The Legal Tech industry is steadily following in the footsteps of its sibling FinTech, generating worldwide revenue of over 17.3 billion USD in 2019 alone. The pandemic has only further contributed to this trend, acting as a huge catalyst in its growth. In-house legal teams have a lot to gain from experimentation in the field, with many Legal Tech projects focussing on simplifying the core legal processes that in-house teams complete every day.
However, this also means that in-house teams have much to lose during the implementation process. Their smaller scale relative to their company’s chosen counsel, combined with their more selective focus on the core and everyday legal issues faced by the company, means that the imposition of any new process or tool will significantly impact the team, its workload, and its efficiency.
No in-house legal team, but still interested in the benefits of legal tech?
That’s where Zegal comes in! With tools such as contract automation, contract lifecycle management, and approval workflows, Zegal brings legal tech tools directly to over 20,000 businesses.
To help combat this resistance, getting employees of all levels involved in the selection process is critical. The most successful legal tech projects are often those that aid the most mundane of processes because these processes usually take the most time cumulatively and ultimately present little financial return for the company.
Engaging with employees to discover these processes and how they are currently conducted will mean they are more likely to advocate the legal tech. Successful adoption of legal tech tools could boost team morale, further improving productivity and employee retention.
Implementation
While most tools will aim to be somewhat self-explanatory, and employees will be able to pick them up as they work, it is often the case that tools won’t be used to their full potential unless adequate training is given.
Training also presents a further opportunity for employee engagement, especially where custom-built tools are being implemented.
Continued support and development
Gone are the days when a company could upgrade to the newest version of Windows before breathing a sigh of relief that they were sorted for the next several years. Technology is now patched, developed, and upgraded far more often, and legal tech is no exception.
Asking what more the tool could do or how it could do what it is currently doing better will help shape future development goals.
Now is a great time to turn to legal tech
While there are risks of failed legal tech integration, the potential benefits are far greater. Equally, as the field grows, adoption will become imperative.
Considering the process of how to implement legal tech, before embarking on it, will help to ensure success.
If you’re here, you’re likely wondering how share vesting works. In a nutshell, share vesting is the process by which a company gives its equity to its employees or consultants as a means to keep them with the company for a period of time and incentivize them to reach certain established performance goals.
Share vesting is often used when a senior employee or an important advisor or consultant comes on board.
What exactly does share vesting mean?
Share vesting means the company gives its shares to an individual upfront and the shares are subject to the company’s right to buy them back. These shares are known as “unvested shares”. The buyback right extinguishes over time (or upon fulfillment of certain conditions).
The shares that are released from the buyback right are known as “vested shares”. This mechanism is sometimes known as “reverse vesting”, as opposed to the grant of a share option which is “forward vesting” (check out how a Share Option Plan works by clicking here).
Share vesting enables a senior employee or an important advisor to have equity immediately upon coming on board, but the company still retains control over those shares by way of a right to buy back and, in this way, the company keeps the employee or advisor on board until the end of the vesting period. This is how share vesting works.
How Share Vesting works
Step 1: Check your company’s Articles of Association/Constitution
Check if the constitutional document of the company restricts the buyback of its own shares. If it does, you may build in some appropriate mechanisms in your Share Vesting Agreement, or you may consider another form of rewarding your team (for example a Share Option Plan).
Create and sign the Share Vesting Agreement. After signing, the following will take place:
The employee/consultant pays for the shares on the “Purchase Date” that you set in the agreement;
On the Purchase Date, the company secretary issues share certificates in the name of the employee/consultant and he then becomes a shareholder of the company. The numbers of the share certificates and the number of shares covered by each certificate should match the vesting schedule;
The employee/consultant signs a document known as a “Share Power” and delivers this document to the company secretary;
The company secretary keeps the share certificates in the name of the employee/consultant and the Share Power in escrow; and
When shares are vested (i.e. released from the company’s right to buy back) according to the terms of the Share Vesting Agreement, the share certificate in respect of that part of the shares will be delivered by the company secretary to the employee/consultant.
What is a Share Power?
A Share Power is a document in which the employee/consultant gives his authorization to transfer his shares to the company. It is only used if and when the company exercises the buyback right (which may or may not happen). Some information in the Share Power has to be left blank and can only be filled in by the company when it exercises the buyback right.
The employee/consultant pays for the shares on the “Purchase Date” that you set in the agreement.
In addition, the employee/consultant signs a document known as a “Share Power” and delivers this document to the company secretary.
Step 4: The company secretary issues and holds on to the share certificates
Also on the Purchase Date, the company secretary issues share certificates in the name of the employee/consultant who then becomes a shareholder of the company. The number of share certificates and the number of shares covered by each certificate should match the vesting schedule.
The company secretary keeps the share certificates in the name of the employee/consultant and the Share Power in escrow.
This is how share vesting works. However, there are a few more options available.
