# Vanuatu forex licence for a prop firm: VFSC, cost, presence.

> Vanuatu forex licence for prop firms: VFSC Class A fees, the VT 5 million deposit, physical-presence rules, company cost, tax and the EU blacklist.

- Source: https://pipvalley.com/jurisdictions/vanuatu
- Publisher: PipValley - web design studio for prop trading firms
- Updated: 2026-10-12

**Short answer:** A Vanuatu forex licence is a Class A financial dealer’s licence from the VFSC: VT 50,000 to apply, VT 100,000 to issue, VT 500,000 a year, a VT 5,000,000 deposit, insurance, stand-alone premises and a manager resident 6 months a year, under the Cap 70 consolidated edition 2026. A simulated-evaluation firm usually only needs an international company (USD 150). Confirm with a Vanuatu lawyer.

## At a glance

- **Regulator:** Vanuatu Financial Services Commission (VFSC), which licenses financial dealers under the Financial Dealers Licensing Act [Cap 70] and registers companies. [1][2]
- **Licence for a simulated model:** We found no VFSC statement on prop firms as of 12 Oct 2026. Dealing without a licence can mean a fine of up to VT 125 million for a company under Cap 70. [2]
- **Licence classes:** Class A covers debentures, bonds and foreign exchange (the "forex licence"); B shares and commodities; C futures and derivatives; D digital assets. Higher classes require the lower ones. [2]
- **Licence fees:** VT 50,000 application, VT 100,000 principal’s licence fee, then VT 500,000 a year. Representatives and the licensed manager each pay VT 100,000 and VT 500,000 a year too. [2]
- **Deposit and insurance:** VT 5,000,000 deposited with the Commissioner for the life of the licence; insurance of VT 5m per claim, VT 50m aggregate. [2]
- **Physical presence:** Separate, stand-alone premises with public access ("a workstation in an open plan office would not suffice"), at least one direct employee, and a manager with executive powers (VFSC guideline, Sept 2021). [3]
- **Licensed manager:** Must be a natural person with a physical office in Vanuatu who has resided there 6 months a year (Cap 70, s.4AC). [2]
- **Company fees:** International company: USD 150 to incorporate, USD 300 a year, USD 100 late penalty. Local company: VT 35,000 to register and VT 35,000 per annual return (VFSC). [4]
- **Formation time:** Expanship: certificate in 2–5 business days from complete documents; about 5–10 weeks end to end with a bank account. [6]
- **Tax:** No income tax and "zero corporate tax (except on some real estate transactions)"; VAT 15% (Vanuatu investment promotion agency). [8]
- **EU list:** The Council of the EU kept Vanuatu on Annex I of its non-cooperative tax jurisdictions list on 17 Feb 2026. [9]
- **Banking reality:** The World Bank reported in Sept 2025 that the Pacific has seen "a 60 per cent drop in CBRs" (correspondent banking relationships) since 2011, double the world average. [10]

Vanuatu was once one of the busiest places to license an offshore forex broker: Finance Magnates reported that licensees peaked at more than 600 in 2017, and that only 4 FX/CFD brokers met the new physical-presence rules by October 2022. Prop founders still search for a Vanuatu forex licence because the name is familiar and because an international company there is cheap.

A prop firm sells evaluations on simulated accounts and pays rewards from simulated results; it is not a broker. This page covers what is specific to Vanuatu: whether you need the licence, what it costs under the 2026 consolidated Act, the presence rules, company formation, tax, banking, the website and when to look elsewhere. Every figure was checked on 12 October 2026.

> This page explains how things generally work in Vanuatu as of 12 October 2026. It is not legal, tax or financial advice and does not create a lawyer–client relationship. Rules and fees change; confirm every point with a qualified lawyer and tax adviser in Vanuatu before you act.

## Does a prop firm need a Vanuatu forex licence?

We found no statement from the VFSC about prop firms, funded-trader programmes or simulated evaluations as of 12 October 2026. A licence is needed to deal in the instruments Cap 70 covers, and unlicensed dealing carries fines of up to VT 125 million for a company. A firm that sells access to a simulated evaluation and pays rewards from its own revenue is not obviously dealing, but that is a legal judgement on your exact terms.

