New Zealand Offshore Finance Company

Advantages of New Zealand

New Zealand is recognized as a premium jurisdiction for the following reasons:

1. It provides all the advantages of traditional “offshore” financial centres, but is recognized as a true mainstream “onshore” financial centre, which has NOT been “black listed” by any jurisdiction or authority in the World. It is not perceived by O.E.C.D. as a harmful tax jurisdiction, and has no connotations as a tax haven. It is a member of the O.E.C.D. and the World Trade Organization.
   
   
2. New Zealand is a member of the British Commonwealth, English is the main language, has a common law system, and the majority of legislation including trust law is founded on British law. It has the same day time zone for the Asia Pacific region and is usually 12 or 13 hours ahead of Europe. 
   
   
3. It is not a member of the EU, and is not influenced by the EU Savings Tax Directive and any future developments (should they be extended to apply to companies or trusts). It is a signatory to the 1922 Hague Convention and can provide Apostilled documentation as well as Notarised documentation.

It has a Westminster style Government and together with its administration, is stable and competent. New Zealand has a well developed infrastructure, including a progressive and robust economy, efficient telephone and internet services, competitive and frequent air travel, reliable internet global banking services, experienced, reliable professionals serving global clients with trust and company requirements which include legal opinions on tax, trust and company matters.

Offshore Finance Company particulars

New Zealand legislation enables the creation of an offshore finance company (OFC), which providing it is independent of the depositors, can accept global deposits, earn high interest and pay the depositors a lesser interest rate.

Unlike the Swedish Credit Union an NZ OFC can offer banking services to both private individuals and corporations worldwide, with no limitations on the number of customers, amounts on deposit or number of currencies.  Only New Zealand resident companies and individuals cannot be accepted as clients.  Also there are no restrictions on public solicitations and web sites being open to the general public.

The OFC can operate in a similar way to a fully licensed bank, but the word “bank” cannot be included in the name. Words like “Savings and Loan”, “Depository” and even “Bancorp” are all permissible.  Activities of an OFC can include but are not limited to:

• Deposit taking & lending
• Debit and credit card services
• Issuing of financial guarantees and instruments
• Cash management services
• Current accounts
• Cheque (Checking) accounts
• Savings accounts
• Term deposits
• Wire transfer services
• Payment processing services
• Fund management
• Marketing of investments

The company is not subject to capital reserve requirements and there are no minimum capitalization requirements. Directors and shareholders can be of any nationality and resident anywhere. If 25% or more of the shares are owned by an offshore resident then annual audited accounts will be required.  If an annual audit is not desired a separate New Zealand holding company can be set up with a New Zealand resident nominee shareholder.

Although the OFC is not subject to Central Bank supervision and regulation, its activities are regulated by several acts including:

• Bills of Exchange Act 1908
• Cheques Act 1960
• Companies Act 1993
• Consumer Guarantees Act 1993
• Credit Contracts and Consumer Finance Act 2003
• Electronic Transactions Act 2002
• Fair Trading Act 1986
• Financial Transactions Reporting Act 1996
• Investment Advisers (Disclosure) Act 1996
• Personal Properties Securities Act 1999
• Proceeds of Crime Act 1991
• Property Law Act 1952
• Reserve Bank of New Zealand Act 1989
• Securities Act 1978
• Unclaimed Money Act 1969

However, the requirements are not onerous and in most cases have little or no impact and in fact should provide potential clients of a properly run OFC with a high degree of comfort, while at the same time the OFC being able to provide a high degree of confidentiality due the fact that the Reserve Bank does not act in any overseeing capacity.

New Zealand based banking options can be provided and in most cases will require a local visit, except in instances where local nominees have been contracted with (this can be provided on a case-by-case basis). High rates of interest are available in New Zealand for deposits in the range of 7.75% - 10.5% for 12 months creating some safe scenarios for accepting deposits from clients and paying a lower rate of interest to them, with the OFC capturing the difference.

Alternatively the OFC could invest directly into New Zealand Government Treasuries. As an indication (as at May 2007) Government Official Cash Rate (OCR) was 7.75%. As part of our package we provide the necessary registration so that there will be no non-resident withholding tax deducted at source, but instead a minimal 2% levy. This is the “Approved Issuer Levy” scheme where the OFC is registered as an approved issuer.

A NZ OFC is subject to taxation on its worldwide income at standard NZ corporate rates which are quite high.  This can be largely eliminated by using an offshore investment company and/or a licenced Panama corporate structure to handle payment processing on behalf of the OFC.  Taxable income can be shifted to these offshore vehicles through this outsourcing method.

We can provide an OFC at a considerably lower price then you will typically find elsewhere, and can provide some additional options that no-one else offers including New Zealand and EU bank account options and nominee directors (both New Zealand based and offshore).  In addition we also offer a powerful multi-currency accounting and internet banking platform and private label debit card issuance options.  Turnaround for formation of the OFC is around 2 to 3 weeks.