Valsen Fiduciaries Funds

Vanuatu General Mutual Fund

Vanuatu Mutual Funds are established by the Mutual Funds Act of 2005. Mutual Funds in Vanuatu are regulated by the Vanuatu Financial Services Commission.

vanuatu-flag valsen-funds-fund-services

About Vanuatu General Mutual Fund

A General Mutual Fund license may be issued to the promoter of a general mutual fund if:

  • Each promoter of the fund is of sound reputations; and
  • the fund will have a mutual fund administrator in Vanuatu that will be providing an office in Vanuatu for the fund; and
  • the arrangements for the administration of the fund are otherwise satisfactory; and
  • if the fund is a company, the fund must at least have two directors and the rules prohibit the issue of bearer shares

About Vanuatu General Mutual Fund Legal Requirements

Requirements

Description

  1. Applicable legislation

Vanuatu Mutual Fund Laws of 2005

  1. Supervising Authority

Financial Service Commission

  1. Corporate vehicle permitted

  • Company;

  • a unit trust or

  • a partnership

  1. Share capital or equivalent

    • Minimum subscription

None

    • Minimum investors

None

  1. Directors / Partners / Trustees

    • Minimum number

2

    • Corporate Directors / Partners / Trustees allowed

No

    • Local Directors / Partners / Trustees required

No

  1. Fund functionaries required

    • Custodian

      • Custodian required

Optional

      • Local custodian required

No

      • Eligible custodian

A licensee bank or trust company

    • Fund manager / Investment Adviser

      • Fund manager required

Yes

      • Local fund manager required

No

      • Fund manager requires to be licensed

No

      • Eligible fund manager

Must be a person or a company with its place of business in Vanuatu

    • Fund administrator

      • Fund administrator required

Yes

      • Local fund administrator required

No

      • Eligible fund administrator

Fund administrator must a company be licensed by Vanuatu FSC

    • External auditor

      • External auditor required

Yes

      • Local external auditor required

No

      • Eligible external auditor

Qualified auditor approved by the Vanuatu FSC

  1. Asset Requirements

    • Restriction on type of asset class invested

None

    • Asset diversification requirements

None

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

None

  1. Local physical office required

No

  1. Prospectus / Offering Memorandum required to be filed

Yes

  1. Eligible for listing

Yes

  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
None
Quarterly obligations
None
Annual obligations
A General 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
None
Trades Tax Act
None
Immovable Property Transfer Restriction Act
None
Immigration Decree
None
Exchange Control Act
None
Foreign Earnings Act
None

Benefits of a Vanuatu General Mutual Fund:

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