Optional: Exercise of the buyback right
If the employee/consultant leaves the company, any unvested shares will be subject to the company’s right to buyback. (Note that the vested shares are not subject to buyback but may be subject to the call option. See Step 4 below.)
The company may exercise its buyback right for three months from the date the employee/consultant leaves the company. The buyback right is deemed to be automatically exercised by the company upon the expiry of the three-month period. This is unless the company notifies the employee/consultant that it does not intend to exercise the buyback right.
If and when the company exercises the buyback right, the company needs to pay the buyback price for the shares (which is the same price that the employee/consultant paid for the shares in the first place) to the employee/consultant. Following this, the company secretary takes the necessary steps to make the transfer effective.
After the buyback, under Hong Kong and Singapore law, those shares will be regarded as canceled. Make sure the company secretary makes the necessary filing with the Companies Registry/ACRA within the applicable statutory timeframe after the share buyback.
Optional: Exercise of the call option
When creating the Share Vesting Agreement, you may opt for a “call option” to be put in place. This call option enables the company to do one of two things:
Buyback all vested shares at fair value; or
Convert all vested shares to non-voting shares (i.e. the employee/consultant, being the holder of the vested shares, can still receive dividends from the company but has no say in the decision-making of the company).
The company may exercise the call option for six months from the date when the employee/consultant leaves the company.
The fair value of the shares is determined by the auditors of the company or an independent firm of accountants.
Conclusion
Now you know how share vesting works. All you need to do is get yourself a share vesting agreement, some solid employees to vest shares to, and you’re good to go.
This article does not constitute legal advice.
The opinions expressed in the column above represent the author’s own.
Zegal is the end-to-end platform for the legal smaller companies need.
Our story
Zegal was founded in 2014 by lawyer friends Daniel Walker and Jake Fisch. Having been a part of the system that preserves quality legal advice only for those that can afford it, the two were determined to build a model that delivers the ‘corporate law firm’ experience to small businesses.
Today Zegal is the world’s only end-to-end platform for smaller companies to create, negotiate, and sign both the simple, and complex contracts they need to run their business, with expert legal advice, 100% online every step of the way. Since our launch, we have helped more than 20,000 companies close commercial contracts, run leaner HR teams, and enter new markets. You can use Zegal for your company in the UK, Australia, and across Asia. Make your legals simple.
Zegal, the end-to-end legal platform for small businesses, launched in Australasia, sees tremendous growth in the UK.
LONDON, UK, 20 June, 2021 —Increasing small business demand for online end-to-end legal services in the UK has Zegal rapidly expanding its team and product range.
Small businesses in the UK, well-versed in using cloud accounting services like Xero with their accountants, are demanding the same and more from their legal advisors. Enter Zegal. The Zegal platform, which is used across Australia and Asia by more than 20,000 smaller companies and their legal advisors, has seen tremendous growth in the UK as businesses adapt to work-from-home offices.
Zegal is designed to be end-to-end—enabling companies to do legal work that is more complex. Zegal’s sophisticated software is the core of the experience, providing the technology for businesses to work alone; or together with good old fashioned real-life lawyers, working virtually through the platform, whenever needed. The result is streamlined and affordable legals.
As a global Software as a Service (SaaS) company, Zegal was built for the cloud and is an example of how technology companies are providing significant opportunities to small businesses the world over by leveraging the benefits of scale and leveling the playing field. Zegal recently announced a collaboration with British leading virtual law firm 360 Business Law, selected by Zegal to deliver legal advice to its UK clients. Clients using Zegal’s contract management application can now access a free 30-minute consultation with a lawyer at 360 Business Law.
Daniel Walker, Zegal Founder says, ‘The transition we’ve seen from office to remote working has driven a huge demand in the UK market for virtual legal counsel and platform solutions. We are seeing the strongest demand within the mid-market space, which is a very exciting opportunity.’
For more information and/or interview requests please contact Alicia Walker at alicia.walker@zegal.com
Zegal is the end-to-end platform for the legals smaller companies need.
Our story
Zegal was founded in 2014 by lawyer friends Daniel Walker and Jake Fisch. Having been a part of the system that preserves quality legal advice only for those that can afford it, the two were determined to build a model that delivers the ‘corporate law firm’ experience to small business.
Today Zegal is the world’s only end-to-end platform for smaller companies to create, negotiate, and sign both the simple, and complex contracts they need to run their business, with expert legal advice, 100% online every step of the way. Since our launch, we have helped more than 20,000 companies close commercial contracts, run leaner HR teams, and enter new markets. You can use Zegal for your company in the UK, Australia and across Asia. Make your legals simple.
This article does not constitute legal advice.
The opinions expressed in the column above represent the author’s own.
This article covers the main points on registering a company in New Zealand. Read on for details on New Zealand’s requirements, procedures, and the estimated timeline to register a company.
Minimum Setup Requirements to Register a Company in New Zealand
Director -1
Shareholder – 1 *The shareholder can be the director
Official Local Office Address
Local registered agent
At least one director must reside in either New Zealand or Australia.
