Vanuatu is a great location for forex brokers with limited amount of resources due to its low capital requirements and variety of tax benefits.

Vanuatu has stable and independent political and economic environment, with a high level of privacy and confidentiality, minimum ongoing compliance requirements. Vanuatu offers high level of confidentiality for beneficiary owners, shareholders and officers. Furthermore, the company is exempted from capital gains, tax on profits and stamp duty after incorporation for 20 years.

Financial services in Vanuatu are regulated by Vanuatu Financial Services Commission (VFSC). The Vanuatu FX Dealer's in Securities License enables you to become fast a regulated FX & Securities dealer and also enables your client base direct access to all your products and services. Services that may be offered/rendered by you as a regulated FX & Securities dealer might be: Forex Services; Asset Management Services; Bonds; Certificates of Deposit and various other products & services. The license in Vanuatu allows you to trade forex and commodities, buy, sell, trade securities such as shares, bonds, options, etc., and manage a portfolio of investments for and on behalf of your clients.

Vanuatu is business-friendly which attracts not only Forex businesses but also fund management and investment institutions plus a wide range of professionals from the finance industry.

An EU brokerage with an EU license can simultaneously hold a Vanuatu licensed company which can act as a “market maker".

Types Of Business Licence in Vanuatu

The licensing procedure in Vanuatu, by default, involves the application for two types of licences:

• the Principal’s Licence - in the name of the company
• and the Representative’s Licence - for a representative of the company.

Both Licenses are being granted by VFSC under the Vanuatu Ministry of Finance auspices.

Vanuatu Security Dealers License enables to provide:

• broker services,
• Forex services,
• lending services, 
• financial advice,
• services related to payment systems and electronic money.

Depending on the specific type of activity of the company, it may be necessary to obtain a Principal’s Licence of several classes:

Class А licence

enables to carry on the business of dealing in

• debenture stocks;
• loan stock, bonds;
• certificate of deposit;
• proceeds of Foreign Exchange.

Class B licence

enables to carry on the business of dealing in

• future contracts and derivative products but not limited to futures and options.

Class C licence

enables to carry on the business of

• dealing in shares in capital of a corporation;
• proceeds of precious metals; 
• proceeds of commodities; 
• a right despite whether or not conferred by warrant, subscribe for shares or debt instruments;
• a right under depository receipt;
• a right under a contract for the acquisition of securities.

A Representative can be a director, shareholder, or company manager, including those who do not appear in the company’s corporate documents. The general practice is to appoint a company director for this purpose. The company must appoint an officer responsible for the KYC and AML procedures.