Why Open a Legal Entity in Vanuatu?
In recent years, company registration in Vanuatu became a popular option amongst major companies, start-ups, digital entrepreneurs, and freelancers alike. Here are the top reasons why you should also consider registering your business in this country:
- Part of the small Pacific Islands archipelago, Vanuatu provides a stable environment and offers a supportive condition for your business.
- Businesses operating out of this country enjoy complete tax exemption and there are no annual returns to be filed at all.
- There are no strict requirements in regards to stakeholders and directors. A single person can hold multiple shares in the same company and be a director and the company still be considered perfectly valid.
- This jurisdiction is both cost-effective and effectual in terms of the laws that govern said lucrative environment.
How Long Will It Take to Register a Company in Vanuatu?
On average, it should not take more than 10 business days to fully establish a business in Vanuatu. The timeframe can be shorter if you have all the necessary business documentation and if the company providing business registration assistance is able to identify, resolve, and notify you promptly of any issues that may arise. Everything can be done remotely in 14 days. It is quite easy to access the information required to start the process and obtain the appropriate documentation.
How to Open a Bank Account in Vanuatu For a Legal Entity?
Opening a bank account in Vanuatu comes with its fair share of advantages, including:
- It can be done remotely (fully);
- The process should not take more than two weeks;
- The costs are relatively low.
When talking about the minimal requirements of opening a bank account, it is important to mention that they can (and will) vary depending on the type of account you are opening and the bank that you are selecting. Please bear in mind that the below list of documents is not set in stone and is open to change according to local laws and regulations, as well as depending on specific needs or cases.
- Business’s article of incorporation;
- Articles of association;
Once the required paperwork is submitted to the bank, the process of opening an account should not take more than a couple of days.
How Did Vanuatu Become a Hub for Entrepreneurs?
As a small island nation, with a population of just over 307,000 people, there wasn’t much of a business culture to speak of in the past. Vanuatu’s economy was largely agricultural with close to 100% of the population either heavily depending on it or being involved in it. However, like most developing nations, starting small and growing, with the right tools, was able to make things develop and improve – recent years saw a quick rise in economic development thanks to a large number of entrepreneurs selecting a path that made Vanuatu their home. To address the question posed above – Vanuatu became a hub for entrepreneurs thanks to offering some of the most lucrative conditions – low costs, zero taxes, etc.
What Organizational / Legal Things to Consider Before Even Starting a Company in Vanuatu?
The list of questions that you need to ask first before establishing a business presence in Vanuatu includes (but is not limited to):
- Are you interested in purchasing a readymade business or do you wish to operate and own a new one?
- Do you want to use a nominee stakeholder?
- Do you want to use a nominee director?
- Is there a market for the product or service you want to sell?
- Do you have a clear strategy in place?
- How many employees do you plan to hire? Do you plan to hire someone at all?
- What does the business plan entail?
Additional information that needs to be taken into consideration is that you will need to: come up with three different names for your business; provide business registering authorities with full names, addresses, and e-mails of all shareholders and boardroom members; provide a brief description of the planned business activity (the purpose of the business and the services that it will provide).
Why Is It So Easy to Do Business in Vanuatu?
The ease of doing business in Vanuatu can be explained by the fact that it is one of the most collaborative and business-friendly nations in the Pacific. The size of the economy and population, coupled with lax tax laws and a non-stern approach to domestic and multinational companies has resulted in Vanuatu boasting one of the highest levels of investment and global trade in the region.
Why Do People Choose Vanuatu for Starting a Company?
The biggest reasons why people select Vanuatu for launching a business:
- No Corporate Tax: It’s the biggest selling point of Vanuatu for foreign businesses. Firms operate under no corporate tax and consequently receive no financial setbacks that might have forced them to transfer their business to another country with more beneficial conditions.
- Great Political Environment: Consistently high levels of stability make Vanuatu an ideal destination for foreign businesses.
- Confidentiality: There’s no information in public records in regards to the names of directors, boardroom members, stakeholders, etc.
- English Language Proficiency: The common tongue in Vanuatu is English. As such, English is highly used in the business sector.
- Low Costs of Starting and Running a Business: You can launch a business with starting capital as low as $300.
Is a VAT Number Necessary in Vanuatu?
Not every business is eligible to register for VAT. The process of registration is completely free and takes no more than five business days. For more information, please refer to the official information provided by the Vanuatu Investment Promotion Authority.