- ARRANGEMENT OF SECTIONS
- 1. Interpretation
- 2. Business licence
- 3. Licensing authority
- 4. Application for licences
- 5. Issue of licence
- 6. Foreign investors’ entitlement to business licence
- 7. Issue of business licence – business listed in section 13
- 8. Issue of business licence – business not listed in section 13
- 9. Renewal of business licences
- 10. Transfer of business licences
- 11. Reasons for decision
- 12. Appeal
- 13. Minister to approve or refuse applications in certain cases
- 14. Licence to be displayed
- 15. Licences lost or destroyed
- 16. Power of search
- 17. Confidentiality of information
- 18. Fees
- 18A. Certain businesses to pay fees quarterly
- 18B. Pro-rata payment of business licence fee
- 18C. Distrain for unpaid fee
- 19. General provisions
- 20. Revenue from fees
- 21. Abatement of fees
- 22. Reduction of fees
- 23. Penalties
- 24. Cancellation of licence
- 25. Rules
- 26. Repeal
- SCHEDULE 1
Business Licence Act [Cap 249]
LAWS OF THE REPUBLIC OF VANUATU Consolidated Edition 2006
Commencement: 1 August 1998
CHAPTER 249
BUSINESS LICENCE
Act 19 of 1998 Act 9 of 1999 Act 6 of 2000 Act 50 of 2000 Act 29 of 2001 Act 5 of 2004 Act 45 of 2005 Act 1 of 2006
ARRANGEMENT OF SECTIONS
1. Interpretation 2. Business licence 3. Licensing authority 4. Application for licences 5. Issue of licence 6. Foreign investors’ entitlement to business licence 7. Issue of business licence – business listed in section 13 8. Issue of business licence – business not listed in section 13 9. Renewal of business licences 10. Transfer of business licences 11. Reasons for decision 12. Appeal 13. Minister to approve or refuse applications in certain cases 14. Licence to be displayed 15. Licences lost or destroyed 16. Power of search 17. Confidentiality of information 18. Fees 18A. Certain businesses to pay fees quarterly 18B. Pro-rata payment of business licence fee 18C. Distrain for unpaid fee 19. General provisions 20. Revenue from fees 21. Abatement of fees 22. Reduction of fees 23. Penalties 24. Cancellation of licence 25. Rules 26. Repeal SCHEDULE 1 – Rates of business licence fee SCHEDULE 2 – Exemption from licences
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BUSINESS LICENCE
To provide for the licensing of businesses and for matters connected therewith. 1. Interpretation In this Act unless the context otherwise requires:
"approval certificate" means an approval certificate issued by the Vanuatu Investment Promotion Authority;
"business" means any lawful form of trade, commerce, profession, craftsmanship, calling or other activity carried on for the purpose of gain, provided that a person shall not be deemed to carry on a business in respect of which his sole gain is by way of salary or wages;
"Director" means the director of the department of Government responsible for the administration of business licences;
"employee" means an individual who works under a contract of employment whether written or oral and any related expression shall be construed accordingly;
"foreign investor" has the same meaning as in the Vanuatu Foreign Investment Promotion Act [Cap. 248];
"investment proposal" has the same meaning as in the Vanuatu Foreign Investment Promotion Act [Cap. 248];
"licensing authority" means a licensing authority referred to in section 3;
"Minister" means the Minister responsible for finance;
"negative list" means the list of activities in Schedule 1 of the Vanuatu Foreign Investment Promotion Act [Cap. 248];
"person" includes any company or association or body of persons corporate or unincorporated;
"premises" includes buildings, ships, vehicles or other places where a business is carried on, together with any place which constitutes a necessary annex to the principal place of business;
"proprietor" means the owner of a business or any natural person or corporation carrying on a business within Vanuatu or his or its own account, in association with others or on behalf of a person outside Vanuatu;
"reserved occupation" means an occupation declared under section 9 of the Labour (Work Permits) Act to be a reserved occupation.
"Vanuatu Investment Promotion Authority" means the Board established by the Vanuatu Foreign Investment Promotion Act [Cap. 248];
2. Business licence (1) Subject to the exemptions contained in Schedule 2, no person shall carry on a business without a licence issued under this Act. (2) Any person (other than a person exempted under Schedule 2) who carries on a business without a licence shall be guilty of an offence. Penalty: fine not exceeding VT 500,000 or imprisonment not exceeding 1 year or both. (3) Where a person is charged under this section with carrying on any business without a licence, the burden of proving that a licence was issued to him in respect of the current year shall be on that person. 3. Licensing authority (1) There shall for the purposes of this Act be the following licensing authorities:
(a) in respect of a municipality, the Minister;
(b) in respect of all other areas of Vanuatu, local government councils;
(c) in respect of business licences of the kind mentioned in sections 8, 9 and 10 – the Director.
(2) The Director may in writing delegate his or her functions to his or her subordinate, except his power of delegation. (3) The instrument of delegation must state:
(a) the functions delegated; and
(b) the period of the delegation.
(4) The following provisions apply to a delegation by the Director:
(a) the delegation may be made to a person by name or to the person holding, or performing the duties of, a specified office or position;
(b) the delegation may be made generally or limited as specified in the instrument of delegation;
(c) a function or power delegated, when performed by the delegate, is taken to have been performed by the Director;
(d) the delegation of a function does not prevent the Director from performing the function;
(e) if the function delegated requires the forming of an opinion by the Director, the function may be performed by the delegate on the delegate’s opinion.
