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Vanuatu

International Company (Company limited by shares)

Vanuatu is a pure tax haven, there are no direct taxes both for individuals and corporations.

Company law in Vanuatu is based in English Common Law. Companies in Vanuatu are governed by the Companies Act, except International Companies, the most common offshore entity, which are governed by the International Companies Act. This type of company offers more flexibility and easier administration.

Companies registered under the International Companies Act are entitled to do international business and may have restrictions to trade within Vanuatu, own a real estate interest within the territory, except the lease of an office where it conducts its management, and hold banking, trust or insurance licenses.

Offshore companies in Vanuatu are guaranteed to be fully tax-exempt for 20 years, and only subject to an annual fee of USD 300. Companies may elect to be long term entities and pay renewal fees of USD 1,000 (5-year company), USD 1,500 10-year company) and USD 2,500 (20-year company).

The name of the company must include a word or abbreviation that denotes limited liability, such as Ltd., Corp., Inc., S.A., S.R.L., B.V., Sdn Bhd, GmbH, … etc. The name can be in any language.

It can not include any words that refer to financial services, such as trust, bank or insurance, or words that relate to a public institution or words such as Foundation or Charity.

ICs may be formed by one or more shareholders, one or more directors, who may be juristic or natural persons. Directors may be residents or non-residents. Nominee directors and shareholders are commonly used.

Details of beneficiaries, shareholders, directors of a Vanuatu offshore company are not publicly disclosed. There are no annual meeting requirements, and meetings may be held outside Vanuatu by call, videocall or any other mean.

ICs must have a registered office and a local registered agent. Appointment of a secretary is not mandatory, and the secretary may or may not be in Vanuatu.

The issued minimum capital is a share with or without par value. Shares may be issued with or without voting rights, nominative, bearer, preferred and redeemable.

Vanuatu offshore companies may be subject to a solvency test, directors must ensure that any distribution does not affect the company’s capability to meet its liabilities, failure to comply with it may carry directors’ personal liability.

International Companies may be required to keep financial records, but may not be required to file accounts and annual returns.

Vanuatu has committed to undertake the first OECD’s automatic exchanges of information (AEOI) following the CRS (Common Reporting Standard) by 2018. It is an unknown how will be done because Vanuatu does not currently collect the financial data of its citizens and foreigners. Vanuatu does not have an Income Tax Office and therefore has no means to collect the information.

There is no intergovernmental agreement (IGA) between Vanuatu and the United States to report US taxpayers accounts, but some Vanuatu banks participate in the US Foreign Account Tax Compliance (FATCA) on an individual basis.

Vanuatu is on the FATF list of high-risk and non-cooperative jurisdictions, currently there are no sanctions in force but the country has been warned to implement anti-money laundering and fiscal transparency measures.

A Vanuatu international company is commonly used for holding tangible and intangible assets, asset protection and confidentiality, gaming, estate planning, trading, securities dealer, holding vessels, among others.

Taxes

Vanuatu does not levy corporate and individual income taxes, no dividend distribution taxes, no capital gains taxes, no withholding taxes, no estate and inheritance taxes, and there are no foreign exchange controls.

Furthermore, companies incorporated under the International Companies Act of Vanuatu are guaranteed to be fully tax-exempt for 20 years.

The only applicable taxes are a value-added tax of 12.5%, stamp and custom duties, with certain exemptions in sectors such as Tourism, Manufacturing or processing and Mineral exploration.

  • Offshore Income Tax Exemption
  • Offshore capital gains tax exemption
  • Offshore dividends tax exemption
  • CFC Rules
  • Thin Capitalisation Rules
  • Patent Box
  • Tax Incentives & Credits
  • Property Tax
  • Wealth tax
  • Estate inheritance tax
  • Transfer tax
  • Capital duties
  • 0% Offshore Income Tax Rate
  • 0% Capital Gains Tax Rate
  • 0% Dividends Received
  • 0% Dividends Withholding Tax Rate
  • 0% Interests Withholding Tax Rate
  • 0% Royalties Withholding Tax Rate
  • 0 Losses carryback (years)
  • 0 Losses carryforward (years)
  • 0% Personal Income Tax Rate
  • 14 Tax Treaties

Country details

Vanuatu
VUV
Port Vila
Oceania
b i , e n - V U , f r - V U
221552

The Republic of Vanuatu is a former English-French protectorate, made up by an archipelago of 83 islands of volcanic origin surrounded by coral reefs, covering more than 12,000 sq. km of the South Pacific Ocean. Located 1750 km from Australia, 500 km northeast of New Caledonia, west of Fiji and south of the Solomon Islands, near New Guinea.

