The Republic of Vanuatu is an independent island nation located in the southern Pacific Ocean. The country has established itself as an attractive offshore jurisdiction for conducting brokerage and trading activities, thanks to its favorable taxation system, complete confidentiality, and the government's targeted efforts to create optimal business conditions.

What is a Security Dealers License

A Security Dealers License (SDL) in Vanuatu is a permit that grants the right to engage in the securities business. The SDL license is provided by the state regulator – the Vanuatu Financial Services Commission (VFSC).

A company holding a Security Dealers License is authorized to provide any type of financial service, except for banking and insurance, including:

• Forex market services;
• Brokerage services in the securities and derivatives market;
• Trust management of third-party funds;
• Management of investment funds, hedge funds, etc.;
• Activities related to cryptocurrencies, including blockchain.

Types of Security Dealers License

According to the amendments to Vanuatu's legislation adopted in 2021, the Security Dealers License is divided into 4 classes:

Class A – the license allows for operations with deliverable currency and debt instruments;

Class B – grants permission for operations with stocks, precious metals, etc.;

Class C – provides the opportunity to conduct activities with futures and derivatives;

Class D – required for working with virtual assets.

How to obtain a license

To obtain the status of a securities dealer, it is necessary to register a company in the jurisdiction, open a bank account and an office in Vanuatu, and submit an application to the VFSC regulator.

Features of business registration in Vanuatu:

• Taxation – 0%;
• Requirement for authorized capital contribution – 50,000 USD;
• Insurance policy is mandatory;
• Presence of a local director and office in the jurisdiction is mandatory;
• Availability of standard KYC documents.

Contact IT-OFFSHORE lawyers for more detailed information on the required license class and obtaining the status of a securities dealer in Vanuatu.