OBTAINING A VANUATU FOREX LICENSE

A Vanuatu license is necessary for those entities that plan to work as a trader in the financial markets. The Vanuatu Forex license does not set clear restrictions on the work of activities exclusively with Forex, a person with a Vanuatu license can also be an official dealer in securities and finance.

Features

The activity is regulated by the Financial Services Commission (VFSC – Vanuatu Financial Services Commission), which is responsible for issuing a license. The commission is a government body, but its scope of activity also includes the regulation of Vanuatu’s financial sector and the maintenance of the country’s company register.

The authority of the commission (VFSC) includes the acceptance and consideration of applications for the issuance of a license, as well as the issuance of such a license itself. In addition, the commission should supervise licensees, prevent fraud and apply fines to violators. If there are reasons, the commission (VFSC) can withdraw the decision on issuing a license.

But the commission is not the only body dealing with Vanuatu’s financial services. The Financial Centers Association (FCA) also deals with such issues. FSA, unlike the commission, does not deal with regulatory issues, but is a non-profit organization whose main areas of activity are: insurance, banking, real estate, online auctions, brokerage and financial operations, accounting, business consulting and others.

The main area of activity of the FCA is that it should ensure that the regulatory and legal system is attractive for attracting investment and for foreign companies wishing to work on Forex.

For those wishing to obtain a Vanuatu Forex license, one more organization should be taken into account – the Financial Markets Association (FMA). It is a self-regulatory organization.

Vanuatu license processing and benefits

The country has a fairly favorable and flexible tax system, which is favorable for persons wishing to obtain a license. But obtaining a license may not be a simple procedure due to the many conditions that must be met.

But compared to other countries, Vanuatu’s license can be obtained faster due to the simplified regime that has been established by the Financial Services Commission. Another reason for obtaining a Vanuatu Forex license is that there are no tax obligations. Individual controls are not applied to Forex brokers in Vanuatu, their activities are regulated as normal financial activities.

The term of obtaining a license

Another advantage of the Vanuatu license is the deadline for obtaining it. Compared to other countries, a license can be obtained in Vanuatu within three months.

The main advantages of a Vanuatu license

• Simple requirements for the applicant
• Capital requirements are not high
• Ownership may be concentrated in the hands of one person
• High demand from brokers
• Fast registration procedure and low annual maintenance costs
• Ability to open bank accounts after obtaining a license
• Favorable tax system

Conditions for obtaining a Vanuatu license

First, you need to register a Vanuatu international company and prepare a list of necessary documents.

Basic requirements:

1. The office must be in Vanuatu
2. The origin of funds for start-up capital must be documented
3. The documentation must be kept in the country so that, if necessary, they can be provided upon request
4. The application must clearly justify the risk management policy
5. A security deposit of approximately USD 50,000 must be kept at the VFSC.
6. A business plan must be submitted together with the application and a financial forecast for the next three years

It should be noted that the list of documents for obtaining a license may change slightly. But the standard package of documents includes the following:

• Certified documents confirming the identity of the owners
• Certified documents confirming the absence of criminal records of the owners
• Certified documents confirming the absence of bankruptcy of the owners or beneficiaries
• Confirmation of the presence of a physical address on the territory of the country
• Financial plan

Therefore, Vanuatu is popular for obtaining a Forex license. This is due to the flexible taxation system and loyal requirements for licensees.