What usually triggers a licence: executing real trades for traders, taking deposits that can be withdrawn, offering a CFD brokerage alongside the prop brand, or dealing in digital assets (Class D). If any of those are in your plan, read [how to start a forex brokerage](https://pipvalley.com/guides/how-to-start-a-forex-brokerage) and [the forex broker licence guide](https://pipvalley.com/guides/forex-broker-license).

## Why would a prop founder still want the licence?

Usually for a brokerage arm or for platform access, where a platform provider or liquidity partner wants a licensed counterparty. In Vanuatu that now means real substance: your own office, a licensed manager living in the country half the year and at least one direct employee. For most evaluation-only firms, that cost buys nothing the business needs. If you want a recognised regulator, [Mauritius](https://pipvalley.com/jurisdictions/mauritius) is where prop firms have gone in 2026. If you only need a platform, compare a [white label](https://pipvalley.com/guides/white-label-prop-firm).

Whatever you hold, a Vanuatu licence does not make your evaluations a regulated product and does not authorise marketing into the EU, UK, US or Australia.

## What does a Vanuatu forex licence cost?

The Act sets the fees and the deposit; the physical-presence guideline sets the office and staff rules. There is no fixed minimum capital in the Act, but applicants must show the source of their capital.

> A principal, one representative and a licensed manager means three annual fees of VT 500,000 each before rent and salaries. Put the full numbers into the [launch cost calculator](https://pipvalley.com/tools/prop-firm-launch-cost-calculator).

**Vanuatu Class A financial dealer’s licence (VFSC, Cap 70 Consolidated Edition 2026 and Physical Presence guideline; checked 12 Oct 2026)**

| Item | Figure |
|---|---|
| Application fee (principal) | VT 50,000 |
| Principal’s licence fee | VT 100,000, then VT 500,000 a year |
| Representative | VT 50,000 application, VT 100,000 licence, VT 500,000 a year |
| Licensed manager | VT 50,000 application, VT 100,000 licence, VT 500,000 a year |
| Deposit with the Commissioner | VT 5,000,000, kept for the life of the licence |
| Insurance | VT 5m per claim, VT 50m aggregate |
| Office | Separate, stand-alone premises with direct public access |
| People | Licensed manager resident 6 months a year; at least one direct employee |
| Higher classes | B needs A; C needs A and B; D (digital assets) needs A, B and C |

## How do you form a company in Vanuatu?

Companies are registered with the VFSC. An international company costs USD 150 to incorporate and USD 300 a year, with longer prepaid options (5 years USD 675, 10 years USD 1,200, 20 years USD 2,000). A local company costs VT 35,000 to register and VT 35,000 per annual return. Expanship estimates 2–5 business days to a certificate once the agent has a complete, certified document set, and about 5–10 weeks end to end once a bank account is included. Its cost guide puts a basic first year at about USD 1,000–2,500 including agent and KYC fees. Compare with other places in [prop firm company formation cost](https://pipvalley.com/guides/prop-firm-company-formation-cost).

## Banking, payments and the EU blacklist

Vanuatu’s reputation affects every payment conversation. The Council of the EU kept Vanuatu on Annex I of its list of non-cooperative tax jurisdictions on 17 February 2026. The World Bank reported in 2025 that correspondent banking relationships in the Pacific have dropped 60% since 2011. Expect banks and processors to ask hard questions about a Vanuatu entity, and some to decline outright.

Founders using a Vanuatu company usually bank elsewhere and rely on payment orchestration for cards ([Paytiko](https://pipvalley.com/tech/paytiko), BridgerPay), crypto gateways for challenge fees ([Match2Pay](https://pipvalley.com/tech/match2pay), [NOWPayments](https://pipvalley.com/tech/nowpayments)) and a payout provider ([Rise](https://pipvalley.com/tech/rise)). See [forex payment gateways](https://pipvalley.com/guides/forex-payment-gateway-for-prop-firms) and [crypto payments for prop firms](https://pipvalley.com/guides/prop-firm-crypto-payments).

