Starting a Business in Christchurch: What You Need to Know

Christchurch has undergone a remarkable transformation since the 2011 earthquakes. The rebuild has created a modern, well-connected city with a growing tech sector, a strong construction and trades industry, and a business community that actively supports new ventures.

If you are thinking about starting a business in Christchurch or Canterbury, here is a practical guide to the key steps — from choosing a structure to getting your tax obligations right from day one.

The structure you choose affects your tax, your liability, and how you can bring in partners or investors. The main options are:

The simplest structure — you operate in your own name, and your business income is your personal income.

• Tax: Income taxed at personal rates (up to 39%)
• Liability: Unlimited — your personal assets are at risk
• Setup: No registration required (just register with IRD)
• Best for: Freelancers, contractors, and very small businesses starting out

Two or more people operating together, sharing income and liability.

• Tax: Each partner pays tax on their share of income at personal rates
• Liability: Partners are jointly and severally liable
• Setup: A partnership agreement is strongly recommended
• Best for: Professional practices and businesses with multiple founders who want simplicity

A separate legal entity — the company owns the business assets and is responsible for its debts.

• Tax: Company pays 28% tax on profits; shareholders pay personal tax on salaries and dividends
• Liability: Limited to the amount invested (with some exceptions for director guarantees)
• Setup: Register with the Companies Office ($165 fee)
• Best for: Most businesses with growth ambitions, employees, or significant assets

A company that elects to have its income and losses flow through to shareholders for tax purposes.

• Tax: Shareholders pay tax at personal rates on company income; losses can offset other personal income
• Best for: Property investment companies and businesses that expect early losses

For most new businesses in Christchurch, a limited liability company is the right starting point — the liability protection is valuable and the 28% company tax rate is often lower than personal rates once the business is profitable.

If you are forming a company, register at companies.govt.nz. You will need:

• A company name (check it is available)
• At least one director (must be a NZ resident or have a NZ address for service)
• At least one shareholder
• A registered office address in New Zealand
• A New Zealand Business Number (NZBN) is automatically assigned

The registration fee is $165 and the process takes about 30 minutes online.

Every business needs an IRD number. If you are forming a company, the company needs its own IRD number (separate from your personal one).

Register at ird.govt.nz or through your accountant. You will need your Companies Office registration number if you are registering a company.

You must register for GST if your turnover exceeds (or is expected to exceed) $60,000 in any 12-month period. You can register voluntarily if your turnover is below this threshold.

Should you register voluntarily?

If your customers are GST-registered businesses, registering for GST is usually beneficial — you can claim back the GST on your business expenses, and your customers can claim back the GST you charge them.

If your customers are mainly consumers (individuals who cannot claim GST back), registering for GST effectively increases your prices by 15% — which may make you less competitive.

Once registered, you file GST returns either monthly, two-monthly, or six-monthly.

ACC (Accident Compensation Corporation) provides cover for work-related injuries. As a self-employed person or business owner, you are automatically covered — and you will receive an invoice for your ACC levies once you register with IRD.

ACC levies are based on your industry classification and your earnings. For most office-based businesses, levies are modest. For trades and construction, they are higher.

If you have employees, you also pay an employer levy on their wages.

If you are employing staff from day one, you need to:

• Register as an employer with IRD
• Deduct PAYE (income tax), ACC earner levy, KiwiSaver, and student loan repayments from wages
• File employment information with IRD each pay period (payday filing)
• Pay employer KiwiSaver contributions (minimum 3% of gross wages)

Payroll software (Xero Payroll, MYOB, or standalone tools like PayHero or iPayroll) handles the calculations and filing automatically.

Get your accounting set up before you start trading — not after. The right software from day one means clean records, accurate GST returns, and less work at year-end.

For most Christchurch small businesses, Xero is the best choice. It integrates with all major NZ banks, handles GST and payroll, and is the platform most local accountants use. See our full accounting software comparison for more detail.

Keep your business finances completely separate from your personal finances. This is not just good practice — it makes your accounting significantly simpler and reduces the risk of IRD questioning personal expenses.

All major NZ banks offer business accounts. Compare fees and features — some offer free banking for the first year for new businesses.

At a minimum, consider:

• Public liability insurance: Covers you if a client or member of the public is injured or their property is damaged because of your business
• Professional indemnity: Essential for consultants, advisors, and anyone providing professional services
• Business interruption: Covers lost income if you cannot operate due to an insured event
• Contents and equipment: Covers your business assets

In Christchurch, earthquake insurance is particularly important — make sure your business assets and premises are adequately covered.

Christchurch has a strong ecosystem of support for new businesses:

• ChristchurchNZ: The city's economic development agency offers business support, connections, and resources
• Canterbury Chamber of Commerce: Networking, advocacy, and business development programmes
• Business Mentors NZ: Free mentoring from experienced business people
• Callaghan Innovation: R&D grants and support for innovative businesses
• Regional Business Partner Network: Funded training and advisory services for eligible businesses

The first year of business is typically the hardest — cash flow is tight, you are learning as you go, and the administrative demands can feel overwhelming. A few things that help:

• Set aside tax from day one: Put 25–30% of every payment you receive into a separate account for tax. Provisional tax bills catch many new business owners by surprise.
• Invoice promptly: Cash flow is the number one killer of new businesses. Invoice as soon as work is complete and follow up on overdue payments.
• Track everything: Keep receipts, record expenses, and reconcile your bank account regularly. Clean records make everything easier.
• Get advice early: An accountant can save you far more than their fee in the first year — by getting your structure right, your GST set up correctly, and your tax planning in order.

Starting a business in Christchurch is an exciting step. Getting the foundations right — structure, tax registration, accounting systems — sets you up for sustainable growth.

Contact Eastmure & Associates to talk through your plans. We work with new and growing businesses across Christchurch, Selwyn, and Waimakariri, and we offer a straightforward initial conversation at no charge.