Registration Timeline
Once the company name is reserved, all other procedures must be completed and approved within 20 working days to successfully incorporate your company. Therefore, it is important to make sure you have all the required information and signatures from the required parties beforehand to ensure a smooth application process.
The registration process can be completed online through the New Zealand Companies Office website, managed by the Ministry of Business, Innovation & Employment.
The estimated total cost of applying for incorporation is roughly NZD$115.
*Most importantly, in order to start the online registration, you will need to have a RealMe®️ login and an online services account with the Companies Register.
**New Zealand corporations pay an annual renewal fee of USD$6,000.
Step 1: Reserve a Company Name
It is important to make sure the proposed company name meets all the criteria and it is available. The name cannot be identical or almost identical to an existing company’s. Proposed names can be checked using the ONECheck platform and it should not fall within the restricted names as set out in the Companies Act 1993.
Once the application has been submitted, the Companies Register office will check for all requirements. If approved, you will receive an email notification to confirm the reservation of the company name. From the date of confirmation, you will have 20 working days to fully successfully incorporate your company.
Step 2: Registering your Company
As mentioned earlier, it is important to have, on standby, the required documents for the following applications. It is also advisable to have the directors and shareholders registered to be available to sign the consent forms as required within the 20 working days period.
Required documentation:
Registered office address for place of business
Legal name and address of all registered directors
Legal name and address of all shareholders
Declaration of an Ultimate Holding Company (UHC) – if applicable
Tax registration – for an Inland Revenue number and a Goods & Services Tax (GST) number
Annual return filing month
Company constitution – optional but highly recommended
Once all the documents mentioned have been prepared, you can submit the online application for incorporation. More information can be found here.
Step 3: File the required Consent Forms
Once the online application has been submitted, the Companies Register office will reply with the required consent forms to be signed individually by all registered directors and shareholders.
The signed consent forms must be returned to the Companies Register office within the 20 working days stipulated period as well for the registration to be successful.
Once the consent forms are all received by the Companies Register office and all documents have been approved, the office will send a Certificate of Incorporation and information of your company will be publicly available on their website.
Accounting
All New Zealand registered companies might be audited yearly. Therefore, it is advisable to keep detailed documentation of the company.
If your company is a subsidiary of a company incorporated outside of New Zealand, and the total assets of the entire company is more than NZD$20 million or have a total revenue of more than NZD$10 million, you will have to file audited financial statements.
If your company has more than 25% of its voting shares held overseas, and the total assets of the entire company is more than NZD$60 million or have a total revenue of more than NZD$30 million, you will have to file audited financial statements.
Annual Return Filing
On top of tax returns and financial statements, all New Zealand incorporated companies need to submit an annual return.
An annual return is a yearly update of publicly available information about your company to be published on the Companies Register website. Failure to submit results in the company being off the register.
All New Zealand incorporated companies are taxed on worldwide income. The current tax rate is 28%.
Annual General Meeting
All New Zealand-registered companies must hold their Annual General Meeting for each calendar year. The meeting must be no later than 6 months after the company;s balance date and no later than 15 months after the previous annual general meeting.
For newly incorporated companies, the annual general meeting must be held within 18 months of the first day of business.
This article does not constitute legal advice.
The opinions expressed in the column above represent the author’s own.
Learn all about the e-sign laws in New Zealand to make the ease of doing business a cinch.
Part 11: Signing in to the digital age
E-sign Laws New Zealand
Named the world’s easiest country to conduct business in 2016, New Zealand is not just a pretty face. The beautiful country boasts legal business structures that facilitate the smooth incorporation of companies.
Adding on to this, New Zealand introduced its Electronic Transactions Act in 2002 to help make international business activities even more convenient especially on the go. It adopts an open legal model.
New Zealand welcomes foreign investors, implementing many business incentives that entices people to start a business in the land of the long white cloud.
As an example of how simple and convenient New Zealand’s procedures have become, have a look at their electronic signature regulations.
Read on to learn more about the legal compliance for electronic signatures in New Zealand specifically and watch out for more in this series on Southeast Asia, Hong Kong, China, New Zealand, Australia, UK, Cayman Islands, and BVI.
The Rules and laws for e-sign in New Zealand
(22) Legal requirement for signature:
(1) Subject to subsection (2), a legal requirement for a signature other than a witness’ signature is met by means of an electronic signature if the electronic signature—
adequately identifies the signatory and adequately indicates the signatory’s approval of the information to which the signature relates; and
is as reliable as is appropriate given the purpose for which, and the circumstances in which, the signature is required.
(2) A legal requirement for a signature that relates to information legally required to be given to a person is met by means of an electronic signature only if that person consents to receiving the electronic signature.
