New Zealand

Currency

New Zealand Dollar (NZD)

Payroll Frequency

Weekly, Bi-Monthly, Monthly

Employer Taxes

About New Zealand

The Polynesian Maori reached New Zealand in about A.D. 800. In 1840, their chieftains entered into a compact with Britain, the Treaty of Waitangi, in which they ceded sovereignty to Queen Victoria while retaining territorial rights. That same year, the British began the first organized colonial settlement. A series of land wars between 1843 and 1872 ended with the defeat of the native peoples. The British colony of New Zealand became an independent dominion in 1907 and supported the UK militarily in both world wars. New Zealand’s full participation in a number of defense alliances lapsed by the 1980s. In recent years, the government has sought to address longstanding Maori grievances. New Zealand assumed a nonpermanent seat on the UN Security Council for the 2015-16 term.

Company Formation Services in New Zealand

Aadmi makes it easier to form a company in New Zealand and makes it less complex and convenient. It includes registering the company with the New Zealand Companies Office, choosing the suitable structure (sole trader, partnership, or limited company), and fulfilling complete compliance with New Zealand corporate law. The majority of entrepreneurs like to create a limited company in New Zealand because it is a limited liability corporation and investor-friendly.

With our experience as your guide, establishing your business in New Zealand is seamless, keeping you compliant and growth-oriented.

Company Types

Limited Company

In New Zealand, a Limited Company (also known as an LTD) is a different legal entity from its directors and shareholders. The structure restricts the individual liability of the shareholders, and it is thus often favored by local as well as foreign investors. A limited company can be incorporated with one shareholder and one director, and there is no maximum number of shareholders that can be named. Shares cannot be offered to the public.

Branch

It is possible for foreign firms to open a branch office in New Zealand and carry on business without having a separate legal entity. The branch is an extension of the parent company and not legally separated from it. The parent company continues to be answerable for the liabilities and debts run up by the branch in New Zealand.

Partnership

A partnership consists of two or more individuals conducting a business in association together with a view to making profits. Through this structure, foreign investors can associate with local enterprises and enjoy established networks as well as shared responsibility for running the business. Nevertheless, partnerships have less legal separation than companies; partners are jointly and severally liable for debts incurred by the business.

Requirements of Incorporation

Paid-Up Capital

No minimum paid-up capital is necessary to register a company in New Zealand. Nevertheless, it is recommended that a company maintain a sufficient capital base for the sake of business reputation and operational requirements.

Foreign Percentage Ownership

New Zealand allows 100% foreign ownership. Foreigners may own and control a company fully, as long as they maintain compliance with local regulations and industry requirements.

Local Director

At least one New Zealand company director has to be a resident in New Zealand or a director of an enforcement company (e.g., Australia). This provides accountability and allows for easier contact with local regulatory authorities.

Corporate Secretary

No legal requirement exists in New Zealand for a company secretary. Companies can appoint one at their discretion, and the individual can be located anywhere in the world.

Local Office Address

A New Zealand registered office address is required. This address will be used for formal communication and needs to be a physical address that can receive mail. P.O. Boxes are not acceptable.

Incorporation Documentation

To incorporate a New Zealand company, the following documentation and information are normally required:

Proposed company name

Shareholders’ details and share allocations

Details and agreement of the directors

Registered office address

Constitution (if required)

Online application for incorporation via the Companies Office

Incorporation Process

Reserve and Register the Company Name

You first need to apply to the Companies Office to reserve your intended company name. It should be distinct and not similar to those in existence. After approval, the name is reserved for 20 working days.

Choose Filing Method

In New Zealand, incorporation is mainly done online through the Companies Office website. The online incorporation is efficient and affordable, and it usually takes 1 to 2 working days.

Prepare Incorporation Documents

Collect all documents needed, such as director and shareholder information, and upload them through the Companies Office portal. Digital consent forms for every director are also needed.

Companies Office

The New Zealand Companies Office is the agency that registers and regulates companies. It has an online public register and offers necessary company administration tools.

Bank Account

After your company is incorporated, the second step is to set up a business bank account. The majority of banks in New Zealand ask for company incorporation papers, directors’ proof of identity, and the purpose of the account or business plan. Some banks might also ask for the director’s physical presence for verification.

Statutory Registrations

Inland Revenue Department (IRD)

All companies are required to be registered with the IRD for a tax number. This is for income tax, GST, and employer payroll.

Goods and Services Tax (GST)

Companies have to register for GST if their turnover is over NZD 60,000 annually. GST returns are submitted from time to time, and once registered, compliance is required.

Pay As You Earn (PAYE)

If your business has employees, you will need to register as an employer and run the PAYE system, deducting income tax and other contributions from earnings.

KiwiSaver

This is New Zealand’s voluntary, work-based savings scheme. Employers automatically need to enroll new employees who meet the eligibility criteria and contribute at least 3% of their gross earnings.

Workplace Pensions

KiwiSaver schemes serve as workplace pensions, and employers must comply with auto-enrollment and contribution requirements. Employees can opt out within a specified timeframe.

