New Zealand Company

1
New Zealand Company

• Global Finnet Limited
• Requirements
• and Information

2
Company Types

• Trustee Company (Tax Free)
• Nominee Company (Limited Tax Liability)
• Holding Company (No tax on overseas income)
• Financial Company (Bank) (Taxed)

3
Trustee Company

• A New Zealand Foreign Trust is modelled on the
  English style of trust, which requires an
  offshore resident Settlor, no NZ Beneficiaries
  and a New Zealand company to act as Corporate
  Trustee. All income sourced offshore through this
  company (acting as sole trustee on behalf of the
  trust) is totally tax free in NZ. There are no
  capital gains, inheritance taxes or forced
  heirship. Any income earned within New Zealand
  (example interest from a bank account) is subject
  to domestic tax. The income, at your client's
  discretion can either be retained in the trust,
  or alternatively distributed to your client's
  named beneficiaries.
• We can provide nominee services to overcome some
  difficulties.

IMPORTANT...
The Trust Deed must clearly not use New Zealand
for the country of Domicile.
4
Nominee Company

• A NZ company is incorporated and enters into an
  agreement with the offshore company. Under that
  agreement, which is committed to writing and
  executed by both parties, the NZ company agrees
  that it will trade on behalf of the offshore
  company as its Agent (or nominee). All contracts
  of purchase or sale, all the invoicing, and all
  the general correspondence will be made in the
  name of the NZ company and the NZ company
  receives all the revenues from such business as
  Agent for the offshore principal. The agreement
  should state that all monies received are
  received as Agent for the principal save insofar
  as there will be an agreed fee which will be
  retained by the NZ company. That fee may either
  be expressed as a flat fee for all the trading
  done on an annual basis (sufficient to cover
  costs) or, expressed as a percentage of the gross
  revenues received. The standard form is that 1 to
  5 of the invoice total in respect of each
  transaction is retained by way of fee by the NZ
  company.

IMPORTANT...
Contact us to discuss your requirements for this
structure.
5
Holding Company.

• Holding Companies may also be called Passive,
  Dormant, Non-trading, Zero-rated etc. In our
  Holding Company the Constitution allows it to
  trade in New Zealand (if required and liable to
  tax) and hold overseas assets / shares in
  subsidiaries (no tax). Tax treatment is very
  similar to Hong Kong with special treatment for
  Australians.
• A New Zealand Holding Company is a great vehicle
  for holding assets at arms length for any number
  of reasons (matrimonial, tax, creditors and
  general asset protection). New Zealanders and non
  New Zealanders alike may benefit from such a
  structure.
• When a New Zealand Company holds shares as an
  investment, it will not be taxed on gains from
  the subsequent sale of shares unless it is in the
  business of dealing in such investments or
  acquired the shares for the purpose of sale or
  where the sale is a part of a profit making
  undertaking or scheme. i.e. no capital gains tax.

IMPORTANT...
You do need our specially formatted Constitution.
The enabling tax legislation was introduced to
Parliament on 2nd July 2008 (ask us for the Press
Release).
6
Financial Company (OFC)

• Can Constitutionally carry out virtually all
  banking services without further Licenses,
  becomes a real bank, not an offshore sham.
• Is not required to have a minimum capital (but
  please be realistic).
• There are no Capital Adequacy Ratios to comply
  with.
• Does not have additional reporting requirements.
• Must not use the word bank or any derivative in
  its name but can use Savings Loan and similar
  wording.
• Must lodge annual audited accounts in NZ.
• Must have a real NZ Resident Director (no
  nominees) and may have other Directors. We may be
  able to help you here also.
• As part of our Compliance Package we will advise
  on any other laws or Regulations that need
  complying with for your specific business.
• Our office can be your office to satisfy legal
  requirements and attend to the basic tax returns
  that may apply to your business.
• Ask us to assist you to devise a tax plan
  specifically for your circumstances.

7
Requirements for Trusts

• A New Zealand Foreign Trust must register with
  the New Zealand Inland Revenue Department (IRD).
• For a New Zealand Foreign Trust to qualify as
  tax-free, it must have at least one New Zealand
  Resident Director who fits into one of two
  categories as follows
• New Zealand Resident Unqualified Director
• New Zealand Resident Qualifying Director
• We generally use the services of a New Zealand
  Resident Unqualified Director. This keeps the
  costs to a minimum as Qualifying Directors will
  charge USD1000 per year, or more.
• You can use a combination of both your director
  and our New Zealand Resident Director, or use
  only our New Zealand Resident Director.
• You must have no New Zealand Beneficiaries of
  your Trust.

8
Points to note

• You MUST advise us of the company type that you
  require when you place your order with us. The
  choices are Trustee, Nominee, Holding or
  Financial.
• In every case we need both proof of identity and
  proof of residence of your client, in order to
  protect your clients assets against fraud by
  identity theft and to satisfy international KYC
  laws.
• When incorporating a Trustee Company, you can
  elect to choose a Trust Name, or we will chose
  one for you, in most cases the Trust name is of
  little importance.
• We must know the Jurisdiction in which the
  end-user (your client) is a Resident or Citizen.
• When we agree to provide nominee services you
  will need to give an appropriate indemnity for
  performing as Nominee. We do have templates
  available for this purpose if you wish to use
  ours.

9
Placing Orders

• We usually receive all instructions by email and
  by email attachments. We find this is the most
  efficient way, but should you prefer you can send
  all orders and supporting papers by mail or
  courier.
• Payment is usually made by TT (wire, cable, EFT
  etc). Please remember that all bank fees incurred
  are your costs. We need the full amount of our
  fees credited to our account. We will not accept
  payment by credit card for sensible reasons!
  Payment via PayPal is OK but is expensive for
  larger amounts. We will not accept payment in
  cash, your local cheque, or give credit.
• We commence work for you as soon as we have
  received all your documentation and payment in
  full to our account.
• We do not give discounts (except for genuine
  volume business). The reason for this is simply
  that our pricing is set at the lowest level
  possible by us. We do not want to work for
  nothing, or waste time bargaining over fees.
• We are happy to provide you with an application
  form to use for each company type that you order.
  Should you wish to receive the application in
  Word or PDF format, simply ask us to email you a
  copy.

10
Special Notes Trustee Company

• We are aware that most end-users struggle to
  understand the full details of this structure.
  For this reason, it is considered acceptable to
  inform the client only that the company is not
  liable to pay any form of taxation in New
  Zealand, provided that it does not do business
  in, or with New Zealand and that the client
  beneficiaries have no other connection with New
  Zealand.
• Many professional clients do not fully detail the
  Trust side of the structure to their clients as
  they rarely understand it. The client must
  understand and name their beneficiaries, however.
  
• We do have a solution to ensure that the client
  is not named in the Trust Deed, but is placed in
  a position where the Appointor of the Trust can
  elevate them to the position of Trustee at any
  time.

FOR MORE INFORMATION...
Contact us by email, arrange a suitable time for
teleconference or Skype call to ensure you are
100 clear on all matters..
11
Contact Information

• Contact Geoff Taylor
• Email info_at_globalfinnet.com
• Skype Geoff1943
• Phone By appointment
• Web www.globalfinnet.com
• Mail Global Finnet Limited, P.O. Box
  5033, Auckland, New Zealand.
• Courier Global Finnet Limited, 5th Fl., 369
  Queen Street, Auckland, New Zealand.