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Vanuatu Foreign Mutual Fund

Per the definition of the Mutual Fund Act, a mutual fund.

  1. Means a company, a unit trust or a partnership that issues equity interests, the purpose or effect of which is the pooling of investors’ fund with the aim of spreading investments risks; and
  2. Enabling investors in the mutual fund to receive profits or gains from the acquisition, holding, management or disposal of investments, but does not include a bank within the meaning of the Financial Institution Act [CAP 254] or the International Banking Act [CAP 280], an insurer within the meaning of the Insurance Act No 54 of 2005.
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About Vanuatu Foreign Mutual Fund

Accounts Receivable service

A Foreign Mutual Fund license may be issued to the administrator of a foreign mutual fund if:

  • If the fund promoter is of sound reputation; and
  • The fund will have a mutual fund administrator in Vanuatu that will be providing an office in Vanuatu for the fund.
  • That the fund’s administrator will at all times keep an office in Vanuatu for the fund.

Foreign mutual funds registered outside Vanuatu may apply to be registered in Vanuatu and apply for a Mutual Fund License. The Mutual Fund must be registered as an overseas company entitled to establish a place of business in Vanuatu before proceeding with the Mutual Fund application.

Vanuatu Foreign Mutual Fund Legal Requirements



  1. Applicable legislation

Vanuatu Mutual Fund Laws of 2005

  1. Supervising Authority

Financial Service Commission

  1. Corporate vehicle permitted

  • A company incorporated in Vanuatu or in a recognized jurisdiction.

  • A limited partnership registered in Vanuatu or in a recognized jurisdiction.

  • A unit trust registered in Vanuatu or in a recognized jurisdiction

  1. Share capital or equivalent

    • Minimum subscription


    • Minimum investors


  1. Directors / Partners / Trustees

  • Minimum number


    • Corporate Directors / Partners / Trustees allowed


    • Local Directors / Partners / Trustees required


  1. Fund functionaries required

    • Custodian

      • Custodian required


      • Local custodian required


      • Eligible custodian

Licensed/Approved Custodian

    • Fund manager / Investment Adviser

      • Fund manager required


      • Local fund manager required


      • Fund manager requires to be licensed


      • Eligible fund manager

Licensed Fund manager

    • Fund administrator

      • Fund administrator required


      • Local fund administrator required


      • Eligible fund administrator

Licensed fund administrator

    • External auditor

      • External auditor required


      • Local external auditor required


      • Eligible external auditor

Qualified auditor approved by the Vanuatu FSC

  1. Asset Requirements

    • Restriction on type of asset class invested


    • Asset diversification requirements


    • Limitation on size of the fund or total assets under management


  1. Local physical office required


  1. Prospectus / Offering Memorandum required to be filed


  1. Eligible for listing


  1. License fees

    • License application fee

USD 250

    • Annual license fee

USD 1,000

  1. Estimated license processing duration

3 months

Ongoing Obligations

Requirements Description
Monthly obligations
Office Required
Quarterly obligations
Annual obligations
A Foreign Mutual Fund must submit audited financial statements annually.
Other obligations
  • The fund’s administrator must at all times keep an office in Vanuatu for the fund

  • For a foreign mutual fund that is a company the fund must at least have 2 directors
Tax Obligations and Other Exemptions
Requirements Description
Business Tax
0% of Net Profit
Withholding Tax
No withholding tax is payable on dividends and/or interest payable.
Value Added Tax (VAT)
VAT is not applicable to mutual funds in its entirety.
Stamp duty Act
Trades Tax Act
Immovable Property Transfer Restriction Act
Immigration Decree
Exchange Control Act
Foreign Earnings Act

Benefits of a Vanuatu Foreign Mutual Fund:

  • Ease and speed of establishment
  • Flexible structuring of the entity
  • Favourable compliance restrictions
  • Friendly regulatory environment
  • No exchange controls restrictions