I am thinking of starting a home-based business. Do I have to register it or apply to anyone for permission before I can do so?
Heather Douglas of HomeBizBuzz, replies:
You don't need to register your business. You could simply tell people that you are open for business, choose a business
name, print business cards, issue invoices and operate as a sole proprietor.
But this is only one of three possible structures you might choose. The other two options are to operate as a registered (incorporated) company or a partnership (if more than one person is involved).
There are benefits and drawbacks with each structure and you will find an overview of the pros and cons of each at Homebizbuzz website.
You would also be well advised to consult a lawyer or accountant about your situation before deciding finally which structure suits your purposes best.
Regulations about operating a business from your home vary from region to region (check with your council), but most restrictions apply to businesses which generate additional traffic, parking problems, noise or pollution, create a nuisance or hazard, or lower the tone of the neighbourhood.
There may also be restrictions on the signage you can display for your home-based business.
If you decide to incorporate your company, you can do so through the Companies Office, or an accountant or professional adviser can do this on your behalf.
More information on incorporating a company is in the Information Library at the Companies Office website. You can also request more information on 0508 COMPANIES (0508 266726), or by e-mailing info@companies.govt.nz
* Send your Mentor questions to: Ellen_Read@nzherald.co.nz. Answers will be provided by Business in the Community's Business Mentor Programme.
