Vanuatu is one of the most inimitable places on earth. This archipelago accumulates some of the most awe-inspiring experiences and sights you'll see in your life.

It is an archipelago made up of 83 islands in the Pacific Ocean, near Australia. You can stand on the rim of an active volcano, explore virgin rainforests, and get to know millennial tribes.

You can hop between its heavenly islands to enjoy its beaches and snorkel through their unique reefs, all while you meet one of the most friendly and welcoming local populations you'll ever find.

It's only logical that Vanuatu is considered the 4th happiest place in the whole world.

And, if all this is not enough, Vanuatu offers one of the best Citizenship by Investment programs, with a low investment minimum and a swift processing process.

Vanuatu has fantastic benefits such as a solid private banking system, no fiscal information exchange policy, and no taxes over global income.

The archipelago has over 30 islands with some of the best beaches and diving, snorkeling and fishing activities in the world, as well as access to clean water, organic food, and fantastic beachside real estate.

The islands of Vanuatu are fascinating not only for tourists but also for entrepreneurs from all over the world. Vanuatu has tax advantages and is also a highly developed financial center, which will allow you to reduce your tax burden and increase profits. Besides, this jurisdiction presents attractive financial options, such as obtaining a securities distribution license, opening a bank account, or registering an offshore company.

In the last ten years, the government of this country has attracted a lot of tourists, who were amazed by the still undiscovered nature, the warm climate, and the fresh and high-quality food products. This paradise is, without a doubt, a place that has managed to preserve itself from the negative aspects of modern civilization, adopting the positive characteristics at the same time.

Vanuatu has the same attraction for tourism as it has for business, as it has grown from a small and unknown country into a major global financial center. Several international companies have settled in Vanuatu, bank accounts have been opened, and stock exchange companies have been set up.

All these aspects are exciting, but this time we will deal with only one: the securities dealer's license, which is one of the easiest paths towards a Forex brokerage business. This license has generated and continues to generate considerable interest, and we will explain why.

To sum up, this license brings benefits such as:

● Tax-free business

● Swift incorporation and licensing process

● Access to a top private banking system

● Reliable regulatory entity

● Small fees

● A multi-purpose license that will allow you to invest in plenty of securities

What is a Securities Dealer's License (SDL)?

This license allows companies to work with securities. In other words, companies can buy and sell securities such as bonds and stocks, trade currencies (FOREX), trade assets on behalf of others, and also manage their profits.

This license is ideal for brokers, hedge funds, stock distributors, investment companies, and even banks from all over the world.

It is stipulated in such a way that it allows you to cover as many financial instruments as possible with just one permit. If you wish to invest in securities either for your company or for third parties, an SDL license in Vanuatu will be advantageous.

Another advantageous feature of this license is that those companies who hold it can legally invest their money or money from third parties, including foreign companies, without limitation.

In addition, Vanuatu-based companies and entrepreneurs are freed from virtually all taxes: corporate, profit, inheritance, export capital, and exchange activities.

The SDL is issued by the Vanuatu Finance Commission, which is a reputable state body. For this reason, the Vanuatu SDL license is recognized worldwide.

Even if there's a growing demand for financial services, licenses are at an all-time high of difficulty to obtain. Financial providers have too much pressure over the rules and requirements to receive and retain a license. Capital requirements and fees increase, taxes are also generally higher.

All this has led medium-sized Forex companies to have fewer possibilities from where to run their business. But there are still fantastic options out there, such as the Vanuatu Securities Dealer's License.

Establishing a Forex business in Vanuatu can open terrific benefits for you. Let's walk you through some of them.

Why Vanuatu? Six reasons why you should obtain an SDL in Vanuatu

Completely tax-free

Vanuatu doesn't have corporate taxes. Just as you read it. Financial entities may pay a 2 % tax rate over their Vanuatu-earned income, but offshore businesses are generally tax-free. Thus, you can operate a tax-free business in Vanuatu as long as your income is foreign-sourced.

Top financial services

Vanuatu has a robust offshore banking industry and terrific corporate service providers. Don't be fooled by its size, Vanuatu can offer robust asset protection and tax planning alternatives with international-level professionals that are used to dealing with foreigners.

CBI Program

Why stop at a Forex business? You can become a Vanuatu citizen with a $130k investment, a few requirements, and a two-month process. This will provide you with the safety of a robust second passport and the opportunity to relocate into a paradise with fantastic tax benefits.

Small fees and minimum capital requirements

Vanuatu has one of the smallest minimum capital requirements in all the world. Thecapital should be of about $45k in the local currency (vatu), which is surprisingly less than in most famous jurisdictions.

Swift process

In certain jurisdictions, such a process can take even a year. In Vanuatu, it is amazingly swift. After submitting the application, you will obtain a response from the Finance Commission in somewhere between two weeks and two months.

