The New Zealand LTC is an ordinary Limited Liability Company in all legal respects, which appropriately structured, and subject to making the necessary election, will be fiscally transparent for taxation purposes, resulting in similar taxation treatment as that which is applied to New Zealand Limited Partnerships.

All income, expenses, tax credits, rebates, gains and losses of an LTC will be passed to its shareholder(s) in proportion to their interest(s) in the LTC. As the shareholder(s) are effectively the recipient(s) of the LTC’s income, foreign shareholder(s) (i.e. non-NZ resident shareholders) will not have a New Zealand tax liability where the LTC’s income is generated from non-New Zealand sources.

New Zealand LTC Key Features

  1. At least one director (individuals only, not body corporate),
  2. At least one shareholder,
  3. New Zealand registered office (physical New Zealand address, not a postal box or document exchange),
  4. No share capital required at the moment of incorporation,
  5. Tax registration is not compulsory if a company is not going to commence trading,
  6. May be subject to compulsory audit,
  7. May pay taxes on worldwide income.

New Zealand LTC Legal Requirements

New Zealand LTC

Corporate Details

General

  • Registered Office in New Zealand

Yes

  • Time to establish a new company

2 weeks

Share capital or equivalent

  • Standard currency

New Zealand Dollar NZD

  • Permitted currencies

Any

  • Authorize share capital

NZD 10,000

  • Minimum paid up

NZD 1

Directors | Officers | Partners

  • Minimum number

1

  • Location of meetings

No

  • Corporate directorship allowed

No

Accounts

  • Requirements to prepare

Yes

  • Audit requirements

No

Other

  • Requirement to file annual return

Yes

  • Migration of domicile permitted

Yes

New Zealand LTC Tax Treatment

  • Company profits are distributed to shareholders, who are taxed individually on their overall personal income.
  • Profits the shareholders do not take are the company’s, and get taxed at the company tax rate of 28%.
  • Companies don’t pay tax on earned revenue if they make a net loss.

New Zealand LTC Duration to Set- up

2 Weeks

New Zealand LTC Distinctive Benefits

  • Companies don’t pay tax on earned revenue if they make a net loss.
  • The shareholders’ liability for losses is limited to their share of ownership of the company.
  • Company profits are distributed to shareholders, who are taxed individually on their overall personal income
  • No share capital required at the moment of incorporation,
  • Tax registration is not compulsory if a company is not going to commence trading

The Valsen Advantage

  1. End to end comprehensive service
  2. Speedy and efficient service
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  4. Dedicated ongoing compliance support
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