Forex license in the Comoros Islands
Forex license in Comoros islands attracts businesses due to minimal costs, no income taxes, and simplified registration. Gofaizen & Sherle provides full support, offering a turnkey solution for remote forex licensing in as little as 4-6 weeks.
The Comoros Islands, located in the Indian Ocean, is a favorable jurisdiction for the registration of financial companies. Simplified licensing rules and the absence of income tax create comfortable conditions for business development. Licensing is controlled by the Ministry of Finance and Budget, which guarantees compliance with legal regulations and stability.
Forex license in the Comoros islands allows companies to provide services globally, attract clients from different regions, and avoid tax complexities. However, compliance with AML and CFT requirements and regular reporting remain mandatory.
There are restrictions. Due to the high legal requirements in highly regulated countries such as the US, Canada, and the EU, it is prohibited to serve clients from these regions without complying with their requirements.
Comoros offers a favorable opportunity for internationally oriented forex brokers. This solution combines affordability and compliance with modern requirements.
Advantages of the Comoros Forex License
Adaptable regulatory framework
The Comoros regulatory framework strikes a balance between compliance and flexibility, allowing companies to quickly adapt to global financial changes. This approach encourages innovation and helps companies effectively address emerging markets.
Cost-effective licensing process
Obtaining a forex license in Comoros is fast and affordable. With minimal capital requirements and simplified procedures, the jurisdiction is particularly attractive to new companies looking to enter the forex industry.
Attractive tax advantages
The forex market in Anjouan does not have a list of banned countries, allowing a wide range of participants to trade. However, it is important for companies to strictly comply with international regulations.
Stable legal environment
Forex companies enjoy tax benefits including the absence of corporate income tax, VAT, and capital gains tax. These favorable conditions significantly reduce operating costs and increase the profitability of the business.
Free movement of capital
Unlike many other jurisdictions, Comoros does not impose any restrictions on the movement of funds. This freedom eliminates additional transaction costs and provides unimpeded access to global financial markets.
Simplified compliance requirements
The regulatory system in Comoros is characterized by simplicity and reduced administrative burdens. This allows companies to devote more resources to development and customer satisfaction rather than compliance.
Wide range of services
The Comoros Forex license covers a wide range of activities including cryptocurrency trading, equity trading, futures, precious metals, and asset management. This allows companies to diversify their services and expand internationally.
Requirements for obtaining the Comoros Islands Forex License
- Companies applying for the Forex License must be registered in the Comoros Islands, including opening a local office to perform administrative and regulatory functions.
- The regulator requires a minimum capital requirement of about 24 million KMF (about US$54,000), depending on the size of the business and the type of license.
- Companies are required to implement strict AML/CFT procedures, including customer identification through Know Your Customer (KYC) practices, transaction monitoring, and risk assessment.
- Customer funds must be protected by keeping them in segregated accounts and preventing them from being used for operational activities.
- Companies should maintain accurate records of all financial transactions, submit regular reports to the regulator, and undergo independent audits.
- Effective mechanisms should be in place to ensure that disputes between the company and its customers are resolved fairly and impartially.
- Directors and key personnel must be vetted for qualifications, reputation, and absence of criminal records.
- A one-time application fee of KMF 1.9 million (about US$4,000) and an annual maintenance fee of KMF 1.2 million (about US$2,500) are required.
- Companies must implement risk management systems, including hedging techniques, risk limits, and liquidity measures to meet customer obligations.
- Licensees must comply with local and international standards, ensuring transparency and operational stability.
Process and timeline for obtaining a Forex license in the Comoros islands
Obtaining a forex license involves several steps, from document preparation to regulatory review and approval:
Company Registration
Step 1
Before applying for a forex license, it is necessary to register the company in the Comoros Islands. To do this, the company’s articles of association, memorandum of association, and proof of registered office must be prepared. In addition, the company must open a local office to carry out administrative and regulatory functions.
Prepare the documents
Step 2
An extensive set of documents is required to be gathered for the application. This includes:
- A full business plan describing the forex strategy, trading methods, risk management, and client attraction.
- Copies of passports of the founders, directors, and key employees.
- Financial documents confirming the availability of minimum capital (about 50,000 USD) and the stability of the company.
- Detailed information on ownership shares, including data on beneficial owners.
- Documents confirming compliance with AML/CFT requirements.
Develop compliance procedures
Step 3
The company must submit anti-money laundering (AML) and counter-terrorist financing (CFT) guidelines and policies. These procedures should include customer identification systems (KYC), transaction monitoring, and risk prevention measures.
Payment of fees
Step 4
All set fees must be paid before submitting your application. This includes a one-time registration fee (about 4,000 USD) and an annual fee to maintain the Forex license in the Comoros islands costing about 2,500 USD.
Filing the application
Step 5
The application is submitted to the regulator along with the documents prepared. This includes plans to protect client funds, risk management strategies, proof of payment of fees, and details of technology infrastructure including trading platforms and cyber security measures.
