Vanuatu is an island republic in the South Pacific Ocean. Agriculture, tourism, offshore financial services, and international donor help, are the mainstays of its economy. The Vanuatu vatu (VUV) is the country’s currency.
In terms of financial stability, Vanuatu has seen consistent economic growth in recent years. However, it remains one of the Pacific region’s least developed countries. The country has a low GDP per capita and relies on foreign aid for development projects.
In terms of forex, the Vanuatu vatu is not widely traded on international currency exchange markets. It is mostly used for intra-Vanuatu commerce. The Reserve Bank of Vanuatu manages the country’s currency rate policy and oversees foreign exchange transactions.
Vanuatu is an island country located in the South Pacific Ocean. The archipelago is located around 1,750 kilometres east of Australia, 500 kilometres north of New Caledonia, west of Fiji, and south of the Solomon Islands. Vanuatu is about 2.5 hours by plane north of Brisbane and 3.5 hours by plane from Sydney, Australia.
According to Worldometer, the current population of Vanuatu is 327,429 as May 2, 2023.
Bislama is the primary language spoken by the majority of Vanuatuans.
It is a hybrid of English common law, French civil law, and indigenous customary law.
To perform their business legally, forex brokers and securities dealers must get a licence from the Vanuatu Financial Services Commission (VFSC). The licencing framework specifies the requirements, obligations, and standards that forex brokers must follow in order to receive and keep their licences.
|Gov. Capital Req.||Timing||Tax Rate|
|$40,000||4 months||0 %|
Vanuatu has an established regulatory framework for financial services, including forex trading. The Vanuatu Financial Services Commission (VFSC) is the regulatory agency responsible for regulating and licencing financial service providers such as forex brokers. Having a Forex licence demonstrates that you adhere to the regulatory standards
Vanuatu has lower capital requirements than other jurisdictions, making obtaining a Forex licence easier. Capital requirements vary based on the type of licensee and services given, however they are frequently lower than in many other countries.
Vanuatu has an advantageous tax regime for regulated FX businesses. There are no corporate taxes, capital gains taxes, or withholding taxes on forex trading profits earned outside of Vanuatu. This could result in significant tax benefits for businesses operating under a Vanuatu Forex licence.
Vanuatu has streamlined its licencing process, allowing businesses to obtain a Forex licence quickly. The application process is straightforward, and the VFSC works hard to grant licences on schedule.
In comparison to other jurisdictions, obtaining and maintaining a Forex licence in Vanuatu can be rather cheap. This is especially useful for small and medium-sized businesses looking to break into the currency market.
Firms with a Vanuatu Forex licence can operate globally and serve clients from all over the world. There are no customer geographical limits, allowing enterprises to conduct forex trading activities with clients from all over the world.
|License:||Financial Dealers License|
|Timeframe for Approval:||4 to 6 months|
|Regulator:||Vanuatu Financial Services Commission|
|Authorised Activities:||Trust Asset Management; Financial Advising; Forex Trading|
International Companies (ICs)
Limited Liability Companies (LLCs)
International Banking Licenses Trusts
International Insurance Companies
|Corporate Tax Rate:||0%|
|Paid-up Capital:||Vanuatu has no legal requirement for paid-up capital for companies formed under its jurisdiction. The Vanuatu Companies Act does not require any minimum paid-up capital for the formation of companies, including limited liability companies (LLCs) and international companies (ICs).|
Vanuatu Investment Promotion Authority (VIPA),
Custom Duty Exemptions,
Vanuatu Development Support Program (VDSP),
Access to Finance
|Local Director/s:||Only one director (only natural person, no nationality or residency restrictions)|
|Local Shareholder/s:||Only one shareholder (can also be a legal person, no nationality restriction or residency restrictions)|
|Local Registered Officer:||Not Required|
Low Capital Requirements
Flexible Corporate Structures
Global Client Base
The following actions will be taken in order to receive a licence:
1. Establish international business corporation.
2. Preparation and drafting of shareholder and officer agreements.
3. Preparation and drafting of narrative business plan.
4. Preparation and drafting of current financial statements.
5. Preparation and drafting of 3 years financial projections.
6. Preparation and drafting of personal financial statements for owners.
7. Preparation and submission of application with appropriate regulatory authority
8. Preparation and drafting of responses to regulatory authority
9. Identification and engagement of auditor and forex prime broker.
10. Facilitate opening of bank accounts and payment processors.
11. Preparation and drafting of AML/KYC policies and procedures.
12. Preparation and drafting of client agreements and disclosures.