## What tax does a Vanuatu company pay?

Vanuatu has no income tax and "zero corporate tax (except on some real estate transactions)", with VAT at 15%, according to its investment promotion agency. That does not end the analysis: if the company is managed from the UK, EU or elsewhere, tax can arise there, and customers’ countries may apply anti-avoidance rules to payments to an EU-listed jurisdiction. Ask a tax adviser before you rely on zero.

## What must a Vanuatu prop firm’s website show?

Personal data is covered by the Data Protection and Privacy Act No. 13 of 2024, in force since 2 January 2025. If you sell to EU or UK traders, their privacy and cookie rules apply too. Use the [website checklist](https://pipvalley.com/guides/prop-firm-website-checklist) and the [disclaimer generator](https://pipvalley.com/tools/prop-firm-disclaimer-generator).

- Entity disclosure: company name, number and registered address; a VFSC licence class and number only if you hold one.
- A simulated-trading notice and a statement that evaluations are not a VFSC-licensed service (unless they are).
- A restricted-countries list enforced at checkout and KYC; see [restricted countries](https://pipvalley.com/guides/prop-firm-sanctions-and-restricted-countries).
- Privacy policy under the 2024 Act and a cookie banner that meets your strictest market.
- Languages: Bislama, English and French are official; launch in your traders’ languages.

## When should you not choose Vanuatu?

- You need card processing or EU banking: an EU-listed jurisdiction is a red flag for many partners.
- You want a cheap licence: the VT 5 million deposit, three annual licence fees and a staffed office in Port Vila are not cheap.
- You will be managed from a high-tax country: zero tax in Vanuatu may not survive a management-and-control test elsewhere.
- You want a recognised regulator for a brokerage arm: look at [Mauritius](https://pipvalley.com/jurisdictions/mauritius) or [Cyprus](https://pipvalley.com/jurisdictions/cyprus) instead.

## Launch steps

1. **Decide whether you deal:** Confirm with a Vanuatu lawyer whether your evaluation model is dealing under Cap 70. Most evaluation-only firms will not need the financial dealer’s licence.
2. **Form an international company:** Use a registered agent; budget USD 150 to incorporate and USD 300 a year in VFSC fees plus the agent’s charges.
3. **Open accounts outside Vanuatu:** Apply for banking and e-money accounts early; correspondent-banking pressure in the Pacific makes this the slowest step.
4. **Set up payment rails:** Line up a card route through an orchestration layer, a crypto gateway and a payout provider.
5. **Publish compliant terms and website:** Entity disclosure, simulated-trading notice, restricted countries and a privacy policy under the 2024 Act.
6. **If you add a brokerage, plan for presence:** Stand-alone premises, a resident licensed manager, a direct employee, insurance and the VT 5 million deposit.

## Providers worth a look

- **Paytiko**: Payment orchestration connecting merchants to 500+ PSPs, useful when one acquirer is not enough.
- **BridgerPay**: Payment orchestration with routing and retries; not itself a PSP.
- **Match2Pay**: Crypto processor for brokers and prop firms with published deposit fees of 0.30–1.00%.
- **NOWPayments**: Crypto gateway with mass payouts; transaction fees from 1%.
- **Rise**: Contractor payroll in fiat and crypto marketed to prop firms for trader payouts.
- **Sumsub**: KYC and AML screening with published per-verification pricing.

## Your website

PipValley builds the marketing website for any platform or route: pricing table, rules, payouts, FAQ, legal pages and the checkout hand-off. Plan your launch: https://pipvalley.com/contact?src=launch-jurisdiction&place=vanuatu

## Questions

### How much does a Vanuatu forex licence cost?

Under the VFSC’s 2026 consolidated Act, a Class A licence costs VT 50,000 to apply, VT 100,000 to issue and VT 500,000 a year, plus a VT 5,000,000 deposit and insurance of VT 5 million per claim. Representatives and the licensed manager pay their own VT 500,000 annual fees. Office, staff and agent costs come on top.

