More New Zealand businesses go corporate
More New Zealand businesses go corporate
26 October 2017
A growing proportion of businesses are limited-liability companies and fewer are sole proprietors, Stats NZ said today.
A limited-liability company means personal taxes are separated from business taxes and personal assets are (typically) not at risk.
Of a total 528,170 enterprises, more than half (56 percent) were registered limited-liability companies at February 2017. Ten years ago (at February 2007), only 47 percent of businesses were limited-liability companies.
In contrast, individual proprietorships and partnerships, which are simpler forms of business, both accounted for a lower 28 percent of enterprises at February 2017. This was a significant 10-point drop from a 38 percent share these two business types together had 10 years ago.
“This drop closely corresponds to the share gained by registered limited-liability companies,” business register manager Mary Reid said. “It’s an indication that more New Zealand businesses now now prefer to operate under a corporate legal structure as opposed to non-corporate arrangements.’
At February 2017, registered limited-liability companies employed 71 percent of all staff in New Zealand.
Other business types (at February
2017):
• 65,480 enterprises operating as
trusts/estates
• 10,210 societies and associations
(incorporated and unincorporated)
• 3,880 charitable
trusts
• a total of 3,220 central or local government
organisations (their trading entities included) that
employed 389,100.
Note: Business demography statistics only cover economically significant enterprises operating in New Zealand. These are mostly those with an annual GST turnover of $30,000 or more.
Find more data analysed by business type on NZ.Stat.
Classification of business type has a more detailed description of the classification.
• Visit New Zealand Business Demography Statistics: At February 2017
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