Australia vs New Zealand
New Zealand is £1,336 cheaper in year 1 and £1,066 a year cheaper after that.
| AustraliaProprietary limited (Pty Ltd) | New ZealandLimited company | |
|---|---|---|
| Costs | ||
| Minimum, year 1 | £2,485 | £1,149 |
| Minimum, per year after | £2,155 | £1,089 |
| Typical year 1 | £4,795 | £4,659 |
| Government fee | £330A$636 ASIC registration | £60NZ$148 incl GST (name NZ$11.50 + incorporation NZ$136.55) |
| Indirect setup | £0–470 | £0 |
| Running per year | £2,155–6,305 | £1,089–8,109 |
| Share capital | A$1 | NZ$1 |
| Rules | ||
| Directors | Local director neededAt least one director must live in Australia. | Local director neededOne director must live in New Zealand, or in Australia as a director of an Australian company. |
| Remote setup | Fully remoteRemote, but you still need the resident director. | Fully remoteFully online, but you need the resident director. |
| Audit | No audit for small companies. If a foreign company owns it, file Form 384 to stay exempt. | No audit for small companies |
| Time to form | 1 to 2 days | 1 to 2 days |
| Ease for foreign owners | 2/5 | 2/5 |
| Tax and banking | ||
| Corporation tax | 25% / 30%25% for companies with turnover under A$50m and mostly active income, 30% otherwise. None on franked dividends. | 28% |
| Dividend withholding | 30% withholding on unfranked dividends, 15% under the UK treaty. | None |
| VAT / GST | 10% | 15% |
| Banking | 2/5The big four banks usually need the resident director present. | 2/5Big banks usually want the director present. |
| All company setup fees in Australia | All company setup fees in New Zealand | |
Questions
Is Australia cheaper than New Zealand for company setup?
No. New Zealand is cheaper, at least £1,149 in year 1 against £2,485 for Australia.
Which is cheaper to run each year?
New Zealand, at least £1,089 a year against £2,155 for Australia.
Which needs a local director?
Both. At least one director must live in Australia. In New Zealand: one director must live in New Zealand, or in Australia as a director of an Australian company.
Which is faster to set up?
About the same. Both take 1 to 2 days.
How does corporation tax compare?
Australia: 25% for companies with turnover under A$50m and mostly active income, 30% otherwise. None on franked dividends. New Zealand: 28%.
Sources: ASIC · PwC · Sleek · Companies Office · Kaizen CPA · Tetra Consultants