### Does a Vanuatu forex licence need a local office?

Yes. The VFSC’s physical-presence guideline requires separate, stand-alone premises with direct public access, at least one direct employee and a manager with executive powers. Cap 70 adds that a licensed manager must have a physical office in Vanuatu and live there 6 months a year. A desk in a shared open-plan office does not qualify.

### Does a prop firm need a Vanuatu licence?

We found no VFSC statement on prop firms as of 12 October 2026. A licence is needed to deal in the instruments the Financial Dealers Licensing Act covers. Many evaluation-only firms use an international company without a licence, but a Vanuatu lawyer should confirm whether your evaluation and payout terms amount to dealing.

### How much is a Vanuatu international company?

The VFSC charges USD 150 to incorporate an international company and USD 300 a year, with a USD 100 late penalty. Agent fees are extra; Expanship puts a basic first year at about USD 1,000–2,500 all in, with a certificate in 2–5 business days and 5–10 weeks including a bank account.

### Is Vanuatu on the EU tax blacklist?

Yes. The Council of the EU kept Vanuatu on Annex I of its list of non-cooperative jurisdictions for tax purposes on 17 February 2026. That affects banking, payment processing and how some customers’ countries treat payments to a Vanuatu company. Vanuatu itself has no corporate income tax except on some real estate transactions.

## Sources

1. [VFSC: Financial dealers](https://www.vfsc.vu/financial-dealers/) (checked 2026-10-12)
2. [VFSC: Financial Dealers Licensing Act Cap 70, Consolidated Edition 2026](https://www.vfsc.vu/wp-content/uploads/2026/04/Financial-Dealers-Licensing-Act-CAP.-70-Consolidated-Edition-2026.pdf) (checked 2026-10-12)
3. [VFSC: Guidance notes on physical presence criteria (Sept 2021)](https://www.vfsc.vu/wp-content/uploads/2025/06/Physical-Presence.pdf) (checked 2026-10-12)
4. [VFSC: Companies](https://www.vfsc.vu/companies) (checked 2026-10-12)
5. [Finance Magnates: Vanuatu to mandate physical presence of brokers (Oct 2022)](https://www.financemagnates.com/forex/regulation/exclusive-vanuatu-to-mandate-physical-presence-of-brokers/) (checked 2026-10-12)
6. [Expanship: Timeline to incorporate a company in Vanuatu](https://www.expanship.com/vu/blog/timeline-needed-to-incorporate-a-company-in-vanuatu) (checked 2026-10-12)
7. [Expanship: How much does it cost to incorporate a company in Vanuatu](https://www.expanship.com/vu/blog/how-much-does-it-cost-to-incorporate-a-company-in-vanuatu) (checked 2026-10-12)
8. [Vanuatu Foreign Investment Promotion Agency: Low tax jurisdiction](https://investvanuatu.vu/untapped-potential/low-tax-jurisdiction/) (checked 2026-10-12)
9. [Council of the EU: EU list of non-cooperative jurisdictions for tax purposes (Feb 2026)](https://data.consilium.europa.eu/doc/document/ST-5869-2026-INIT/en/pdf) (checked 2026-10-12)
10. [World Bank: Safeguarding financial lifelines in the Pacific (Sept 2025)](https://www.worldbank.org/en/news/feature/2025/09/02/safeguarding-financial-lifelines-in-the-pacific) (checked 2026-10-12)
11. [Government of Vanuatu: Data Protection and Privacy Act No. 13 of 2024](https://cert.gov.vu/images/legislation/Data_Protection_and_Privacy_Act_No13_of_2024-EN.pdf) (checked 2026-10-12)
12. [Office of the Ombudsman, Vanuatu: Language rights](https://ombudsman.gov.vu/index.php/ombudsman/language-rights) (checked 2026-10-12)

_Not legal, tax or financial advice: rules differ by place and change often; speak to a qualified lawyer and tax adviser. Evaluation accounts are simulated; nothing here promises revenue, pass rates or payouts._