setup procedures

Starting a business or setting up a foreign subsidiary can be a hassle due to burdensome verification requirements and paperwork-heavy processes. Many foreign entities might lack the legal documents to set up a local bank account at all.

As a banking alternative, Wise Business lets customers create accounts in multiple currencies, including NZD, to send and receive money like a local business. Thus, foreign companies expanding into New Zealand may find Wise Business simpler to set up.

International transactions

A bank might not be the best bet if you regularly move money across borders. With a standard SWIFT international transfer, the sending bank charges a flat fee, an intermediary bank slugs you with a lousy exchange rate, and the recipient bank charges another fee. It adds up.

Bank alternatives, such as Wise Business, offer a multi-currency account where businesses can send, receive and hold money in different currencies. For a one-time fee of 40 NZD, businesses can set up a local business account in 8+ currencies, including USD, AUD, CAD, EUR, and more. What’s more, businesses can convert their money at the mid-market exchange rate with no hidden markups and low, transparent fees. That means less money lost with every currency conversion.

Software integration

From Xero to Zoho, bookkeeping software simplifies finances for businesses. But not all programs integrate with every account. Accounting software integration lets a business automate payment processing, saving a significant amount of time and reducing human errors. For customers, it makes online purchases easier as they needn’t use a separate payment portal.

Wise Business works seamlessly with the top accounting programs to sync business transactions.

Fees

Banks have a knack for extracting vast sums of cash through fees. Consider monthly account fees, local transaction fees, off-network ATM, overdraft, and service fees for staff-assisted transactions.

Some fees barely affect your business, while others could make a big difference to your bottom line. If your company makes many small transactions, you might be better off switching to an account with a higher monthly fee, but lower per-transaction fees.

Scalability

As your business grows, so too will your fiscal complexity and payment needs. Many of the best banks offer tiered plans that make it easier to scale. Sole traders and trustees may feel less inclined to consider future growth than companies and partnerships.

Some of the business bank accounts in New Zealand

We’re briefly looking at 3 business account options for Kiwi businesses. Read our best business bank accounts in New Zealand blog for a more comprehensive comparison.

Here are the pros and cons of our three business accounts in NZ:

	Pros	Cons
Wise Business - Alternative	No monthly fees, mid-market exchange rates, low international transfer fees, multiple cards	Higher one-off fee, no cash deposits, no overdrafts, no brick-and-mortar branches
ANZ Business Current Account	Many in-person branches, loans and overdrafts, fee relief available	Monthly account fees, higher international transfer fees
BNZ Business First Transact Account	Multiple account options, overdrafts available, online applications	Designed for local transactions, less suitable for high-transaction business

Let’s take a closer look at these business bank accounts as well as alternative solutions available in New Zealand.

Wise Business Account - An alternative

As a brick-and-mortar bank alternative, Wise Business specialises in multi-currency accounts and low-cost international transfers. The transparent pricing on currency conversions can help businesses understand all fees upfront and save when moving money across borders.

With Wise Business, currency conversions are made at the mid-market exchange rate with no hidden markups, allowing Kiwi companies to regularly send money across borders without copping hefty fees.

A Wise Business account allows users to can send, receive, and hold in multiple currencies. Experience hassle-free global transactions by transacting like a local business. Here's what you get with a Wise Business account:

• Free to register — Hold and convert between 40+ currencies. Send to 140+ countries
• Debit cards for you and your team, which you can use in 150+ countries
• Multi-user access for team members, with ways to control and manage permissions
• Pay up to 1,000 recipients at once with the Wise batch payments feature
• Integrate with your favourite cloud accounting solutions like Xero, QuickBooks, and more
• Get account details to receive in 8+ currencies for a one-time fee of 40 NZD

Sign up for the Wise Business account! 🚀

This general advice does not take into account your objectives, financial circumstances or needs and you should consider if it is appropriate for you.

Best for: Globally-focused New Zealand companies doing frequent international transfers

ANZ NZ Business Current Account

The Australia New Zealand Bank (ANZ) offers a wide range of services, including its ever-popular ANZ Business Current Account. This option provides fee relief for young start-ups and non-profits, as well as in-person support at branches all over New Zealand. Online and over-the-phone services are also available.

Business customers can make cash deposits and withdrawals at numerous ANZ ATMs, and the bank allows overdrafts and business loans.³

Best for: Kiwi start-ups, non-profits, and businesses requiring cash deposits and in-person support

BNZ Business First Transact Account

As one of the country’s original banks, the Bank of New Zealand (BNZ) is a well-established player with a large customer base.

Specially designed for small businesses, the First Transact Account has no monthly or transaction fees, plus cashflow support through overdrafts up to a specified limit. A user-friendly mobile app and browser-based web portal make online banking easy, and the large, well-established bank has a wide range of branches on both islands.⁴

Best for: small businesses operating within New Zealand, concerned about transaction fees.

Final thoughts on setting up a business account

Whether you’re a sole-trading sparkie or bootstrapping a company, a business account can streamline record-keeping, better manage cash flow, and reduce hassle at tax time.

It is important to understand your business function and it's financial tracking needs, identify the best option, gather the required documentation, and submit your application. The benefits of setting up a business account far outweigh the effort.

With Wise Business, you avoid long queues when looking tot get a new business account. Once you get started, for a one-time fee, businesses can get access to over 8+ currencies that allows users to transact in different currencies like a local business. With the setup process being painless with Wise Business, why not get cracking today?

Sign up for the Wise Business account! 🚀

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FAQS on opening a business bank account

How long does it take to set up a business account in NZ?

With some banks, you can apply for a business account in as little as 10 minutes. However, verification delays may extend the process for 1–2 business days.

Can I use a personal account for business?

In New Zealand, sole traders can legally use a personal account for business. However, this practice makes record-keeping and filing taxes more difficult.

What’s the difference between a Wise Personal and Wise Business account?

Wise Business offers all the features of Wise Personal plus a bunch of extra benefits for businesses, such as accounting software integrations, batch payments, invoice tools, business cards, Amazon and Stripe payments, and payment links.

What is the best business bank account in NZ?

The leading business accounts in New Zealand include Wise Business, ANZ Business Current Account, and BNZ Business First Transact Account.

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Sources:

1. IRD - Sole Traders
2. BNZ - Opening a non-personal account
3. ANZ - Current Account
4. BNZ - Business First Transact
5. ANZ - Business Essentials
6. BNZ - Everyday Banking