New Zealand Financial Service Provider Company Registration

Since the creation of the New Zealand Financial Service Provider registration system, New Zealand has become a popular destination for international investors and multinational businesses looking to establish a new entity providing financial services.

However, the surging interest has been accompanied by some misinformation and misunderstandings regarding New Zealand Financial Service Providers, and what an entity must do in order to qualify as a Financial Service Provider. Current New Zealand regulations clearly set out that:

  • Only entities which provide financial services in the territory of New Zealand are required to have an FSP license, and
  • Entities which do not provide financial services in New Zealand and do not have a place of business in New Zealand are not eligible to apply for FSP status.

Further, in order for a business entity to maintain its New Zealand FSP registration, it must:

  • Offer financial services in New Zealand, and
  • Maintain its physical place of business in New Zealand, and
  • Offer all of its services and products from its place of business in New Zealand, and must be able to transact the service from the place of business.

Under current regulations, representatives from the New Zealand Ministry of Economic Development can (and will) conduct an inspection of the specified place of business to determine whether it is a genuine working premises which offers all of the company’s products and services. Entities which do not offer their services from the place of business can be removed from the FSP register.

Companies are not required to hold an FSP registration if they offer their services outside of New Zealand and do not have a local place of business. The regulations of New Zealand do not place restrictions on the activities that may be performed by a New Zealand company, as long as they are compliant with local and international laws. It is the company’s own responsibility to check if it is required to register as a financial provider in the jurisdiction where it operates.

How we can help you offer financial services from New Zealand

Before taking any practical steps to form an New Zealand Financial Service Provider it is important to note that registering and maintaining an FSP, as any other business, can be a resource consuming endeavour, and you must be prepared to avoid using “nominee” services and staff.

Registration, maintenance and administration of an FSP is a highly individual procedure, and it is unadvisable to use pre-packaged FSP packages, and we  will plan all processes based on your  current business circumstances and the intended services that the business is going to provide.

The circumstances behind the situation when entrepreneurs would like to form an FSP in New Zealand could broadly fall into one of three categories, which are described below, and despite the fact that they each call for different measures and approaches, we are ready and able to provide you with professional services:

1.     You wish to offer financial services in New Zealand, but do not yet have any established business in New Zealand.

In order to obtain a FSP registration and offer financial services in New Zealand and/or internationally you must:

  • Establish a New Zealand Company, or a New Zealand Foreign Trust, or a New Zealand Limited Partnership, or a New Zealand Look Through Company, and
  • Establish a functioning place of business from which the new entity will offer financial services and products in the future, and
  • Become a member of a government approved Dispute Resolution Scheme, and
  • Apply for and be granted a Financial Service Provider registration, and
  • Maintain appropriate financial and corporate records in New Zealand, and comply with all bookkeeping, accounting and other legislative requirements and regulations in New Zealand.

How can we help you in this scenario?

At your request, and based on your circumstances we will:

  • Incorporate a new New Zealand business entity to match your business proposal and plans. Our services include assistance with the formation of New Zealand companies New Zealand Foreign Trusts, New Zealand Limited Partnerships, New Zealand Look Through companies.
  • Assist you with finding a suitable office space for your place of business in New Zealand. We can also assist you with finding and taking on staff members for your new Financial Service Provider.
  • Assist you with deciding which Dispute Resolution Scheme is most suitable for your New Zealand financial provider, and monitor your application to the DRS until acceptance.
  • Assist with the preparation and lodgement of your FSP application with the New Zealand Financial Services Providers Register, and monitor the entire procedure on your behalf.
  • Provide the ongoing accounting, taxation, administrative and managerial services needed to ensure that your business complies with all statutory requirements in New Zealand.

Contact us now to discuss your business requirements and for us to assist you in registering your new New Zealand Financial Service Provider.

2.      You wish to offer financial services in New Zealand, and already have an established place of business in New Zealand.

If you already have a New Zealand registered entity (New Zealand company, New Zealand Foreign Trust, New Zealand Limited Partnership, New Zealand Look Through company), and you already have established a working office in New Zealand we can help you to:

  • Become a member of a government approved Dispute Resolution Scheme, and
  • Apply for and be receive a Financial Service Provider registration, and
  • Provide the ongoing accounting, taxation, administrative and managerial services needed to ensure that your business complies with all statutory requirements in New Zealand.

Contact us now to discuss your business requirements and for us to assist you in registering your new New Zealand Financial Service Provider.

3.      You wish to operate a New Zealand financial company and offer financial services internationally, but do not wish to establish a working office in the New Zealand.

New Zealand business entities are not eligible to obtain a Financial Service Provider registration if they do not have a working office in New Zealand and do not provide services in the territory of New Zealand. However, New Zealand legislations do not restrict New Zealand business entities from providing financial services outside of New Zealand, taking into consideration that all such entities must follow the national legislation in the countries in which they operate.

How can we help you in this scenario?

  • At your request, and based on your circumstances we will:
  • Assist with incorporating a New Zealand Limited Liability Company, or
  • Assist with incorporating a New Zealand Look Through Company, or
  • Assist with forming a New Zealand Foreign Trust, or
  • Assist with registering a New Zealand Limited Partnership, and
  • Provide the ongoing accounting, taxation, administrative and managerial services needed to ensure that your business complies with all statutory requirements in New Zealand.

Contact us now to discuss your business requirements and for us to assist you in registering your new New Zealand business entity which will be able to provide financial services outside of New Zealand.

Our professional team will assist you with all aspects of registering, managing, administering, maintaining a New Zealand Financial Service Provider. Please contact us now to discuss your requirements.