Obtain a banking license in Comoros

02.01.2025

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Obtain a banking license in Comoros much simpler and more accessible than you might imagine. This small but promising jurisdiction offers unique conditions in 2024 for businessmen and start-ups seeking to enter the global financial market. With minimal costs and flexible regulation, Comoros is a real boon for those who want to start a banking business with minimal risks.

What is a banking license?

Intercontinental banking sanction class B — authorization for the execution of fiscal operations, which is an extraterritorial sanction conferred by the Extraterritorial Finance Directorate. This sanction furnishes a comprehensive array of monetary entitlements and prospects to extend any pecuniary provisions beyond the Dominion of Comoros. Sanctioning is an obligatory phase for any fiscal entity aspiring to perform legitimate financial operations and affirms that the financial institution adheres to codified legal and pecuniary stipulations designed to safeguard the welfare of depositors and additional clientele.

Benefits of obtaining a banking license in Comoros

Banking license in Comoros combines cost-effectiveness, flexibility and a reliable legal framework, which makes this country attractive for international financial business.

At present, the Union of Comoros persists as one of the pivotal territories for those in quest of adaptable circumstances for procuring a banking charter. Recent legislative endeavors are directed at augmenting the translucency of fiscal exchanges and enticing global entities to the nation's monetary arena. In 2024, the Comorian authorities instituted a series of actions aimed at fortifying its renown as a cosmopolitan financial nexus. Among the principal transformations are the intensification of directives to counteract illicit pecuniary cleansing and the funding of insurgent enterprises. Such actions enable the nation to endure among the auspicious enclaves with favorable levying protocols.

The relevance of this topic is also due to the increasing demand for financial and technological solutions, especially in the field of international payments and digital banking. Thanks to this, the Comoros Islands are becoming an increasingly promising alternative to traditional offshore centers.

Tax benefits

One of the key factors attracting entrepreneurs is Comoros tax system. Offshore banks, registered here, are exempt from most taxes, including income and profit taxes, which allows you to significantly reduce operating costs. This makes Comoros attractive to international financial institutions that want to avoid high tax rates in other countries.

Loyal regulation

Comoros offers a friendly and flexible legal environment for financial institutions, making it one of the most attractive locations for obtaining a banking license. Local legislation allows operations to be carried out with minimal bureaucratic barriers, and regulators are focused on creating standards under which banks can freely develop their activities.

Flexibility in international operations

Having received a license in the Comoros Islands, the bank gets the opportunity to work with clients around the world. Local legislation provides opportunities for conducting international transactions, including cross-border transfers, issuing loans, asset management and other services. Moreover, the absence of strict restrictions on working with clients from different countries allows banks to provide profitable financial products, which attracts enterprises engaged in international trade and investment.

Confidentiality and protection of customer data

Another important advantage obtaining a banking license in Comoros — high level of confidentiality and data protection. The government proposes strict rules regarding the non-disclosure of information about bank owners and clients. Banking secrecy is protected at the legislative level, which minimizes the risk of disclosure of information to third parties. This is especially important for wealthy clients and companies that seek to protect their assets from potential risks and control from foreign jurisdictions.

Prospects for the development of the financial services sector in the Republic of Comoros

Prospects for the development of the financial services sector in the Republic of Comoros are changing due to a number of factors that stimulate growth and attract the attention of both the international economy and local entrepreneurs.

Liberalization and reform legislation

In recent years, the state government has been making efforts to simplify and develop the regulatory framework in the financial sector. In particular, attention is paid to creating offshore financial centers and expanding opportunities to attract foreign capital. In 2024, the country continues to develop regulatory frameworks to ensure more transparent and secure business practices, leading to the expansion of digital finance businesses.

Benefits for offshore banks and financial institutions

Financial sector KOmor Islands is actively developing due to attractive conditions for foreign companies, including low taxes and simplified registration. Offshore banks in Anjouan, one of the islands of the republic, have the opportunity to develop bank loans with high capital requirements and no obligation to open a physical office on the island. According to research, global demand for offshore services in Comoros growing by 5-6% per year.

Support for digital financial technologies

Financial technology is becoming an important part of the global economy and the economy of the Comoros, and also contributes to the development fintech industry. The government is considering ways to create a regulatory framework that will support digital financial services, as long as it provides the necessary protections for customers. In conditions of limited employment and low levels of accessibility of traditional banking services for the population, the introduction of mobile payment systems and electronic wallets can become a key factor in increasing financial inclusion. Using the World Bank in Africa, mobile payments reach up to 70% of the population, and this example shows that innovative fintech solutions can improve financial inclusion in Comoros.

Cooperation with international international organizations.

Comoros actively cooperates with international organizations such as the World Bank and the International Monetary Fund, which contribute to the influx of investment and the development of the financial industry. The support of international organizations helps strengthen the country's financial system, introduce new standards and risk management. The country plans to implement a financial investment program to improve the availability of monetary services for the population, especially in conditions of instability.

