Company Registration
2 Weeks
Local Director?
No
Bank Account Opening
4 Weeks
Travel Required?
No
Excellent
Based on 87 reviews
Vanuatu Banking License
- Vanuatu offers an International Vanuatu Banking License, which allows for various banking activities, including accepting deposits and issuing debit cards. The recognition of such licenses is wide and can be obtained quickly by engaging with Tetra Consultants. Our service package includes company formation, drafting of important documents, provision of registered address and registered local agent along with the final submission of banking license application.
- The Reserve Bank of Vanuatu regulates the International banking license, and the jurisdiction is known for its offshore financial services. The license is available for new bank formations, and the government’s economic authorities are willing to grant global banking permits to private parties.
- With the recent amendments such as Reserve Bank (Amendment) Act No. of 2022 which amended the Reserve Bank Act [CAP 125], introducing new provisions and strengthening the regulatory framework help Vanuatu banking license become more acceptable worldwide.
- Our service package includes:
- Vanuatu Banking License
- Vanuatu company registration
- Registered address service
- Local agent services
- Preparation and drafting of all required documents
- Legal and accounting fees
What are the benefits of obtaining a Vanuatu banking license?
Reliable offshore financial center
- It is an attractive destination for businesses looking to set up offshore banking institutions. The strategic location of Vanuatu, coupled with its robust regulatory framework and stable political environment, further enhances its appeal as a premier offshore financial hub.
- As a result, many businesses from around the world are choosing Vanuatu as their preferred jurisdiction for conducting international business transactions. Whether it is offshore banking, asset protection, or company formation, Vanuatu offers a comprehensive suite of services to cater to the diverse needs of its clients. With its commitment to transparency and compliance with international standards, Vanuatu continues to solidify its position as a trusted and reliable offshore financial center.
- If you are willing to take advantage of such offshore financial center Tetra Consultants can help you with offshore banking licenses and offshore financial licenses services which will make it much easier for you to benefit from the Vanuatu banking license.
Recognition of licenses
- Numerous businesses worldwide are selecting Vanuatu as their preferred jurisdiction for conducting international business transactions. Whether it involves offshore banking, asset protection, or company formation, Vanuatu prioritizing transparency and adhering to international standards.
- Businesses holding a Vanuatu banking license can conduct transactions not only within the borders of Vanuatu but also across borders. The international recognition of the license streamlines the process of opening and maintaining bank accounts abroad, facilitating cross-border trade, investments, and financial activities.
Tax savings
- Vanuatu emerges as a highly attractive destination for offshore banking institutions, thanks to its enticing array of tax benefits. Among these advantages is the notable absence of income tax, with a 0% rate for the international banking business conducted by licensees. Furthermore, the jurisdiction stands out by refraining from imposing any direct or indirect taxes on income, profits, gains, interest, or dividends related to such banking activities.
- In addition to the income-related benefits, Vanuatu extends its appeal by not levying estate, inheritance, succession, or gift taxes. This tax-free stance also extends to shares, debt obligations, and other securities held by licensees, as there are no rates, duties, levies, or other charges associated with these financial instruments.
Regulatory environment
- In the realm of offshore banking, Vanuatu has strategically crafted a regulatory environment that stands as a beacon for financial institutions, overseen by the vigilant governance of the Reserve Bank of Vanuatu. At the heart of this regulatory framework is the meticulous regulation of the Vanuatu banking license, a pivotal instrument in the nation’s commitment to fostering a secure and reliable financial landscape.
- Furthermore, the regulatory environment extends its reach to align with international standards, reflecting a commitment to transparency and accountability in offshore banking practices. This alignment not only enhances the reputation of the Vanuatu banking license on the global stage but also reinforces the nation’s standing as a trustworthy and compliant financial jurisdiction for cross-border transactions.
Who is the regulatory authority of Vanuatu banking license?
