Setup · Sole trader · NZ
You can legally start trading today.
Here's how.
TL;DR
Becoming a sole trader in NZ costs nothing and takes 10 minutes. You don't register with anyone — you just tell IRD you're trading by sending a message inside myIR. Use the tool below to draft the message. Hit copy. Paste it into myIR. Done.
Step 1. Draft your IRD message
Fill in your details. We'll generate the exact message for you to send via myIR.
Your IRD message
Kia ora, I'm starting to trade as a sole trader. I'm letting IRD know so my income tax and any GST registration questions are sorted from the start. My details: - Legal name: [your full legal name] - Business activity: [your business activity] - Trading as: Could you confirm: 1. That my IRD number is updated to reflect self-employed income 2. Whether I'm currently required to register for GST (I understand the threshold is $60,000 of sales in any 12-month period) 3. Anything else I should sort now to keep my tax tidy from day one Ngā mihi, [your full legal name]
Inside myIR, click I want to… → Send a message. Pick the topic Income tax. Paste this message in. You're a sole trader the moment IRD acknowledges it.
Step 2. Send it via myIR
- Go to myir.ird.govt.nz and log in (or set up an account if you don't have one — uses RealMe or your driver's licence).
- Click I want to… in the menu.
- Click Send a message.
- Topic: Income tax. Account: your individual income tax account.
- Paste the message you copied above. Send.
Step 3. Get your NZBN (optional but worth it)
A New Zealand Business Number is a free identifier for your business. It looks like a 13-digit code, sits on your invoices, and instantly tells customers and suppliers you're a real operator. Takes about two minutes at nzbn.govt.nz. You'll need a NZ driver's licence or passport to verify.
NZBN walkthrough →If you're on a benefit
Three WINZ programmes can stack to help you start.
The Self-Employment Start-Up Payment (variable amount, reimburses gear + website + marketing setup), Flexi-Wage for Self-Employment (up to NZ$16,800 over 28 weeks of living costs), and the Business Training and Advice Grant (up to NZ$5,000). Together up to NZ$21,800+ — though the honest reality is that Flexi-Wage takes 10–14 weeks, so most operators launch first and apply in parallel.
WINZ funding — full guide →Common questions
Does it cost anything to become a sole trader in NZ?
No. There is no fee to register as a sole trader in New Zealand. You're not setting up a separate legal entity — you're just telling IRD that you'll be earning self-employed income. The only paperwork is a message to IRD via myIR.
Do I need a business name registered?
No. As a sole trader you can trade under your own personal name with no extra paperwork. If you'd like a trading name (like 'Smith's Lawn Care'), you don't need to register it anywhere — though you may want to grab the matching domain name and check it on the Companies Office register so you don't accidentally clash with an existing limited company.
When do I need to register for GST?
Only when your turnover hits $60,000 in any 12-month period (rolling, not just calendar year). Below that, GST registration is optional — and for most service businesses starting out, it's simpler to leave it until you cross the threshold.
Can I claim business expenses against my income?
Yes. As a sole trader, your business income and expenses go on the IR3 individual income tax return at year end. Things like fuel for the work ute, mower repairs, materials, advertising, and a portion of phone/internet are all deductible. Keep receipts and a basic spreadsheet from day one.
What happens at year end?
You file an IR3 return that includes your self-employed income and expenses, and pay tax on the net profit at your personal income tax rate. If your income is reasonably high, IRD will then put you on provisional tax for the following year — meaning you pay your tax in 3 instalments through the year rather than one big bill in March.
Can I hire staff as a sole trader?
Yes — but you need to register as an employer with IRD before you do (it's a separate quick form inside myIR). Many lawn mowing and cleaning operators start solo and bring on their first staff member by month 2 or 3. Mr Mow did it at month 2.
Should I be a sole trader or set up a limited company?
Most service operators start as a sole trader because it's free, instant and tax-simple. You'd consider a limited company if you want to ringfence personal assets, you're going to be earning well above the 33% income tax bracket, or you're planning to bring on partners. You can always upgrade later — many operators start sole trader and incorporate at year 2 once they've proven the model.