Starting offshore business in Vanuatu

Vanuatu is a popular offshore jurisdiction situated near Australia. Why is this country considered as one of the friendliest locations for starting up the company? We will answer most popular questions about Vanuatu offshore company formation and give you a professional advice. What are the benefits of doing business in Vanuatu?

Banking system is one of the most important arguments in favor of doing business in Vanuatu

There are two local owned and two foreign owned banks in this country, as well as eight international, which are not a part of domestic system. All of these are supervised by the Reserve Bank. Opening a bank account in Vanuatu is a simple process. Once you have chosen an entity type and decided who will be the director, you are free to file registration documents and open bank account. List of available banks include Westpac, Pacific Private Bank, ANZ and National Bank of Vanuatu. These facilities are considered very stable and reliable among offshore business founders. Next argument to form an offshore company in Vanuatu is tax regulations.

It is important to mention that there is no capital gain tax, income tax and withholding tax. International companies are exempt from taxes already over two decades. This applies on international operations only and you will need to obtain the license and pay domestic taxes to use internal business opportunities in Vanuatu. However, for companies that operate only on international market, this offshore jurisdiction is a reasonable decision. For some business founders, it is a surprising fact that setting up company in Vanuatu will include possibility to receive professional financial, banking, law and other services. Main operating language is English and there is also a wide choice of professional employees who can work for your company. Moreover, if you are forming a Vanuatu offshore international company only for carrying out small a business or financial management, you can confine yourself to being a single shareholder and director: there are no requirements for residence or number of founders and CEOs. Forex trading regulations as another common reason to enter Vanuatu offshore jurisdiction.

Confidentiality policy in this country is very strict and this means that trading is secure there. Obtaining a license is also a simple process in Vanuatu: you need to apply to the Financial Services Commission which makes decision on issuing license. Operating without licensing is illegal so it is not a good idea to start trading before filing the documents. There is a requirement of minimal shares capital of $2,000 to obtain the license but this amount is less than in many wide-known offshore jurisdictions.

Benefits of choosing Vanuatu as your offshore jurisdiction are mostly about simplicity and favorable climate for business. For example, all international businesses in Vanuatu are regulated by only two legislation acts, both from 1900th. Main advantages of these laws are confidentiality and support of international business initiatives. They make Vanuatu one of the most favorable offshore jurisdiction nowadays. Reporting requirements are really low, directors have a choice to hold meetings in any country, transferring funds is simple and you can exchange currencies on your account easily. If you are thinking to register a company in Vanuatu it is important to decide which legal entity to form, prepare necessary documents, choose director, operating premise and solve other organizational matters. You will be able to start operating a company in Vanuatu within a couple of days. Obtaining a forex license, will take more time, but it won’t be longer than two weeks.

Do not forget that sometimes it is a reasonable decision to hire a professional consultant or an offshore advisor who will assist you with filing documents and dealing with governmental facilities.