The overhaul of outdated company laws is expected to make it easier for locals to conduct business in Vanuatu.
The Asian Development Bank, which has worked with a number of Pacific countries in this area, supported the drafting of the legislation.
Its Business Law Advisor Terry Reid says the government has passed a suite of laws which effectively gives Vanuatu a new company law framework that will make it more accessible for locals to operate in the private sector.
He says the old laws were cumbersome.
"Vanuatu was operating under a very old piece of legislation that certainly wasn't developed with their small island economy status in mind at the time and these new laws are now tailored to the needs to Vanuatu."
Terry Reid says changes include implementing an electronic registry which will make incorporating companies and updating information very quick.