Multi-purpose license

Even if your main business is Forex, the SDL will provide you with the possibility to deal with many different financial instruments, such as bonds and stocks. That means that if you wish to expand your business, you don't need an additional license, which comes with more paperwork, time, and costs. One license will allow you to do all main financial operations.

How to obtain a securities dealer's license in Vanuatu?

Vanuatu is still the easiest jurisdiction to obtain a Security Dealer's license. The island is acknowledged and accepted as a reputable, well-regulated licensing jurisdiction.

The process can be completed in only two to three months, but if your application is complete from the beginning, it may take as little as two weeks.

The Vanuatu SDL issues two simultaneous licenses: The company license and the representative license. The first is the corporate license, and the second is a license for the individual(s) who will be conducting the business and representing the company.

The first step is to incorporate an international company in Vanuatu before applying for the SDL. This process is simple and takes about seven working days.

All you need to do issubmit an application form with the following documents and information to the Vanuatu Financial Services Commission:

● Company name

● Name, passport, and address of directors and shareholders

● Company constitution (this is how they call the articles of association)

● Address of local registered office

● Corporate structure

After registering your international company in Vanuatu, you can apply for the license. It will require the following documents:

● KYC for the holder of the Representative's license

● Notarized passport copy

● Utility bill or bank statement

● Police record

● Business Plan

● AML/CTF Manual

● Application forms for Principal's and Representative's License

● Reporting Entity Registration Form

● Compliance Officer Appointment Form

● $500 fee per representative license

Also, prior to the release of the licenses, you must make a security deposit of VT 5m (around $45k) with the Registrar of the Supreme Court. The deposit is refundable when you cease business in Vanuatu.

At present, the principal is usually the director and isn't required to have any financial qualifications or experience. However, it is best for reputational purposes, and the future of the company that the Director/representative is an experienced person in the financial industry or at least has some qualifications. We stress this is not a requirement in Vanuatu but is in most other jurisdictions.

After applying for and receiving the license, the principal licensee must:

● Apply for Professional Indemnity Cover (PIC)

● Register as a Reporting Entity

So, to wrap it up, the process will be the following:

● Sending the required documents for the international company

● Registering the IL

● Sending the required documents for the SDL

● Receiving a positive response for the SDL

● Opening a bank account

● Applying for the PIC

● Registering as a Reporting Entity

What activities can you carry out with an SDL?

The name is self-explanatory. It will allow you to deal in securities, which is defined by the law as:

● Doing any of the following things (whether as a principal or an agent), that is to say, making or offering with any person, or inducing or attempting to induce any person to enter into or offer to enter into -

● Any agreement for or with a view to acquiring, disposing of, subscribing for or underwriting securities, or lending or depositing money to or with any industrial or provident society or building society; or

● Any agreement the purpose or pretended purpose of which is to secure a profit to any of the parties from the yield of securities or by reference to fluctuations in the value of securities, and "deal in securities" shall be construed accordingly.

So, basically, it'll allow you to freely do business with financial instruments. This includes dealing with:

● Shares

Securities issued by a corporation or a public body, including:

● Debentures;

● Debenture stock;

● Loan stock;

● Bonds;

● Certifications of deposit;

● Rights

● Options

● Foreign exchange

● Precious metals

● Commodities

The potential of this license is that it will not only allow you to trade with Forex but expand your investment portfolio to almost every financial instrument available in the market. Also, you can manage investment portfolios for your clients. That's why it's a terrific license for Forex brokers, hedge funds, mutual funds, and investment firms in general, who have clients that want to invest in securities but don't want to pass through the stringent and costly licensing processes back home.

Who are we?

Mundo experts have 25 years of offering top financial, investment, corporate, immigration, and banking information around the world.

We started this publication with one goal in mind: freedom. We want to help you get the right information so that you can do business, invest, live, work, and freely safeguard your legacy.

And this is especially necessary in these times when states impose new regulations to hinder individual and economic liberties.

Disclaimer: The information contained in this article is for informational purposes only and does not constitute financial advice or recommendations. Investing in financial products or cryptocurrencies involves risks, and you should be aware of the potential risks involved before investing. The content on this website is not intended to be a solicitation or offer to buy or sell any financial products or services. The information provided does not take into account your specific investment objectives, financial situation, or needs, and should not be relied upon as a substitute for professional financial advice. You should seek independent advice from a financial advisor or other professionals before making any investment decisions. Please be aware that the legal status of cryptocurrencies and other financial products may vary in different jurisdictions and may be subject to regulation. It is your responsibility to ensure compliance with any relevant laws and regulations governing the sale and marketing of financial products and services in your jurisdiction.