COMPANY REGISTRATION - VFSC
The guide to your business structure formation with the Vanuatu Financial Services Commission
Registering your Company
It is a legal obligation for any foreign investor wanting to set up in Vanuatu to register their business/company through the Vanuatu Financial Services Commission (VFSC).
VFSC is the Government's statutory body mandated to perform company registration functions under its governing act, the Vanuatu Financial Services Commission Act No. 35 of 1993. There are a number of business structures available that your company can be registered as. The following are the different business structures as detailed by the VFSC:
The sole trader
Typically, a sole trader is a smaller business, like a shop or a market stall. The sole trader is personally liable for debts she or he incurs. There is no legal separation between the person and the business.
The Partnership
A partnership is where two or more people contribute their own resources- cash, or property, or even their time. They then have an agreement about how they share the profits between them. A partnership is usually used by professionals, like accountants and lawyers.
The Company
Around the world, the most popular business structure is a company. A company is a separate legal entity from the owners, who are called shareholders. The significance of this separation is that in most cases, shareholders cannot be personally liable for the debts of the company. If the company fails, generally the only liability of the shareholder is the amount they have invested in the company to purchase their shares. This type of liability is called ‘limited liability’. This is why a company name always has ‘limited’ or ‘ltd’ at the end of it’s name.