The islands are inhabited by 267,000 inhabitants. Its capital, most populated city and economic and commercial center is Port Vila, located in Efate Island (the third largest of the archipelago), which has the most important port and airport of the country.

Its official languages are Bislama, French and English. Its official currency is the Vanuatu Vatu (VUV).

The government and politics of Vanuatu takes place within the framework of a multi-party representative parliamentary democratic republic, in which the Prime Minister of Vanuatu is the head of government and the President of Vanuatu is the head of state.

The country is one of the most underdeveloped in the region, with a per capita income that barely reaches USD 3,000 annually and a very unequal distribution of wealth, with much of the population devoted to subsistence agriculture.

It has a fragile economy, with inherent economic difficulties, is remote and isolated, facing heavy transport costs, is prone to natural disasters and is heavily dependent on foreign investment, tourism and commodities price fluctuations.

Tourism is its largest sector, accounting for half of GDP.  Agriculture and fisheries are the second largest, about a quarter of its economy. Its main exports are copra, coconut oil, kava, beef, timber, cocoa and coffee, and destined to Australia, New Zealand and Japan.

The Government plays an important role in the country’s economy. There are more than a dozen state-owned enterprises in such important economic areas as airports, banking, agriculture and broadcasting.

Vanuatu has been an offshore financial center for more than 40 years. The sector contributes almost one tenth of GDP. With well-developed banking and financial infrastructure, international financial institutions, professional lawyers, accountants and financial advisors, including multinational firms.

Tax treaties

Country Type Date Signed
Denmark TIEA 2010-10-13
New Zealand TIEA 2010-08-04
Norway TIEA 2010-10-13
Faroe Islands TIEA 2010-10-13
France TIEA 2009-12-31
Sweden TIEA 2010-10-13
Grenada TIEA 2011-05-31
Ireland TIEA 2011-05-31
Australia TIEA 2010-04-21
Korea, Republic of TIEA 2012-03-14
San Marino TIEA 2011-05-19
Iceland TIEA 2010-10-13
Finland TIEA 2010-10-13
Greenland TIEA 2010-10-13

Procedures

We can help you incorporate a International Company (Company limited by shares) in Vanuatu for $2,900.


Description


Vanuatu International Company (IC) – US$2,900.00 (All included)


We pride ourselves in providing the best possible professional service which includes our honest hassle free “No Hidden Fee” policy. Your incorporation package includes:



  • Government incorporation and filling fee

  • Bound set of Constitutional Documents

  • Certified Copies of Constitutional Documents for bank account opening

  • Registered Agent & Registered Office Fee

  • Corporate Seal

  • Courier fees


Time to form: 2 weeks.


All our incorporation services include a yearly consulting session, a dedicated account manager and access to our global network of trusted business services, including introductions to accountants, financial, tax and legal advisors at no cost.


Bank Account Options



  • Vanuatu Bank Account (Remotely) – US$1,200.00

  • Mauritius Bank Account (Remotely) – US$500.00

  • Offshore Bank Account* (Remotely) – US$300.00

  • Crypto-Friendly Bank Account (Remotely) – US$3,000.00


We include introductions to payment processors or merchant accounts with all of our incorporation services. Whether you just need standard credit card processing or specialized services for high risk processing, we are happy to help you with introductions that can empower your business.


*Offshore Bank Accounts: Belize, Puerto Rico, Nevis, Antigua, Saint Lucia.  Other bank account options may be available depending on business profile and turnover.


Annual Fees (2nd year) – US$1,800.00


Including:



  • Government fee

  • Registered Agent & Registered Office fee


Additional Services



  • Securities Dealer License – US$4,800.00. Including*:

    • Assistance with Securities Dealer License application

    • Assistance with AML/CTFL Registration

    • Government Fee




*A deposit of US$2,000.00 to the Vanuatu Supreme Court is required.





Click here to incorporate your Vanuatu IC.

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Disclaimer

Although we use our best efforts to keep the information of this site accurate and up-to-date, we make no representations or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents of this website. We disclaim any warranties expressed or implied, merchantability, or fitness for any particular purpose. We shall in no event be held liable for any loss or other damages, including but not limited to special, incidental, consequential, or other damages. The contents of this website are just for illustrative purposes and are NOT to be considered as a legal opinion or tax advice and should not be relied upon as such. Far Horizon Capital Inc., and any associated company, is not engaged in the practice of law or tax. If you wish to receive a legal opinion or tax advice on the matter(s) in this website please contact our offices and we will refer you to an appropriate legal practitioner. Use of our websites FlagTheory.com, Incorporations.io, Residencies.io, Passports.io, is subject to our terms and conditions.

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