If you are planning to start an international banking business, you will need to find a suitable jurisdiction where you can set up your company and obtain a banking license. Comoros is a destination where you can have both at once on convenient terms! The Banking Law adopted in the country on January 1, 2013, has turned it into an international business center with a high reputation in the global market that meets world standards and has all the best practices in place. International banking businesses can also take advantage of considerable tax incentives here, which makes the jurisdiction even more appealing to entrepreneurs from across the globe. You can read more on banking business in Comoros on a trusted portal or get in touch with an expert to book a free session.
Reasons to Opt for Comoros
Comoros, a small country in the Indian Ocean, is located between Mozambique and Madagascar. The archipelago off the African coast comprises three main islands: Anjouan, Moheli, and Grande Comore. The destination is known as a politically stable state with a robust financial sector whose strategic location makes it a point of attraction for entrepreneurs who wish to start a banking company.
Let’s look at the main benefits that make starting a company and obtaining a banking license in Comoros a worthy undertaking:
- You can save on licensing and registration costs. The fees to be paid for company registration and license acquisition in Comoros are not too high, making it a suitable option for those who want to set up a banking business without paying an exorbitant amount.
- You will definitely appreciate the pro-business legal environment. The legal system of Comoros is designed to support business in all respects and promote confidentiality. The country is focused on attracting more foreign investors and making its banking services available to more people.
- You can diversify your business across borders. Bank clients will have an opportunity to make payments to other jurisdictions and reduce possible geopolitical and investment risks.
- Privacy and security. The local banking sector has high standards with regard to the safety and confidentiality of its customers and the assets in their possession.
- An optimal package of financial services. Customers can choose the monetary services that serve best to achieve their goals and realize their strategies.
If you establish an offshore corporation in Comoros, you will not have to pay a capital gains tax or a corporate income tax. You will only have to pay taxes in Comoros if you earn income within the jurisdiction. Your profits generated abroad will be exempt from any taxes.
There is no currency control in Comoros, which means that you can freely move the capital in any currency in and out of the country. As a result, companies with a banking license can provide a wide range of services to customers across the world.
The owners of Comoros companies are not liable for corporate debts with their personal property.
Legal Framework
Comoros authorities have done their best to establish a business-friendly environment to make the country attractive for foreign investments and give a boost to economic growth. The legal framework elaborated to regulate its offshore banking sector ensures its stability and integrity. The banks that operate from Comoros are required to acquire a banking license as prescribed by the laws and keep it valid at all times.
The local regulators have elaborated a package of legal documents to control offshore banking activities that set out the procedures, requirements, and principles that the banks have to adhere to. Compliance is controlled by the Central Bank of the Comoros which protects the integrity and reputation of the local financial system.
Licensing Requirements
The company that seeks to obtain a Comoros banking license has to fulfill certain conditions and follow the regulations set out in official documents. The main requirements include the successful passing of a due diligence procedure, elaboration and submission of a realistic business plan, stating the registered capital, and proving the fact that your business is financially sound.
The company must have at least one director who has sufficient experience or qualifications in the banking industry. This will be the person (or several persons in case of multiple directors) that will keep in touch with the regulator and monitor the company’s adherence to the regulatory standards applicable in Comoros.
The local banking industry is well-regulated to ensure the transparency required by international regulators and prevent unlawful activities. For example, all companies that have a license are required to follow KYC/AML procedures.
Acquiring a Banking License: Terms and Conditions
The banking license remains valid until the date specified on the back of the document or until the licensee discontinues its registration in Anjouan, whichever is earlier. The island’s Offshore Finance Authority has the right to cancel it at any time if it has a good reason to do so.
Here is a list of activities that license holders can engage in:
- Carry out deposit operations with individuals and legal entities
- Engage in foreign exchange transactions
- Trade, manage, and store securities
- Provide bank guarantees
- Act as a holder of stocks, bonds, precious metals, capital, assets, or other financial instruments for third parties.
- Act as concessionaires, promoters, and financiers.
- Engage in e-commerce activities.
- Conduct agency, developmental, operational, trading, industrial, commercial, and financial activities.
- Set up accounts and process payments for individuals and legal entities.
- Fund patent holders, inventors, and concessionaires.
- Act as intermediaries in securities trading.
- Advance money to any entities with security or without it.
- Issue credit cards and securities.
- Grant credits and loans to individuals and legal entities
If the events listed below ever occur, the license will be automatically revoked without prior notice:
- The company fails to pay the annual license fee.
- The company is engaged in air/marine transport insurance or gambling business without a proper license.
- The company is conducting any activity that is prohibited by any law effective in Anjouan.
Your license may be revoked for any other reason under the current laws of Comoros.
Service Fees
Here are the fees payable if you want to establish a company and acquire a banking license in Comoros:
- Class A license (general license): 69,000 euros
- Class B license (limited license): 49,000 euros
- Registration fee: 9,750 euros
Please follow the above link to see what fees may be applicable to the company or discuss your needs with a professional.