- The regulatory authority overseeing Vanuatu banking licenses is the Vanuatu Financial Services Commission (VFSC). Established under the Vanuatu Financial Services Commission Act No. 35 of 1993, the VFSC assumed responsibilities from the Ministry of Finance and Economic Management. It exercises regulatory, monitoring, and supervisory powers over the non-banking financial sector, safeguarding the public against losses and fraud. Additionally, the VFSC plays a pivotal role in promoting Vanuatu as an international jurisdiction and ensuring compliance within the financial services sector.
- While the VFSC manages non-banking financial services, the Reserve Bank of Vanuatu (RBV) holds responsibility for licensing and supervising the domestic banking sector. For offshore banks, oversight falls under the purview of the VFSC. This division of responsibilities ensures comprehensive regulation, supervision, and compliance across both domestic and offshore banking entities in Vanuatu.
What are the activities allowed under a Vanuatu banking license?
- Under a Vanuatu banking license, financial institutions can engage in a range of banking activities, including:
- Accepting Deposits
- Issuing Debit Cards
- Operating as a regular bank
- The license encompasses all related banking activities, and the capital requirement for obtaining this license is high.
- Regulated by the Reserve Bank of Vanuatu, the international banking license positions Vanuatu as a hub for offshore financial services. the Vanuatu banking license offers a swift pathway for financial institutions to operate in the offshore financial sector, encompassing diverse activities such as deposit acceptance and debit card issuance, with efficient regulatory processes, making it an appealing choice for businesses establishing offshore banking institutions.
- The acquisition of a Vanuatu banking license comes with a set of restrictions designed to maintain the stability and integrity of the financial sector. One significant restriction is the prohibition on banks from accepting international or high-risk clients. This measure reflects the country’s commitment to preventing potential financial misconduct and ensuring that banking activities adhere to international standards of transparency and legality.
What are the regulatory requirements to obtain a Vanuatu banking License?
Minimum capital requirement
- The minimum capital requirement to obtain a Vanuatu banking license is US$500,000 or the equivalent in foreign currency.
- The Reserve Bank of Vanuatu oversees the capital adequacy of banks operating in Vanuatu.
- The capital must be unimpaired paid-up capital, and the Reserve Bank may decide the form in which the capital should be held, such as cash, gold, stock, or another type of investment.
Company structure
- The entity applying for a Vanuatu banking license must have at least one shareholder, who can be an individual or a legal person.
- At least two individual directors.
- A minimum of one director needs to be the resident of Vanuatu.
- No residency requirement for shareholders.
- The applicant must employ at least one individual with a thorough understanding of the licensee’s international banking operations and the authority to actively contribute to the daily management of these international banking activities.
- 1 junior employee who resides in Vanuatu.
- 1 senior manager employee who resides in Vanuatu.
Office requirements
- The applicant must have a registered agent, a registered office in Vanuatu with at least one local employee.
What legal entities can operate as a bank in Vanuatu?
- In Vanuatu, legal entities, as outlined by the International Banking Act Cap.280 and Financial Institutions Act Cap.254, are authorized to function as banks.
- These corporations include authorized institutions, which are subject to the same prudential standards, but the use of the name ‘bank’ is subject to corporations meeting certain criteria.
- The Reserve Bank of Vanuatu regulates and supervises the banking sector in Vanuatu.
What is the process of acquiring a Vanuatu banking license?
- The process of acquiring a Vanuatu banking license involves the following steps:
Steps to obtain Vanuatu banking license
Step 1: Engagement and initial setup
- Upon engagement, Tetra Consultants starts by registering a Vanuatu International Business Corporation (IBC) as the legal structure for the banking business. This entails compliance with local laws and maintaining the minimum capital of US$500,000. At this stage, Tetra Consultants also takes care of all administrative tasks, such as preparing necessary documents, hiring qualified staff with experience in international banking operations, and obtaining a physical office in Vanuatu. Nominee director and shareholder services are arranged if needed, to enable easy incorporation.
Step 2: Documentation preparation
- Tetra Consultants prepares a customized bank charter and writes a detailed prospectus that provides the business goals of the proposed bank, management structure, 3–5-year financial projections, and compliance policies. The application is carefully assembled to address the Reserve Bank of Vanuatu’s exacting specifications. Furthermore, Tetra Consultants makes sure that the supporting documentation, including corporate registration certificates and statutory declarations, is properly written and submitted.
