Vanuatu Securities Dealer License in 2026

Introduction to Vanuatu Securities Dealer License in 2026

• At Tetra Consultants, our team of lawyers, licensing specialists, compliance professionals, and accountants will assist you in obtaining a Vanuatu Securities Dealer License in 2026. We provide end-to-end support including Vanuatu company incorporation, preparation and submission of the securities dealer license application, regulatory compliance advisory, and post-licensing operational support, ensuring your business meets all requirements set by the Vanuatu Financial Services Commission under the applicable securities licensing framework. 

• The license is issued by the Minister of Finance upon recommendation from the Vanuatu Financial Services Commission (VFSC), which is the primary regulatory authority responsible for supervising financial dealers and investment intermediaries in Vanuatu. The governing Act overseeing the granting of securities dealer licenses serves a dual purpose: firstly, it establishes the framework for the issuance of such licenses, and secondly, it enforces penalties for individuals or corporations engaging in securities activities without proper authorization or employing deceitful tactics to encourage investments in securities.  

• As of 2024, securities dealer licensing in Vanuatu is mainly governed by the Financial Dealers Licensing (Amendment) Act No. 5 of 2024, which improves the regulatory oversight and has introduced strict operational as well as compliance requirements for financial entities operating in the jurisdiction. 

When do you require a Vanuatu Securities Dealer License in 2026?

• To operate as a securities dealer in Vanuatu, you will be obligated to obtain Vanuatu securities dealer license. This license is granted by Ministry of Finance upon the submission of the application to the Vanuatu Financial Services Commission (VFSC). 

• The license is also required to prevent money laundering and financing of terrorism. These licenses enhance the credibility and goodwill of the securities dealer as they demonstrate a strong commitment to operating within the regulatory framework.  

• By acquiring these licenses, an individual can provide a range of services including managing investment portfolios, operating with securities (buying and selling), and offering Forex (FX) services and commodity trading & brokerage services. 

• Majorly Vanuatu securities dealer license is required to: 
  • Dealing with securities: By obtaining a Vanuatu Securities Dealer License, an individual or any legal entity can get involved in the business of dealing with securities, such as buying, selling, or managing investments and portfolios for clients 
  • Operating in Vanuatu: The Vanuatu securities license is required to those businesses operating in Vanuatu because they must have a physical presence in the country and are also obligated to maintain certain systems and requirements. 

• If you are unsure whether your business requires the securities dealer license, Tetra Consultants is there to resolve your confusion through our regulatory compliance consulting services. Our experts can also conduct thorough research into your business to provide you with the correct information. 

What can a Vanuatu Securities Dealer License be used for in 2026? 

• A Vanuatu Securities Dealer License enables entities to conduct multiple investment and trading activities, this includes: 
  • Trading in financial instruments, this includes shares, bonds, options, and securities 
  • Forex and commodities trading on behalf of clients or as a principal 
  • Operating brokerage services for clients trading in the global financial markets  
  • Investment and portfolio management services for individual and institutional investors 
  • Trading in derivatives and structured financial products based on the license class 
  • Providing cross-border investment services through a Vanuatu licensed entity in adhere with regulatory requirements 
  • Digital asset and cryptocurrency related activities were permitted under the applicable regulations 

Type of Securities Dealer License in Vanuatu in 2026

• Tetra Consultants assists our international clients to secure Vanuatu securities dealer license. Our team will provide the full-service package of Vanuatu company registration, corporate bank account opening, hiring of local qualified directors, sourcing local physical office and license application. Tetra Consultants has ample experience in this field and will be able to accurately advise our clients. 

• In Vanuatu Securities Dealer License, licenses are granted under the Dealers in Securities (Licensing) Act [Cap 70 of the laws of Vanuatu], which encourages many individuals and corporate entities to obtain these licenses.  

• To apply for a Vanuatu securities dealer license, Tetra Consultants can help you file an application while adhering to all the requirements prescribed by the Minister responsible for commerce. 

• The licenses have been characterized in two parts a) principal license b) representative’s license  

• Principal licenses are those licenses that provide the authority to the holder to operate as a principal and offer a wide range of financial services. On the other hand, representative licenses are those licenses that allow the holder to represent a principal and offer financial services on their behalf. 

• Both licenses are granted by the Minister of Finance Vanuatu Financial Services Commission (VFSC) and are regulated by the Vanuatu Dealers in Securities (Licensing) Act. 