Applicability of an Electronic Signature
(24) Presumption about reliability of electronic signatures:
(1) For the purposes of sections 22 and 23, it is presumed that an electronic signature is as reliable as is appropriate if—
the means of creating the electronic signature is linked to the signatory and to no other person; and
the means of creating the electronic signature was under the control of the signatory and of no other person; and
any alteration to the electronic signature made after the time of signing is detectable; and
where the purpose of the legal requirement for a signature is to provide assurance as to the integrity of the information to which it relates, any alteration made to that information after the time of signing is detectable.
(2) Subsection (1) does not prevent any person from proving on other grounds or by other means that an electronic signature—
Apart from being a popular tourist location, New Zealand also stands out from its counterparts for its favourable business environment. Earning the title of “Easiest Country to Do Business in the World” in 2016, New Zealand has surpassed Singapore and Hong Kong. This acclamation is well deserved; New Zealand is renowned for its open market, regulatory efficiency, monetary incentives and high transparency. All of which are attributable to its light-handed regulatory policy, there are few restrictions on the establishment and operation of businesses in the territory.
In addition, businessmen are also supported by a comprehensive network of physical and technological infrastructure. Having convenient online channels for foreign entrepreneurs, the procedures for starting a company in New Zealand can be completed in just a few hours’ time.
Explore Business Opportunities
The start to any business ownership is coming up with a realistic business idea.
New Zealand is a place filled with opportunities for small and large companies alike, be it expanding on existing industries or filling out gaps in the market. Abundant in natural resources, New Zealand provides rich resources for bee farming, wine making and wood processing businesses. On the other hand, businesses arising from children rearing such as tutorial centres and child-care services are also gaining currency.
While going through endless trending business ideas, consider which one fits your interest, personal goals and skill-set.
After you have a preliminary idea, carefully analyse and refine it. Carry out market research, perhaps even engaging a professional service to help, in order to know your customer and define the costs, profits, and risks of your business.
Product development, marketing strategies and financial funding are important questions that you should consider before taking the plunge.
Once you have a viable business idea and a workable game plan, all you have to do is follow these simple steps to put your business plan into action.
Step 1: Get A Visa
First things first, you need is a visa. You have a choice here – an entrepreneur work visa or a residential visa.
The entrepreneur work visa is categorised into two types, depending on the stage of your business. For those who are looking to launch a business, a six-month visa is granted upon successful application.
When your business is on track and steadily growing, you can apply to stay in the country for another 24 months. To be granted a visa, your business has to satisfy a few thresholds. This includes a minimum working capital of NZ$100,000, a minimum of 120 points (the grading system evaluates the success of your business and the contributions it makes to the country) and a clean track record indicating your past businesses have never been involved with events such as fraud or winding up.
I’ve got my visa, now what?
The residential visa is targeted at foreigners who wish to settle in the country with the purpose of running a business. However, the conditions here are more demanding than those required under the entrepreneur work visa.
Again, there are two types, one for a period of 6 months and the other for 2 years. In addition to passing health, character and language tests, if you have been employed in New Zealand for two years and can prove that your business is operating well and has significant economic benefits to the country, you may be granted a 2 year visa.
If you can’t meet these requirements, you can still try to get a 6 month visa, which requires that your business has an investment of NZ$500,000 and provides at least three permanent jobs to the country’s citizens or residents.
Step 2: Come Up With A Business Structure
If you’ve got your visa, the next decision you have to make is the suitable form of business structure, be it a sole proprietorship, a partnership or a limited company.
These different forms of business structure each have their perks and drawbacks. As a sole trader, you enjoy the simplest set-up procedures and the full entitlement to your business’s profits but at the same time you would miss out on the benefit of sharing expertise and business risks with your partners.
Being a limited company sets a ceiling to your liabilities at the amount of your initial investment but the regulations and formalities thereunder could be deemed too troublesome or restrictive for some.
There are other possibilities in addition to these common kinds of business forms. A good option is buying into a franchise business. As a foreign investor, leveraging off an established brand name can be a less risky choice.
Step 3: Pick A Name
Upon finalising on your form of business structure, the next thing on your to-do list is choosing an available business name. Picking a name is easier said than done. Fortunately, the New Zealand government has a free online tool called ONECheck that helps entrepreneurs check the availability of potential names for their company with by one simple search.
Be sure to reserve your company name with the Companies Office once you’ve came to a decision.
Step 4: Set Up RealMe Login
At this point, setting up your RealMe login would be handy. This is a set of username and password that has wide use for online services in New Zealand.
Many government agencies use the RealMe login system, whether for the registration of your company name, managing your Inland Revenue account, or applying for permits. Setting up a RealMe account in advance will make your life much easier later on.
Your new office?
Step 5: Create A Business Banking Account
Utilising a dedicated business banking account is not only expedient but also necessary, especially as your business scales up. Mixing your personal and business transactions in one account is imprudent for asset protection and also confusing for accounting and tax filing.
Also, imagine the amount of investigative work you are laying upon yourself when trying to filter out the expenses incurred for your business. It is a smart move to get your business bank account ready early on. Reach out to a local bank of your choice and inquire about the requirements and documents needed to set up a banking account for your business.
