Doing Business in the United Kingdom VS Vanuatu – A Comparison
When comparing the United Kingdom and Vanuatu as potential destinations for business expansion, investors encounter two vastly different landscapes. The UK offers a mature, transparent, and digitally streamlined environment with access to global markets. In contrast, Vanuatu presents a tax-friendly offshore jurisdiction with minimal regulatory burdens, appealing to those seeking asset protection and international diversification.
This article outlines the main differences between both destinations to help you determine which location aligns better with your business goals.
The United Kingdom: The UK provides political stability, transparent governance, and access to business finance support. It’s a trusted jurisdiction for long-term investment.
Vanuatu: Vanuatu offers a politically stable environment with minimal regulatory interference, making it attractive for offshore business activities and asset protection strategies.
Taxation
The United Kingdom: Corporate tax is set at 25%. Businesses enjoy R&D relief and SME support, making it an attractive option for starting a business in the United Kingdom.
Vanuatu: Vanuatu imposes no corporate, personal income, capital gains, or inheritance taxes. Companies pay an annual registration fee and a VAT of 12.5% on goods and services.
Vanuatu: Company registration in Vanuatu can be completed online through the Vanuatu Financial Services Commission, typically within a few days, offering a straightforward process for international investors.
Cost of Living and Business Operations
The United Kingdom: While the UK can be costly in cities like London, regional areas allow for affordable company setup and living.
Vanuatu: Vanuatu offers low operational costs, but businesses may face challenges due to limited infrastructure and a smaller domestic market.
Access to Markets
The United Kingdom: The UK is globally connected through trade agreements and acts as a hub to Europe, Asia, and North America.
Vanuatu: Vanuatu’s geographic location provides access to Pacific markets, but its remote location may limit broader international trade opportunities.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference.
Factor
The United Kingdom
Vanuatu
Business Environment
Stable, transparent, globally respected
Politically stable, minimal regulation
Corporate Tax Rate
25%
0%
Capital Gains Tax
Yes, with SME exemptions
No
Ease of Incorporation
Fully digital and fast
Online registration, typically within days
Business Costs
Moderate to high depending on region
Low, with limited infrastructure
Market Access
Global via trade deals and financial networks
Regional, with limited international reach
Benefits of Choosing 3E Accounting
When it comes to starting a business in the United Kingdom, navigating the legal and administrative processes can be complex without the right support. That’s where 3E Accounting comes in. As a trusted partner for company incorporation, we provide tailored solutions for entrepreneurs and investors looking to establish a strong business presence. Whether you need help with company registration or expert guidance on setting up businesses in the UK, our experienced team ensures a smooth and efficient process.
The United Kingdom is a stronger choice for long-term business growth due to its legal stability and business finance support. Vanuatu appeals more to offshore investors looking for minimal regulation and tax exposure.
Vanuatu has no corporate, personal, or capital gains tax, making it attractive for tax minimisation. The UK has a 25% corporate tax but offers SME and R&D relief—see this guide to setting up businesses in the United Kingdom.
Yes, Vanuatu has lower operational costs, but limited infrastructure and geographic remoteness can increase logistics and scalability issues. The UK offers cost efficiency through regional company setup strategies.
You can contact 3E Accounting for assistance with incorporation, tax compliance, and post-setup support.
Abigail Yu oversees executive leadership at 3E Accounting Group, leading operations, IT solutions, public relations, and digital marketing to drive business success. She holds an honors degree in Communication and New Media from the National University of Singapore and is highly skilled in crisis management, financial communication, and corporate communications.