(1) To invest and establish a company in Vanuatu, it is necessary to apply to the Vanuatu Investment Promotion Authority to obtain a Foreign Investment Application Certificate, and complete the annual update before February 28th each year
Customs fees: Vanuatu has no corporate income tax or personal income tax, but is subject to a 15% value-added tax. All enterprises must obtain a business license, and the business license fee is calculated based on the type of business and annual turnover, ranging from 20000 to 1 million watts. At the same time, a non resident fee of 100000 watts is also required. The classification and calculation method of business operations can refer to the relevant provisions of the Vanuatu Business License Act [CAP 249].
(2) Vanuatu's infrastructure supporting costs are expensive:
Telecommunications services: Vodafone and Digicel are the main telecommunications providers in Vanuatu, with specific charges
The standards are as follows:
Telephone service:
Vodafone: The initial installation fee for telephone lines is 8000 watts; The rental fee for telephone lines is 1400 watts per month. The call rates are the same across the country, and calling Vodafone landline and mobile phones costs 26 watts
The phone count for other operator networks is 34 watts per minute. The domestic tariff for mobile phone calls is 26 watts per minute, the international long-distance tariff ranges from 52 to 515 watts per minute, the fixed line call to China tariff is 52 watts per minute, and the mobile phone tariff is 62 watts per minute.
Digitel: Currently only provides mobile phone services. The fee for making domestic calls to Vanuatu is 28 watts per minute, international long-distance calls range from 61 to 393 watts per minute, and making calls to Chinese numbers is 61 watts per minute.
Internet service: 5000 Watts for technical installation. The monthly subscription fee varies from 5200 to 128600 watts based on internet speed, with no limit on traffic.
Sea freight: Vanuatu has two main international seaports, Vila Port and Luganville Port. The charging standard for Vila Port is (calculated in units of one TEU): processing fee of 49104 watts; Short distance ports
Transportation costs range from 30000 to 32000 watts. The fee for Santo Luganville Port is (calculated in one standard container):
Processing fee of 49104 watts; The short distance port transportation fee is 10000 watts.
Air freight: Vanuatu Airlines accepts air freight services from around the world, and the cost is determined by weight and region. Export (per kilogram) requires a shipping fee ranging from 3290 to 8500 watts.
Municipal fees: The application fee for building permits is 10000 watts (including value-added tax), and the municipal department charges a building permit fee of 875 watts per square meter based on the building area.
Environmental impact assessment fee: The preliminary environmental impact assessment (PEA) fee is 20000 watts. The Environmental Protection Bureau decides whether a comprehensive environmental impact assessment is necessary based on the preliminary environmental impact assessment results. The cost of a comprehensive environmental impact assessment is negotiated between the investor and the environmental impact assessment agency designated by the Vanuatu government, depending on investment scale, industry factors, etc.
(3) The commercial registration of enterprises takes a long time, and the operational efficiency of the Vanuatu government needs to be improved.
According to a survey conducted by the World Bank in Vanuatu, it takes an average of 35 days to complete a business registration in Vanuatu; It takes an average of 55 days to apply for a building permit; On average, it takes 58 days to complete property registration; On average, it takes 120 hours per year to handle tax matters; It takes an average of 21 days to complete export procedures; It takes an average of 24 days to complete import procedures.
(4) Land investment
Land Regulations
The 1980 Constitution of Vanuatu stipulated that Vanuatu nationals are the owners of land and foreigners are not allowed to buy or sell it; The Land Lease Law promulgated in 1983 allowed investors to lease land; In 2003, the Land Lease (Amendment) Law was introduced, further improving the details related to land. Relevant laws and regulations can be downloaded from the Vanuatu government website.
【 Land Lease Term 】
According to the relevant laws and regulations on land leasing in Vanuatu, it is explicitly stipulated that the maximum lease term is 75 years, and there are some lease contracts with shorter lease terms in the early stages.
Land Renewal
The lessee can apply to change their existing lease term, extending the lease term from 75 years to 75 years. If the lease term is already 75 years, after consultation with the landowner and paying the necessary insurance and administrative fees, the lease can be renewed for 75 years.
Delivery Risk
Vanuatu's land is highly privatized, and there are certain difficulties in delineating boundaries and confirming land ownership. There are many land disputes, and it is recommended to use lawyers for delivery.
(5) Set high barriers for foreign workers to work in Vanuatu.
The Vanuatu government, in order to protect the employment of the local population in Vanuatu, implements a strict permit system for technical personnel and workers who come to work in Vanuatu for foreign workers. When issuing business licenses for foreign-funded enterprises, the government automatically grants two work permits, but there is strict control over the issuance and duration of work permits for foreign employees.
(6) Without a complete industrial chain supporting the enterprise, it is not conducive to the development and expansion of investment enterprises.
Vanuatu lacks the upstream and downstream supporting capabilities of industrial enterprises, and lacks complete on-site procurement of raw materials, production outsourcing, equipment and machine tool maintenance, and logistics distribution industry chain support. And this is a decisive factor in whether a company has competitiveness. In today's society where division of labor is becoming increasingly detailed, no enterprise can achieve full responsibility and self-sufficiency in the upstream and downstream supporting industries. Instead, it must rely on mutual cooperation and support among enterprises. The result of no industrial support is a significant increase in production costs, weakening competitiveness, and hindering the development and expansion of enterprises.