Step 6: Observe Legal Obligations
Grappling with regulatory requirements can be vexing for many, especially as a foreigner. The following are some of the regulatory rules that you will have to keep an eye out for:
New Zealand Business Number (NZBN)
Unique to Kiwi companies, you need to register your business in order to obtain a New Zealand Business Number (NZBN). This is a distinctive code for each New Zealand company, serving the purposes of identification and information sharing between companies. For instance, when other companies wish to engage you for goods or services, all they have to do is look up the NZBN Register. All the basic information on your company, such as your trading name and address will pop up, saving you the trouble of having to repeat this information to every potential client.
Protect Your Brand
A unique business identity is vital to the growth of the business. Perform due diligence to make sure your brand logo does not accidentally replicate other existent logos. When you are certain that your logo and trademark are one of a kind, don’t forget to register them. Registering for a domain name is also crucial for safeguarding your business’s uniqueness.
Checking out the rules with your local council is particularly important, as different cities may have different regulatory systems. Apart from any general licensing or permit requirements that you are already aware of, prior to commencement of your business, you want to make sure you have all the necessary permits depending on your business nature.
Fulfill Tax Burdens
If your business earns over NZ$60,000 annually, it will have to register for the Goods and Services Tax with the Inland Revenue Department. Keep up with all filing deadlines to avoid paying extra fines. The Inland Revenue Department website has various instructional videos and tax workshops installed to better equip foreign investors.
These simple steps provide a basic guide to setting up a business in New Zealand. If you already have a winning business idea and the determination to make it happen, New Zealand is an easy choice.
This article does not constitute legal advice.
The opinions expressed in the column above represent the author’s own.
Ranked fifth inForbes’ Best Countries for Businessin 2018, New Zealand is an appealing destination for doing a business. Regardless of whether you are a new business or an established business, there is a range of government resources and support available for business owners. The New Zealand government also has grants for small business.
Here, we pick out the 5 government grants for startup businesses that you should check out to see if you qualify:
1. Business Training and Advice Grant
Numerous entrepreneurs have written about howfinding great mentors has beencrucial to the success of their business. Finding experienced and trustworthy mentors gives entrepreneurs the opportunity to tap on collective experience in making decisions and building their company.
If you are starting up your own business, the Business Training and Advice Grant connects people getting government assistance who want to start up their own business with the training and advice they need to start their business. It’s a business start up grants by New Zealand Government
How You can get Business Training and Advice Grant ?
You may be able to get a Business Training and Advice Grant if:
either:
you or your partner are getting a main benefit, or
you qualify and have applied for a main benefit
you’re getting New Zealand Superannuation or a Veteran’s Pension as a non-qualified partner
you’ve asked Business Training and Advice Grant for help to start your business
What you can get from Business Training and Advice Grant?
Business Training and Advice Grant will pay an expert who will help you with things like:
business skills training
developing a business plan
business advice before and when starting your business
independent vetting report
mid-project financial report.
You can apply more than once, but the total amount cannot be more than $1,000 in a 52 week period.
How to apply?
You can Call on 0800 559 009 and Business Training and Advice Grant will book you an appointment to come You will also need to write a brief summary about your business and provide information about what course or service you want the grant for.
If you are a startup that wants to connect with mentors and business advice, Callaghan Innovation can help you to connect with the right advisor, partner or mentor as business grants in New Zealand.
Callaghan Innovation identifies the expertise in your field and helps to use business owners to have national and international networks of Callaghan Innovation which is government grant for business.
So one can take advantage from Callaghan Innovation partners to grow their idea.The main goal is to connect business owners with the right advisor, partner, mentor or technology provider.
Administered by New Zealand Trade & Enterprise (NZTE), theCapability Development Vouchers can be used to co-fund up to 50% of capability development training up to a maximum of $5,000 per year per business, with the requirement that the business pays at least half of the training costs.Capability Development Vouchers is business funding grants in New Zealand
The vouchers can be used for training in business planning, capital raising, exporting, intellectual property and more.
In order to qualify for the NZTE Capability Voucher Scheme, the business must meet the following criteria:
Have undergone an assessment with a Regional Business Partner
have fewer than 50 full time equivalent employees
are registered for GST in New Zealand
are operating in a commercial environment
privately owned businesses, or are a Maori Trust or incorporation under the Te Ture Whenua Maori Act 1993 or similar organisation managing Maori assets under multiple ownership.
If you are good with this criteria then you are eligible to meet RBP Growth Advisors to access co-funding for registered training enterprises. Here another steps you need to follow
To access this co-funding you must first meet with one of our RBP Growth Advisors to discuss your business.
The Growth Advisor will seek to understand opportunities for growth and help identify any barriers to this
The Growth Advisor will then work with you to put together an action plan. Where there is a management capability need identified that could be addressed by undertaking training, the Growth Advisor may issue a Capability Voucher to the businesses.
