New Zealand Companies Office

Balancing Ease of Doing Business

& Integtrity

Corporate Registers Forum | Mauritius

New Zealand

• Ranked number 1 for Starting a Business 2009, 2010

• Most helpful government agency 2003 -2010

• Fully electronic incorporation

• SP Trading Limited is a New Zealand registered company which leased a plane which was intercepted at Bangkok airport with a cargo of weapons on board.

• SP Trading Limited had no business presence in New Zealand. Its sole director was a New Zealand-based nominee director who had signed a power of attorney handing over all authority over the affairs of SP Trading Limited to two Ukrainian individuals.

• The sole shareholder was another New Zealand registered company which investigation revealed to be acting as a nominee shareholder for a number of companies incorporated by a company formation agent called GT Group

• The SP Trading case became the focus of concerns which had been circulating for some time regarding registration processes under New Zealand company law. These concerns centre on the potential that exists for the carrying out of illegal activity under the veil of a New Zealand company structure.

• There is a perception that as a consequence New Zealand has become a jurisdiction of choice for individuals or groups who may wish to incorporate a company in a reputable jurisdiction in order to gain a veneer of legitimacy for what may be illegitimate activities.

• A comparison of New Zealand company registration requirements with that of other similar jurisdictions such as Singapore, Australia, Canada and Malaysia reveals that our company law imposes fewer registration requirements on overseas interests seeking to register companies here.

• New Zealand possesses an enviable reputation for ease of doing business. The measures outlined below aim at striking a balance so that this reputation will be maintained, whilst deterring offshore groups or individuals with doubtful intentions who currently perceive New Zealand as being a jurisdiction which will ask no questions in relation to company registration.

• Under the World Bank Doing Business indicators, New Zealand was ranked as number one in the world for starting a business in both 2008 and 2009, and number two in the overall “Ease of Doing Business” ranking, behind Singapore.

Proposals

• New Zealand resident director or New Zealand agent

• Director date and place of birth information• Mandatory Tax numbers• Enhanced powers for the Registrar of Companies• Igovt • Identity Verification Service

• And just when I thought we were getting there…