The Foreign Investment Act provides the framework for investors wishing to establish a new, or purchase an existing business, in Vanuatu.
The Act was introduced in order to streamline the investment approval process and allow the Vanuatu Investment Promotion Authority (VIPA) to act as a one stop shop, by not only authorising various investment proposals, but also the number of work and residency permits and business licences relating to each project.
VIPA is responsible for the review of all applications and a standard Application Form must be completed by the potential investor, which includes details of the intended form of business - local company, partnership, sole proprietorship etc. - and the nature of the project. A business plan which includes a cash flow / profitability projection for three years must also be submitted.
Applicants are required to provide details of the number of work and residency permits which are required, including a clear training plan for Vanuatu citizens.
The value of the investment in the country will determine the number of years for which the residency permit is issued. Permits are renewable. Length of residency granted would be as follows:
|
Value of investment (in Vatu) |
Maximum Number of Years |
|
5,000,000 |
5 years |
|
50,000,000 |
10 years |
|
100,000,000 |
15 years |
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If satisfied that the business is of benefit to the country, VIPA will issue an Approval Certificate, which will entitle the foreign investor named in the certificate to engage in the investment specified in the certificate. Upon filing of the necessary documentation - see below - the various permits/licences will be issued by the respective government departments.
A foreign investor who owns a house or dwelling that is used as their residence or a parcel of land is not required to obtain VIPA approval.
Hawkes Law has considerable experience in completing foreign investment applications and has excellent relationships with VIPA and related government departments.
To obtain additional information, please contact us by e-mail at webenquiry@hawkeslaw.com.vu