{"id":1578,"date":"2020-12-17T00:48:54","date_gmt":"2020-12-17T00:48:54","guid":{"rendered":"http:\/\/nz.legalvision.com.au\/?p=1578"},"modified":"2021-03-17T17:56:13","modified_gmt":"2021-03-17T04:56:13","slug":"start-agency","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/startups\/start-agency\/","title":{"rendered":"How Do I Start an Agency in New Zealand?"},"content":{"rendered":"\n<p><span style=\"font-weight: 400\">Whether you are starting a marketing agency to provide creative and digital services to your clients or a real estate agency to sell your clients\u2019 properties, it is essential to consider your legal responsibilities as an agent. As an agent, you may act on behalf of others. Knowing the rules can help you avoid any potential legal disputes with your clients.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">When you start a new agency in New Zealand, you will have to make decisions such as:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">which services to offer;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">how to structure your agency; and&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">how to charge your clients.&nbsp;<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">This article explains the main steps to get your business off the ground and some of your legal and tax obligations as an agent.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">What Is an Agency?<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">An agency is a business that provides one or more services to others. In some instances, agents act on behalf of a person, a group or another organisation.&nbsp;<\/span><\/p>\n\n\n\n<div class=\"box box--info box--icon\">\n<p><span style=\"font-weight: 400\">For example, some common types of agencies include:&nbsp;<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400\">marketing and advertising agencies;<\/span><\/li>\n<li><span style=\"font-weight: 400\">recruitment agencies;<\/span><\/li>\n<li><span style=\"font-weight: 400\">modelling agencies;<\/span><\/li>\n<li><span style=\"font-weight: 400\">real estate agencies; and<\/span><\/li>\n<li><span style=\"font-weight: 400\">travel agencies.<\/span><\/li>\n<\/ul>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Define Your Agency Service Offering&nbsp;&nbsp;<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Before you start making marketing or resourcing decisions, you need to think about how your agency fits in the marketplace and how you will differentiate yourself from your competitors.&nbsp;<\/span><\/p>\n\n\n\n<div class=\"box box--info box--icon\">\n<p><span style=\"font-weight: 400\">For example, will you operate as a full-service digital marketing agency, or will you specialise in social media? Will you serve clients from all industries, or will you focus on a specific niche like professional services?<\/span><\/p>\n<\/div>\n\n\n\n<p><span style=\"font-weight: 400\">An essential step in defining your service offering is <\/span><a href=\"https:\/\/legalvision.co.nz\/business-structures\/start-a-business-in-new-zealand\"><span style=\"font-weight: 400\">creating a business plan<\/span><\/a><span style=\"font-weight: 400\">. This document will help you:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">explain your business idea, goals and strategy to potential investors and other stakeholders; and&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">manage each stage in the life of your business.&nbsp;<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">As part of your analysis, you will need to:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">identify opportunities in the marketplace;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">understand your competitors and target market; and<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">determine the profitability of your niche.&nbsp;<\/span><\/li><\/ul>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+64800005570\" class=\"not-prose\">0800 005 570<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex justify-center text-left gform_input_bg_white    \">\n    <script>\nvar 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Marketing and advertising agencies often use a labour-based fee model to structure their pricing. Under this pricing model, you will calculate an hourly fee, based on the number of full-time employees that you will need to complete the project. This calculation should factor in the cost of the employee and your agency\u2019s profit margin. You can also choose to charge a flat rate and offer your services at a monthly or yearly rate. This is particularly useful for clients that are in a retainer.