Registered vs Unlicensed Professionals in NZ — What’s the Difference?

Not every person calling themselves a professional in New Zealand is legally qualified to do the work they’re offering. In some trades, hiring an unlicensed person isn’t just risky — it’s illegal, and it can leave you with voided insurance, unsafe work, and no legal recourse. This guide explains exactly which trades require registration in NZ, what those registrations mean, and how to verify them before you hand over a cent.

Why Licensing Exists in New Zealand

Licensing and registration schemes exist to protect the public. They ensure that people carrying out high-risk or technically complex work meet a minimum standard of competency, are accountable to a professional body, and can be disciplined or deregistered if they cause harm.

In New Zealand, licencing requirements are set either by Act of Parliament or by government regulation. They are not optional — carrying out restricted work without a licence is a criminal offence and can result in significant fines for both the worker and, in some cases, the homeowner who hired them knowingly.

Trades That Legally Require a Licence in NZ

What Do These Licences Actually Mean?

Being licensed or registered means the professional has:

• Passed a competency assessment or examination recognised by the licensing body

• Met minimum experience requirements

• Agreed to a code of conduct and professional standards

• Ongoing obligations including continuing professional development (CPD) in most cases

• Accountability — complaints can be lodged with the licensing body and licences can be suspended or cancelled

What it does not automatically mean: that the person is the best at their job, that their work will be perfect, or that they carry insurance. Licensing is a floor, not a ceiling. You still need to check insurance, read reviews, and get multiple quotes.

Trades Where Licensing Is Optional But Still Valuable

Not all trades require a licence in NZ, but many have voluntary membership bodies that serve as quality signals:

• Painters: no legal requirement, but Master Painters NZ membership signals quality

• Landscapers: no legal requirement, but Registered Master Landscapers indicates professional standards

• Cleaners: no licence required, but look for insured, reviewed operators

• IT and web professionals: no formal licensing, but industry certifications (Microsoft, Google, AWS) indicate competency

• Accountants: no licence required to call yourself an accountant, but look for CPA Australia or Chartered Accountants ANZ (CA ANZ) membership

What Happens If You Hire an Unlicensed Person for Licensed Work?

The consequences can be severe and long-lasting:

1. Your insurance may be void

Most home and contents insurance policies in NZ require that work is carried out by licensed tradespeople where legally required. If unlicensed electrical or plumbing work causes a fire or flood, your insurer may decline the claim.

1. You may be liable for the cost of remediation

If substandard unlicensed work is discovered during a property sale, consent process, or insurance claim, you may be required to have it redone at your own expense.

1. You have limited legal recourse

While you can still pursue a claim through the Disputes Tribunal, without a licensed contractor you lose access to the complaints process of the relevant licensing body, which is often faster and more effective.

1. The property may not comply with the Building Code

Unlicensed building work may not meet NZ Building Code requirements. This can affect your ability to get a Code Compliance Certificate (CCC), which is required for many property transactions.

How to Verify a Licence in Under 2 Minutes

1. Ask the professional for their licence or registration number

2. Visit the relevant register website (see table above)

3. Search for their name or number

4. Confirm the licence is current and in good standing — not expired or suspended

Frequently Asked Questions

Is it illegal to hire an unlicensed electrician in NZ?

It is illegal for an unlicensed person to carry out electrical work in New Zealand. While there is no law specifically prohibiting a homeowner from hiring them, the unlicensed person is committing an offence, and the work will not be compliant. Your insurer may also decline claims related to that work.

Can I do my own building work in NZ without an LBP?

Owner-builders can carry out restricted building work on their own home without an LBP, but only if they live in the home and meet the criteria under the Building Act 2004. They cannot do this work for others without an LBP licence.

How do I check if a builder is licensed in NZ?

Search for their name or LBP number on the Licensed Building Practitioners register at building.govt.nz. The register shows their licence class, what work they are licensed to carry out, and whether their licence is current.

What should I do if I suspect someone is working without a licence?

You can report concerns to the relevant licensing body. For building work, contact the Ministry of Business, Innovation and Employment (MBIE) at building.govt.nz. For electrical work, contact the EWRB. For plumbing and gasfitting, contact the PGDB.

Hire Verified, Licensed Professionals with Confidence

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