Regulator review
Step 6
The regulator conducts a thorough review of the data submitted. This step includes analyzing the business plan, reviewing the qualifications and reputation of the directors, AML/CFT compliance, and financial stability. Additional documents may be requested if necessary.
Approval and issuance of the license
Step 7
Upon successful completion of the review, a license is issued for a specified period, usually one year with the possibility of renewal. The application process takes between 2 and 4 weeks, making Comoros one of the fastest jurisdictions to obtain a license.
Post-license obligations
Step 8
Once licensed, the company is required to comply with local and international standards. This includes regular financial reporting, maintaining AML/CFT procedures, and protecting client assets.
Request more information about Forex license in Comoros
Types of Comoros forex licenses
Offshore forex license
Designed for companies that target international clients and plan to provide services outside the Union of Comoros. This license focuses primarily on clients from other countries, making it an ideal choice for companies seeking international reach. The regulatory requirements for obtaining it are minimal compared to a land-based license, simplifying the application process and reducing the administrative burden.
The license features affordable processing costs and provides the ability to:
- offer a wide range of services, including forex brokerage,
- futures trading and contracts for difference (CFDs),
- adapt their business models to the requirements of the international market, providing freedom in the choice of strategies and products for their clients.
The offshore license is most often issued by MISA in Moheli and is recognized by international banks, ensuring ease of financial transactions and good banking relationships.
Onshore forex license
Designed for companies focused on clients within the Union of Comoros or on a specific island. The license allows to serve local and regional clients, creating a strong base in the local market. To obtain one, more stringent regulatory requirements must be met, including additional inspections and strict adherence to local regulations.
A land-based license provides the opportunity to:
- strengthen presence in the local market,
- focus on serving clients residing in Comoros, which helps build long-term and trusting relationships.
This license is often issued by AOFA in Anjouan and includes the right to provide clearing and settlement services. It allows businesses to not only execute transactions but also handle their final settlement and transfer of assets.
The choice of license depends on your business goals and strategies. An offshore license is suitable for international reach and cost reduction, while an onshore license is suitable for strengthening your local market position. Consulting with Gofaizen & Sherle experts can help you choose the best option to meet the unique needs of your business.
Open a Forex Company in the Comoros Forex License
Company registration in Comoros is a simplified process that can be completed in 2-4 weeks. One of the most popular formats for international business is the International Business Company (IBC), characterized by flexibility, minimal reporting requirements, high confidentiality, and tax benefits for non-resident owners.
-
Choosing a company name
Check the availability of the desired name in the state registry and make sure the name complies with local regulations.
-
Appointing a registered agent
Hire a local registered agent to represent your company and interact with regulators. Note that the registered agent must be approved by the regulator.
-
Preparation of documentation
Prepare the following mandatory documents:
- Memorandum of Association and Articles of Association of the company.
- Notarized copies of passports of all shareholders and directors.
- Proof of address of each shareholder and director.
- A comprehensive business plan describing the company’s objectives, operating strategies, and risk management.
- Documents confirming the availability of minimum capital (50,000 USD).
- Registered agent information.
- AML/CFT compliance documents.
-
Payment of registration fees
Pay the prescribed registration fees as required by the registration authority of the selected island.
-
Filing of documents
Send the complete set of documents through the registered agent to the respective registrar of companies. Once the documents are filed, expect the certificate of incorporation.
-
Obtaining a Forex license in the Comoros Islands
Once the company is incorporated, apply for a forex license from the regulatory authority. Make sure that all the additional requirements for the license are met.
-
Opening a bank account
Set up a corporate account with a local or international bank to manage the company’s finances, execute transactions, and confirm financial stability.
-
Register with the tax authorities
Register the company with the local tax office to comply with tax obligations.
Find more information about Forex license in the Comoros islands
Regulation of Forex license in the Comoros islands
Comoros is a unique jurisdiction for licensing forex companies, providing a wide range of options due to the autonomy of each of the three islands: Moheli, Anjouan, and Grande Comore. These islands have their constitutions, regulatory bodies, and licensing rules, allowing companies to choose the most appropriate option for their business goals.
The main regulatory bodies are:
MISA (Mohéli International Services Authority)
On the island of Mohéli, forex companies are licensed and supervised by MISA. This authority is known for its lenient approach to regulation, minimal legal requirements, and fast licensing process, making it a popular choice for forex startups.
AOFA (Anjouan Offshore Finance Authority)
On the island of Anjouan, offshore finance is administered by the AOFA. This authority regulates financial companies with a focus on preventing financial crime, protecting customer funds, and ensuring transparency. Anjouan has already established itself as an offshore financial center with a well-developed infrastructure and a fast licensing process.
Central Bank of Comoros
The central bank plays a key role in maintaining the stability of the country’s financial system. It regulates banking and non-banking financial institutions, including brokerage firms, and monitors compliance with capital and risk management regulations.
