Vanuatu Company Formation

Vanuatu, officially known as the Republic of Vanuatu, is an island country in the South Pacific Ocean. The country is close to Australia and Fiji, and it follows the English Common Law system. Vanuatu is a member of the UN, British Commonwealth, World Bank, South Pacific Forum and the Pacific Community. English is an official language, alongside Bislama and French.

Benefits of Vanuatu Company Formation

Here are some of the advantages that come with forming a company in Vanuatu:

You can use any language for your company name Corporate capital can be in any currency and amount Vanuatu corporations are not required to have annual general meetings or submit yearly returns Bearer shares are allowed for Vanuatu company formation Offshore firms can keep their accounts at any location around the globe A minimum of one shareholder/director is needed to start a company in Vanuatu You can utilize nominee directors/shareholders for optimal security and confidentiality Offshore companies are exempt from taxes during the first 20 years Vanuatu company formation takes just 3 to 4 business days

Important Information about Vanuatu Company Formation

1. Corporate Name: Company names can be in any language, but the Registrar may ask for a translation to make sure that the foreign company name isn’t restricted. In addition, the company name cannot include the words bank, chartered, trust, insurance, establishment, foundation or partnership unless an appropriate license is acquired. The company name must end with a phrase that denotes limited liability, e.g., Ltd., Corp., Inc. or S.A.

2. Company Meetings: Vanuatu does not require offshore companies to hold annual meetings. If the company wants to have such meetings, they can be held anywhere and through electronic means.

3. Financial Statements and Corporate Records: Vanuatu international companies must keep financial statements and records, but there is no requirement to file them with local authorities. Filing annual returns is also not necessary.

4. Taxes: Vanuatu does not impose income tax, withholding tax, capital gains tax, inheritance tax and exchange controls on Vanuatu international companies.

5. Capital Structure: The standard authorized capital for an offshore company is $10,000 USD, while the minimum paid up $1 USD. Currently, Vanuatu does not have minimum or maximum capital requirements for establishing an offshore company.

6. Privacy and Confidentiality: Vanuatu incorporation forms do not state the identity of the beneficiaries, directors and shareholders. Therefore, no names are shown on the public record. Additionally, nominee shareholders and directors are permitted for maximum confidentiality. However, Vanuatu Commission may refute the appointment of nominees if a company is engaging in restricted services.

7. Corporate Structure: Only one director/shareholder is needed to form a Vanuatu offshore company. Additionally, no company secretary is required, and the director/shareholder may be a resident or non- resident. A director can also become the sole shareholder in an international company.

8. Corporate Shares: A Vanuatu international company can issue bearer, registered, redeemable and preference shares. It can also issue shares with or without par value or voting rights.

9. Legislation: Two primary laws govern the formation of offshore companies in Vanuatu, Cap 191 of the Companies Act and the 1993 International Companies Act. Overall, the island nation follows English Common Law.

10. Address: Vanuatu international companies are required to have a local registered office address and agent.

11. Incorporation Timeline: Vanuatu company incorporation takes 3 to 4 business days, depending on the amount of time required to approve the business name and application accuracy.

12. Restrictions on Trade: International companies cannot trade or own local real estate within Vanuatu. If an offshore company desires to perform business activities associated with banking, insurance and assurance, they must seek approval and licensing from the local authorities.

Vanuatu is undoubtedly one of the best places to conduct international business.