GRA Blogs

Articles by Matthew Gilligan

Matthew Gilligan

Legislation to Tighten Company Regulations


There is currently legislation before Parliament seeking to tighten up rules around incorporation of companies on the New Zealand Companies Office Register.

In particular, there is concern about companies being incorporated with offshore shareholders and directors, and then being used in criminal activities. A large part of the reason for this concern is that there are no restrictions on who can be a shareholder and director of a New Zealand company, and historically little has been requested in terms of identification for such people.

However, this is changing. Recently the IRD have started asking for identity documents for offshore shareholders and directors, and proof of residential address for the same. This new legislation proposes to go one step further by requiring every company incorporated on the New Zealand Companies Office Register to have a New Zealand-based director. This is very significant.

If you are an offshore director of a New Zealand company and you do not have a New Zealand-based director, then you need to be aware of this new rule. Note that it is not law yet, and when it does become law there will be a six-month grace period for companies that do not comply to get their affairs in order. We will keep you posted.

As always, these comments are of a general nature only and not a substitute for advice on your specific circumstances. Please contact us at GRA if you wish to discuss any aspects of the above.

Matthew Gilligan
Matthew Gilligan
© Gilligan Rowe & Associates LP

Did you like this article? Subscribe to our newsletter to receive tips, updates and useful information to help you protect your assets and grow your net worth. We're expert accountants providing expert advice to clients in NZ and around the world.

Disclaimer: This article is intended to provide only a summary of the issues associated with the topics covered. It does not purport to be comprehensive nor to provide specific advice. No person should act in reliance on any statement contained within this article without first obtaining specific professional advice. If you require any further information or advice on any matter covered within this article, please contact the author.

Add a Comment

Log in or sign up to post a comment

Good morning, Just wished to thank you again for your informative and interesting lesson last night. Whilst I thanked you for your time, I did not compliment you on your clear knowledge and insight into your area of expertise. So compliments! Kind regards, - G F - April 2016

Would you like to receive . .

. . tips, updates and useful information to help
protect your assets and grow your net worth?

GRA logo

Gilligan Rowe and Associates is a chartered accounting firm specialising in property, asset planning, legal structures, taxation and compliance.

We help new, small and medium property investors become long-term successful investors through our education programmes and property portfolio planning advice. With our deep knowledge and experience, we have assisted hundreds of clients build wealth through property investment.

Learn More
GRA Senior Partners