IRD Registration for Your New NZ Company: What to Do and When
Registering with IRD is one of the first obligations for a new NZ company. Miss the deadlines and you face penalties. Here is the full picture.
Registering with the Inland Revenue Department (IRD) is one of the first compliance obligations for a new NZ company. Get it right in the first 60 days and you avoid penalties, missed deductions, and cashflow surprises later.
What you must register for
1. An IRD number for the company
Your company needs its own IRD number - separate from your personal one. Apply online at ird.govt.nz. You will need your Companies Office registration number (which you get when you register the company) and your own personal IRD number as a director. Processing takes 10 working days on average. Apply in your first week.
2. GST (Goods and Services Tax)
You must register for GST if your turnover exceeds NZ$60,000 in any 12-month period. If you expect to cross this threshold, register before you hit it - you cannot claim back GST on expenses incurred before registration. Most serious businesses register from day one, even if turnover is lower, because it lets you claim GST on startup costs (equipment, software, premises) immediately.
GST returns are filed monthly, two-monthly, or six-monthly depending on turnover. Most small companies use two-monthly filing. Your accountant or bookkeeper can set this up in Xero and file on your behalf.
3. PAYE (if you have employees)
If you hire anyone - including yourself as an employee of your company - you must register as an employer and deduct PAYE (Pay As You Earn tax), KiwiSaver, and ACC levies from every payment. Register at ird.govt.nz before you make your first payroll run. Late registration means you are personally liable for the deductions you should have made.
4. KiwiSaver employer contributions
If you have employees, you must enrol eligible new staff in KiwiSaver within 8 weeks of starting, contribute a minimum 3% employer contribution, and deduct employee contributions from wages. Failure to do so results in penalties and interest. Your payroll software (Xero Payroll, iPayroll, MYOB) handles the calculation, but you need to be registered first.
Common mistakes to avoid
- Using your personal IRD number for the company. The company is a separate legal entity and needs its own number. Mixing them creates an accounting nightmare.
- Delaying GST registration. If you buy NZ$30,000 of equipment before registering for GST, you lose NZ$4,500 in claimable GST. Register first, buy second.
- Forgetting ACC levies. ACC (the Accident Compensation Corporation) automatically bills you once you have an IRD number and are trading. Expect an invoice for your first-year work levy based on estimated income. If you do not respond, they assess you on default rates which are often higher than your actual activity.
- Missing provisional tax. If your company earns more than NZ$5,000 in residual income tax in year one, you become a provisional taxpayer in year two. You need to make tax payments during the year rather than one lump sum at year end. Your accountant will set up an AIM (Accounting Income Method) or standard uplift arrangement to smooth this out.
Timeline at a glance
| Week | Action |
|---|---|
| Week 1 | Apply for company IRD number at ird.govt.nz |
| Week 1 | Register for GST (even if under threshold, if you have startup costs) |
| Week 2 | Open a dedicated business bank account |
| Week 2 | Set up Xero (or MYOB) and link to business bank account |
| Before first payroll | Register as employer with IRD if hiring anyone |
| Month 2 | Your first GST return period begins. Confirm filing frequency with IRD. |
Getting help
The IRD website covers the basics, but a chartered accountant or tax agent can register everything for you in one session, set up your filing frequencies, and make sure your first year is compliant from day one. This typically costs NZ$200 to NZ$500 and saves multiples of that in avoided penalties and missed deductions. Find a local accountant who works with new NZ companies here.