Business mentor: Three simple steps is all it takes to start up online

Q. I was a sole trader for two years and am now trading as a limited liability company, but my accountant just charged me a fortune for setting up this limited company. Can't I do it online in future?

A. Small business sector specialist Sarah Trotman replies:

Many people don't realise how easy it is to set up a company in New Zealand - that for as little as $60, and often in less than a day, you can incorporate your company yourself online at the Companies Office website .

While the Companies Office strongly advises that you seek professional advice on the best way to structure your business and the different implications of your options, the actual online incorporation of a company is an easy three-step process.

* Step 1: Search the register to check that the name you want is available (some limitations on names apply) and reserve your company name ($10).

* Step 2: Supply the Companies Office with the details of your company addresses, directors, shareholders and your constitution (optional), and apply for an IRD number (optional) ($50).

* Step 3: Consent forms for the directors and shareholders will be emailed to you - these need to be signed and faxed back to the Companies Office.

Once all of the consent forms have been received and processed, your company is incorporated and a certificate of incorporation is immediately emailed out.

Not only are you able to use the Companies Office online services for the registration of a new company, but you are also able to search the companies register for information on existing companies such as who the directors are, address and shareholder details of all registered companies, incorporated societies and charitable trusts in New Zealand.

From August 8 this information will be provided free.

A list of registered documents is also available online.

The Companies Office is actively seeking ways to make the business start-up process more simple.

A new service was launched this month to give customers the option of applying for an IRD number at the same time as incorporating a new company.

Once the company has been incorporated, the Companies Office will forward the application to Inland Revenue through a secure online service.

Inland Revenue will then send the IRD number directly to you.

This eliminates the need to provide director, address and shareholder details to both government agencies, and provides a seamless and integrated online service for new businesses.

* For more information, see the information library on the Companies Office website or contact it on 0508 COMPANIES (0508 266 726).