Starting a business in New Zealand as a foreigner

Starting a business in New Zealand as a foreigner? Good decision. The World Bank¹ declared it number one for “ease of doing business.” Favourable taxes, low corruption, transparent regulations, streamlined bureaucracy, and a stable, growing economy make New Zealand a prime candidate for foreign investment.

But starting a business abroad can prove tricky for the global entrepreneur. We’ve put together a guide to help foreigners untangle the red tape in New Zealand. Read on to learn about visas, structures, registrations, regulations, finances, and more.

Table of contents
Things to Know Visa Business structure Understanding the local market Business registration and legal formalities Tax and financial regulations How to start a business in NZ as a foreigner Can overseas companies establish a presence in NZ? Managing business finances in NZ as a foreigner NZD business account with Wise Business

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Things to know before starting a business in New Zealand as a foreigner

Starting a business in New Zealand is relatively straightforward for foreigners with the appropriate visa.

You’ll need to develop a business plan and select a structure. Then, it’s a matter of researching the market, registering your business, and complying with legal, tax, regulatory, and employment obligations.

Obtaining a suitable visa

In August 2025, New Zealand Immigration scrapped its long-standing Entrepreneur Work Visa and introduced the Business Investor Visa² as a replacement.

Aimed at well-established foreign businesspeople, the new visa requires at least 10x more capital than the old Entrepreneur Work Visa. Investors who can stump up the cash have two pathways to start a New Zealand business and eventually obtain residency.

• Invest $1 million in an existing business for a 3-year work-to-residency
• Invest $2 million in an existing business for a 12-month fast-track to residency

Applicants can start their own business or stake 25% in someone else’s to meet the minimum threshold. The visa lasts up to 4 years and costs $12,380.

Eligibility requirements:

• $1,000,000 or $2,000,000 minimum investment
• At least $500,000 in personal funds
• Age 55 or under at the time of application
• English language skills (IELTS 5.0 or equivalent)
• Relevant business experience
• Employ at least 5 full-time staff
• Meet health and character requirements

Specific sectors not eligible for the business investor visa are: fast food, gambling, adult entertainment, drop shipping, home-based businesses, immigration advice, convenience/discount stores, and nicotine manufacturing.

Identifying a suitable business structure

The business structure affects growth, outside investment, taxation, employment, and your ability to sell the business.

The three main business structures³ in New Zealand are:

• Sole traders
• Partnerships
• Companies

Sole Traders

The sole trader structure is popular among tradies and online entrepreneurs. You pay tax on your earnings, and can offset expenses to reduce your taxable income.

One downside is liability; your personal assets may be used to repay debts. Also, obtaining investors and loans can prove challenging.

Partnerships

A partnership is the go-to structure when multiple individuals go into business together. Accountants, lawyers, and architects, among other white-collar professionals, often use this structure.

All partners share expenses and can acquire investors. The downsides mirror those of the sole trader–personal assets may be used to repay debts.

Tax isn’t payable as a business; it’s paid on each partner’s earnings. That makes things fairer, should one work harder than another.

Companies

The company structure allows shareholders to limit their personal liability. Other benefits include receiving dividends as shareholders, lower tax rates, and increased business credibility. Companies often find loans easier to acquire and can grow indefinitely.

However, this structure is comparably complex, has stricter regulations, and takes longer to establish.

Understanding the local market

New Zealand has a small but robust economy, driven by the agriculture, tourism, and technology sectors.

Kiwis have an inherent preference for sustainability, innovation, and quality, locally made products. Consumers value traits like trust, transparency, inclusion, and authenticity.

Auckland is the country’s leading commercial hub for its well-developed finance and business sectors. The capital, Wellington, excels in tech and governance, while the South Island city of Christchurch is strong in engineering, manufacturing, and agri-tech. Regional areas make sense for tourism and agriculture, mainly meat, dairy, wine production, fishing, and forestry.

Business registration and other legal formalities

The registration process depends on your structure. Each must apply for an Internal Revenue Department (IRD) number.⁴

Sole traders

Sole traders can begin doing business without registering anything other than a personal or business IRD number.

If you’re employing staff, you’ll need to register as an employer. You may also need to register for GST.⁵

Partnerships

Partnerships need to register an entity IRD number.

The entity must file a Partnership Income Tax Return (IR7) to allocate profits or losses to each partner. Partners declare income via their personal IRD numbers.

As with sole traders, partnerships may also need to register as employers and for GST.⁶

Companies

This entity type requires the most amount of work. You need to:⁷

• Reserve a name
• Get an IRD number
• Provide company and shareholder details
• Register as an employer
• Appoint directors and shareholders
• File director and shareholder consent forms
• Issue company shares
• Incorporate a constitution (not mandatory)

Learn more about registering a company in New Zealand.

NZBN

While not compulsory, some locals may hesitate to trade with you if you don’t have a New Zealand Business Number (NZBN). Companies automatically receive one, while sole traders and partnerships can apply for an NZBN online.

