Banking License in New Zealand
New Zealand is a small country in Oceania. However, it boasts a significantly developed economy and a strong banking system. Legislation is based on British law, which has a centuries-old history of developing the legal framework for the functioning of banks and financial organizations. A well-developed judicial system here ensures reliable protection of investors’ funds.
However, obtaining a banking license in New Zealand is a difficult procedure. It requires compliance with several conditions, so it is better to entrust it to professionals. Lawtter Solutions assists clients with obtaining banking permits in New Zealand on favorable terms.
Services
Advantages
What Are the Advantages of Opening a Bank in New Zealand?
New Zealand is a famous country for opening a banking business. It offers several benefits:
These benefits make obtaining a banking license in New Zealand a sought-after service.
Shareholders do not need to be residents of New Zealand
Citizens of any country can own bank shares.The possibility of providing international services
New Zealand is a jurisdiction with a good reputation. Therefore, financial organizations can easily work with clients from any jurisdiction, including the USA, the UK, Australia, and the EU.Favorable tax conditions
There is no income tax in New Zealand.Agreements on the avoidance of double taxation
New Zealand has many such agreements, including ones with Australia, Canada, the USA, Japan, Singapore, Great Britain, Italy, France, etc.Loyal requirements for authorized capital and capital reserves
Moreover, the control level by the Central Bank of New Zealand is low enough.Loyal reporting requirements
In particular, companies must submit accounting reports and audited reports. This should be done once a year.Services
What Services Can New Zealand Licensed Companies Provide?
The FSP license opens up a range of services that New Zealand banks can provide to their clients.
- Opening accounts for settlements and savings transactions.
- Money transfers.
- Issuance of bank cards.
- Cash collection services.
- Depository services. Issuance of depositary certificates.
- Issuance of loans.
- Management of client assets.
- Investment activity. Trading on stock and commodity exchanges.
- Currency exchange operations.
- Provision of financial guarantees.
Moreover, financial organizations in New Zealand have the right to provide consulting services for clients.
Who Can Get a License?
There are several conditions for obtaining a banking license. They are indicated in New Zealand legislation, and the country’s Central Bank monitors compliance. The financial regulator has several requirements, including quantitative and quality ones. They are as follows:
- A sufficient amount of funds to open a bank and maintain its stable operation.
- Experience and qualifications of shareholders, members of the board of directors, and top managers.
- Information about the structure of the enterprise.
- Rules of risk management.
- The degree of diversification of the credit portfolio.
- Business plan and estimated time of return to profitability.
Thus, future banks must provide a detailed business plan describing their initial capital, how they will earn money, when they will become profitable, how they will manage risks, etc.
If a branch of an already operating bank is opened in New Zealand, the financial organization must first obtain authorization from the regulator in its home country. This document then serves as the basis for further registration in New Zealand.
Moreover, financial organizations in New Zealand have the right to provide consulting services for clients.
Documents
How to Register a Bank?
Bank registration in New Zealand requires successfully passing two stages. They include preparing a package of documents and passing the inspection. Let’s look at them in more detail.
Documents for Registration
You should provide a package of documents to the financial regulator for registering a bank in New Zealand. The package includes the following documentation:
- Incorporation Documents. The bank in New Zealand can be registered as a public limited company or a limited liability company.
- Bank Name. The name must be unique. The regulator should receive information on the financial organization’s full legal and abbreviated names.
- Information on Share Capital. The company must report the amount of share capital contributed.
- Details of Planned Activities. Information on the activities the financial organization intends to engage in.
- Personal Data of Shareholders, Directors, and Top Managers. This includes copies of passports, tax identification numbers, educational documents, work experience records, and other information confirming professional experience and qualifications. A certificate of no criminal record is also required for each shareholder and top manager.
- Appointment of an Auditor. The company must appoint an auditor and provide the necessary information about them.
- Source of Funds for Each Founder and Shareholder. If shareholders have other business interests outside New Zealand, information about them must be provided.
- Business Plan and Payment of State Duty. The bank’s business plan and a document confirming payment of the state duty are also required.
Verification of Information
The second stage of bank registration in New Zealand is verifying the provided data. It can last from 3 to 36 months. If any facts are found that do not correspond to the information in the documents, the financial regulator will require clarification, and you will have to provide additional documentation. If information is found about the criminal record of one of the participants, registration will be refused.
During the review, the Central Bank of New Zealand will also consider the suitability of participants and senior managers for their positions. The review is conducted for the CEO and the entire management department. However, if a bank opens a branch in New Zealand and the top managers have already passed such a check with financial regulators of other countries, the Central Bank of New Zealand may not conduct it.
The financial regulator imposes requirements on top management. There must be at least five board members, with at least half being non-executive and at least half of those holding the status of an independent director. At least half of the independent directors must be residents of New Zealand. Each bank must have an independent chairperson. Additionally, the company must establish an internal audit department to oversee reporting and ensure compliance with the bank’s internal regulations and policies.
Our services
Open a Bank in New Zealand With Lawtter Solutions!
The Lawtter Solutions firm provides clients with bank registration services in New Zealand. We offer turnkey services. Our specialists will provide legal advice, help prepare a package of documents, and submit it to the regulator. Lawtter Solutions also provides full legal support for the procedure. We help you obtain a banking license on the most favorable terms. Contact us to learn more.
+38 093 177 52 70 
+1 484 457 89 11 
+44 745 819 79 87 Important: Lawtter Solutions does not provide services to citizens and residents of the Russian Federation.