Types of Law


Ownership and Control of Business

There are 3 main business structures used in New Zealand:

  1. Companies
  2. Partnerships
  3. Sole Traders

A sole trader owns all the assets of the business and is solely responsible for the business’ obligations and debts.

If you want to operate a business together with others you can set up as a partnership, which is similar to a sole trader, except there is more than one person involved in ownership of the business.


Companies Law
The Companies Act 1993 provides the basic rules when setting up or operating a company in this country.

All companies must have:

  1. A registered name.
  2. One or more shareholders.
  3. One or more shares.
  4. One or more directors.
  5. A registered office.

A company can also have its own constitution or adopt the constitution contained in the Act. The company is a legal entity in its own rig

...

Membership required (FREE)

The rest of this article is freely available to StartRunGrow members.
Not a member? Join Here - Its FREE!