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LETS GET DOWN TO BUSINESS.

Question :
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.

Question submitted 19/11/20 @ 10:58pm
Industry: Legal
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      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

      Averill

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        Hi Averill, Thank you for your advice, I will have a look at the constitution and also call the NZTA. We will have to have two different lots of insurance I believe to cover both areas. Thankfully we managed to remove ourselves from our lease so no problems there. On an aside note, not sure if you remember me but I was a friend of Michelle Olsen’s and worked with her at NZWS. I hope you are well and managing through these difficult times. Kind regards Julie Muirhead

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      Hi Julie, yes I do remember you. I am well thanks – hope you are too.

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