A Forex broker license for Vanuatu is one of the most popular solutions among novice brokers in view of the cheapness and ease of issuing a license, as well as the clear financial advantage of this jurisdiction in the form of a small authorized capital.
Basic rules for licensing Forex in the Republic of Vanuatu
The Financial Services Commission (VFSC) regulates the currency market in Vanuatu. Obtaining a license for Vanuatu securities gives the broker the right to act on behalf of the client, including buying, selling, exchanging, trading securities such as futures, stocks, bonds, options.
The main advantages of a forex license for Vanuatu
- Complete confidentiality of financial activities
- Primary absence of foreign exchange controls
- Tax incentives in the form of no taxes on inheritance, profits, capital gains
- Vanuatu has a stable business environment
- The term for obtaining a license is limited to 3 months, which is an undeniable advantage in this area.
Conditions for obtaining a Forex license for Vanuatu
The main requirements for obtaining a brokerage permit in Vanuatu are:
- capital required to obtain a Financial Dealers License for Vanuatu — 47 thousand USD;
- the director of the company can be a non-resident;
- it is not necessary to have a local office;
- There are no audit requirements;
- it is possible to purchase a ready-made company in Vanuatu with a Forex license.
Regulatory requirements for obtaining a forex license for Vanuatu
Among the main requirements of the Regulator regarding the establishment of a brokerage company in Vanuatu, one should highlight:
- The director, during the registration process, is obliged to sign a document of consent to fulfill his duties as the head of a forex company.
- The required experience of the head of a brokerage firm is at least 5 years.
- The need to appoint an AML / CTF Compliance Officer to report periodically to the authorities.
- Within six months from the date of obtaining a licensed permission to trade in securities, the company must begin to conduct operations in the Forex market.
- Requires the presence and residence of one of the company’s leaders in Vanuatu.
- To speed up the process of obtaining a license, you must have a registered office with an established operating system, management and reporting system, software.
Basic documents for obtaining a forex license for Vanuatu
- CV of the owner
- Business plan of the company
- Approved by the form regulator
- Notarized copy of the authorized person’s passport
- Original proof of address of residence (invoice for public services for the last 1-3 months).
- Original letter of recommendation from the bank.
- Two letters of recommendation indicating at least 3 years of professional experience in managing funds, securities and investments.
It should be noted that from January 8, 2019, amendments to the Law on Licensing Financial Dealers entered into force, according to which the license of a forex broker in Vanuatu is divided into classes:
Class A license allows you to trade with any of the following securities:
- loan package, bonds;
- certificate of deposit;
- receipts from foreign currency.
Class B license allows you to conduct business with transactions in future contracts and derivatives, but is not limited to futures and options.
Class C license allows you to conduct or claim to do business with any of the following securities:
- shares in the authorized capital;
- proceeds from precious metals;
- the right to subscribe to shares;
- the right against a depositary receipt;
- the right under an agreement for the purchase of securities.