Do I need to register as a sole trader?
No there is no formal registration process to become a sole trader in New Zealand. You can simply start trading. However, there are a few things you do need to have in place.
What you need to start
1. An IRD number You must have a personal IRD number before you start earning income. If you don't have one, apply at ird.govt.nz. Processing typically takes 8–10 working days.
2. Notify IRD you're self-employed Once you start trading, you need to let IRD know. Log in to myIR and send a message notifying them you've started working for yourself (see: Do I need a separate IRD number? for the exact steps). This ensures you're set up to file an IR3 return at the end of the year.
3. Register for GST (if applicable) If you expect to earn more than $60,000 in any 12-month period, you must register for GST. You can do this through myIR. If you're below that threshold, registration is optional.
Optional but recommended
Get an NZBN A New Zealand Business Number is a free, unique identifier for your business. While it's optional for sole traders, it can make dealing with suppliers, clients, and government agencies more straightforward. Register at nzbn.govt.nz.
Open a separate bank account Not required, but a dedicated business bank account keeps your finances clean and makes tax time much easier. See: Do I need a business bank account?
Register a business name If you want to trade under a name other than your own, you can register a business name (also called a trading name) through the Companies Office at companies.govt.nz. This costs a small fee and is optional.
What about ACC?
From your first day of self-employment, you are automatically covered by ACC CoverPlus for work-related and personal injuries. You don't need to apply — coverage is automatic. ACC will send you a levy invoice based on the income you report to IRD.
A quick checklist for getting started
- ✅ Have an IRD number (apply if you don't have one)
- ✅ Notify IRD you're self-employed via myIR
- ✅ Register for GST if your turnover will exceed $60,000
- ✅ Open a business bank account (recommended)
- ✅ Set up a system for recording income and expenses
- ✅ Understand your provisional tax obligations if your tax bill will be over $5,000
💡 Lodg can help you check if GST registration is right for you and handle the full setup — so you start off on the right foot.
Source: business.govt.nz — Becoming a sole trader | ird.govt.nz — Self-employed | business.govt.nz — Registering with government agencies