There are many benefits to forming an offshore corporation for businesses. The primary reason for companies to go to another country to form a corporation is to save money as many countries offer low tax rates. If you own a business in Australia and are considering forming an offshore corporation in Vanuatu, here is the process for starting your business.
Check Company Name
The first thing to do before forming and registering your company is to check the name you want to use. The name needs to be unique so it isn’t mistaken for another business and to avoid infringing on another company’s reputation. There are serious legal ramifications for purposely naming a company similarly to another business in order to gain from their reputation, so double check the name before proceeding with registration.
Apply for an Incorporation Permit
An application for a permit to incorporate a company in Vanuatu must be submitted to the Minister of Finance. The original memorandum and association articles must be submitted with the permit application, along with a list of the company’s directors. The permit will be forwarded to the appropriate authorities, who will sign it and forward it to the minister’s office.
File Memorandum with Registrar
The people who are on the memorandum of association can file the memo at the Registrar Office up to six months after the permit to incorporate is granted. The fee to register will be calculated on the company’s shared capital, which must be a minimum of VUV $30,000. Registering your company may seem complicated, but if you hire a chartered accounting firm like Barrett and Partners, who have experience in helping offshore businesses form corporations, then they can help you with the entire process.
Apply for a Business License
When your company becomes incorporated, you will need to apply for a license before engaging in business activities. The application is made to the Department of Customs and Inland Revenue Services, but actually issued by the Rate and Taxes Authority. A fee is required and the amount will depend on the type of business you have and its size.
Register as an Employer
You have a week after incorporating the business or hiring your first employee to register with the National Provident Fund. This is a retirement fund for employees, of which employers pay 50% and employees pay 50%. Any employee who is between the age of 14 to 55 must join this program.
Make a Seal
Every business must have a company seal, which provides a way to authenticate its documents. Additionally, if you anticipate your business will have a turnover of at least four million VUV, you need to register it with the value added tax agency, which is the Department of Customs and Inland Revenue Services.
The money you save in taxes may be significant, but a chartered accounting firm can help determine the amount for you. Along with the accounting agency, you should also hire a reputable attorney experienced in offshore incorporation in Vanuatu to help your company.
