To handle the above complexities, you`ll also need various additional tools for your business, such as complex accounting software (for small and medium-sized businesses. B), payroll software (to submit your monthly salary filing plans to IRD) and inventory management tools. For example, if you registered a business and made $50,000, you`ll probably want to withdraw that money from the business and pay yourself. If you did, you would pay an income tax of about 16%. If you leave that money in the business instead, you`ll have to pay 28% at the end of the fiscal year. There are 3 common structures for business in New Zealand – sole proprietorship, partnership and business. When you register a business, it automatically receives an NZBN (New Zealand Business Number) – a unique identifier that every business in New Zealand can now have. Its use speeds up your interactions with governments, suppliers and customers and other companies, e.B. the exchange of invoice details. Sole proprietors (also known as self-employed workers) founded their business without registering as a company. Sole proprietors do not have business partners or other shareholders, but they may have employees.
You need to keep accurate records, create a budget for upcoming tax payments, and account for your business` expenses and deductions for your business and employees. The NCBN will change the way companies work with each other and with government. Use accelerates your interactions with authorities, suppliers, customers, and other businesses. With your NCBN, the companies where you buy or sell can retrieve your data quickly and accurately, by .B. for invoicing or placing orders. Once registered, you can manage and pay GST online with myGST, a new section of the Tax Office`s myIR service. If you operate a business that hosts a large number of creditors, you may want to structure yourself as a business to offer you some protection in the event of your business going bankrupt. A „business“ is any business transaction in which goods and services are sold.
To run a „business“, you don`t need to register a business – you can run a business as a sole proprietor, freelancer or entrepreneur. In cases where freelancers or entrepreneurs work in an industry where there are risks – such as. B potential allegations of misconduct – or when their clients require them to take other steps to mitigate the risks, individuals can purchase professional liability insurance. Such a policy would cover them in the event of legal action against them. This insurance is very easy to obtain and is much cheaper and more efficient than registering a business. For businesses at every stage, even if you are self-employed, it is important to protect your intellectual property (IP), through .B. Your logo, brand or inventions. Below are some licenses or certifications your business may need, depending on what your business does. Your company`s profits – what remains of your income after expenses – are taxed at the 28% corporate tax rate. Profits can also be distributed in the form of dividends to shareholders, who are taxed individually on their personal income. Any tax that the company pays on the profit can also be added to the dividend in the form of a credit. Small business shareholders may also be able to accept subscriptions – loans – from the company.
If they work for the company, they can also take a shareholder-employee salary on which they have to pay their own taxes. Each of them adds to all the responsibilities you have as an individual director of that company. As an administrator, you are responsible for all your individual tax matters, such as. B tax returns (IR3), ACC levies (if not covered by the company) and any other tax and personal compliance requirements. Your first pay-as-you-go bill will arrive after the end of your first fiscal year. After that, you will be charged once a year, usually in July or August. Depending on the location of your business, you may also need to apply for a resource permit and a license for outdoor dining. There is also a fee. You must register for the GST if your income in the last 12 months has been more than $60,000 or if you expect to earn more than $60,000 in the next 12 months.
You can volunteer if you or your business earn $60,000 or less per year, but you will need to file regular GST returns. *RealMe® is a registered trademark of the New Zealand Government and New Zealand Post. This resource helps small businesses guide government support on board. Anna is a sole proprietor who sells facial oils. She recently received an order to supply a major retailer. To make her life easier, she signed up for a New Zealand Business Number (NZBN). It enters its postal address, telephone number, mobile phone number and website and makes this information available to the public. Some industries need a license or certificate to start a business in these areas. These include: You will also be asked if you need to register for benefit tax (FBT) and employer pension contribution tax (ESCT). How much money do you need to start and run your business? All companies registered in New Zealand have the same basic elements: every company should have a business plan that outlines its long-term profitability and strategies for staying afloat. It also summarizes all the market research you`ve done.