Police have coaxed an armed man out of his Taupo home following a 12-hour stand-off triggered by a domestic dispute how to register a business.

The Armed Offenders Squad arrived at the Rangitera Street home late on Sunday after a woman turned up at the local police station claiming to have been assaulted.

The squad spent the night at the scene talking to the man, who is aged in his 30s Maid Agency, armed with a gun and believed to be mentally unstable.

But shortly before 9am on Monday he was coaxed out be negotiators and taken into custody without incident.

Police have lifted all cordons in the neighbourhood. Classes at nearby Mountview Primary School have not been disrupted protective case.