This is your first step in obtaining the right to invest in Vanuatu.
VIPA must ensure that your business is viable and fits within Vanuatu's Investment guidelines

      2.Apply for a Business license

With your VIPA certificate in hand you can obtain the required Business license from the relevant official body.

      　3.Obtain Immigration, Work and Industry Related Permits

Your VIPA certificate automatically grants you 2 International Work Permits. This step makes that official and allows you to apply for other industry related permits and extensions.
　
     　 4. Negotiation Certificate for Rural Land (if applicable)

If you intend on using rural land (land outside of the 50km city precinct) you will need to negotiate with the custom landowners.

     　 5. Initiate Investment

At this stage you are free to implement your project as per your project plan. The staff at VIPA will be able to assist you at any stage of your project if you require their help. VIPA are required to ensure that you carry out what you are permitted under the Business licenses A

      Application Procedures

       1.VIPA Certificate to Invest in Vanuatu

Foreign investors intending to invest in Vanuatu must submit the relevant investor application form to VIPA. The procedure is outlined below.

Please note that the Foreign Investment Act makes it illegal for a foreign investor to carry on business in Vanuatu without an approval certificate issued by the VIPA Board.

       Approval Procedures

It is our intention to make the approval procedures transparent to all our clients. The steps you will find immediately below outlines the procedures that we follow when assessing projects.

The application fee is based on the total investment cost. It should be paid in cash directly to the Vanuatu Investment Promotion Authority.

A successful applicant is issued a foreign investment approval certificate valid for a period of 12 months. The certificate is renewable annually, providing the annual fee is paid and the investment is not in breach of any conditions of the certificate.

The annual renewal fee for an approval certificate is VT 5,000.

The issue of an approval certificate entitles the recipient to a minimum of two residence permits and two work permits. It also ensures the issue of a business licence, and a certificate for negotiating the leasing of land. Further, it provides for VAT or import duty exemptions under the Value Added Tax Act No 12 of 1998, the Import Duties (Consolidation) Act [CAP 91] of 1983 and the Customs Act No 15 of 1999. It does not in any way, however, exempt foreign investors from meeting all their requirements under any other laws in Vanuatu.

         (a) Application Forms

Any potential investor or an existing investor must begin by completing the application form. The Investor must clearly state the nature of the project, costs involved and other relevant information as requested.

      New Application Form 1

1. Relevant Application Fee – payable by cash
2. Copy of Passports held by potential Investors
3. Registered Certificate of Incorporation (VFSC)
4. Bank Reference of VT.5 million from local commercial bank
5. Copy of Police Clearance
6. Cash Flow/Profitable for the next years
7. Details of Work permits required
8. Environment Impact Assessment if appropriate
9. Signed Statutory Declaration

      Private Investor Application Form 2

1. Relevant Application Fee – payable by cash
2. Agreement of sale between the two parties
3. Copy of Passports held by potential Investors
4. Copy of Police Clearance from state of origin
5. Bank Reference or proof of investment related assets of Vt.5 million
6. Letter of support from Residence director
7. Signed statutory Declaration

      Renewal Application Form 3

1. Relevant Application Fee – payable by cash
2. Copy of existing business license
3. Copy of VAT Annual turn over (if applicable)
4. Incomplete Application form will not be accepted

      Variation Application Form 4

1. Relevant Application Fee – payable by cash
2. Copy of existing business license
3. Budget/cash flow forecast for the next three years
4. Work program for the next three years
5. Number of additional staff required

      Minimum Investment Cap

In accordance with the Immigration Act, all investors are subject to the VT5 million minimum investment requirements.
The minimum investment acts as a guarantee to the Vanuatu Government, demonstrating commitment by the foreign investor to do business in Vanuatu. This is clearly stated in Part 2 Section 3, subsection (ii), (iii), g in the Immigration Act Cap, 66. The VT5 million requirement can be held in either cash or assets. However, in assets form, the Immigration Department will only accept certification from a recognized law firm, accounting firm or from a local domestic bank.
Once certified the investor is free to use the funds towards the approved investment.

       (b) Project Assessment

The Secretariat must assess the project using the criteria of the VIPA Board. If the project is incomplete, it is the duty of the Secretariat to request more information from the project proponents. In the situation where a proposed projects has overlapping issues with other Government Departments, the Secretariat must make immediate consultations and request their input regarding the project.

        (c) Submission to the VIPA Board

Upon assessment, the Secretariat shall make recommendations to the Board regarding the project base on the relevant criteria. The Board shall make its independent decisions on the basis of the Secretariat recommendation.

        (d) Granting of a VIPA Certificate

A VIPA approval certificate must be issued by the CEO within 7 days of the date of the Boards meeting, and will remain valid for a period of 12 months from a date to be specified in the Certificate. The VIPA Certificate shall outline the typology of Business being undertaken, the number of residence and work permits and the Business license Category, as well as the place where the business will be conducted.

Please contact VIPA for information relating to the VIPA certificate

      2. Obtaining a Business License

1. Business Licensing

Government requires all businesses operating in Vanuatu to hold a business licence.

The licence is issued under the Business Licences Act No 19 of 1998 and is administered by the Department of Customs. The issue of such licences is a straightforward, automatic registration procedure for any business that meets the publicly stated, transparent registration criteria. Renewal is automatic, providing the annual fee is paid and the licence holder has not breached any conditions of the licence.