Licenses, qualifications, and certifications

As a well-developed nation with strict regulations, many New Zealand industries have licensing and certification requirements. You and your employees must hold the relevant qualifications to trade.

Sectors that typically require qualifications include:

• Financial services: Financial advisors, bankers, insurance brokers
• Professional services: Engineers, architects, lawyers
• Accounting and tax: Advisers, auditors, liquidators,
• Education: Teachers, vocational educators
• Healthcare: Doctors, nurses, specialists, psychiatrists, physiotherapists
• Trades: Plumbers, electricians, gasfitters

Hospitality businesses require a Food Control Plan to serve food and a Liquor License for alcohol.

Tax and financial regulations

All New Zealand businesses must pay tax. Taxable income varies depending on the amount earned and the business structure.

Business structure	Tax rate
Self employed	Standard rate on an individual tax return (IR3)
Partnership	Standard rate on an individual tax return (IR3) for each partner, plus two income tax returns (IR7) for the business
Most companies	Company income tax return (IR4) with a rate of 28%8

New Zealand businesses usually file a tax return at the end of the first year and pay tax in a lump sum. Keep enough aside to pay your bill. After the first year, most businesses pay taxes in instalments called provisional tax⁹, which is usually combined with GST.

While this guide is a quick run-through of what you’ll need to know, it’s always advisable to have local professionals in your corner when establishing a business abroad. A financial advisor, a tax accountant and a corporate lawyer will be able to guide you through any unclear processes.

Once you expect to start earning $60,000⁹ a year, you must register for GST. Save time by doing it when you register your company. Other structures can sign up for GST online.

A business bank account separates personal and business expenses, making life easier for you and your accountant come tax time. The best business accounts integrate with accounting software, like Xero and QuickBooks, to automate reconciliations and other tedious manual tasks.

How to start a business in NZ as a foreigner

Here’s a quick, step-by-step guide for how to start doing business in New Zealand as a foreigner.

1. Conduct market research: Study your industry, marketing strategy, and target audience to determine whether the idea is financially viable.
2. Write a business plan: Draft a document covering your business details, product/service, marketing strategy, operations, and financials.
3. Obtain a visa: The Business Investor Visa is the preferred option for foreigners looking to trade in New Zealand.
4. Choose your structure: The Choose a Business Structure tool can help you find the best option.
5. Register your business name: Use the ONECheck tool to see if your preferred name is available and register it.
6. Register your business: Companies must also appoint shareholders and directors.
7. Register with the IRD: Obtain a personal IRD number and one for your partnership or company.
8. Register for GST: If you expect to turn over more than $60,000 in the next 12 months.
9. Register as an employer: If you plan to hire staff.
10. Get qualified: Obtain the necessary licenses, certificates, and qualifications for you and your staff to trade in your industry.

How can overseas companies establish a presence in NZ?

If your company is incorporated in another country, you’ll need to provide the following documents to register for trading in New Zealand:¹⁰

• Contact details
• The business start date
• Certificate of incorporation
• Directors details
• Company constitution

You must also choose a balance date and month for annual filing. Entrepreneurs can begin the process through the New Zealand Companies Office.

Managing business finances in New Zealand as a foreigner

For the foreign entrepreneur, establishing the financial bedrock of their New Zealand venture with a dedicated business account is a critical, yet often challenging. Beyond the universal benefit of separating business and personal finances for easier tax reporting, a business account provides a clear, auditable trail of the significant investment capital required for the Business Investor Visa.

However, approaching traditional banks as a non-resident or recent arrival can create immediate roadblocks. Many institutions require in-person appointments and proof of a local address, a classic catch-22 for those trying to organise their affairs from overseas or in the very early days of their move.

Furthermore, transferring large sums of startup capital through conventional banking networks often involves poor exchange rates and hidden SWIFT fees, eroding a portion of your investment before it even lands.

Setting up your finances the hassle-free way: Wise Business

Wise Business helps address these cross-border financial hurdles, making things easier for international founders. With a Wise Business account in the home currency, businesses have the ability to easily open local account details in 8+, including NZD. The local account details in the respective currency can then be used to receive local payments, bypassing the immediate need for a local address and in-person verification.

It also allows business to transfer initial investment capital and manage funds at the mid-market exchange rate with low, transparent fees, ensuring more money arrives intact. Moreover, Wise provides local bank details not just for New Zealand but for 8+ currencies, allowing the business to seamlessly pay international suppliers or receive payments from overseas customers as if they had a local bank account in that country, simplifying global finances from day one.

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.

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Sources

1. Invest New Zealand: Investment Opportunities
2. NZ Immigration: New Business Investment Visa
3. Business.gov.nz: Choosing the right business structure
4. IRD: IRD numbers for businesses
5. IRD: Business registration details for sole traders
6. IRD: Business registration details for partnerships
7. IRD: Business registration details for companies
8. IRD: Tax rates for businesses
9. IRD: Introduction to taxes and levies
10. Companies Registrar: How overseas companies set up as an NZ business