License in Vanuatu - as an alternative to UK or Belize
The Republic of Vanuatu is a small island nation located in the Pacific Ocean. The name, meaning nothing for the average man in the street, however, has become popular among professionals working in the financial sector.
The popularity of this jurisdiction for foreign business is due, in particular, to the loyalty of tax policy. There are no such types of taxes as income tax, inheritance, capital gains. That is why, along with brokerage firms, representatives of other business sectors also paid attention to Vanuatu. Thus, large shipping companies found it advantageous for their ships to sail under the flag of this state.
What is necessary to obtain a license
1. For companies operating in the provision of services in the market of international currency transactions, it os necessary to have an appropriate license. This mean that the company meets international requirements for the provision of the financial services.
2. A company that has a license to carry out such activities becomes more competitive and enjoys greater customer confidence when choosing a broker. The license is evidence of a solid reputation and long-term prospects of the broker company, since obtaining a license is associated with material and time costs.
3. The possibility of productive and long-term cooperation with banking institutions, without which it is impossible productive brokering.
4. Binary options trading, a relatively new type of financial services, as well as activity on the forex market, require obtaining a special license. This enhances professional reputation, makes it possible to attract new customers and make operations to open bank accounts or use the services of international payment systems. The presence of such a permit in a set with a brokerage license entitles you to perform market maker functions. This option is possible in the case of cooperation with brokerage offices, which are licensed in the European Union.
Obtaining a license of a forex broker and a broker of binary options in Vanuatu precisely for several reasons:
accelerated registration procedure. Registration of the license lasts no more than three months;
loyal initial capital requirements — its recommended amount does not exceed $ 2,000. Vanuatu remains out of competition even in comparison with the democratic requirements of such jurisdictions as Belize or Mauritius.
As with any registration license, it implies a number of mandatory payments, such as a registration fee, management fees, annual legal address and secretarial services, and applications to the Vanuatu Financial Services Commission (VFSC) for trading financial and derivative and valuable papers.
However, the cost of obtaining such a license will be significantly lower than in other countries.