Development of the internal capital market

Another area of growth is the creation and development internal capital market. Despite its low economic growth, Comoros is committed to this to provide its citizens and companies with more investment opportunities and access to capital. The government is exploring opportunities to launch exchange platforms and attract local and international companies to list stocks and bonds. The combined initiatives helped support long-term economic growth and create a new source of capital investment for businesses.

Diversification of financial services

State focuses on diversifying its financial services to maintain its reputation among both local and international clients. Introduction of modern services such as digital bank accounts, provides cyclical transfers with outstanding commissions, microfinance and insurance products, helps stimulate the demands of different groups of consumers, especially small ones.

Establishing positions in international financial markets

In the context of augmenting pecuniary currents, the Republic of Comoros is diligently striving to establish laissez-faire trade circumstances, thereby enabling the nation to emerge as a steadfast confederate for the global economy. Fiscal undertakings with an elevated degree of accountability, tax inducements, and ameliorated stipulations render the jurisdiction an elective for monetary establishments in quest of adaptable terms for conducting commerce.

Legal regulation of the banking sector in Comoros

Banking services in the Comoros are governed by statutory decrees and edicts designed to uphold the steadfastness and dependability of the nation’s fiscal apparatus. The principal entity tasked with supervision and monetary regulation is the Central Bank of the Comoros.

All monetary establishments tendering to furnish fiduciary amenities in Comoros, may procure a permit from the BCC. The cessation procedure encompasses a scrupulous examination of pecuniary fortitude, benevolence, and adherence to prescribed stipulations.

The Central Bank further administers supplementary perpetual oversight over fiduciary entities, performs scrutinizations and assessments, and may impose fitting penalties if transgressions are discerned. Noteworthy emphasis is directed towards counteracting money obfuscation and fiscal extremism.

Municipal statutes also stipulate for patron safeguarding, which guarantees that monetary services are elucidated, clientele are handled equitably, and their pursuits are shielded. The entire juridical framework of the Republic of Comoros endeavors to adhere to global norms and optimal methods of fiscal governance, which cultivates auspicious circumstances for drawing external capital and advancing the nation’s economic domain.

The process of obtaining a banking license in the Comoros Islands

The procedure for acquiring a financial charter in Comoros is characterized by an expeditious course owing to the lack of administrative entanglements, which accelerates the inscription and ratification progression. A charter can be conferred at the earliest opportunity if all criteria are fulfilled.

Petition for acquiring a banking concession tendered to the Offshore Monetary Bureau subsequent to enrolling the enterprise as an International Business Company (IBC) and finalizing the document furnished by the Custodian of Overseas Trade.

Required documents to obtain a banking license in Comoros

Among the requisite parchments for procuring a financial franchise — an articulated business schema for the enterprise, which must encompass an explication of prospective fiscal undertakings, a roster of nations in which operations are anticipated, the proportion of equity holder proprietorship and particulars about the ultimate recipients.

The petition is supplemented by curricula vitae of all overseers, which denote their credentials and vocational background, as well as communicative details of proprietors.

For individuals

An authenticated replica of a passport, chauffeur's permit, or national identification card exhibiting appellation, natal date and locality, citizenship, possessor's autograph, and the issuance or termination date of the document. The certification may be executed by a financier, solicitor, actuary, public notary, or comptroller possessing a validated vocational credential.
Verification of domicile, such as a service invoice or financial statement, is likewise mandated.
Genuine fiscal certificate.

For legal entities (corporations and partnerships)

Charter of establishment or memorandum of incorporation, such as articles of association or partnership covenant. Documents must be authenticated by a competent authority with proficient credentials.
Original financial attestation.
A verified replica of the most recent audited fiscal statements or annual dossier.
Affidavit of Compliance with Standing.
A compendium of shareholders possessing 5% or greater of the voting equities, along with a catalogue of executives and a diagrammatic representation of the corporate hierarchy.
Verified reproduction of a resolution from the directorial council that empowers its managers, officers, or staff to execute commercial undertakings on its behalf.

Each stockholder's scrutiny necessitates the disbursement of a customary charge, which fluctuates contingent upon the stockholder's nation of domicile. This charge is irrevocable even if the permit is declined.

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Tax regime if you have a banking permit in the Comoros Islands

National tax and transfer pricing rate

Basic Comoros national tax rate is 35%. However, for companies whose turnover is 500,000,000 Comorian francs (1,104,970 USD), the rate increases to 50%. This applies to government agencies of an industrial and commercial nature, as well as enterprises organized as joint stock companies, where capital management is carried out entirely within the state or local government. Tax policy of the Republic of Comoros is focused on tighter control and increased tax behavior on the part of state government and commercial structures.

