The Vanuatu Government has been focused on stimulating economic growth since attaining independence in 1980. As a result, the country has developed and adopted various policies to boost the economy to reduce poverty. These economic freedom policies have also attracted many investors from around the world looking for favourable business climates.
If you are considering incorporating a company in this South Pacific island, there are many reasons why you should begin by choosing Vanuatu.
- Business Incentives and Exemptions
Foreign businesses that wish to start up and operate in the country can do so without paying any taxes. All companies registered here enjoy 100% exemption from corporate income tax, business profits tax on trading, and transfer duties.
The government also provides specific tax incentives for:
- The promotion of local enterprises
- Development of export-oriented industries
- Import substitution projects
- Small capital companies
- Investment in plant and machinery by the private sector
- Foreign Currency Transactions
Vanuatu is a member of the South Pacific Community (SPC) and the Common Fund for Commodities (CFC), allowing its own currency, the vatu. Any foreign currencies earned as revenue from export sales or business operations can be freely exchanged into local currency.
- Friendly Business Environment
The Vanuatu economy is powered by agricultural exports and tourism, making it a good place for starting a business in these fields. It has also made efforts to ensure that the government provides an investor-friendly environment with policies that encourage foreign direct investment (FDI) from local and foreign businesses.
There are also minimal bureaucratic procedures and efficient business registration procedures, making it a good option for entrepreneurs who are looking to establish their businesses with limited hassle.
How to Incorporate Your Business in Another Country
Businesses that wish to expand and grow beyond the borders of their home country are required to look for expansion options elsewhere. These companies can easily expand or move abroad if you start by choosing the right place through a business incorporation process:
- Choose the Business Structure
- Get a Registered Name
- Finalise Your Articles of Incorporation
- Complete Registration Procedures
These steps can seem overwhelming, but with the help of a team that is experienced in handling company formations in Vanuatu, you can easily follow these steps and ensure that your business is registered within no time.
If you are looking for a potential business incorporation destination, particularly in the Pacific, but not sure which country to choose, then consider incorporating your company in Vanuatu. Its excellent tax incentives and friendly business environment make it a preferred investment destination for both foreign and local businesses.