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Obtaining a Forex license in Vanuatu in 2020
Advantages of obtaining a Financial Dealers License in Vanuatu:
- Popular jurisdiction for setting up a Forex company;
- Availability of tax incentives;
- Low cost of a license;
- The ability to provide financial services in any country;
- A relatively fast process of establishing and licensing a business.
Obtaining a Forex license in Vanuatu is a popular solution among novice entrepreneurs because of the low cost of the license, as well as the simplified requirements of the regulator regarding the applicant.
The main advantages of doing business in island jurisdictions include a number of tax incentives, full foreign ownership and the absence of foreign exchange control. In addition, it is worth noting that the government is highly interested in attracting foreign investment in order to strengthen the economy.
In this article, we will conduct a detailed review of how to obtain a Forex license in Vanuatu, and what is required for this.
To find out more information, we recommend you asking for professional advice on obtaining a dealer's license in Vanuatu in 2020.
Obtaining the Financial Dealers License in Vanuatu
Novice entrepreneurs wanting to order a license for trading in securities in Vanuatu should know that:
- Forex is an interbank market where traders can carry out transactions for the purchase/sale of major currencies.
- Forex is considered to be an over-the-counter market (global informal network of trading relations).
At the moment, Vanuatu is one of the most popular jurisdictions for conducting financial activities. The dealer's license in Vanuatu is considered the most inexpensive and at the same time is recognized worldwide.
Types of Forex Licenses in Vanuatu
Officially, this license is called «the Financial Dealers License» (FDL). There are 2 main types, according to which, you can:
- Obtain the Financial Dealers Principal’s license in Vanuatu and carry out activities in the Forex market on your behalf. This license, in turn, is divided into 3 classes:
- “Сlass A” license allows you to make transactions (optional) with: debt obligations, unsecured securities of the company, government loan bonds, certificates of deposit and receipts in foreign currency;
- Ordering a financial license in Vanuatu of the “Class B” allows you to work with future contracts and derivative products;
- “Class C” license gives the right to make transactions (optional) with the usage of: shares of the corporation's authorized capital, precious metals, goods or allows you to dispose all the above.
- Obtain the Financial Dealers Representative’s license in Vanuatu and enter into transactions with securities as an agent or principal’s employee during the validity period of the license. The standard license validity period is 1 year.
Below, we will analyze in detail the key stages of obtaining the Financial Dealers License in Vanuatu.
Before ordering a Forex license, you will need to register a company in Vanuatu.
The advantages of opening a business in the island nation include the following:
- Vanuatu is a stable, democratic state located in the South Pacific. This is a well-regulated jurisdiction offering fairly simple conditions for conducting business, as well as a wide range of international financial services, which are an important component of the local economy;
- Those who decide to acquire an inexpensive forex dealers license in Vanuatu should take into account that the legal requirements for the company's founders, as well as the size of the investments are rather lenient;
- The Vanuatu government supports the growth and development of the international financial services and securities market sector. This area is fairly regulated and reflects global business trends, inter alia in terms of taxation;
- The applications for opening a company in Vanuatu remotely, as well as obtaining a financial license in Vanuatu, are considered faster than in the most island financial centers;
- The cost of registering and licensing a business in Vanuatu is lower than in many other jurisdictions.
Among the main requirements of the regulator regarding the establishment of a Forex trading company in Vanuatu, the following should be highlighted:
- In the process of creating a business, the director shall sign a document that reflects his consent to act as the company's director;
- The professional experience of the Forex company founder can not be less than 5 years;
- It is necessary to appoint a Compliance Officer from among the managers of the company;
- The company must begin to carry out operations in the securities market within 6 months from the date of obtaining a license for trading in securities in Vanuatu. The interval between transactions may also not exceed 6 months.
- One of the senior managers or directors must reside in Vanuatu for at least 6 months a year;
- To obtain a Forex license in Vanuatu, the company must have a local office that is equipped with: an operating system that ensures uninterrupted operation, a management system and a company reporting system, the necessary software and servers.
Also, if you want to order a Financial Dealers License in Vanuatu, you need to know that:
- The enterprise must comply with the legislation requirements regarding AML policy;
- The appointment of a competent accredited auditor in the island nation is required.
Company registration period: up to 2 weeks
To learn more, we recommend ordering personal advice on registering a company in Vanuatu in 2020.
The procedure for obtaining a license for financial activities in Vanuatu
An application for obtaining a Forex trading license in Vanuatu is submitted along with the package of relevant documents to the Vanuatu Financial Services Commission.
Key documents required for acquiring the Financial Dealers License in Vanuatu:
- Confirmation of qualifications of directors and management;
- Corporate documents, including the business plan of the enterprise;
- Availability of reliable risk management and internal control systems;
- Confirmation of compliance with the conditions of the AML policy;
- Documents describing the main source of funds.
The list is not exhaustive. You can learn the details by ordering a qualified advice on obtaining a dealer license in Vanuatu from IQD Consulting experts.
Registration fees and tentative dates for obtaining a license
Those planning to order a Forex trader license in Vanuatu will need to pay a registration fee of 50 thousand VUV (~ 373 EUR).
In addition, there is an additional requirement: opening a corporate account in Vanuatu, as well as making a guarantee deposit of 5M VUV (~ 37,298 EUR).
On average, obtaining a Vanuatu Forex license takes from 3 to 5 months.
Benefits of obtaining a Vanuatu Dealer License
If you intend to apply for the Financial Dealers License in Vanuatu, please consider its key features:
- The director/owner may be a non-resident, as well as an individual or legal entity;
- Ability to carry out operations globally;
- No audit and accounting requirements;
- You can use the share capital with no restrictions;
- Relatively fast and easy business registration procedure.
If you want to order a financial license in Vanuatu, you should know that our experts can assist you in obtaining of 2 licenses: one for the company, the other for any individual representing the interests of the company.
Preparation of documents for establishing a business and obtaining a license
To register a Forex company, as well as obtain a license for the provision of a financial services in Vanuatu, you will need to provide us with the following documents:
- Scanned copies of the foreign passports of each of the beneficiaries;
- A document confirming the address of residence/registration of each beneficiary. Please note that the supporting document must be translated into English and certified by a notary;
- A certificate of criminal record (drawn up in English and apostilled).
For more information, you can request for personal advice on setting up a Forex trading company in Vanuatu.
IQD Consulting services
If you intend to create a business in this jurisdiction, then by referring to us you can order professional assistance in obtaining a financial license in Vanuatu, establishing a company, as well as providing a number of related services.
To get in touch with us, fill out a special form or call us by using the contacts specified below.
Our company shall not be liable for any direct, indirect or consequential loss arising from the use of the information and material contained in this website.