Vanuatu Forex license
Vanuatu (formerly known as the New Hebrides Islands) is not as well known as some of the other tropical paradises in the Pacific Ocean, however it has plenty to offer business owners, especially those active in the finance industry.
Vanuatu offers a variety of tax benefits, with the nation having no income tax, no capital gains tax and inheritance tax, It is no surprise that Forex and Binary Options companies are not the only ones drawn to this specific jurisdiction.
A lot of international ship-management companies are known to control their ships under the flag of the nation as well as several well-known file-sharing services, such as KaZaA and WinMX, which are incorporated in Vanuatu, to avoid the legal challenges they would have faced if incorporated in other jurisdictions.
Holding a Vanuatu Forex license (VFSC – Vanuatu Financial Services Commission) is very useful to brokerages as it allows them to buy, sell and trade investments like shares, options, bonds amidst several other instruments,. The license also enables brokerages to manage investment portfolios on behalf of traders.
The business-friendly environment of the region makes it attractive to not only FX brokerages. Other investment and fund management institutions such as brokerage firms and hedge funds who have clients wishing to invest in securities not permitted in their resident jurisdiction or that require complicated and costly compliance steps, may find holding a Vanuatu Forex License very useful. By having a Vanuatu Forex License, these types of investments can be done through a brokerage incorporated in Vanuatu, licensed to trade securities, thus bypassing constraints existing in other countries in a legal manner. For example, a brokerage incorporated in the EU, holding a license there, can have an additional Vanuatu licensed company, which may act as a ‘market maker’.
Due to the low capital requirements that Forex brokers must meet in order to obtain a Vanuatu Forex license, even in comparison to other popular jurisdictions, the beautiful archipelago of Vanuatu is fast becoming a preferred jurisdiction for Forex brokers in search of regulation.