Resource : Regional Business Partners
3. R&D grants
Research & development (R&D) iscrucial to the development of any business as it provides a platform for innovation within an organisation and ensures that the business is constantly striving to maintain its competitive edge. Government agency Callaghan Innovation administers a range ofR&D grants in New Zealand , in order to help businesses push the boundaries of scientific and technical knowledge in order to improve their products and processes.
There are a range of nz government business grants which target companies at various stages of R&D investment, including:
The Getting Started Grant is designed to help you:
Launch your R&D activities to create a competitive edge
Navigate through R&D roadblocks – whether its troubleshooting, basic prototyping, project planning, technical feasibility studies, development of an Intellectual Property strategy or determining product specifications and user requirements
Access technical expertise to support you in taking your development in the right direction.
Build your R&D expertise by giving your business an opportunity to push the boundaries and uncover new scientific or technical knowledge and understanding
Break new ground in an R&D project for the development of new or substantially improved devices, products, processes, systems or services
Develop your business into a stable and substantial R&D performer
Introduced in 2012 to target those most at risk of remaining on welfare, theFlexi-Wage Subsidy helps businesses hire someone on benefit as an employee and may also help with the training costs.
Individuals who are self-employed may also be eligible forFlexi-Wage.Small businesses have reported that the Flexi-Wage Subsidy has allowed them to take on new employees who require training as it helps to alleviate the costs of the training during the period when the new hire is not yet making a profit for the business.
In order to be eligible for the Flexi-Wage programme, you must be currently receiving some form of government benefit or payment, as well as a citizen or permanent resident of New Zealand. To find out whether your business qualifies for the Flexi-Wage programme, speak to a case manager atWork and Income.
How to get Flexi-wage Subsidy?
You may be able to get Flexi-wage for an employee if:
the position is ongoing and will continue after the subsidy has finished
you pay at least the minimum wage for the job
you haven’t dismissed anyone else just to employ them.
Who can get Flexi-wage Subsidy
Ministry of Social development discuss with you how much we can offer and how it’s paid. This will depend on what help the candidate needs to reach the skill level for the job.
Application Process
If Ministry of Social development find a suitable candidate for you but they require extra support, they will l contact you to discuss how Flexi-wage can help. They will need to check that you and the candidate meet the criteria for Flexi-wage.
If you choose to employ the candidate, They will organise the application for Flexi-wage.
As part of this, they’ll:
contact you to discuss and agree on a:
development plan for them
subsidy amount
payment structure
draft up a contract outlining these details and if it’s approved, they’ll contact you to let you know and discuss next steps.
they’ll email you the contract before your candidate starts work. You need to complete the contract and email it back to us along with evidence of your bank account number.
You’ll be paid once the contract has been processed.
5. Energy Management Support
If your product manufacturing processes form a significant part of your costs, you may want to consider the energy management support that the Energy Efficiency and Conservation Authority (EECA) provides.
The EECA will fund up to 40% (to a maximum of $100,000) of the cost of expert help to bring energy saving practices into your company as government grants for startup businesses in New Zealand. By developing an energy management plan comprising an energy-savings target and a system to manage your energy, you can significantly cut operational costs and make your business more profitable.
Energy management support is designed to fund a specific, step-by-step process. This is managed by EECA’s experienced partners, who’ll help you to:
set an energy-savings target
commit to energy management, with a team and ‘energy champions’
set up a system to manage your energy, including having an energy policy
identify your main areas of energy use
create plans to prioritise energy-saving opportunities.
Who can apply ?
Energy management plans are ideal for large businesses with complex energy requirements. But smaller businesses can also benefit from long-term energy management planning.
If you spend over $200,000 per year on energy, you may be eligible for funding support.
New Zealand topped the World Bank’s 2017 Doing Business report for the first time, we look into the top 5 reasons why doing . If you are trying to start a new business and confused about where your headquarter should be then here are the 5 reasons why doing a business in New Zealand is attractive and ultimately, is the perfect destination in the Asia Pacific region.
1. A Conducive Economic Climate
In spite of its status as a small nation, New Zealand has established itself as one of the top places to start a business due to its economic stability and potential for growth. The steady GDP growth of 3.3% last year shows that consumer spending has been growing steadily over the past year and shows no signs of slowing down. This makes it an ideal place for you to ride on this wave of economic success.
In addition to this, the New Zealand government seems to be both willing and able to support entrepreneurship and business. It has traditionally offered strong infrastructural support for such activities with the provision of grants by New Zealand government for startups, mentoring and low cost legal advice for owners to structure and manage their businesses.
Furthermore, New Zealand has traditionally maintained good relations with countries in the Asia Pacific. For example, its close relations with Australia have resulted in the Closer Economic Relations agreement, a Free Trade Agreement, which gives each country free access to the other’s markets. Essentially, amongst other benefits for businesses, this means that no tariffs will be placed on exports to and imports from Australia to New Zealand. This would be ideal if you are considering eventually expanding into other markets. These two factors are important to consider especially when considering the long term future of your business.
