Vanuatu (formerly known as the New Hebrides Islands) might not be as well-known as some of the other tropical paradises in the Pacific Ocean, but it has plenty to offer business owners, especially those active in the finance industry. As such, Vanuatu offers a variety of tax benefits, as the nation has no income tax, no capital gains tax nor inheritance tax. It is therefore no surprise that Forex and Binary Options companies are not the only ones drawn to this specific jurisdiction. Many international ship-management companies are known to sail their ships under the flag of the nation.
Dealer in Securities
The island nation of Vanuatu, located in the South Pacific Ocean is becoming a preferred jurisdiction for many Forex brokers looking for regulation, mainly due to the low capital requirements that Forex brokers need to meet in order to receive a Vanuatu Forex license. The minimum capital required can be as low as 5000 US Dollars, and opting for Vanuatu Forex License also has several other advantages, such as:
No local office in Vanuatu is required.
No local staff in Vanuatu is required.
It is the fastest available regulation on the market today by far.
All these facts make Vanuatu a more financially viable option for Forex brokers looking for regulation with a smaller budget.
Low Costs and Fast Registration
In addition to the above, perhaps the two main reasons for the quick increase in popularity for Vanuatu licenses are:
(a) The fact that this is the fastest available Forex/Binary Options regulation out there (it is possible to be granted a license in only 2 to 3 months); and
(b) Very low capital requirements even compared to other known licensing jurisdictions, such as Mauritius Forex License and Belize Forex License for example. Currently, the capital requirements for brokers looking to be regulated in Vanuatu are only $5000!
(c) There are no capital requirements or other licensing requirement (provided the company does not do business in Vanuatu, but only overseas).
There are, naturally, some additional expenses in connection with the regulation process, such as incorporation and administration of a Vanuatu financial company, annual registered office and secretarial services fees, application for trading in financial and commodity-based derivative instruments and other securities from VFSC, including VFSC regulatory application fees, governmental fees, agents consulting fees, legal fees, etc. However, these expenses are still smaller compared with other regulating jurisdictions.