Sapna is a content writer at Sprintlaw. She has completed a Bachelor of Laws with a Bachelor of Arts. Since graduating, she has worked primarily in the field of legal research and writing, and now helps Sprintlaw assist small businesses.
Contents
So, you want to set up a company but don't know how long the whole ordeal will take. Even though setting up a company is a bit more complex than other legal structures, the actual application process doesn’t take very long at all. In fact, you should be done in under 20 minutes.
However, that doesn’t exactly mean you can go ahead and set up a company right this second – not unless you’ve sorted out a few other details first.
How To Set Up A Company In New Zealand
Although the application process for setting up a company isn’t particularly time consuming, there’s a couple of steps you need to take before you can actually get to that part of the process.
To set up a company in New Zealand, you’ll need to think about things such as:
- Who the shareholders of your company will be
- The directors of your company
- How will the company be governed – through replaceable rules or a Company Constitution?
- General company details – address, email, bank account, phone number, company name
- The type of company you will be registering as - such as a Dual Company or a B-Corp
- How you’ll be managing your company’s ongoing obligations with Companies Office
Sorting out all of this and more is key, as once you get to the application process you’ll need to answer a number of questions. The more solid details and plans you have in place, the easier the actual application process will be.
We’ve written in more detail about what it looks like to set up a company in our article, Steps To Incorporate Your Small Business In New Zealand.
How Long Will the Company Registration Process Take?
Once you’ve got all the right details sorted, the application itself should only take about 15 minutes. Provided you've got all the right details ready to go, filling out the application shouldn't be much trouble.
However, it’s not all done just yet!
Once your application to register your company is sent out, then you’ll receive an email within a couple of minutes. Make sure you take the time to carefully view this email, as it contains the consent forms of your company directors and shareholders. After receiving those forms, you will need to get them signed and submitted to Companies Office within 20 working days. Once companies office is satisfied with your documents, they'll send out a certificate of incorporation.
Basically, even though the actual application process for setting up a company is important, there's a few other things you will also need to take care of to firmly set up your company.
Is It Difficult To Set Up A Company?
No, it’s not particularly difficult to set up a company. However, it’s not out of the ordinary for people to get intimidated by the process of setting up a company, before they even get started! This is understandable, as there’s a lot of details and information to sort out. Moreover, some of the legal aspects of it can get a bit confusing.
This is why it’s important to seek the help of a legal expert when you’re setting up a company. When you're making the effort to set up a company, you want to make sure it gets done right and no details are missed. Setting up a company is essentially laying the foundations for your business, so the last thing you want is for cracks to appear in your foundations down the road. A legal expert who does this everyday and knows the ins-and-outs of company registration can make sure your company is set up the right way.
You only get one chance to set up your company, therefore it’s wise to ensure it gets done well. Enlisting the help of a legal expert can ensure that your company gets set up so that its future success is encouraged, rather than hindered.
Does It Cost Money To Set Up A Company?
Yes, there’s cost associated with setting up a company. The exact fees you’ll be paying will depend on the specifics of your registration. At the moment, the fees for getting your company set up will start at about $100.
It’s a good idea to look these up or ask a legal expert for help, as costs can be subject to change.
Next Steps
When it comes to setting up a company, the actual application process doesn’t take very long. However, the details you need to figure out before you actually get to the registration stage can be pretty time consuming and somewhat complex. It’s best to let a legal expert help you out, that way you can be assured that your company is being set up properly. To summarise what we’ve discussed:
- Setting up a company takes roughly under 20 minutes for the application process
- Before starting the application, consider factors like shareholders, directors, company governance, contact details, company type and ongoing obligations with Companies Office
- The application itself, once all details are sorted, typically takes about 15 minutes
- Once the application is sent out, you'll receive a consent form for the directors and shareholders of the company. This needs to be signed and sent to Companies Office with 20 working days.
- While setting up a company is not particularly difficult, it can be intimidating due to the details and legal aspects involved
- Fees for setting up a company start at about $100 and depend on the details of your registration – it's advisable to check for updates or consult with a legal expert
- Seeking the help of a legal expert is recommended to ensure the process is done correctly and to avoid overlooking important details.
If you would like a consultation on your options moving forward, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.
Sapna Goundancontent writer
