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GETTING STARTED WITH COMPANY FORMATION

You have made the decision to start a company; you have your directors lined up and your shareholders ready to invest. What next?

Forming a company these days is a quick and easy online process. You can form your company online at www.companies.govt.nz and for a fee of $150 you can incorporate a company in no time.

You will need:
•    To reserve a company name;
•    To provide a minimum of 3 addresses, i.e registered office / address for service / address for communication.
•    To decide on how many directors and shareholders to have, and how many shares to issue.

You will also need to decide whether to adopt a Constitution.

What is a Constitution and why have one?

A Constitution is a document registered with the Companies Office that sets out certain rules for the running of a company. It deals with matters such as:

•    voting rights;
•    appointment of directors;
•    shareholder meetings;
•    who has authority to bind the company;
•    how shares can be issued and transferred; and
•    various other matters relating to the overall structure and governance of the company.

A company commonly adopts a Constitution at the time it is incorporated but you can also adopt one at a later stage by 75% of the shareholders in the company agreeing to adopt one.

A Constitution is not compulsory but recommended as a matter of good governance. Without it, the default provisions in the Companies Act 1993 will apply which might not be appropriate for your business in all instances.

IRD and GST Registration

You can apply for an IRD number and complete GST registration at the same time.

Timing

Applications to incorporate a company are processed automatically so registration is almost immediate.

Need to know more?

For step by step instructions, check out the Help and Support section of the Companies Office website at http://www.business.govt.nz/companies/learn-about/starting-a-company

Written by Kylie van Heerden at 13:00

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