With a business-friendly regulatory framework, strong legal infrastructure, and full foreign ownership permitted, New Zealand offers a favorable environment for international investors. Aadmi, with its deep experience in global business services, supports clients with seamless company formation, compliance, and operational setup in New Zealand.

Expand Confidently.
We Handle the Complexities!

Employment Relationship

• Permanent Employment

Permanent employees in New Zealand have a full set of employment rights and responsibilities. They are entitled to parental leave, parental leave payments, and annual, sick, and bereavement leave. They can be full-time or part-time workers. Full-time permanent employees work the standard number of hours over 5 days per week. Part-time permanent employees regularly work a lesser number of hours or days per week.

• Fixed-Term or Specific-Purpose Contracts

In New Zealand, employment contracts must be in writing. Failure to follow this requirement can result in a fine of NZD 1,000 (New Zealand dollars) per employee for the employer. Effective February 21, 2026, at the time an employee enters into an individual employment agreement, the employer must inform the employee that a relevant collective agreement exists and covers the work to be performed, that the employee has the right to join the union party to that agreement, how to contact the union, and that joining the union will bind the employee to the collective agreement, and must also provide a copy of the collective agreement. If the employee consents, the employer must also notify the union as soon as reasonably practicable that the employee has entered into an individual employment agreement. An employment contract must include the contracting parties' names, a description of the work, place of work, hours of work, remuneration, overtime pay, probation, trial period, fixed-term or permanent nature of employment, etc. Minimum rights (such as the minimum wage, annual holidays, sick leave, bereavement leave, overtime pay, etc.) are legal requirements and apply even if they are not specified in the employment agreement.

• Temporary Employment Contratcs

In New Zealand, a fixed-term (temporary) employment contract will end on a specified date or when a particular event occurs, such as: Replacing another employee on parental leave Covering a seasonal peak Completing a project Working temporarily for another employer/department while still being employed by the primary employer (triangular employment) Employers can hire temporary employees through agencies. These workers are employees working under a triangular employment contract. They are employed by an employer (the agency) but work under another business or organization that directs or controls their day-to-day work (the controlling third party). Under a recent amendment to the Employee Relations Act, temporary employees in a triangular contract can take a personal grievance against the controlling third party and their direct employers. The law also recognizes casual employees hired on a short-term basis for no guaranteed work hours, no regular work pattern, and no ongoing expectation of employment. Every time the employee accepts an offer of work in this arrangement, the engagement is treated as a new employment period. A casual employment agreement must outline the details of an employee’s work hours, making clear that there is no guarantee of work on a specific day and that the amount of work will fluctuate.

Probationary Period

An employer may require an employee to serve a probationary period after joining. This must be specified in the employment contract. A probationary period is used to assess an employee's skills in a new job or role (if they are already working for the employer). There are no limits on the duration of probationary periods. If the employer finds the employee's work unsatisfactory at the end of the probationary period, they can dismiss the employee by providing justified reasons. They must give notice before dismissal. Employees have the right to challenge dismissal after probation on the grounds of unjustified dismissal. New Zealand allows trial periods if agreed upon by both the employee and employer in the employment agreement before the employee starts work. Otherwise, they are invalid. The employment agreement must specify that: The employee will be on a trial period at the start of their employment, lasting no more than 90 days (but it can be shorter). The exact duration must be stated (e.g., 30 days or 90 days). The employer can dismiss the employee during the trial period. The employee cannot bring a personal grievance or legal action regarding their dismissal.

Working Hours

Working hours are determined by employment contracts, but they must not exceed 40 hours per week (excluding overtime). If the maximum number of hours is less than 40, then the work must not exceed five days a week. Employees under 16 years of age cannot be employed between 10:00 PM and 6:00 AM on any day. If an employee or employer wants to change work hours, both should agree to this in writing in the employment agreement. Under special circumstances, working hours can be increased by giving reasonable notice to employees. Working hours may be reduced as an alternative to redundancy in some situations, such as genuine financial, commercial, or economic problems or genuine business restructuring.

Holidays / PTO

• Statutory Holidays

2026

January 1 - New Year's Day
January 2 - Day after New Year's Day
February 6 - Waitangi Day
April 3 - Good Friday
April 6 - Easter Monday
April 25 - ANZAC Day
April 27 - Day off for ANZAC Day
June 1 - King's Birthday
July 10 - Matariki
October 26 - Labour Day
December 25 - Christmas Day
December 26 - Boxing Day
December 28 - Day off for Boxing Day

2027

January 1 - New Year's Day
January 2 - Day after New Year's Day
January 4 - Day off for Day after New Year's Day
February 6 - Waitangi Day
February 8 - Day off for Waitangi Day
March 26 - Good Friday
March 29 - Easter Monday
April 25 - ANZAC Day
April 26 - Day off for ANZAC Day
June 7 - King's Birthday
June 25 - Matariki
October 25 - Labour Day
December 25 - Christmas Day
December 26 - Boxing Day
December 27 - Day off for Christmas Day
December 28 - Day off for Boxing Day

