Company in Vanuatu: a tax haven in 2024
Vanuatu is a small island nation in the southern Pacific Ocean, comprising over 80 islands, has been attracting attention from entrepreneurs worldwide for several years for opening offshore businesses. The Republic of Vanuatu offers one of the most favorable tax legislations globally.
Advantages of company registration in Vanuatu:
- Zero taxes on profits earned outside the jurisdiction of Vanuatu. This is the primary advantage of this jurisdiction.
- No currency control.
- No mandatory requirements for regular reporting. Accounting and financial operations are regulated, but annual reporting to government agencies is not required, and audits of foreign companies are not conducted.
- Quick registration process.
Incentives for foreign companies and trusts. Key tax benefits for offshore firms in Vanuatu:
- Zero profit tax rate. Companies are exempt from this tax for 20 years.
- No royalties, stamp duties, or other mandatory payments if the income source is outside the jurisdiction.
- No capital gains tax.
- Corporate and personal income tax rate is zero, including when purchasing an existing business.
Thus, Vanuatu offers the most comfortable conditions for minimizing taxation.
The most common form of offshore company in Vanuatu is an International Business Company (IBC). To initiate the company registration process in Vanuatu and successfully pass all checks, the company's beneficiary must provide the following documents:
- Notarized copy of the passport.
- Certified copy of a second identity document, usually a birth certificate or driver's license.
- Notarized certificate of no criminal record (not older than 3 months), if necessary, with translation and certification in English.
- Confirmation of the residence address, if necessary, with translation and certification in English.
- Bank reference letter confirming the source of funds.
- Signed resume in English.
The company registration timeline is up to two weeks from the moment all documents are submitted.
Registering a company in Vanuatu provides access to favorable tax treatment and business confidentiality, making it attractive for entrepreneurs worldwide. However, it is crucial to thoroughly study all aspects and risks associated with company registration in the Pacific region, so we recommend seeking consultation from IT-OFFSHORE specialists for a successful start and development of your business.