DNMF (National Directorate of Financial Markets)
This body is responsible for regulating financial markets, including the Forex market. DNMF supervises and licenses financial institutions, monitors the rights of market participants, and ensures fair competition.
SICAF (Internal Control and Audit Service)
SICAF is responsible for internal control and audit of all financial institutions, including forex companies. Its task is to ensure transparency and compliance with local legislation.
Key laws and regulations:
- Anti-Money Laundering and Countering the Financing of Terrorism Act (AML/CFT)
All companies must comply with strict customer identification (KYC), transaction monitoring, and financial crime prevention requirements. - Client Money Protection Act
Includes mandatory segregation of client funds from the company’s operating accounts, which ensures that assets are safeguarded in the event of a company’s insolvency. - Financial Reporting Act
Requires forex companies to maintain proper accounting records, file regular financial reports with regulators, and undergo independent audits. - Transparency and Dispute Resolution Act
Requires the establishment of mechanisms for fair and impartial resolution of conflicts between clients and companies.
Taxation for Forex companies in Comoros islands
The Comoros Islands offer a favorable tax regime for Forex License holders based on a flexible system oriented towards attracting investment. The local tax system is based on the French model and includes several business incentives, especially for foreign companies operating in international markets.
Corporate tax
- The corporate tax rate for companies operating locally is 35-50%.
- Reduced rate from 5% to 15% – incentives for export-oriented companies or those registered in special economic zones.
- Income earned outside the country is not taxed, which is beneficial for forex companies operating internationally.
Value Added Tax (VAT)
- The standard rate is 10%.
- Goods and services of social importance are taxed at the rate of 0-5%, while luxury goods are taxed at an increased rate of 15%.
- VAT exemption is provided for export-oriented companies.
New companies operating in priority sectors, including forex, can benefit from tax vacations. The income tax rate may be reduced to 10% for the first five years and to 15% for the next ten years. Additionally, there is an exemption from customs duties on equipment and raw materials used for business operations, which allows for a significant reduction in start-up costs. Companies also have the opportunity to carry forward losses incurred in previous years to reduce tax liabilities in the future. This measure allows for more efficient management of financial flows and optimization of tax costs.
Tax liabilities:
- Companies are required to register with the General Directorate of Taxes at the Ministry of Finance.
- The tax year coincides with the calendar year and runs from January 1 to December 31.
- The deadline for filing returns is March 31 of the following year.
- Companies are required to maintain financial records by international standards.
Conclusion
Comoros offers opportunities for forex companies through flexible regulation, competitive tax conditions, and a transparent licensing process.
The unique structure of the jurisdiction, where each island has its own rules and regulatory bodies, allows you to choose the most suitable conditions for your specific business goals. Obtaining a forex license is a fast and efficient process that is suitable for both start-ups and established companies seeking to enter the international market. The cost of the license remains affordable, making the jurisdiction particularly attractive to foreign investors.
Choosing this jurisdiction is becoming an increasingly popular decision for companies focused on flexibility and profitability. Gofaizen & Sherle provides a full range of services for obtaining a Forex license in the Comoros islands. Our team will help you choose the right jurisdiction, prepare documents, organize the company registration process, open bank accounts, and interact with local authorities including MISA and AOFA, as well as take advantage of available tax incentives.
FAQ about Forex license in the Comoros islands
How do I get a Forex License in the Comoros islands?
To obtain a Forex license in the Comoros Islands, you will need to set up a company, prepare the necessary documents (including a business plan and proof of sufficient capital), and apply through a registered agent to the relevant regulatory authority. You will also need to pay the necessary fees and undergo due diligence.
How long does it take to obtain a Forex license in the Comoros islands?
Generally, the process of obtaining a license takes between 2 and 4 weeks. The length of time depends on how well-prepared the submitted documents are and the speed of processing by the relevant regulatory body.
How much does it cost to get a Forex license in the Comoros Islands?
The cost depends on the type of company. It usually includes the application fee, annual license renewal, and the cost of services provided by the registered agent handling your business.
How do I apply for a Forex license in the Comoros Islands?
You will apply through a registered agent who will ensure compliance with local requirements. You will need to submit a comprehensive business plan, articles of incorporation, proof of capital, and other required documents.
What activities does the Comoros Islands Forex License cover?
This license allows companies to offer services such as forex brokerage, foreign exchange trading, futures contracts, CFDs, and other financial transactions to both local and international clients.
Is a bank account required to obtain a forex license in the Comoros Islands?
Yes, a bank account is required. It is required to manage the financial operations of the company and to demonstrate compliance with the minimum capital requirements set by the regulatory authorities.
Explore other Forex Licenses
Connect with our experts
Our experts will tell you how to do it as quickly and easily as possible.
By clicking the button, I confirm that I have read the privacy policy and consent to the collection and processing of my personal data in accordance with the GDPR rules.
to our news & insights