The New Zealand Business Number (NZBN) is the most important number everyone should know when you want to do business in the country. The country does not just have the shortest period of insolvency turnaround. It also has one of the countries in the world that has the easiest access to government information. To help businesses streamline operations and maximize profits, the New Zealand government created the companies register, which requires Kiwi companies to have the NZBN.
The NZBN identifies every Kiwi business, including the self-employed, contractors, tradespeople, landlords, sole traders, partnerships, trusts, limited liability companies, and the public sector. It is faster to do business using the NZBN because it links to the following core business information (known as Primary Business Data):
- Trading name
- Legal business name
- Phone number
- Physical address
- Business Industry Classification Code
- Registered business address
This means that foreign companies that do business in New Zealand can easily access all the details they need about your business.
Having an NZBN offers the following benefits:
- It stays the same and everyone is aware of who exactly they are dealing with
- Business is conducted with confidence and certainty
- A digital register for every Kiwi business provides transparency
- Easier interactions with government
The NZBN establishes legitimacy because each number is a Global Location Number (GLN). GLNs are an ISO standard and part of a credible international system used in international trade.
Moreover, the NZBN can cut the cost of prospect foreign business partners’ due diligence prior to formalizing a partnership. The foreign company need not spend thousands just to do a site visit and assure the legitimacy of the Kiwi business. As long as you have the NZBN, all you have do to is go to the NZBN Register, input the number, and you can get the Primary Business Data. Moreover, the Register also has a process where you can connect your business systems directly to the Register using, for example, the NZBN API or your software provider. This is time- and cost-saving especially for larger business dealing with multiple suppliers and customers with NZBNs.
NZBN and transparency in doing business
Having an NZBN makes your business searchable on the Register. Prospective clients can be assured that your business is the entity they intend to do work with. All types of businesses in New Zealand are required to get an NZBN and register. You can also create an NZBN Watchlist and receive automated alerts of changes to business information. This is particularly helpful when you are a foreign company collecting debt from a Kiwi business partner.
Government agencies are also required to get an NZBN, giving contractors and suppliers, including those abroad, confidence that their business transactions will not fall through. There will also be less time for businesses in time-consuming manual work of sending out new information to all partners. Once you update your information in the Register, your partners will be alerted of those changes by the Register itself.
NZBN and debt collection in NZ
You can also link your customers’ payments and orders using their NZBN. You can use the data on their buying habits to create customized consumer care and offer outstanding service. The NZBN is also very important as it is easier for agents to perform debt collection in NZ.