Frequently Asked Questions
What is a limited liability company?
A limited company is a company which limits the personal liability of its officers. In the case of a limited company the people who combine to form the company normally act as the directors and shareholders and so are responsible for managing the company.

What is meant by ‘Limited Liability’?
Since a limited company is treated as a person in law, it is responsible for its own debts. Creditors can claim only the assets of the company and not the assets of any of the officers of the company.
If a limited company becomes insolvent and is wound up, only the property of the business can be used to try to clear its debts. The officers of the company retain their company salaries, they cannot be made bankrupt and they are free to form a new company.
If you trade as a partnership or as an individual, creditors can claim all your personal property to satisfy debts, and where this is insufficient, you can be made BANKRUPT. An undischarged bankrupt is forbidden from starting another business or becoming director of a limited company.

Are there any tax benefits in forming a limited company?
There are a number of tax advantages in forming a limited company. Its profits are not normally subject to the higher rates of personal income tax. Company Net would be pleased to refer you to our accountant who can better advise you.

How long does it take?
Within an hour of receiving your order you will be sent a form per director/shareholder which require a signature. The amount of time taken between you signing and faxing these forms back determines how long the formation will take. Once we have the forms back your company will be complete in an hour.

What do I get?
A quality binder: This attractive dark blue 2 ring binder with gold lettering provides you with an unparalleled level of presentation for all of your company documentation.

Customized Section Dividers: Designed to keep all of your Company documents organized and easy to locate.

Certificate of Incorporation: This is the document that proves you are a registered Limited Liability Company. You will get 3 spare copies for you to use when you open your Bank Accounts and apply for your IRD numbers.

Opening Minutes: We will hold the opening meeting of the company on the day it is registered. This takes care of the basic tasks that are required when starting a new company, rendering your company ready to go.

Blank Company Meeting Minutes: You will get 10 pages personalized to your Company and designed to maintain the Company Minutes as required under the Companies Act 1993.

Statutory Registers: The full range of Statutory Registers as required under the Companies Act 1993 as well as three Registers designed to assist with convenient record keeping for the company.

Company Constitution: The Constitution is a document that outlines how your company will be organized. This is where you will find many of the rules that govern your company. A copy of this document is kept at the Companies Office upon registration of your Company.

Statutory Obligations of Companies & their Directors: An easy to read explanation of the Companies Act 1993 authored by and reprinted with the kind permission of the Ministry of Economic Development.

I am overseas, can I still form a company in New Zealand?
Yes, you can have your address listed within the company as your overseas residential address as long as the addresses for the company (Residential, Service & Postal) are New Zealand addresses.

Can I form my company with just one person?
Yes, in New Zealand a person can be the sole director and shareholder of a Limited Liability company.

Can anyone be a director?
Anyone over the age of 18 can be a director of a company as long as they are not an undisclosed bankrupt.

Can I have any name I want?
No, your company name will not be accepted if it is the same or too similar to a name that is already registered, that includes even if it spelt differently but sounds the same. Also if it contains a sensitive word (such as Bank or Royal) or is offensive it will not be accepted. If you are not sure if your name will be acceptable, please call us and we will be happy to advise you.

Can I change the name at a later date?
Yes, you can change the name at any time you wish. We would simply check the availability of the new name and lodge the application for change of name with the Companies Office. This process generally takes between 24-48 hours and is backdated to the day the application was received.

What is the Registered Office?
The registered office is the address where the company records are kept and maintained at all times. It is also where documents for the company will be served should the need arise. The company can but does not necessarily have to trade from this address.

What documents must be maintained at the Registered Office?
A company must maintain the following books and registers:
A share register .
Company records
Accounting records
A register of charges created by the company under the Companies Act 1955 (if applicable) and the Companies (Registration of Charges) Act 1993.
All of the requirements are clearly listed in the company package that you receive upon incorporation.

Do I need an IRD number and should I register for GST?
You will need to register for an IRD number (you cannot use your own personal one), and we can provide you with the relevant forms for this. GST registration is dependent on your earnings, but we provide all of this information in much more detail in our company formation package. We are also happy to register your company for the IRD number, GST registration, LAQC registration and PAYE registration for a small fee.

Your service is cheaper than most I have found around. Why?
Our service is less expensive than others because we specialise in the formation of Limited Liability companies. Our formation methods have been streamlined over the last seven years and along with a minimum of hard copy paper necessary the overall cost is reduced. It is our specialisation that enables us to operate with lower overheads than our competitors. We can therefore pass our reduced costs on to you.

I am not comfortable using my credit card over the internet. How else can I pay?
We also accept cheques or we can organise a payment from you straight into the Company Net bank account. Rest assured though that our secure credit card payment facility is 100% safe and risk free.

What is the incorporation procedure?
Once you have decided to place an order with us just click here and this will take you straight to the Order Now page.

When we receive your order we will check the availability of your nominated company name and the rest of the details of the company. Assuming the name is available we will reserve the name and generate consent forms for the directors and shareholders to sign. These will be forwarded to you via email. Once these consent forms have been signed you will need to fax them back to us.

When we receive the forms from you will register all the company details with the New Zealand Companies Office and complete the company. You will receive a copy of your certificate of incorporation within an hour and receive the complete company package the following working day by courier.

Are documents available for public inspection?
All of the documents submitted during the formation process are available for viewing online at the Companies Office website. That includes any annual return filed for the company.

What is the annual return fee?
If you wish to file your own annual return, there is no charge. If you prefer to leave that job to us we are more than happy to take care of it for a small fee.