To international companies with branches in Comoros, a special transfer pricing procedure applies. Under this rule, profits that result in subsidiaries or losses of firms abroad through changes in prices or other transactions are included in assets that are subject to taxation. tax on Comoros. This avoids results due to territorial jurisdiction and ensures a fair tax burden.

Flat tax

In the state There is a system of fixed minimum tax, which cannot be lower than 1% of the company’s annual turnover. This tax determination is calculated on the basis of the total turnover for the previous financial year, which includes all transactions carried out within the main activity of the organization. For firms whose head offices are located outside the Comoros Islands, a higher, more minimal rate of 3% of the turnover achieved within the country applies. This rule is aimed at supporting tax revenues from companies with foreign participation.

Taxes on income from movable property

If a company receives income from movable property, then the tax can be reduced by the amount of withholding tax already paid on that income. However, this rule does not apply to enterprises receiving income under the scheme of parent and subsidiary companies.

Monitoring and control if you have a banking license in the Comoros Islands

Activities of banking institutions with licenses in Comoros, are overseen by regulators such as the Central Bank of the Comoros and the Anjouan Offshore Finance Authority. They ensure compliance with international standards and financial regulations, ensuring sustainability and transparency offshore financial banks, registered in the jurisdiction.

Key Aspects bank regulation in Comoros:

Prudential controls

Comoros Regulators require compliance with standards aimed at maintaining financial stability. Banks are required to comply with prudential norms such as increased capital, adequate capital and liquidity ratios. These requirements help reduce operational and credit risks, as well as ensure that a high level of stability is maintained.

Financial reporting

Registered banks in Comoros provide annual financial reports to the Anjouan Offshore Fund Authority and the Central Bank of the Comoros. Reports should include information on the balance sheet, operating activities and capitalization, which allows you to monitor the financial condition of the enterprise and assess its compliance with established rules.

Requirements for combating money laundering and financial terrorism

One of the main aspects of supervision is compliance with requirements to combat illicit financial transactions and sponsorship of terrorist activities. To achieve this, banks are implementing customer identification policies and monitoring suspicious activities. Such measures include obligations to inform Comoros regulatory authorities about suspicious transactions and take active measures to prevent the use of banking services for illegal purposes.

Compliance and control within Latin America

Banks located in Comoros Maintain the protection of the internal control system, including compliance procedures to verify compliance with regulatory requirements and compliance with security standards. Regulatory authorities regularly check the quality and effectiveness of such systems, which makes it possible to identify violations and prevent possible risks. Internal control also includes auditing operations and compliance with standards designed to protect the interests of clients.

Periodic inspections and audits

Regulators of the Republic of Comoros Conduct regular analyzes of financial institutions, including documentary and police checks. Such procedures occur both on a planned basis and unscheduled in the event of presence or suspicion of improper activity.

Public Disclosure

Banks are required to comply with transparency requirements and disclose information related to their financial condition and compliance with regulations. This allows clients and investors to receive reliable data about the activities of the enterprise and assess the level of its reliability.

Grounds for revocation of a banking license

Cancellation of a banking license in the Comoros Islands may occur without prior notice if the firm commits violations. The license remains valid as long as the business maintains its status as a registered organization in Anjouan and complies with all required regulations.

License for banking activities in the Republic of Comoros may be canceled in the following cases.

The company carried out activities that are prohibited or contrary to current laws or regulations of Anjouan.
The company, except for cases permitted by law, conducts business or owns real estate in the territory of the state. This restriction does not apply to situations where a company rents office space in Anjouan to conduct business.
When a business has less than one shareholder at any time.
The organization carries out an open subscription for its shares.

Escort in the process of obtaining a banking license in the Comoros

Algorithm obtaining a banking license in the Comoros Islands requires not only an understanding of local legal requirements, but also detailed knowledge of the specifics of regulatory standards and procedures. Support from professional consultants at this stage is an important part of obtaining licenses, speeding up the process, reducing risks and minimizing costs.

What role do professional consultants play?

Professional consultants specializing in registration of offshore agreements, provide assistance at every stage of the process. They help collect and verify the necessary documents, such as the company's constituent documents, business plan, proof of financial solvency, bank recommendations for shareholders and executives. Consultants are also involved in the development of a business plan, which should support complete information about the proposed activities, target markets and risk management strategy.

Specialists who have experience working with banking sector of Comoros, often use connections that can speed up the process. Taking into account the peculiarities of interaction with OFA, they submit documents most efficiently to minimize delays.

Conclusion

The Republic of Comoros creates attractive conditions for companies wishing to withdraw banking activities in international offshore jurisdiction. Depending on your goals - global ambitions or strengthening your position in the region - the state offers solutions for any scenario.

However for obtaining a banking license in the Comoros An integrated approach is important: attention to legal details, careful preparation of documentation and compliance with all requirements of the local regulator. Turning to professional consultants ensures risk minimization, confidence and support at every stage of the process and helps to effectively realize business goals in the international arena.