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">When you start a new business in New Zealand, you have to complete a list of setup tasks, including:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">choosing a <\/span><a href=\"https:\/\/legalvision.co.nz\/intellectual-property\/register-business-name-new-zealand\"><span style=\"font-weight: 400\">name for your business;<\/span><\/a><span style=\"font-weight: 400\">&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">protecting your name and brand by registering a trade mark with IPONZ;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">deciding on a <\/span><a href=\"https:\/\/legalvision.co.nz\/business-structures\/choosing-structure-new-zealand-business-sole-trader-partnership-or-company\"><span style=\"font-weight: 400\">legal business structure<\/span><\/a><span style=\"font-weight: 400\"> (company, sole trader or partnership) and registering your business with the NZBN or Companies Office;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">getting an IRD number for your business and complying with your tax obligations such as filing a tax return every year and <\/span><a href=\"https:\/\/legalvision.co.nz\/business-structures\/what-is-gst-in-new-zealand\"><span style=\"font-weight: 400\">registering for GST<\/span><\/a><span style=\"font-weight: 400\"> if you estimate to earn NZ$60,000 in any twelve-month period;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">getting insurance for your business; and<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">complying with any other industry-specific regulations.&nbsp;<\/span><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Decide on a Location for Your Agency<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Depending on the nature of the services that you provide, you can choose to work remotely or to have a physical location.&nbsp;<\/span><\/p>\n\n\n\n<div class=\"box box--info box--icon\">\n<p><span style=\"font-weight: 400\">For example, if you want to start your digital marketing agency on a small scale, you may want to consider working remotely to enjoy the benefits of:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400\">lower overheads;<\/span><\/li>\n<li><span style=\"font-weight: 400\">better work-life balance; and<\/span><\/li>\n<li><span style=\"font-weight: 400\">access to a global pool of talent.<\/span><\/li>\n<\/ul>\n<\/div>\n\n\n\n<p><span style=\"font-weight: 400\">If you decide to <\/span><a href=\"https:\/\/legalvision.co.nz\/business-structures\/home-based-small-business-new-zealand\"><span style=\"font-weight: 400\">run your business from home<\/span><\/a><span style=\"font-weight: 400\">, you will have different obligations. <\/span><\/p>\n\n\n\n<div class=\"box box--info box--icon\">\n<p><span style=\"font-weight: 400\">For example, you will need to:&nbsp;<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400\">design procedures to ensure that they can manage their health and safety when working from your or their home if you employ staff;<\/span><\/li>\n<li><span style=\"font-weight: 400\">keep accurate records if you plan to reduce your tax liability by claiming a portion of your household expenses; and<\/span><\/li>\n<li><span style=\"font-weight: 400\">comply with local zoning and signage regulations that may apply to your home-based business.<\/span><\/li>\n<\/ul>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Hire Skilled Labour and Know Your Employer Obligations<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">To run your agency successfully, you will need to hire skilled labour. You should start with a small team that meets the core areas of your service offering and expand it as your business grows.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">As an employer, you have essential legal and tax responsibilities towards your employees. These include:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><span style=\"font-weight: 400\">providing written <a href=\"https:\/\/legalvision.co.nz\/employment\/employment-agreements-reviewing\/\">employment agreements<\/a>;<\/span><\/li><li><span style=\"font-weight: 400\">offering correct terms based on their employment type (permanent, fixed-term or casual);<\/span><\/li><li><span style=\"font-weight: 400\">making certain deductions from your employees\u2019 salaries (<a href=\"https:\/\/legalvision.co.nz\/employment\/what-is-paye-in-new-zealand\/\">PAYE<\/a>, student loan, child support and KiwiSaver) and pay these to IRD; and<\/span><\/li><li><span style=\"font-weight: 400\">working with your team to implement procedures that minimise any work-related health and safety risks in your home or theirs.<\/span><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Understand Your Legal Agreements<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">In addition to your employment contracts, other legal agreements are vital to your agency\u2019s day-to-day operations.&nbsp;<\/span><\/p>\n\n\n\n<div class=\"box box--info box--icon\">\n<p><span style=\"font-weight: 400\">For example, if you have a modelling agency, you will act on behalf of your models to enter into agreements with other businesses. Therefore, you need to ensure that your relationship with your models and the companies you work with are clearly outlined and understood in your agency agreement.<\/span><\/p>\n<\/div>\n\n\n\n<p><span style=\"font-weight: 400\">If you are running a digital agency, your <a href=\"https:\/\/legalvision.co.nz\/commercial-contracts\/key-terms-to-review-in-a-service-agreement\/\">service agreement<\/a> will be one of the key legal documents for your business. This agreement details how and on what terms you will be providing services to your clients. You need to outline your obligations and what work you will complete in as much detail as possible.\u00a0<\/span><\/p>\n\n\n\n<div class=\"box box--info box--icon\">\n<p><span style=\"font-weight: 400\">Create a <\/span><i><span style=\"font-weight: 400\">master services agreement<\/span><\/i><span style=\"font-weight: 400\"> that you can use for all your clients and simply adapt the<\/span><i><span style=\"font-weight: 400\"> statement of work<\/span><\/i><span style=\"font-weight: 400\"> (the list of what particular services you will be providing and the timeline for these) each time.