Advantage Vanuatu
The Captive Solution
Contact us
| Vanuatu Captive Insurance Association | |
 |
|
| Email: | info@insurance.vu |
| C/-P O Box 212 | Port Vila, Vanuatu |
| Telephone |
+678 22091 |
| Fax | +678 23665 |
Insurance Regulator |
|
 |
|
| Private Mail Bag 9062 | Port Vila, Vanuatu |
| jtari@rbv.gov.vu | |
| Telephone | + 678 23333 |
| Fax | + 678 24231 |
Authorised Resident Insurance Managers
Download Booklet;
Captive Insurance
and other Financial Services
Link to Published Articles
Vanuatu incorporation costs, insurance licence fees and management fees are undoubtedly more cost effective than other jurisdictions. Refer to the comparison table.
We are aware of the need to offer a prompt an efficient service and an application for a company licence can usually be processed within one month.
International Association of Insurance supervisors
Vanuatu is a member of this association.
Offshore Group of Insurance Supervisors
Vanuatu is a member of this association
A Captive Insurance Company is totally free from
- Corporate tax /tax on profits
- Inheritance tax
- Death duty
- Capital gains
- Capital transfer or estate tax and
- Exchange control regulations
- Premium tax
Experienced professional service providers are available in Vanuatu and in relation to insurance are authorised by the FSC. Communications and services are of the highest standard.
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The Government and Legal system
Vanuatu is a democracy and is governed by an elected government, Prime Minister and Cabinet.
The Head of State is elected by the Electoral College
The Vanuatu system of governance is complemented by an independent legal and judicial system based on English Common Law. The highest court is the Court of Appeal.
Legislation
| Companies Act 191 (as amended) for incorporation | |
| Protected Cells Companies Act 2005 | click to download |
| Insurance Act No. 54 2005 | click to download |
| Insurance Regulation Order No.16 of 2006 | click to download |
| Incorporated Cell Companies Act 2009 |
- All insurance related companies must apply for a licence which is renewable annually
- Certificate of Incorporation
- Copy of Memorandum and Articles of Association
- Minimum level of paid up capital
- Minimum of two directors (no requirement for a local director)
- Detailed business plan
- Appointment of resident Insurance Manager
- Books and records to be maintained in Vanuatu
- Annual audited financial statement
- Actuarial valuation and report as required
- Maintaining minimum solvency margin
- Appointment of resident auditor
| Capital | |
| General classes | US$100,000 |
| Life & Long Term | US$250,000 |
Capital may be nominated in the currency of the country where the risk is located
| Fees | Application |
Annual |
| Company formation | Nil |
US$500 |
| Insurance Licence | US$250 |
US$2,000 |
| Protected Cell | Nil |
Nil |
| Incorporated Cell | Nil |
Nil |
| Cell authorisation | Nil |
Nil |
A Captive may be incorporated under the Companies Act 191 (as amended). Most Captives are formed as exempted companies.
Confidentiality
Most Captives are formed as exempted companies under the Companies Act 191 (as amended). Exempted companies are control by the confidential provisions of the Companies Act
Exempted companies who obtain a captive licence are subject to exchange of information as provided under Section 13 of the Insurance Act 2005 and guarantees strict confidentiality except in the investigation of any criminal activity.
The Protected Cell Company Act 2005 (PCC) and Incorporated Cell Companies Act 2009 (ICC)
These acts enables flexibility in the way in which capital and assets can be subscribed and allocated between the core company and individual cells.
The difference between an Incorporated Cell Company (ICC) and an Incorporated Cell (IC) of an ICC,
with that of a Protected Cell Company (PCC) and a Cell within that PCC, can be illustrated by
means of the following diagram:
The creation of a Cell within a PCC does not create a separate legal entity in respect of that Cell. The Cell transacts its business under its own designation, under the corporate capacity of the PCC.
In contrast the ICC and the IC are limited companies in their own right. It is possible for ICs to contract with other entities in their own right and with another IC and with the ICC.
Protected Cell Company (PCC)
The PCC operates like a separate limited liability company but as noted above is actually a segregated part of a single company.
When the assets and liabilities of a particular company or group have been allocated to a cell, only persons who have entered into transactions with that cell, or have become creditors of the cell, will have recourse against its assets. It is possible for a cell set up in a PCC to issue shares.
Similarly it is possible for dividends to be paid on shares of a cell even though the core company has not made a profit.
The proceeds of shares would become assets of the relevant cell that would be created by the payment of capital, of share premiums, of contributed surplus, of retained earnings and of premiums paid into the cell.
These assets are segregated from other cells and are not available to the creditors of the core company or any other cells.
Incorporated Cell Company (ICC)
An incorporated cell (IC) of an ICC is an entirely separate entity which may transact and enter into agreements with third parties in its own name like a any normal company.
Segregate assets and liabilities are clearly established within each incorporated cell.
PCC's providing renting facilities
Orbit International Insurance PCC Ltd
Ellouk Drive
PO Box 137 Port Vila
Vanuatu
Phone +678 26065, +678 7745024 +64 9 21970910
oil@vanuatu.com.vu
www.captive.vu
Insurance Licence application procedure
With the assistance of an authorised manager, we encourage you to submit a draft application and business plan. The manager or the Supervisor will be able to tell you very quickly if it is worthwhile making a full application or suggest amendments which could make the application acceptable. Any application would follow your feasibility study. If the study is positive submit a full application which should include:
- Details of beneficial owners, directors and officers of the company
- A detailed business plan showing:
- Source of business
- Classes of business to be written
- Underwriting guidelines
- Policy limits
- Details of reinsurance program
- Currency type
- Claims handling procedures
- Investment philosophy
- Financial projections
The application is then reviewed and if approved, the company can then be incorporated. Upon confirmation that the capital is in place, a licence will be issued and the company can commence business. A decision is usually given within one month from the date of receipt of a fully completed application
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The Insurance Act requires all applicants for an insurance licence to appoint an authorised Insurance Manager who is a resident in Vanuatu, that has sufficient experience to represent the company and liaise with the FSC including:
- Assistance in structuring the Captive and in completing the application
- Assisting in the feasibilty study
- Incorporation of the company
- Provision of a principal office in Vanuatu
- Maintenance of books and records, submission of reports, information and documentation which may be required by the Commission
- Preparation of policies and certificates of insurance or reinsurance
- Processing of claims data
- Arranging for and supervising the operation of bank accounts, accounting and audit services.
In practice, the insurance division has a good relationship and understanding with the managers and as a result many small day to day problems can be solved over the phone rather than entering into lengthy and time consuming correspondence.
Authorised Resident Insurance Managers
International Finance Trust company Ltd (IFTC)
1st Floor PKF Building
PO Box 211 Port Vila
Vanuatu
Phone: +678 22198
Fax: +678 23799
iftc@vanuatu.com.vu
www.pkfvanuatu.com.vu
Riskman International
Ellouk Drive
PO Box 137 Port Vila
Vanuatu
Phone +678 26065, +678 7745024 +64 9 21970910
risk@vanuatu.com.vu
www.riskman.vu
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