Advantages and Disadvantages

What Companies must do under the Law
The Companies Act 1993 sets out strict rules that the company has to abide by.

Penalties can be imposed if the following areas are not attended to:

  • The directors and officers of the company have a duty of care to act honestly and correctly to protect the company, as well as the shareholders.

  • The company must publish its names on all documents it uses, as well as on its premises so that people know who they are dealing with.

  • The directors of the company are responsible for the management of the operation and can be held personally liable if they incur debts in the business when they have knowledge that the company was insolvent.

  • The company and its officers must ensure that full accounting and other records are kept in order to record the transactions of the business correctly and to enable proper and fair accounts to be extracted.

  • At times, the officers of the company are required to produce the books of account of the business, if so directed.

2 Ways to Register your Company
Registration is also referred to as incorporating your company.

The 2 ways are:

  1. Online incorporation. You can incorporate your company by going on to the Internet and logging on to the Companies Office web site. Information on the web site will set out how a person can register a company by following their prompts and completion of various forms.

  2. In person or by Post - by calling into the Companies Office to complete registration or by or applying by post.

If you decide to incorporate a company you can secure an Application for Registration of a Company form (Form 1), as well as a Consent and Certificate of Directors form (Form 2) and Consent of Shareholders form (Form 3). These are available from the Companies Office, or can be downloaded from the Companies Office web site.

Once these forms are completed, you can post them with the prescribed fees to the following address:

The Companies Office
National Processing Centre
Private Bag 92061
Auckland Mail Centre

The Companies Office will register the company and then forward the documentation back to you on completion.