2. Straightforward Legal Requirements
There is also no need to worry about being bogged down by excessive bureaucracy and legal restrictions when it comes to starting a business in New Zealand.
Slightly different regulations may apply to each individual, depending on which business structure you choose – be it a partnership, limited partnership, company, or sole trader. Some of these processes involve registering to pay Goods and Services Tax (GST), registering as an employer, and applying for an Inland Revenue (IRD) number in order to be able to operate the business. Nonetheless, the paperwork to set up a business can be completed online in a matter of hours, with much ease and convenience.
3. A Supportive Startup Community
You’re going to need all the support you can get when you dive head first into starting a business. That’s why it’s important to have a community with resources that you can tap on. New Zealand’s startup scene seems to be able to provide just that, with working spaces aplenty, and a friendly, tightly knit community full of like minded peers. You’ll find no shortage whenever you need advice, a listening ear, or just someone to bounce ideas off with.
Unfortunately, tax is one of the inescapable realities of life. For small businesses, tax often tends to be a concern given how it impacts on the company’s income. A business pays income tax on its net profit, based on the amount of goods and services it sells. This is shaped by the type of entity you operate, and the income you make within the year.
Fortunately, the tax environment in New Zealand is relatively forgiving. Some of the tax concessions include a 6.7% discount on taxes for individuals in self-employed positions or in partnerships, as well as a number of rebates for sole trader and partners in a partnership if their annual income falls below NZD 38,000.
5. Work Life Balance
The question of work-life balance might seem counter-intuitive for someone looking to establish a startup. After all, in order to make it in the sometimes cutthroat startup environment, you’ll need to work as hard as you can.
However, what you might want to consider is how to be productive in a more meaningful and concerted way, and ensuring a healthy work-life balance might help with that. There are many factors that might affect one’s productivity such as the natural environment, one’s responsibilities to their family and social connectedness amongst others. One factor that stands out is your personal lifestyle. Ensuring a healthy work life balance in which you are able to block out time to recharge might boost your productivity in the long run, allowing you to work more efficiently to help your ideas take off.
In short, starting a business in New Zealand has never been easier. Whenever you expand into a new market, it is also important to ensure that your company’s legal needs are being met. Ready to get started?
New Zealand is an attractive location for doing business, taking second place in Forbes’ Best Countries for Business in 2017. If you’re an entrepreneur looking to start up business in New Zealand you can take advantage of the tightly-networked yet laid-back and creative culture in this startup hub, look no further. We have put together a comprehensive guide for setting up a business in New Zealand.
In order to register and start your business in New Zealand, you need to apply online for registration with the New Zealand Companies Office.
Decide on business name
The first step would be to reserve your company name online. Your company name must be unique and can be reserved for up to 20 working days with the Companies Office. To ensure that your business name is unique, search on ONECheck to confirm that the name you want is not already protected. Applying for a name to incorporate your company costs NZ$10.22 and the applications received during normal business hours will be processed within two hours. Try using a company name generator for ideas if you’re having trouble coming up with a unique business name. These tools can provide you with a list of potential business names based on keywords and other criteria that you provide. However, it’s important to remember that the name you choose should accurately represent your brand and be easy for customers to remember and spell.
Register your business online
In order to incorporate your company, first get a RealMe login. Once logged in, click on the Complete Coy Application link within your task list. You will be required to provide some basic details about your company, including:
Company address;
Annual return filing month;
Directors;
Shares & shareholders;
Constitution (optional); and
Tax registration (recommended).
After your review your application details and pay the application fee of NZD 150, applications to incorporate the company will be processed automatically. You should receive an email providing you with consent forms for the directors and shareholders to sign and return. You will need to upload the signed director and shareholder consents within 20 working days of when the company name was reserved in order for the certificate of incorporation to be issued.
After incorporation
Once your company is incorporated, it is time to get your business up and running.
Ensure compliance with local laws
Each territorial authority has its own rules regulating business activity on issues such as fair trading, consumer guarantees, privacy and health and safety. Check what these rules are at Compliance Matters, where you can quickly create an action list, complete and keep track of tasks online.
Determine tax obligations
If you have registered as a company or will be earning more than NZD 60,000 per year, it is mandatory to register for GST online with Inland Revenue. Use the Tool for Business to sort out your small business tax issues quickly and simply.
Get a lawyer, accountant and bank account
Set up a bank account for business purposes, and seek legal and financial advice.
It is important to file an annual return with the Companies Office regardless of whether your company is trading or it risks being removed from the register.
Do you have any additional tips for setting up your business in New Zealand?
Investment into New Zealand companies saw 9% growth year-on-year between 2014 and 2015, with $61.2 million invested into 94 companies across 132 deals in 2015.