The issuance of the Business license is the second step in investing in Vanuatu and can't be issued unless the investor has been granted a VIPA Approval Certificate.

In Vanuatu it is illegal to carry on any non-exempted commercial activity without obtaining a Business license. It is, therefore, obligatory for a "person" (which term also includes a company) to obtain a Business license from the Rates and Taxes office, Customs Department, before taking up any commercial activity as required in the terms of the Business license Act.

Every Business license is issued annually and may be subject to certain conditions. The license is transferable and the business license subject to an annual fee which has been standardized to a principal sum of VT20, 000 plus VT90, 000 for each non-citizen employee, principal or partner engaged in the business.

Other businesses in the financial and monetary institutions including insurance companies and agents are charged on the basis of 2% of estimated turnover.

Commercial banks and other financial institutions pay a minimum fee of VT 5,253,000 and VT 315,180 respectively. Insurance companies and professional and business services that are zero rated for VAT purposes pay a fee equivalent to 5% of turnover.
For further information on business licenses please contact:
Manager of Rates & Taxes Office
Mr. John Shing
Phone: +678 24969 or 26116
Fax: +678 24257
Email: jshing@vanuatu.gov.vu

    3. Permits

    a. Working permits for non-citizens

All non-citizens require a work permit if they wish to work in Vanuatu, with the exception of foreign investors who wish to manage their own investments. Such investors are exempted from the need for a work permit.
To facilitate foreign investors and to ease their uncertainty in relation to the employment of key personnel of their own choosing, Government automatically awards two work permits to each investment issued a foreign investment approval certificate. Additional work permits may also be obtained, if requested by the investor.

Investors employing expatriates are required to pay a number of fees.
1）The normal work permit application fee is VT 10,000.
2）The renewable annual validity of work permit fee is VT 200,000.
3）An exemption fee of VT 10,000 is charged for work permits ranging from 1 day to 1 month and
4）VT 40,000 for a temporary work permit fee (for permits to work from 1 day to 4 months).

While work permits can be issued for periods of up to five years, they are routinely issued for a period of only one year. On application, the permits are renewable annually for an additional four years. Temporary work permits are available for employment periods of up to four months. Work permits will not be issued for employment categories included on a public list of occupations reserved for citizens. This list is provided at Schedule 2 of the VFIP Act.

To obtain a work permit, an employer must make an application on a prescribed form to the Commissioner of Labour, who is authorised to issue the permit.

Material needed:

1. Two passport pictures
2. A copy of working contract（in the written form）
3. the qualifications and experience of the proposed expatriate employee

Applications will be processed within five working days or the applicant has the right to appeal to the Minister for Labour for a decision.

When applying, the employer must demonstrate that the position for which a work permit is required was advertised locally and that, of those citizens who applied, none were suitable for the position. In addition, the following factors are considered:

1. whether the position is an occupation reserved for citizens by Ministerial Order;
2. the employer’s employment record;
3. the employer’s ability to provide training facilities for citizen counterparts;
4. the qualifications and experience of the proposed expatriate employee;
5. conformity of the position’s employment conditions with Vanuatu laws; and
6. protection of local and national interests.

    b. Residency Permits

From the perspective of investment, the Government offers residency to investors who wish to reside in Vanuatu and manage their investment if it is awarded a foreign investment approval certificate. Such residency is available without the need for a work permit. Residency is also available to non-citizens nominated to fill work permit positions in an investment. Further, and indirectly related to investment, residency is offered to retirees who are prepared to transfer the equivalent of VT 300,000 per month to their Vanuatu bank account.

Residence permits are issued annually but can be renewed for a maximum of three years. The annual fee for a residence permit is VT 20,000.

Material Required as follow:

1. Any non-citizen wishing to reside in Vanuatu must hold a valid residence permit issued by the Department of Immigration.
2. applications are screened using medical and police clearances provided by the applicant.
3. Work permit documents and a VIPA approval certificate, if applicable, must also accompany applications.
4. a bank reference must be provided certifying a minimum deposit of VT 5 million in a Vanuatu bank. Applicants are also required to lodge a bond to cover the costs of the repatriation of the expatriate (normally the equivalent of a return airfare)
5. an application fee of VT 100,000.

    c: Industry Related Permits

All government industries governing bodies have an investment agreement with VIPA. These agreements grant investors the relevant industry permits required as per their VIPA approved project.
For further information on industry related permits contact the relevant Government Department:

4．Negotiation Certificate for Rural LandsCertificate of Negotiation from the Land Use Planning Office (LUPO)

Before an Investor intends to negotiate for a rural land (land outside of the 50km city precinct) a negotiation certificate must be produced from the Land Used Planning Office to qualify their negotiations for the land. It is compulsory that the Investor must have a VIPA approval certificate before obtaining a certificate of negotiation from LUPO.

The VIPA approval together with the negotiation certificate will enable the investor to negotiate with the relevant customary landowner. There are other requirements to be made within the Land Used Planning Office such as acquiring a land lease form to establish agreement with the landowners.

For further information on rural lands please contact:

Land Used Planning Office (LUPO)
Private Mail Bag 9090
Port Vila
Phone:+678 27602
Fax:+678 27708.