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Vanuatu Offshore Company Formation

The offshore jurisdiction of Vanuatu is one of the best to be found in the Pacific Ocean. Vanuatu began offering offshore services as early as the 1970’s and to date the offshore sector of the jurisdiction is growing in strengths. Vanuatu has a whole range of offshore services in place for clients. Some of the offshore services in the tax haven are the formation of offshore companies, offshore banking, offshore insurance, the management of trusts, electronic gaming and the registration of ships and vessels. Offshore company formation in the tax haven of Vanuatu is very affordable. The Vanuatu Financial Services Commission (VFSC) supervises the incorporation of offshore companies in the offshore tax haven.

The formation of offshore companies in the tax haven of Vanuatu is a procedure which is easily completed. The process of offshore company formation in Vanuatu can be completed within two (2) days. According to offshore company legislation in the tax haven Vanuatu offshore company formation must be completed with the assistance of a registered agent in the jurisdiction. The formation of offshore companies in Vanuatu the documents are filed to the Vanuatu Financial Services Commission (VFSC). The documents which are required for offshore company registration in the tax haven of Vanuatu include a Company Constitution. The information which is filed for offshore company incorporation is:

  • The name of the company
  • The name and address of the registered agent
  • The registered address of the company in Vanuatu
  • The purpose of forming the company
  • State if the company is limited by guarantee or by shares or by both
  • The company should state the classes of shares which it will issue
  • The number of share which will be issued
  • The authorized share capital of the offshore company
  • The currency of the share capital
  • The restrictions of the company
  • The limitations, powers and right of each class of shares
  • The contributions of each member of the company should be stated
  • The by- laws of the corporation

The Financial services Commission will issue the offshore company two copies of its certificate of incorporation if all the right documents are submitted. Once incorporated the Vanuatu offshore company cannot do business or trade within the territory. The offshore company is prohibited from owning real estate in the tax haven.

For offshore company formation in the tax haven of Vanuatu careful consideration has to be given to the name choice of the company. Most persons send the company’s proposed name to the Financial Services Commission for reservation. The company registration office can turn down company registration if the name of the company is considered to be offensive or if the name chosen is similar to another company in the jurisdiction and company incorporation will be rejected if the name chosen has already been used in the tax haven. An offshore company name in Vanuatu cannot be associated with the government of the island or any other governments and international organization.

According to offshore legislation in the offshore tax haven of Vanuatu an offshore company incorporated in the jurisdiction can only undertake the business that it received the license to conduct. An offshore company formed in the tax haven of Vanuatu engages in the business of banking or any other business operation or other business that may associate the offshore company with insurance business. Offshore companies in Vanuatu cannot conduct the following types of business operations insurance, fund management, investment management, banking, reinsurance or any other business which is directly related to banking in the tax haven. A special license will be needed by Vanuatu offshore companies who wish to engage in banking, insurance, trusts, trustees, investment fund, assurance, finance and Building society.

Offshore companies being formed in the offshore jurisdiction of Vanuatu must include the phrase Limited Liability in its name for formation. The corporation can use one of the following words or abbreviation to show that it is a limited liability company; Incorporated, Sociedad Anonima, Société Anonyme, Limited and Corporation among others. The name of Vanuatu offshore companies can be written in any language which uses the letters of the alphabet. Russian, Chinese, Arabic and other foreign languages can be used.

For the formation of offshore companies in the tax haven of Vanuatu the authorized share capital for the company is not set out in the companies’ legislation of the offshore jurisdiction. Most offshore companies formed in the tax haven normally starts with an authorized share capital of US$10,000. The authorized share capital of a Vanuatu offshore company can be in any currency.

For offshore company formation the legislation of Vanuatu requires that each company has a minimum of one (1) director and one (1) shareholder. The directors for Vanuatu offshore companies can be corporations or individuals. The directors can be of any nationality. A Company Secretary is not obligated b y law but one can be appointed to help deal with affairs of the offshore company.

The formation of offshore companies in the offshore tax haven of Vanuatu has many advantages. A Vanuatu offshore company does no business in the territory and for this reason the offshore corporation operates tax free. According to offshore legislation in the island nation of Vanuatu offshore companies will pay no taxes on income gained outside of the territory. Offshore companies which are formed in Vanuatu pay none of the following forms of taxation: corporate taxes, income tax, capital gains tax, withholding tax and estate tax among others. Offshore companies incorporated in Vanuatu are obligated to pay to the relevant authorities a fee which serves as a license fee. The annual fee for offshore company is set at US$300.

The offshore tax haven of Vanuatu has a very stable environment for foreign investors. Tax haven Vanuatu has a growing economy and stable political environment. A Vanuatu offshore company can be used for asset protection. Vanuatu offshore companies can be used for business operations in any country in the world.