Vanuatu

Starting a Business in

Vanuatu

Listed below is a detailed summary of the bureaucratic and legal hurdles an entrepreneur must overcome in order to incorporate and register a new firm, along with their associated time and set-up costs.  It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income (GNI).

The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2011.

  • Standardized Company

  • Legal Form: Private Limited Liability Company
  • City: Port Vila

About This Topic

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No. Procedure Time to Complete Associated Costs
1 Check the uniqueness of the company name

This service is not automated and cannot be completed on the spot. A form must be completed and faxed to the VFSC – this form is usually available at the lawyer’s office or can be downloaded from the vfscu.vu (http://www.vfsc.vu/steps.html). At least three alternatives must be provided and the VFSC will return the form providing information on their availability. There is no charge for this service and it takes only 1 day to complete this process.

In addition to checking the name(as recorded by the Starting a business indicator), it is possible to reserve the name, which costs 2000VT. Reserving the name is a good practice but not required and not done systematically.
1 day no charge
2 Apply for the Vanuatu Financial Services Commission (VFSC) for a permit to incorporate company

Pursuant to the Companies Act [CAP. 191], an application for a company incorporation permit must be filed with the minister of Finance. The application must be in the prescribed form and accompanied by the original memorandum and articles of association, duly signed, and the list of directors. Any permit granted must be endorsed on the memorandum. The application for a permit is filed through the Companies Office of the Vanuatu Financial Services Commission. This office will forward the application to the State Law Office (Attorney Generals Chambers). From there the file will be forwarded to the Minister of Finance who will personally sign the document. The application will be returned to the VFSC, where the certificate for incorporation will be issued.
14 calendar days (10 business days) VUV 30,000
* 3 File the memorandum with the Registrar

If a permit is endorsed on a memorandum of association, the persons who have subscribed their names to it may file the memorandum with the Registrar’s Office within 6 months after the permit is granted. The registration fee is calculated on share capital; the minimum payable is VUV 30,000. Registrations are completed in a minimum of 3–4 weeks, after which a company seal can be obtained. Notifications of the directors, secretary, and registered office must be filed within 14 days of incorporation, and to shares issued within 28 days after any allotment.
3 weeks (simultaneous with procedure 2) included in the previous procedure
4 Apply for a business license from the Department of Customs and Inland Revenue services

An incorporated company is not entitled to begin operating until it has obtained a business license from the Department of Customs and Inland Revenue Services. It may take 2–3 weeks to obtain such a license.

Business license certificates are issued by the Rates and Taxes Authority. The fee varies by type and size of business, as shown below for 2006.

Fee schedule:
- < VUV 4million(annual turnover): No charge
- > VUV 4 Million to 10 Million (annual turnover): VUV 20 thousand(fee)
- > VUV 10 Million to 20 Million (annual turnover): VUV 50 thousand(fee)
- > VUV 20 Million to 50 Million (annual turnover): VUV100 thousand(fee)
- > VUV 50 Million to 100 Million (annual turnover): VUV 250 thousand(fee)
- > VUV 100 Million to 200 Million (annual turnover): VUV 500 thousand(fee)
- > VUV 200 Million />(annual turnover): VUV 1 Million(fee)

1 day VUV 20,000 to 1,000,000 (VUV 100,000 in case of a turnover between VUV 20,000,000 and VUV 30,000,000).
* 5 Register with the VAT office

A company must register with the value added tax (VAT) office if it anticipates turnover of at least VUV 4 million per year.
3 days, simultaneous with procedure 4 no charge
6 Registration as an employer with the National Provident fund

All employees from the age of 14 – 55 must join the fund. 50% of the monthly contribution (understand gross salary) is paid by the employer and 50% by the employee. This is for the retirement benefits of the employees. Under the law, an employer must register with this fund 7 days after incorporation of the business (or 7 days as soon as the first employee is recruited).
Payment of contribution is made directly at the National Provident Fund.

 1 week no charge
* 7 Enroll employees in the work accident insurance

All employers are required to insure their employees against workplace accidents.
3 days, simultaneous with previous procedure no charge
8 Make a company seal

 By law, a company must have a seal – a mean to authenticate its documents
1 day VUV 3,000
* Takes place simultaneously with another procedure.
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