Reply To: Hi, we own a small rental car business in Auckland and obviously the border closure has hit us hard so we are retraining to become driving instructors to hopefully provide us with income while the borders are closed.  Our current company is a limited liability company with two directors (our selves).  My question is do we have to set up a separate company for the instructor side or can we trade under the existing Limited company with a slight variation on the name which relates to the instructing side? or do we have to set up a company that has both companies trading under it?  We intend to work in both companies side by side.  And depending on your advice do we need to set up separate bank accounts, etc.  Thank you for your time.


Hi Julie

Without having seen your company constitution (which may limit the activities the company can engage in), as a matter of general law you wouldn’t need to set up a separate company to do this.

You may however want to think about whether you want to set up separate companies so that the liabilities of one business don’t affect the other, and you would also need to talk to your insurer to confirm whether operating these 2 types of business would be permitted under your insurance.

If you are in leased premises, it is also possible that your lease limits the activities that you can conduct from those premises.

You also might want to check out the NZTA website or call NZTA to check whether your rental operator license prevents you operating as driving instructors, or vice versa.

Hope this helps