The ultimate guide to starting a new business in New Zealand

By MAS Team

Starting a business can be overwhelming, but it doesn’t need to be. It’s actually easier than you think. In saying that, it’s very important to follow the correct process. That way, you can help to protect yourself and your new business. 

There are many things to think about, such as defining and registering your business, following regulations and finding which insurance works best for you. Sound like a lot? Don’t worry, we’ve outlined all of the steps you should take to set up your new business below. Here’s what we’ll cover:

Defining your business idea

Setting up your business officially

Sort insurance for your new business

Defining your business idea

Before starting any business, it’s important to assess if your idea will work within the New Zealand market, with the potential to expand internationally. You can work through this process by checking off the below four steps.

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1. Make sure your idea is viable

There are a few different ways to test the viability of your business idea. It’s essential to first research the potential market you will be entering and think about what problem your product is solving for the consumer. Once you have researched the space you’ll be entering, it’s time to talk to people about your business idea.

Paul Norrie, Business Innovation Advisor at Callaghan Innovation, advises “Don’t try to sell them on your idea. Instead, ask them to describe the hardest part of the task/action/project that you are proposing to find a solution for. If they describe the problem you are solving, unprompted, then you’ll know you’re on to something.” There are also other ways to further test your idea, before moving on to the next step. 

2. What will you name your business?

Shakespeare queries “What’s in a name?” Everything, apparently. A strong brand can play a major role in how potential customers view your business, service or product. Avoid names that are hard to spell or that may limit your business in the long run. Next, you may want to conduct a thorough internet search, to make sure your business name is uniquely yours. 

Acquiring the domain name for your business may be tricky, but customers tend to associate “.com” as more authoritative, so this is something you may want to get sorted early. Everything’s in a name, so use these tips and resources to find the perfect brand name for your new business.

3. Decide on your business structure

Defining the structure of your business is important. There are pros and cons as well as specific considerations for different types of structures in New Zealand. Working as a sole trader means that the business is part of your personal finances, so you’re solely responsible for all income and losses.

If you choose to operate as a company, this is a separate legal entity. In this case, losses are not usually held against owners. If you’re still unsure how to structure your new business, you can check out some tools that will help.

Check the New Zealand regulations

Like any country, New Zealand has regulations in all industries. Once you’ve decided on your business idea, name and structure, make sure you check the specifications and business regulations for your industry.

Setting up your business officially

Now that you have your idea and are sure it’s a good one, it’s time for the logistics stage of actually getting your new business set up. Officially registering your business, obtaining a New Zealand Business Number and registering your trademark are all included in this stage. It’s essential that these are all done correctly. 

Top Tip: Get yourself a Government RealMe Login. You’ll need to set up a lot of things across multiple government agencies. This will save you time logging into them all. 

Obtain a New Zealand Business Number

New Zealand Business Number (NZBN) is a unique identifier for your business. Having an NZBN will help you stay up-to-date and help others know who they are working with by linking to a trading name or email. As well as that, it will help you to take advantage of innovations like invoicing. It’s super easy to register for one.

Secure your business name

As part of your choosing a business name, you should hopefully have researched whether there are any other companies with the name already. If not, you can check with the ONECheck tool. If there aren’t any existing companies with the name you want to choose, you can go ahead and apply to register your company name and secure a web domain. 

Register your company

The next step is registering your company. By now, you should have a good idea of the structure and name of your business. All you will need to register your company officially is $10 and a RealMe login. As long as your business name isn’t offensive or restricted, it should be approved within the same working day. 

Register for GST

Goods and services tax (GST) is added to the price of most products and services. If you’re earning more than $60,000 a year, you’ll need to register for GST. If you or your business is GST registered, you can claim back the GST you pay on goods or services you buy for your business. This can be done at the same time as registering your company, or you can do this through IRD.

Register your trademark

While you can protect your business by following the correct legal processes, another way to protect your brand long-term, is registering your trademark. A trademark is legal protection to deter others from imitating your brand, and is a good way to distinguish your business from competitors. You can register your trademark through the New Zealand Intellectual Property Office (IPONZ).

Sort Insurance For Your New Business

Protecting your business is vital for any business continuity plan. Luckily, there are lots of insurance options that can help to make this process straightforward. MAS business insurance is suitable for a range of professional business types. This particular insurance can help ensure your organisation is covered financially if things go wrong.

If you’re not sure where to start, you can speak with a MAS Business Risk Adviser, who will help you navigate business insurance. A MAS Adviser covers options that are right for you and your business. When unexpected situations arise with your company, having a business continuity plan to fall back on can really help you out.

Two people in business attire having a conversation

Business insurance terms and cover to be familiar with

It’s handy to know which options are on offer, so you can choose the cover that suits your needs. Here’s a quick rundown of the business insurance terms you may want to be familiar with.

  • Buildings
    This type of cover helps to protect the commercial buildings your business operates from, or the commercial buildings you lease to a third party. This can be useful to have in the event that a natural disaster occurs or for any accidental damage to the space.
  • Employer's Liability
    Employers’ liability insurance can cover the costs associated with personal injury claims as well as the cost of defending them. ACC will cover most costs associated with accidental injury in New Zealand, however employers may face claims from employees in a variety of situations not covered by ACC, including but not limited to:
  • injury caused by stress
  • depression, anxiety or mental anguish
  • employees witnessing a traumatic injury or fatality
  • heart attack or stroke caused by stress
  • disease arising from circumstances where the employer has failed to provide a safe workplace including disease or infection caused by air conditioning systems.
  • Contents
    This cover is for business assets like equipment, stock and money. Often included in this is additional covers like employee belongings. Contents insurance can help replace your assets following a loss without a significant impact to your business expenses.
  • Statutory Liability
    If you unintentionally commit a strict liability offence, MAS may cover fines and penalties as well as defence costs. This can mean you won’t be left with a large bill or fine for something you might not have realised you did. 
  • Business Interruption
    If your business is impacted by an event, MAS may cover the effects of this. Business interruption can provide cover for the consequential reduction in your business gross profits.  Cover can include increased costs such as fitting out temporary premises. This can help you to continue to operate your business, and meet your ongoing expenses.
  • Employment Disputes
    If you, as an employer, unintentionally breach an employment agreement or the Privacy Act 2020, this kind of insurance may cover you for damages you’ll need to pay under the law.
  • Legal Liability
    If you injure someone or damage their property while running your business, legal liability cover may be able to assist with legal costs.
  • Employee Dishonesty
    MAS may provide employee dishonesty cover for the loss of money or property that belongs to you because of an employee’s dishonest actions. In conjunction with good management practices, this cover can help to minimise financial loss caused through actions of a dishonest employee.

Ready to start your new business?

Although there are a number of steps to take to start your new business, it doesn’t need to be overwhelming. Hopefully you now feel empowered to take the first steps in starting your business. 

Following the three steps outlined - research, register, and protect, will ensure you’re making the smartest moves for your new organisation. When you’re ready to protect your business, we recommend that you speak with a MAS Adviser or an independent financial advisor, to get the best advice possible. You can find more information in our content hub.


This is general information only and is not intended to constitute financial advice.

MAS only provides advice on products offered by its subsidiary companies. Advice is provided by MAS or by its nominated representatives, who are all MAS employees. Our financial advice disclosure statement is available by visiting mas.co.nz or by calling 0800 800 627.

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