Step 3: Application submission
- The application for the banking license, once completed, is filed with the Reserve Bank of Vanuatu. The client is represented by Tetra Consultants at this stage, with all required fees (license fee and application fee) paid, and the filing being in regulatory compliance. Formal communication with the regulator commences at this point.
Step 4: Regulatory review and interaction
- After submission, the Reserve Bank considers the application for a few weeks. The regulator may send email questions or requests for more information during this time. Tetra Consultants guides clients in answering these questions and prepares them for interviews that could be necessary. Clients do not have to leave their location to attend interviews since Tetra Consultants prepares them in virtual consultations.
Step 5: License approval
- The typical time taken to for approval of Vanuatu banking license is around 6–7 months from when engagement occurs. This timeline takes into consideration the regulatory review and clarifications that are required by the authorities. Tetra Consultants endeavors to keep this timeline in place by taking active control of all regulatory interactions.
Step 6: Post-license facilitation
- After procuring the banking license, Tetra Consultants provides the necessary post-license services to get the bank operationalized. This involves setting up relationships with Visa, Mastercard, IBAN providers, SWIFT codes, and correspondent banks in order to have international transactions facilitated. This is complemented by regular compliance assistance so that local law and global best practices can be followed.
What are the documents required to obtain a Vanuatu banking license?
- Vanuatu issues banking licenses, subjecting applicants to specific rules and regulations. In addition to the nation’s stringent legislation governing corporate incorporation, a substantial authorized capital and a comprehensive set of documentation are requisite. This may encompass, but is not limited to, various requirements. For a detailed list tailored to your business, Tetra Consultants can provide you with the necessary information.
- Business Registration Certificate
- Business License Application Form which can be completed and submitted
- Foreign Investment Approval Certificate (FIAC)
- Valid Certificate of Incorporation: For businesses operating as a company from Vanuatu Financial Service Commission (VFSC).
- A valid certificate of business name for businesses operating under a trade name must be obtained from the Vanuatu Financial Service Commission (VFSC).
- Foreign investment approval
- VFSC registration certificate for confirmation of registration of business.
- Documents required for Vanuatu Banking License
- A detailed Business Plan, including:
- Company background
- Objectives and management structure
- Projected financial statements for 3–5 years
- Details of parent or subsidiary companies (if applicable)
- Provide Memorandum and Articles of Association, and other corporate documents.
- Statutory declarations for each shareholder and their bank reference letters.
- Proof of source of capital and addresses of shareholders.
- Proposed name of the bank.
- Certified evidence of capital requirements (US$500,000.00 minimum).
- Source of capital.
- Statutory declaration for each shareholder.
- Addresses and bank reference letters for all shareholders.
- Type of shares and amount held by each shareholder.
- The CV of each shareholder and every Senior Manager, including:
- Place and Date of birth
- Details of citizenship held
- Current country of residence, and the length of residency there
- Full name of the person, including any previous names used
- All private addresses where the person has lived for the last 10 years
- All educational qualifications held (plus evidence)
- All professional qualifications held (plus evidence)
- A full employment history of the person (plus evidence)
- Notarized copies of IDs (passport)
- Names, addresses, and appointment letters of bank auditors.
- An undertaking to set apart and provide fully paid-up capital before business commences and once operations start.
- An undertaking to comply with Vanuatu Anti-Money Laundering/Counter-Terrorism Financing Act No.13 of 2014 as amended, the AML/CTF requirements under the IBA, AML/CTF regulations and policies including Reserve Bank’s Prudential Guideline 9, and other AML/CTF related legislation.
- An undertaking to comply with all banking regulations, guidelines, and requirements.
- Completed due diligence questionnaires.
What is the timeline of obtaining a Vanuatu banking license?
- The timeline for obtaining a Vanuatu banking license can vary depending on several factors, including the completeness of the application, regulatory review, and other variables. The process to obtain a Vanuatu banking license may take up to 6 to 8 months. It is crucial to note that this duration is subject to change and may be influenced by the specific circumstances of each application.
