Starting a business as a sole trader in New Zealand can be a rewarding endeavor, but it requires a few important steps.
One of these is obtaining a New Zealand Business Number (NZBN).
The NZBN is a unique identifier that helps businesses interact more efficiently with government agencies and other businesses.
What is an NZBN?
An NZBN is a globally unique identifier, assigned to all businesses in New Zealand.
It's used to streamline interactions between businesses and government agencies, making processes more efficient.
This NZBN is available to all businesses in New Zealand, whether they are corporations, self-employed, or sole traders.
The registered NZBN is linked to the Primary Business Data (PBD) in New Zealand, along with information such as the business name, business phone number, and email address.
This allows New Zealand government agencies and other companies to recognize your business and provides customers with the trust that your business is officially registered in New Zealand. For more detailed information, you can visit the NZBN website below.
I moved to New Zealand and started my business as a sole trader several years ago, but I hadn't registered until now, so I decided to apply for an NZBN this time.
Requirements to register NZBN
To obtain a New Zealand Business Number (NZBN), all procedures can be completed online.
I got my business number on the same day I applied!
As expected from a country that has been selected as the easiest place in the world to start a business, starting a business in New Zealand is incredibly easy compared to Japan, which is very appealing.
To apply, first go to the NZBN "Applying for an NZBN" webpage.
This page is divided into sections based on the type of business, so since I am not a corporation but a sole trader (Self-Employed), I proceeded from the Self-Employed section.
What You Need to Apply
To register an NZBN as a sole trader, you need the following three things:
IRD Number
Proof of identity
RealMe login and a MyNZBN account
IRD Number
An IRD number is a taxpayer number required for everyone working and paying taxes in New Zealand.
I obtained mine while on a working holiday, but if you don’t have an IRD number, you should start by obtaining one.
You can also check my other post "How to Start a Business as a Sole Trader in New Zealand?" for more information.
Proof of identity
Most NZBN applications will be processed instantly if you can provide either your New Zealand driver licence or passport.
If you don't have either of the above two documents, it is noted that you can submit a passport from another country as identification.
However, in this case, the application process typically takes up to 3 days, so it may take a bit longer than the immediate issuance.
Additionally, the same page mentions that if you are not a New Zealand citizen but reside in New Zealand and conduct business there, you may be required to submit additional documents proving you are authorized to work in New Zealand.
RealMe login and a MyNZBN account
RealMe is necessary for visa applications in New Zealand, so if you are already in New Zealand, you likely already have one.
The MyNZBN account is linked with the RealMe account, so simply login with RealMe when applying for the NZBN.
How to get a NZBN (New Zealand Business Number)
Once you have everything you need, you just follow the steps and enter the required information.
You will need to enter details such as your IRD number, date of birth, business address, and contact information.
For ID verification, I used my New Zealand driver’s license.
By simply entering the license number and other details from the license, the verification was completed instantly. It was very fast!
Next, you will need to enter the details of your business.
This includes the start date of your business, the business name, and if you have a website, you can register that as well.
Regarding contact details, only the phone number was a mandatory field.
For privacy settings, you can choose whether to make your business name, your name, address, and phone number public or private.
In Japan, invoicing involves having your real name published on the National Tax Agency's website, so from a privacy standpoint, starting a business in New Zealand was much less stressful for me.
Once you have completed entering all the information, you just submit the application and wait for your NZBN to be issued.
Since I applied using my New Zealand driver’s license, I received an email immediately after clicking the submit button, and my NZBN was registered and issued right away.
What Happens to the NZBN if You Have Multiple Businesses?
I currently run two businesses in New Zealand, so I wondered if I needed to register multiple NZBNs for each business.
To clarify, I called the NZBN helpline during the application process.
The conclusion was that "the NZBN is registered to your name, so even if you have multiple businesses, one person can only have one NZBN."
However, it is possible to enter multiple businesses in your NZBN account.
You only have one NZBN, but if you have multiple businesses, you can enter the business names and contact details for each and register this information in the Primary Business Data (PBD) platform mentioned earlier.
※Please note that the information provided above is current as of June 2024.
It is possible that laws and regulations may change, so I recommend checking the latest information on the NZBN website and applying at your own responsibility. Thanks!
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