Obtaining a Forex license in Vanuatu
Although not as popular as other tropical Pacific islands, the Republic of Vanuatu (previously known as the New Hebrides) is a lucrative ground for operating businesses, particularly in the field of finance.
The country offers a number of benefits with respect to taxes, as income, capital gains and inheritance are not subject to taxation. It is not surprising that companies trading in Binary Options and Foreign Exchange, among many others, are attracted by the national legislative framework.
Many international firms dealing with ship management sail under Vanuatu’s flag. Also, several peer-to-peer file sharing networks, e.g. WinMX and Kazaa, are based in the country thus avoiding the challenges posed by the legislation of other jurisdictions.
Vanuatu Forex Requirements
The Vanuatu license for foreign exchange (issued by the National Financial Services Commission) is particularly useful for brokers, allowing them to trade financial instruments such as bonds, options, shares and other investments. It also enables them to act on traders’ behalf as regards the management of investment portfolios. Besides Foreign Exchange brokerages, the region’s business environment attracts other institutions in the field of investment and management of funds. These include brokers and hedge funds whose clients plan to trade in securities that are not allowed in their countries of residence or require complex and pricey compliance procedures.
A license for foreign exchange in Vanuatu may prove quite useful for such firms. It will enable them to make such investments through a company established in Vanuatu and licensed to buy and sell securities while avoiding the legal drawbacks existing in other jurisdictions. Thus a brokerage registered and licensed in the European Union can manage a separate company licensed in Vanuatu in order to facilitate trade.
The capital requirements for issue of a Vanuatu license for foreign exchange are low, even when compared to those in other attractive jurisdictions. This is the reason why the picturesque islands of the Republic of Vanuatu are quickly becoming a desirable destination for brokerages looking for convenient regulations.