• There are 4 classes of principal licenses, Class A, Class B, Class C, and Class D principal’s licenses   

Class A principal’s license 

• Those businesses that carry on in any of the following securities will require a class A principal’s license. Those activities are:  

• debenture stocks; or 

• loan stock, bonds; or 

• certificate of deposit; or 

• proceeds of Foreign Exchange 

Class B principal’s license 

• Those businesses that carry on activities that deal in futures contracts and derivative products but not limited to futures and options.  

Class C principal’s license 

• Any business dealing in the following securities: 

• Shares in share capital of a corporation; or 

• Proceeds of precious metals; or 

• Proceeds of commodities; or 

• A right, whether or not conferred by warrant, to subscribe for shares or debt securities; or 

• A right under depository receipt; 

• An option to acquire or dispose of any security falling within any other provision of the Act; or 

• A right under a contract for the acquisition of securities. 

Class D principal’s License 

• These licenses are provided to those businesses dealing with digital assets. Only licensees already holding Class A, B, and C licenses are eligible to apply for a Class D license.  

• Digital asset activities that are conducted under a Class D license will fall under the regulatory scope of the Virtual Asset Service Providers Act (VASP Act), which controls the businesses offering cryptocurrency exchange, token issuance, and other virtual asset services in Vanuatu. 

• Furthermore, in practice Vanuatu applies a Class Stacking Structure, implying entities usually get Class A, Class B, and Class C licenses before applying for Class D, based on the range of securities and financial products offered.  

Mandatory requirements for Vanuatu Securities Dealer License as of 2026

• For any individual or legal entity trying to obtain a securities dealer license, they must meet the statutory requirements as guided. The point to be kept in mind here is that the following statutory requirements are generalized, and the requirements may vary depending on the business entity. Thus, the generalized statutory requirement for obtaining Vanuatu securities dealer license are as follows: 

Company structure: 

• A minimum of one shareholder who can be a legal person with no residency requirement. 

• A minimum of one director who needs to be a natural person with no residency obligations. 

• The director must have 5 years of relevant professional knowledge and expertise of the investment business 

• An Anti-Money Laundering officer (AML) who must be the resident of Vanuatu. 

• An alternative AML officer 

Requirements for manager(s)/ director(s) 

• The manager must be a natural person 

• The manager or director must reside in Vanuatu for at least 6 months within each year. 

• The manager or director must have at least 5 years’ experience dealing in securities and be competent to meet the obligations of a licensee as required by VFSC. 

• The licensee should hire a Licensed Manager who is a resident in Vanuatu, as required under the Section 4AA of the securities licensing framework. The licensed manager should showcase relevant professional experience in securities trading, investment management, or financial brokerage.  

Confidentiality 

• The applicant of Vanuatu securities license must keep updated information on registered agent and office details confidential. 

• The applicant of Vanuatu securities license must keep updated information on shareholders and beneficial owners confidential. 

• The reports of any complaints received from investors must be kept confidential.  

Registered agent 

• The company must appoint a registered agent with a registered address. 

Physical premises 

• The company must operate from a physical premise located in Vanuatu, which maintains:  
  • A filing system 
  • A management and accounting system 
  • A business continuity system 
  • A software system and server (for non-international companies) 

Deposits 

• The licensee should deposit VUV 5,000,000 (approximately US$45,000-50,000) based on exchange rates with the Registrar of the Supreme Court at Port Villa. 

Audit requirements 

• After 12 months of operation, the applicant must submit audited financial statements. 

• The financial statement must be done by approved auditor in Vanuatu who is experienced in the auditing of Vanuatu securities dealer’s license. 

• The financial statement must show the latest profits and loss report and balance sheet. 

Types of reports to be filed for Vanuatu Securities Dealer License in 2026

• To maintain Vanuatu securities dealer license in 2026, Tetra Consultants will guide the licensee to file various reports with the Vanuatu Financial Services Commission (VFSC). The requirement for reports might vary depending on your business thus, we at Tetra Consultants can help you in obtaining of securities dealer license through our offshore financial license services which will also include filing of necessary documents and reports as guided by the authorities. 

• Thus, the several types of reports must include: 

Audited financial statements: 

• Once the company has completed 12 months of operations. Our accounting and tax team will help you submit audited financial statements showing the latest profit and loss report and balance sheet. 

• The financial statement must be prepared by an independent auditor. 

• The financial statement must be submitted 3 months after the anniversary date of the licensee’s operation. 

