Doing Business in India VS Vanuatu – A Comparison
Entrepreneurs and investors often face the challenging decision of choosing between India and Vanuatu as their preferred business destination. Both countries offer unique opportunities that cater to different business needs. While India stands out for its competitive landscape, high quality of life, and lower costs for setting up smaller businesses, Vanuatu is known for its tax-friendly policies and ease of doing business. This article explores the key factors that differentiate these two nations to help you make an informed decision.
Key Comparison Points
Business Environment
- India: India boasts a stable political environment and a robust legal framework, complemented by government initiatives like Make in India to attract foreign investment.
- Vanuatu: Vanuatu offers a pro-business regulatory environment with minimal bureaucracy, making it easier for entrepreneurs to establish operations.
Taxation
- India: Corporate tax rates in India are 22% for most businesses and 15% for new manufacturing companies, with various tax incentives for startups.
- Vanuatu: Vanuatu has no corporate tax, making it an attractive destination for businesses looking to minimize tax liabilities.
Ease of Company Incorporation
- India: India has streamlined its incorporation process with digital infrastructure and regulatory reforms, but compliance can still be time-consuming.
- Vanuatu: Vanuatu offers a straightforward and quick incorporation process with minimal regulatory hurdles.
Cost of Living and Business Operations
- India: India provides affordable operational costs, including office space and living expenses, making it ideal for small and medium enterprises.
- Vanuatu: While operational costs in Vanuatu are higher compared to India, the absence of corporate taxes offsets some expenses.
Access to Markets
- India: India’s strategic location and trade agreements provide businesses with access to both domestic and international markets.
- Vanuatu: Vanuatu’s remote location limits global connectivity, but it serves as a gateway to the Pacific markets.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference:
Factor |
India |
Vanuatu |
Business Environment |
Stable political and legal framework |
Pro-business regulatory environment |
Corporate Tax Rate |
22% (15% for new manufacturing companies) |
0% |
Capital Gains Tax |
Applicable |
Not applicable |
Ease of Incorporation |
Streamlined but time-consuming |
Quick and straightforward |
Business Costs |
Low operational costs |
Moderate to high operational costs |
Market Access |
Strategic location with global connectivity |
Gateway to Pacific markets |

Benefits of Choosing 3E Accounting
When navigating the complexities of doing business in India or Vanuatu, partnering with a reliable corporate service provider like 3E Accounting can make all the difference. With expertise in starting a business in India, a step-by-step guide to India company registration, and India company incorporation, 3E Accounting ensures a seamless setup process tailored to your needs. For company setup or any other assistance, feel free to contact us. Choose 3E Accounting for a hassle-free experience and focus on growing your business with confidence.
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Frequently Asked Questions
India is generally the better choice for entrepreneurs seeking low-cost operations. With its affordable office spaces, labor, and living expenses, it is ideal for startups and SMEs. For more insights on starting a business in India, check out our comprehensive guide.
India imposes a corporate tax rate of 22% for most companies and 15% for new manufacturing firms, while Vanuatu has no corporate tax at all. This makes Vanuatu attractive for those prioritizing tax efficiency.
Vanuatu offers a quick and straightforward incorporation process with minimal regulatory hurdles. In contrast, India has made strides in digitalizing the process, but India company incorporation still involves more compliance steps.
India provides better access to global markets due to its strategic location and strong trade agreements. Vanuatu, while connected to Pacific markets, is relatively remote.
Yes, India has capital gains taxes, while Vanuatu does not impose any, making it more attractive for capital-intensive businesses.
To discuss your specific business needs and receive expert guidance, feel free to contact 3E Accounting. Our team will be happy to assist with our services tailored to your goals.
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.