How to Register as a Sole Trader in New Zealand (2025 Guide)
Setting up as a sole trader in New Zealand is one of the easiest and most flexible ways to start a business. Whether you're a freelancer, contractor, or side hustler, here's how you can register and get started the right way in 2025.
Step 1: Get an IRD Number
You’ll need a personal IRD number from Inland Revenue to declare your income and pay tax. If you don’t have one yet, you can apply online via the IRD website.
Step 2: Choose a Business Name (Optional)
You don’t legally need to register a business name if you're trading under your own name, but a unique business name can help with branding. You can reserve a name with the Companies Office, even if you’re not registering a company.
Step 3: Register for GST (if needed)
GST registration is required if your turnover is more than NZD $60,000 over 12 months. You can register online through Inland Revenue. If you're below the threshold, registration is optional but may benefit some businesses.
Step 4: Set Up a Business Bank Account
Keeping your business and personal finances separate is crucial. Most banks in New Zealand offer low-fee accounts for sole traders or small businesses.
Step 5: Understand Your Tax Responsibilities
As a sole trader, you’ll declare your income on your individual tax return (IR3). You’re responsible for income tax, ACC levies, and GST (if registered). Consider using accounting software to stay organised.
Bonus Tips
- Use Xero or Hnry to simplify invoicing and tax compliance.
- Save a portion of your income for tax throughout the year.
- Keep good records and receipts for all business-related expenses.
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Kiwi Money Matters is written and maintained by a New Zealand-based writer with hands-on experience in finance and accounting since 2015.
All posts are personally researched, written to ensure clarity and trustworthiness for everyday Kiwis.
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