Registering a company in Vanuatu allows you to reduce your tax burden and legally conduct business worldwide. The simplified procedure of establishing a company and low operating costs attract investors and entrepreneurs from all over the world to this jurisdiction. The government creates highly favorable conditions for registering offshore companies and is actively developing the financial sector, drawing foreign capital into the country’s economy.
Find out how to set up an international business in Vanuatu, which business sectors offer the best investment opportunities, and how to register a company with minimal expenses.
Advantages of Starting a Business in Vanuatu
Vanuatu is a classic offshore zone and a "tax haven." The country ranks among the most popular jurisdictions for international business. Investors are primarily attracted by favorable tax legislation, allowing them to significantly reduce business operating costs.
Vanuatu is an island nation in the Pacific Ocean (Melanesia), located east of Australia. It consists of 83 islands with a total area of 12,190 sq. km. The population is 293,000. The capital is Port Vila on the island of Efate. The political system is a democratic republic. Vanuatu is a member of the UN, Commonwealth of Nations, and WTO. The national currency is the vatu (VT). Official languages are English and French. The local population speaks the indigenous Bislama language.
The leading sector of Vanuatu’s economy is the public sector, accounting for 65% of GDP. Agriculture makes up 25% of the economy. Other key sectors include fishing, tourism, and transport. The offshore sector also makes a significant contribution to the local economy.
The country’s corporate law is based on English common law. Commercial structures are regulated by the Companies Act. According to this act, companies registered in Vanuatu face no restrictions on business activity types, trading with Vanuatu residents, or acquiring property on the islands. A license may be required if the company provides financial services to the public.
Key advantages of starting a business in Vanuatu:
- Stable political and economic situation;
- Strategic geographic location – proximity to major Pacific maritime routes;
- Vanuatu has double taxation avoidance agreements with many countries;
- Legislation favorable for international investments;
- No public register of directors and shareholders of offshore companies – this information is strictly confidential, except in cases where the company is involved in fraud, terrorism, or other illegal activities;
- Nominee services are allowed to maintain confidentiality of founders and ultimate beneficial owners;
- Shareholder and board meetings can be held in any country;
- No currency control regulations;
- Companies are exempt from taxes if they do not conduct commercial activities within Vanuatu;
- Foreign companies can engage in any type of business activity within legal limits.
Although the country has only recently become a popular offshore destination, providing favorable tax conditions for foreign businesses has quickly become a key part of the local economy. The government has no plans to change this approach, which provides stability for foreign legal entities.
Selecting the Legal Form and Company Requirements
Entrepreneurs can choose from several types of companies:
- International business company (IBC);
- Exempt company;
- Limited liability company;
- Segregated portfolio company;
- Foundation;
- Local enterprise (for those intending to operate within Vanuatu).
If your goal is to establish a classic offshore company with all the associated benefits and restrictions, it’s best to choose an IBC. Registration can be completed entirely remotely.
The law sets minimal requirements for international companies:
- The company name may be in any language using Latin alphabet letters. For convenience, it’s better to choose an English name, as otherwise the Registrar might require a translation to check if it contains prohibited words. Terms such as bank, fund, trust, insurance, and others require appropriate licensing. The name must be unique and end with Limited (Ltd.) indicating limited liability.
- A minimum of one director is required (individual or legal entity), resident of any country.
- At least one shareholder (individual or legal entity), with no citizenship requirements.
- The same person can act as both director and shareholder.
- No minimum or maximum authorized capital is set in the legislation, nor is the currency specified.
- A registered (legal) address in Vanuatu is required, as is a local agent.
There is no requirement for annual shareholder meetings.
An International Business Company must pay an annual government fee of $300. The registration fee is $150. IBCs can open accounts in local banks but may not trade with residents or conduct any commercial activities within the country.
The law allows for company redomiciliation – transferring a company previously registered in another country into Vanuatu’s jurisdiction.
List of Documents
If the company’s founders (directors, shareholders) are individuals, the following documents will be required (translated into English and certified by a notary):
- Company name (unlimited options in order of priority);
- Description and activity types of the business;
- Notarized color copy of the international passport;
- Proof of residence – utility bill or bank statement not older than three months.
If the shareholder/director is a legal entity, corporate documents with apostille are required, translated into English (company charter, certificate of incorporation), as well as identification and proof of residence of the ultimate beneficial owner.
Company registration in Vanuatu takes about 7 days after submitting the required documents.
Tax System
The archipelago’s tax legislation is among the most loyal in the world. Tax treatment is the same for residents and foreign investors. Holding and transacting funds in any recognized currency is permitted.
The main points for an international company are:
- Corporate tax – 0%. Companies are exempt for 20 years.
- Royalties, stamp duties, and other mandatory payments are not charged if the source of income is outside the archipelago.
- Capital gains tax – 0%.
- Corporate and personal income taxes – 0%, including when purchasing a ready-made business in Vanuatu.
- Inheritance tax – 0%.
Accounting and oversight of financial and currency operations are required, but no obligation to file annual reports with regulatory agencies. Offshore companies are not subject to audit.
Professional Assistance from Beforis
Despite the relatively straightforward process of registering a company in the offshore jurisdiction of Vanuatu, entrepreneurs can face challenges at any stage. This is particularly true for those lacking experience in setting up businesses abroad.
As a result, a procedure that ideally takes no more than 7-10 days might be delayed indefinitely. To prevent this, businesses delegate the registration process in Vanuatu to partners like Beforis.
Beforis specializes in company registration in foreign jurisdictions. Experts will handle the entire process and provide nominee services for ongoing business activities. Nominee directors and shareholders offer maximum protection for founders. These representatives will appear on all official registration documents.
Our will check the company name for availability across all existing registers and reserve a unique option, provide a registered address for one year, and handle state fee payments. All corporate documents will be prepared with apostille and notarial certification. This approach saves time and enables business owners to start operations as soon as possible without legal complications. In addition, the experts will offer valuable advice on doing business, taking into account all features of the jurisdiction.
If you are interested in professional support for company registration, submit a request for a free consultation by email hi@beforis.com or via the form below. A Beforis specialist will contact you shortly and answer all your questions.
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