- Moreover, for the business bank account, the applicant will get all the details of the bank account within 4 weeks after the incorporation of the legal entity.
- Tetra Consultants specializes in expediting the process of obtaining a Vanuatu banking license within the stipulated period. Our team of experts is dedicated to ensuring that the timeline remains on track without unnecessary extensions. Count on Tetra Consultants to efficiently navigate the regulatory landscape, providing you with a Vanuatu banking license in a timely and reliable manner.
- Moreover, with Tetra Consultants you can also register company in Vanuatu with the help of our offshore company incorporation services which will guide you through seamless incorporation process and also to adhere with the bylaws of the country.
How much does it cost to obtain a Vanuatu banking license?
- Obtaining a Vanuatu banking license involves several government fees and costs associated with regulatory processes. These fees are critical components of the overall engagement cost, and Tetra Consultants, as your service provider, ensures transparency and clarity in detailing these expenses.
Business license fees
- The Business License Fee is contingent on the annual turnover of the business activity. For instance, the fees range from VT 5,000 to VT 20,000. A new business activity with an annual turnover below VT 10 million incurs a fee of VT 18,000. Existing investors seeking to modify their business activity must apply for a variation with Vanuatu Foreign Investment Promotion Agency (VFIPA) and Customs and Inland Revenue, with associated fees.
Vanuatu Financial Services Commission (VFSC) Registration Fee:
- The VFSC Registration Fee is based on the authorized capital of the company. For authorized capital up to VT 35,000,000, the fee is VT 30,000. It increases for higher authorized capitals:
- Authorized Capital up to VT 35,000,000: VFSC Registration Fee: VT 30,000.
- Authorized Capital between VT 35,000,000 – 50,000,000: VFSC Registration Fee: VT 50,000.
- Authorized Capital between VT 50,000,000 – 100,000,000: VFSC Registration Fee: VT 100,000.
- Authorized Capital between VT 100,000,000 – 200,000,000: VFSC Registration Fee: VT 150,000.
- Authorized Capital exceeding VT 200,000,000: VFSC Registration Fee: VT 250,000.
- Tetra Consultants offer a comprehensive range of services, including assistance with incorporation and obtaining a banking license. The overall engagement cost is determined by the specific services required. This includes the licensing fee, business registration expenses, and any additional costs that may arise during the process.
- Before commencing the registration process, Tetra Consultants ensures a detailed discussion with clients regarding the entire engagement cost. This transparency is reflected in the appointment letter, outlining all terms and conditions related to the services provided. Tetra Consultants emphasizes upfront communication to foster a clear understanding of the costs involved in securing a Vanuatu banking license.
Our services
- Tetra Consultants offers a comprehensive range of services to facilitate the acquisition of a Vanuatu banking license. Our assistance encompasses the formation of a corporation applying for a banking license, compilation of necessary background information for the application, and preparation of essential corporate documents.
- We extend advisory services for ongoing compliance and maintenance of offshore banking licenses for international clients.
- Furthermore, Tetra Consultants provides regulatory compliance recommendations and ensures the seamless commencement of banking operations post obtaining the required certifications and licenses. Our team maintains open communication with local Central Bank, regulatory authorities, and government officials throughout the engagement.
- Proficient in securing various offshore financial licenses aligned with specific business activities and long-term objectives, Tetra Consultants’ team of licensing experts is dedicated to facilitating a smooth and successful licensing process in Vanuatu.
Find out more!
- Contact us to find out more about how to obtain a Vanuatu banking license. Our team of experts will revert within the next 24 hours.
FAQs
Is it possible to establish a Vanuatu bank account without the need for a Vanuatu offshore company?
Is Vanuatu banking license the right choice for my business?
How much is the minimum paid-up capitalization to form a bank and obtain an international banking license in Vanuatu?
Does Vanuatu grant banking licenses solely to existing banks from other jurisdictions, or is the formation of new banks also permitted?