The inaugural Tech Pioneers Report prepared by H2 Ventures, one of Australia’s leading venture capital firms, identified online accounting software company Xero and cloud-based point-of-sale (POS) and retail platform Vend among the top ten Tech Pioneers that are taking advantage of technology and driving disruption across a range of industries. New Zealand government has also grants for start up that a good point for new comers in business.
The startup scene has been described as “tightly-networked”, and the culture as “laid back, creative, fun-loving and balanced”. Here, we give you the lowdown on New Zealand’s up-and-coming startup scene:
New Zealand Technology Industry Association NZTech enables the growth of the tech industry in New Zealand by providing leadership in engaging government leaders, the media and other stakeholders. They support the New Zealand government’s quest to becoming a digital nation by acting as an information hub for investorsand businesses.
Creative HQ The startup base in New Zealand’s capital city Wellington aims to increase the number of high growth businesses in New Zealand through its incubation and accelerator programmes, as well as grassroots entrepreneur initiatives and innovation spaces.
Built in Wellington This website describes itself as a “one -top poster board for what makes this city hum” and curates startup events in Wellington, as well as news, articles, blogs, and tips.
NZ Startup of the Week This blog showcases a new startup in New Zealand every Monday and is a great way to keep yourself updated on the freshest startup on the scene! (Subscribe)
Facebook groups
NZ Tech Startups Eco-System With more than 6,000 members, this group helps you stay up to date on the New Zealand startup scene, find information, meet investors and co-founders and find answers to your startup questions.
Founder Finder NZ/AUS This Facebook group helps you connect with other entrepreneurs, creative talent, venture capital and subject matter experts.
Co-working spaces
Biz-Dojo (Auckland, Wellington, Christchurch) This co-working and collaboration network has offices in several locations and becoming a member gives you access to all the locations.
Enspiral Space (Wellington) Self-described as a “‘DIY’ social enterprise support network”, Enspiral regularly hosts public gatherings at its physical hub Enspiral Space. It targets entrepreneurs, startups, freelancers, and charities with an ethical focus.
YND Workshop (Wellington) This co-working space describes itself as a “light-filled, open-plan space ideal for creatives and techies” and offers a number of flexible options for hiring space, from day-rate hot-desking to monthly fixed-desks.
Generator (Auckland) Generator has many options for hiring space, including private suites, permanent desks, hot-desking and casual membership to their bar and lounge.
Movers & Shakers (Auckland) Located on the top floor of one of Britomart’s most eccentric heritage buildings, it is ideal for those who want to be inspired by the place they work in.
Bridge Street Collective (Christchurch) This co-working space is known for its inspiring community, and community events include meetups, morning tea every morning, after work drinks and more.
Events
For a summary of all the startup-related events going on in Wellington, check out the Built in Wellington calendar! Some cool events you should definitely check out include:-
Techweek Techweek is a nationwide technology festival that showcases entrepreneurship and innovation. For Techweek’17 taking place in May 2017, you have the option of submitting an event if it falls within any of the following five themes: Next Generation, The Equality Gap, The Future of Food, Scaling Impact and Environmental Shift.
Startup Garage This event series run by Creative HQ that is open to anyone and includes office visits, hosting visiting speakers with inspiring stories and conducting information expert sessions.
Startup Weekend This global initiative is an intense 54 hour event that brings together developers, designers, marketers, product managers and startup enthusiasts to share ideas, form teams and build products.
Founded in Hong Kong in 2012, Zegal expanded into New Zealand in June 2016 with a total of 7 free legal documents that were localised for the New Zealand jurisdiction.
6 months following Zegal’s soft launch into New Zealand, we now offer a total of33 documentsas part of the Startup Plan – that provides New Zealand startups with all the legal documents they need through the phases of Pre-Startup, Startup, Growth, and Maturity. With an online legal service such as Zegal, Founders have the ability meet their legal needs at a fraction of the time, cost, and complexity.
Also check out Zegal’s (FREE!) eBook libraryto learn more about basic legal fundamentals, owning your trade mark, doing business online, and fundraising.
Xero– cloud accounting software New Zealand pride Xero offers a cloud-based accounting software for small and medium-sized businesses simplifies paperwork and allows you to focus on building your business. Similar to Zegal, Xero also maintains a comprehensive library of handy small business guides.
Accelerators & Incubators
Lightning Lab With the aim of creating great businesses at lightning speeds, this accelerator programme launched in Wellington in 2012 offers a 12-week mentor-intensive programme that provides startups with structure, business skills and access to a global network of more than 100 mentors and advisors
R9 Accelerator This accelerator is a partnership between Creative HQ and New Zealand’s Ministry of Business, Innovation and Employment. It bring together entrepreneurs, developers, private sector specialists and government to work on projects that tackle major pain points for New Zealand businesses. This in-residence accelerator gives startups the opportunity to dive deep into their opportunity areas over the period of three months.
Did we miss anything?
What other communities form the cornerstone of New Zealand’s startup community?
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