• The financial statement must be prepared in accordance with the International Accounting Standard, or another standard agreed upon by the VFSC Commissioner. 

• The licensee must obtain the approval of the VFSC Commissioner prior to engaging an independent auditor. 

AML/CFT Annual Report: 

• Tetra Consultants will guide the applicant to submit report which must outline the measures taken to prevent illegal financial activities and ensure compliance with Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) regulations. 

• The report must demonstrate that the licensee has continuously satisfied the AML/CFT requirements set by the Vanuatu Financial Services Commission (VFSC). 

• The report must include a detailed business plan that outlines the licensee’s strategies, objectives, and financial projections. 

• The report also includes the declaration made by the company directors and shareholders, stating that they meet the VFSC’s fit and proper criteria, including integrity, competence, and financial soundness. 

International tax compliance:  

• Licensed securities dealers should also adhere with the international tax transparency frameworks. Companies may be needed to register with the Vanuatu Competent Authority (VCA) for reporting obligations under the FATCA and the Common Reporting Standard (CRS) wherever applicable.  

Quarterly Statistical Report: 

• The report must be submitted to the Vanuatu Financial Services Commission (VFSC). 

• The report also includes:  
  • Number of investors and amount of funds invested 
  • Number of products offered to investors detailing the number of each product offered 
  • Details on what jurisdiction the product was offered 
  • Details of vetting process of investors and criteria used 
  • Number of employees 
  • Number and value of transactions 
  • Any other relevant information required by the VFSC 

Penalties for non-reporting

• There are various penalties for non-reporting the reports for a Vanuatu securities license which includes fines and imprisonment. 

• If you have failed to follow the common reporting standard, the penalty for which can be a fine not exceeding VT 1,000,000 or imprisonment for a term not exceeding 1 year. 

• If you fail to file audited financial statements, you can be subjected to penalties issued by Vanuatu Financial Services Commission. 

• The VFSC has the power to issue fines not exceeding 125 million VUV for various violations by license holders, including non-compliance with reporting requirements. 

• When applying for a Vanuatu forex license, the applicant must provide a government-issued certificate verifying the absence of any criminal records and a declaration stating no history of bankruptcy. Providing false information in this regard can lead to penalties. 

• The VFSC can revoke a financial dealer license for assorted reasons, including non-compliance with reporting requirements. Previously, VFSC has been issuing the notice regarding their intentions to revoke financial dealer licenses for reasons such as complaints of suspicious activity, problems with withdrawals, and failure to respond to the Commission’s letters. 

• Non-compliance can also result in significant reputational damage, which can lead to the loss of customers and business. 

Timeline to secure Vanuatu Securities Dealer License in 2026

• Generally, you can expect your license application to take time around 2 to 3 months after the engagement with Tetra Consultants starts. This process will include applications reviewed individually and may require any new necessary documents for additional support to application and providing added information.  

• Once engagement with Tetra Consultants starts, you can expect your Vanuatu company registration to be done within one week. Our experts can help you with diverse services helping you to acquire securities license through offshore company incorporation, offshore financial license services and many more services. 

Tax obligations for Vanuatu Securities Dealer License as of 2026

• Vanuatu provides a highly favorable tax environment for securities dealers. Companies usually benefit from 0% corporate tax, with no taxes on foreign-sourced income, capital gains, or dividends. The jurisdiction also does not impose income or inheritance taxes which makes it attractive for international financial businesses.  

• Tetra Consultants helps our clients in managing their accounting and tax obligations, ensuring compliance with the regulatory requirements for the Vanuatu Financial Services Commission while assisting businesses to operate effectively in the tax-neutral environment of Vanuatu.  

Professional indemnity (PI) insurance requirement cover for Vanuatu Securities Dealer License in 2026

• To safeguard investor funds against financial losses, its imperative for licenses to obtain adequate insurance coverage, including professional indemnity insurance for partners, employees, former partners, and consultants. This insurance provides crucial protection linked to the company’s activities and must be produced separately as a document. Licensee holders should hire a Professional Indemnity (PI) Insurance with a minimum coverage of VUV 5,000,000 per claim and an aggregate coverage of VUV 50,000,000 in order to protect clients against professional negligence or operational risks.  

• Additionally, a maximum deductible amount of VT 500,000 is specified. Tetra Consultants ensures seamless acquisition of the necessary insurance coverage, guiding licensees through the process to ensure compliance and mitigate risks effectively. 

How to apply for a Vanuatu Securities Dealer License in 2026?