&nbsp;<\/span><\/p>\n<\/div>\n\n\n\n<p><a href=\"https:\/\/legalvision.co.nz\/startups\/how-to-start-a-real-estate-agency-in-new-zealand\"><span style=\"font-weight: 400\">Real estate agents<\/span><\/a><span style=\"font-weight: 400\"> may choose a sole agency or general agency agreements to set out the terms of their relationship with their clients. When you sign a general agency agreement, you can market multiple properties for various clients, but you will only receive a commission if you sell a property. A sole agency agreement, on the other hand, gives you the exclusive right to market and sell a property.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Key Takeaways<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">From choosing a business structure to understanding your legal obligations, there are several essential tasks to complete when you start an agency in New Zealand. These include:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">defining your service offering and profiling your potential clients;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">choosing your business model and pricing strategy;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">registering your business and getting an NZBN;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">deciding on a location for your business; and<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">understanding your legal requirements.&nbsp;<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">If you need help with setting up your agency or drafting your service agreements, contact <\/span><a href=\"https:\/\/legalvision.co.nz\/business-lawyers-lp-new-zealand\"><span style=\"font-weight: 400\">LegalVision\u2019s commercial lawyers<\/span><\/a><span style=\"font-weight: 400\"> on 0800 005 570 or fill out the form on this page.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">FAQs<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1606880228344\"><strong class=\"schema-faq-question\">How do I start my own agency?<\/strong> <p class=\"schema-faq-answer\">To start your own agency in New Zealand, you need to complete several tasks. These include defining your service offering, choosing a business model and pricing structure, registering your business as a sole trader, partnership or company and getting an NZBN, choosing a location for your business and registering with Inland Revenue.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1606880258379\"><strong class=\"schema-faq-question\">How do agencies charge their clients?<\/strong> <p class=\"schema-faq-answer\">Your fee structure depends on the type of agency. For example, real estate agencies typically charge their clients a commission of the property\u2019s final sale price. Marketing and advertising agencies, on the other hand, generally charge an hourly or flat rate to complete specific projects.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1606880271477\"><strong class=\"schema-faq-question\">What is a general agency agreement?<\/strong> <p class=\"schema-faq-answer\">This agreement is typically used by real estate agencies to set out the terms between the seller and the real estate agency that sells the property. It gives the agency the right to market the property for sale.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1606989773267\"><strong class=\"schema-faq-question\">How do you cancel a sole agency agreement?<\/strong> <p class=\"schema-faq-answer\">If your sole agency agreement is for a residential property, you or the vendor can cancel the contract any time after 90 days. If you sell the property before the agreement expires, you are entitled to receive a commission, as set out in the agency agreement.<\/p> <\/div> <\/div>\n\n\n\n\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"90c4126e1b\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/1578\" \/>            <input value=\"https:\/\/legalvision.co.nz\/startups\/start-agency\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"How Do I Start an Agency in New Zealand?\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Whether you are starting a marketing agency to provide creative and digital services to your clients or a real estate agency to sell your clients\u2019 properties, it is essential to consider your legal responsibilities as an agent. As an agent, you may act on behalf of others. Knowing the rules can help you avoid any<a href=\"https:\/\/legalvision.co.nz\/startups\/start-agency\/\">Continue reading <span class=\"sr-only\">&#8220;How Do I Start an Agency in New Zealand?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13217,"featured_media":826,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[10],"tags":[24,86,236,248,249],"class_list":["post-1578","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-startups","tag-startup","tag-agency","tag-business-structuring","tag-agency-relationship","tag-busines-model"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How Do I Start an Agency in New Zealand? | LegalVision<\/title>\n<meta name=\"description\" content=\"Are you looking to start an agency in New Zealand? 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