4. Application for licences (1) Every application for the issue or renewal of a licence under this Act shall be made to the licensing authority in such form as may be prescribed by the Director. (2) Any person who, without reasonable cause for believing it to be true, makes, or aids and abets the making of any false statement in any application made under this section shall be guilty of an offence. Penalty: a fine not exceeding VT 500,000 or imprisonment not exceeding six (6) months or both. 5. Issue of licence (1) The issue or renewal of a licence under this Act shall be in the form prescribed by the Director. (2) A licence shall expire on the last day of December of the year of issue and may be renewed. (3) A renewal of a licence shall be for a period of one (1) year or for such shorter period as the Minister may, by notification in the Gazette, determine in respect of any particular business activity. 6. Foreign investors’ entitlement to business licence A foreign investor who has received an approval certificate from the Vanuatu Investment Promotion Authority for an investment proposal is entitled to be issued with the business licences specified in the certificate for the proposal. 7. Issue of business licence – business listed in section 13 (1) If a foreign investor:
(a) produces to the Minister an approval certificate that specifies a business licence for a business listed in section 13; and
(b) gives the Minister a completed application form; and
(c) pays the business licence fee payable for the licence, in accordance with section 18,
(d) the Minister must direct the Director to issue to the investor the business licences specified in the certificate.
(2) If:
(a) a person other than a foreign investor applies for a business licence for a business listed in section 13; and
(b) the person pays the business licence fee payable for the licence, in accordance with section 18; and
(c) if the applicant is not a citizen – the business does not involve an activity that is a reserved occupation; and
(d) the business does not involve an activity that is on the negative list;
(e) the Minister must direct the Director to issue the business licence to the person.
(3) The Minister must give the direction within seven (7) days after the foreign investor complies with subsection (1), or the person complies with subsection (2). (4) If the Minister does not within seven (7) days direct the issue or refusal of the licence:
(a) the Minister is taken to have approved the issue of the licence; and
(b) the Director must issue the licence.
(5) If the business licence involves a business situated in an area that is outside a municipality, references to the Director in this section are to be read as references to the local government council for the area. 8. Issue of business licence – business not listed in section 13 (1) If a foreign investor:
(a) produces to the Director an approval certificate that specifies a business licence for a business not listed in section 13; and
(b) gives the Director a completed application form; and
(c) pays the business licence fee payable for the licence in accordance with section 18;
(d) the Director must issue to the investor the licences specified in the certificate.
(2) If:
(a) a person, other than a foreign investor, applies for a business licence not listed in section 13; and
(b) the person pays the business licence fee payable for the licence in accordance with section 18; and
(c) the applicant is not a citizen and the business does not involve an activity that is a reserved occupation; and
(d) the business does not involve an activity that is on the negative list;
the Director must issue the business licence to the person. (3) The Director must issue the business licence within five (5) working days after the foreign investor complies with subsection (1), or the person complies with subsection (2). (4) If the business licence involves a business situated in an area that is outside a municipality, references to the Director in this section are to be read as references to the local government council for the area.
9. Renewal of business licences If a person (whether a foreign investor or not) to whom a business licence was issued under section 5, 6, 7 or 8;
(a) applies for the renewal of the licence; and
(b) pays the fee payable for the licence;
the Director or local government council, as the case requires, must renew the business licence. 10. Transfer of business licences (1) Subject to this section, a business licence may be transferred. (2) The holder of a business licence must give the Director or, if the licence was issued by a local government council, that council, notice that the holder proposes to transfer the licence. (3) The notice must state:
(a) the business licence number; and
(b) the name and address of the holder; and
(c) the location and nature of the business; and
(d) the name and address of the transferee; and
(e) the date of the transfer.
(4) The Director or the local government council concerned must:
(a) cancel the existing business licence; and
(b) issue a new business licence to the transferee on payment of the business licence fee, unless:
(i) to do so would result in the transferee having a monopoly of the business concerned in the area concerned, and the transferor did not have an existing monopoly; or
(ii) the transferee is a foreign investor who does not produce an approval certificate; or
(iii the transferee is not entitled to the business licence under this Act.
(5) However, the Director or local government council may issue the new business licence if:
(a) to do so would result in the transferee having a monopoly of the business concerned in the area concerned; but
(b) in the Director or council’s opinion the monopoly would not be detrimental to the public interest.
(6) The Director or local government council must issue the new business licence within seven (7) days of receiving the application and the fee.
11. Reasons for decision If:
(a) the Minister refuses to direct the Director or the local government council to issue a business licence; or
(b) the Director or the local government council refuses to issue, renew or transfer a business licence;
the Minister, Director or local government council, as the case requires, must:
(c) record the decision, and reasons for the decision, in writing; and
(d) send a copy of the decision and the reasons:
(i) to the applicant; and
(ii) if the applicant is a foreign investor – to the Vanuatu Investment Promotion Authority; and
(iii) if the applicant is a foreign investor for whom a local agent is acting – to the agent;
within seven (7) days of making the decision.
12. Appeal (1) A person may appeal to the Minister against a decision of the Director or local government council refusing to issue, renew or transfer a business licence. (2) The Minister must consider and decide the matter within 30 days. (3) The Minister must:
(a) record his or her decision, and the reasons for the decision in writing; and
(b) send a copy of the decision and the reasons to the person within seven (7) days of making the decision.
(4) A person may appeal to the Supreme Court against a decision of the Minister under section 7 or under subsections (2) and (3), refusing to direct the Director or local government council to issue, renew or transfer a business licence; (5) The Supreme Court has jurisdiction to hear and determine an appeal brought under this section. 13. Minister to approve or refuse applications in certain cases (1) Where an application is made to a local government council or the Director for the issue or renewal of a licence to which this section applies, the local government council or the Director shall refer such application to the Minister and shall grant or refuse the application as directed by the Minister. (2) In giving the direction, the Minister must act in accordance with sections 6 to 12. (3) This section applies to licences in respect of businesses in any of the following business activities: