I have recently gone into business and wish to set up a company. Is it very difficult to do? Do I need a lawyer to do it? How long does it take? How much does it cost?

Setting up a limited liability company is now very simple. It can either be done over the internet (for people such as lawyers and accountants who set up lots of companies) or by picking up the relevant forms from the Companies Office, filling them out, and returning them.

The first step is to apply for name approval. The form requests applicants to list three names in order of preference. Applicants are given their first preference unless the name they have chosen has already been taken or is objectionable.

Once name approval is granted, applicants must file 3 more forms: a Registration of Company form, a consent to act as director form, and a consent of shareholder form. The forms are all very easy to follow and only ask very basic information. Applicants must also decide whether or not they wish to file a company constitution, which sets out how the company is to be operated. If applicants do not wish to file a company constitution, then the company will be governed by the constitution set out in the Companies Act.

Currently, it costs $25 to apply for name approval and a further $100 to file the other documents. These fees are cheaper if the application is made through the internet. It takes 5 to 10 days to complete the whole process.

See Also
Online Company Incorporation - Incorporate a New Zealand Company via the Internet.