Agency Arrangements

An entity that conducts only a small amount of business in New Zealand may wish to appoint a local agent rather than establishing a branch, subsidiary company or limited partnership.

Agency appointments can be informal, capable of termination on short notice, or can be recorded in a more comprehensive written agreement. New Zealand agency law will typically govern the relationship unless the parties agree to the contrary.

A local agent may benefit from employment rights depending upon the nature of the relationship and the terms of the appointment of the agent. Care is required to ensure that any agency arrangement does not, over time, result in the relevant entity being deemed to be carrying on business in New Zealand (in which case the requirement to register in New Zealand would be triggered).