VIPA CAPITAL REQUIREMENT REMOVED

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The 5 Million Vatu – is a must have for all foreign investors when submitting their project proposals. It is in fact one of VIPA’s minimum checklist to determine whether or not a new investment application is complete.

This criteria have caused VIPA Board and management a number of twists and turns before agreeing to put and end to it. While this is seen by VIPA as a way to lessening business costs, others view this as an opportunity to attract less genuine investors.

The VIPA Board of Directors’ have approved the removal of the 5 Million Vatu minimum capital threshold requirement. From 1 January 2016, there will be no formal requirement for an investor to provide evidence of a 5 Million Vatu capital outlay. However, all other documentary requirements will remain the same. This reform will open up the investment climate and VIPA believes that more foreign investors will invest in businesses in Vanuatu to create employment for Ni-Vanuatu citizens, which will in turn improve their living standards and well-being.

VIPA plays a very important role towards the facilitation and promotion of foreign direct investments which have contributed enormously towards Vanuatu’s economic growth especially through development and job creation for Ni-Vanuatu citizens. The functions of the office are also dependent on a strong mutual cooperation between the government, its key departments and the people of Vanuatu on the whole in ensuring that the country is always projected as a number one investment destination.

Recent developments undertaken by other border control authorities have expressed concerns about having too open regulatory requirements from foreigners. Especially foreign investors where they are granted 5 year fiac approval. The question is can VIPA know if the client concerned is actually operating the activity for which approval is given?