• Paid Annual Leave

In New Zealand, employees are entitled to a minimum paid annual leave of four weeks. Employees become eligible for this leave once they have completed 12 continuous months of service for the employer. Once the employee completes 1 year of service, employers can choose to grant them all of their annual leave at once, or they can allow the employee to accrue leave as they work so that it adds up to 4 weeks at the end of each year. Annual leave must be taken within 12 months after the date on which the employee becomes entitled to leave. An employee may request that their employer pay out a portion of the employee's entitlement to annual leave. This request must be made in writing and can be made for a maximum of 1 week a year. Annual leave is paid at either the employee's ordinary weekly pay at the beginning of the annual leave or the employee's average weekly earnings for the 12 months just before the end of the last pay period preceding the annual leave, depending on whichever is higher. Employees may request 1 week of their 4-week minimum annual holiday entitlement each year to be paid in cash. Alternatively, some employees may receive their annual holiday pay on a pay-as-you-go basis if the employee: Has a fixed-term contract of less than 12 months, or Works so irregularly that providing 4 weeks of annual leave is not practical.

• Sick Leave

Sick leave in New Zealand is paid time off work if an employee, their spouse, partner, dependent child, or any other person who depends on them is sick or injured. All employees (including part-time and casual employees) are entitled to 10 days of sick leave if they have worked for 6 months for the same employer. For every 12 months after this, each employee gets at least 10 days of sick leave. Employees must inform their employers of sick leave as soon as possible. Proof of sickness is required if the employee is sick or injured for more than 3 consecutive days. Sick leave is paid at the employee's normal wage rate. Unused sick leave cannot be paid in cash or be part of any final payment to the employee when they leave unless agreed to in the employment agreement. Unused sick leave can be carried over and added to the next year's entitlement, up to a maximum accumulated leave of 20 days. If an employee runs out of sick leave in a year, they can request advance sick leave, and use annual leave or unpaid leave.

• Maternity Leave

New Zealand does not have maternity leave. It provides different types of leaves that can be shared among partners under parental leave. Employees who have worked for an employer for at least 6 months are eligible for parental leave. The following types of leave are available at the time of a child's birth: Primary Carer Leave – This is a paid leave of 26 weeks duration available to a pregnant employer, her spouse, partner, or whoever is the primary caregiver for the child. The employee can start their primary carer leave up to six weeks (or earlier with the employer's consent) before the due date. All employees receive a government-funded payment of NZD 811.05 (New Zealand dollars) per week for 26 weeks. Special Leave – This is ten days of unpaid leave for pregnancy-related reasons such as antenatal classes, scans, or doctor/midwife appointments. Extended Leave – This is an unpaid leave of up to 52 weeks to be shared by both parents, depending on the number of months they have worked for their employers. Negotiated Carer Leave – This is an unpaid leave of 26 weeks for employees who have worked for less than 26 weeks with the same employer. Employees must inform their employers in writing of their intention to take parental leave at the time of a child's birth at least 3 months in advance.

• Paternity Leave

In New Zealand, partners are eligible for unpaid partner's leave of one week if they have worked for 6 months with the employer and 2 weeks if they have worked for 12 months. This leave must be taken within the timeframe starting 21 days before the baby's due date and ending 21 days after birth. Employees must inform their employers in writing of their intention to take parental leave at the time of the birth of a child at least 3 months in advance. An employee cannot take a partner's leave in the following circumstances: She is the biological mother, and she has transferred her parental leave payment entitlements to her spouse or partner. The employee is the partner or spouse of the child's biological mother, and the biological mother has transferred her parental leave payment to the employee. A pregnant employee can also choose to transfer her 26 weeks of primary carer leave to her spouse or partner. In this case, the leave is to be taken continuously and immediately after childbirth. Such partners also receive the benefits of the primary carer leave and receive weekly benefits in the amount of NZD 811.05.

Termination of Employment

• Notice Period

There is no legal limit on notice for dismissal in New Zealand. A notice period is agreed upon in the employment contract. If the employment agreement does not have a notice period, fair and reasonable notice must be given depending on the years of service, role, type of job, and common practice in the industry. The notice period is usually 2 – 4 weeks. The notice must be given in writing and is usually the same for employees and employers. The employer can choose to agree with the employee to waive all or some of their notice period if the employee requests or consents to it. Giving Notice: If an employee gives the required notice, the employer must pay them until the end of the notice period. The employer may ask the employee not to work the full notice period if: The employee agrees, or The agreement includes a clause allowing payment instead of working the notice period. Even if the employee doesn’t work the full notice period, they must still be paid for it. However, if the employee and employer agree to waive part of the period, they are only paid for the days worked.

• Severance Benefits

There are no provisions for mandatory severance benefits in New Zealand. At the time of the contract termination, employees are entitled to a "final pay" that includes pending salary, allowance for annual leave and public holidays, and other payments owed to them. Employers can provide redundancy compensation if it is agreed upon in the employment agreement. If an employment agreement doesn't mention any such clause, an employee isn't legally entitled to redundancy pay. When employment is ending due to redundancy, employees must be given notice according to the contract terms.