When you take into account the high taxation rates and stringent regulations when forming a company in most first world countries, it is no surprise that business owners are turning to offshore solutions in a bid to reduce outgoings. Of course, there are quite a few offshore locations around the world, such as The Isle of Man and the Cayman Islands, and many people are attracted to Vanuatu, a small pacific island Republic that has a very stable government and a very attractive business environment.
Source a Local Chartered Accountant
The very first thing to do is make contact with an accountant who specialises in Vanuatu company formations, as they have the local knowledge on how best to go about the business registration, and once they know your needs, they can advise accordingly and walk you through the company formation process.
Major Advantages
Basing your business in Vanuatu offers the following benefits:
- Zero Corporation Tax – This alone makes Vanuatu the best location to set up a corporation.
- Confidentiality – Any corporation registered in Vanuatu does not have to record the names of directors or shareholders in any public records.
- Shareholder Benefits – You can form a corporation in Vanuatu with a single shareholder, plus the corporation can issue bearer shares to protect the privacy of the shareholders.
- Stable Government – Starting any business offshore has its risks, and Vanuatu has never had any political or civil unrest in its history.
- English Language – English is the language used in Vanuatu, so you can save a fortune in translation costs, plus you will know everything without having to rely on a translator.
- Directors do not have to be resident in Vanuatu and a corporation does not require a company secretary.
Using Local Expertise
Like any other country, Vanuatu has its own unique and complex business laws and in order to get the most out of your company formation, you should hire a local Chartered Accountant, someone who can advise you correctly on every aspect of the business registration.
Preparation
Of course, there will be paperwork to prepare, which would include a memorandum of association, the article of company association and the minutes from the director’s meeting. Your accountant would prepare a list of documents for you to prepare, plus he would inform you regarding the setting up of bank accounts and the transfer of capital funds.
License and Permits
Depending on the type of business you are opening, you will likely require licences and/or permits and this is another aspect that your local accountant can oversee. If you find the right accountant who is based in Vanuatu, everything is quite straightforward, and they can guide you through every step in the process and help you complete the registration which will allow you to commence trading.
On average, it would take 5-7 working days for the company registration to be completed, then your new business can begin trading globally.
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