E-Business : Vanuatu Financial Services Commission VFSC

Organization : Vanuatu Financial Services Commission
Type of Facility : E-Business
Country: Vanuatu

Website : http://www.vfsc.vu/index.php/about-us

E-Business:

The Vanuatu Parliament passed an amendment to the E-Business Act during its second ordinary session (November and December) of 2007.

Related : VFSC Vanuatu Financial Services Commission Company Trading & Registration : www.statusin.org/8622.html

The amendments to the Act makes the ‘cybersuite’ an attractive and cost-effective means by which persons engaged in e-commerce can conduct their business operations through a legal entity – without the need to meet relatively high establishment and on-going maintenance costs. The amendments place Vanuatu as a unique jurisdiction in which to engage in e-commerce.

The key amendments relate to:
The broad parameters under which electronic business, associated with Vanuatu, can be conducted. It stipulates that the good reputation of Vanuatu must be maintained and the principles set out in the Code of Conduct be observed by all stakeholders.

It further establishes that the cybersuite, having its own legal entity, is the contracting party for the purpose of engaging in electronic business. The requirement of the International Companies Act that a company remains solvent at all times is now reflected which imposes a similar requirement on a cybersuite.

The requirement that each company, engaged in e-business, must maintain adequate financial records in relation to its own electronic business activities and adequately separate records for each cybersuite it manages. The reference to accounting principles has been amended to ‘generally accepted accounting principles for a company’ and therefore imposes the same standard as applies under the International Companies Act.

The importance of compliance by cybersuites and requires, subject to a code of conduct having been adopted, a copy of the Code being provided to any prospective cybersuite proprietor. It further provides that, in the event of any cybersuite contract being contrary to the Act or the Code, the contravening provisions are to be severed.

It provides for the imposition of a Cybersuite Registration Fee and an Annual Cybersuite Fee for a cybersuite, being payable to the Vanuatu Financial Services Commission upon the establishment of a cybersuite and, thereafter, on or prior to each anniversary date of the initial registration of the cybersuite. The level of such fees has been tied to the then current fees payable in respect of an International Company. To encourage the registration of cybersuites in Vanuatu, the level of fees has been set at not-more-than one-half of the fees payable for an International Company.

It enables a process to appoint and licence an e-services provider, possessing the necessary expertise and skills, to undertake an e-currency business. The appointment of an e-services provider would be subject to a process of tendering whereby a licence fee would be payable to the Government of Vanuatu. The tender process would entail a close examination of the financial credentials and management attributes of the tenderers.