Company Registration
2 Weeks
Local Director?
Yes
Bank Account Opening
4 Weeks
Travel Required?
No
Comoros Forex License
- An offshore regulatory option for Forex brokers is provided by the Comoros Forex License, which offers minimal compliance requirements for businesses operating globally. The Ministry of Finance has issued the Comoros Forex License under the International Companies Act and ensures that Forex brokers can seamlessly execute international trades while adhering to minimum AML/KYC requirements.
- The tax environment in Comoros is exceptionally attractive for offshore forex companies. Comoros does not impose a corporate tax on profits from offshore forex trading, and there is no capital gains tax. Furthermore, the VAT is at 10%, which provides a significant advantage for companies operating in a US$7.5 trillion global forex market, as mentioned by the Bank for International Settlements Triennial Survey 2022. The attractiveness of Comoros as an offshore jurisdiction continues to grow due to the increased demand for flexible licensing, as reported by Global Law Experts in their studies on new financial hubs. To qualify for a Comoros Forex License, a business must register with the government in Comoros as a legal entity, establish a local office, and have a comprehensive business plan that outlines its compliance policies.
- Tetra Consultants provides an end-to-end solution for clients looking to establish their forex operations in Comoros, including company formation and document preparation, working with the Comoros regulators, and ongoing compliance assistance.
Benefits of the Comoros Forex License
Access to global markets
- The Forex License in Comoros allows brokers to operate internationally without any geographical limitations. It allows brokers to participate in the 7.5 trillion daily Forex market and continue to grow their businesses without being bound by geographic restrictions. Additionally, the status of being an offshore company will add additional credibility for brokers and provide the opportunity to operate from multiple jurisdictions, which has been indicated in various Global Law Experts reports on new financial centers and emerging hubs of finance around the world.
Favourable tax regime
- The corporate tax regime in Comoros has the following favourable characteristics for offshore companies and brokers a zero corporate tax rate, no capital gains tax, 10% VAT rate. These characteristics significantly increase the profits generated by brokers. The tax efficiency, as indicated in the offshore financial index, allows brokers to retain more of their profits than brokers who operate in high-tax jurisdictions.
The flexibility of regulations
- The Ministry of Finance provides a very lenient regulatory framework that places minimal reporting requirements on companies operating in Comoros, allowing companies to operate in a very agile manner and without excessive reporting and compliance obligations. Therefore, the regulatory flexibility of Comoros is ideal for start-up businesses as well as established brokerages that want to be able to innovate without excessive regulatory oversight.
Simplicity in operations
- Once a broker has obtained a Forex License to operate in Comoros, there are no currency restrictions that bind them, and they can provide a broad range of services, including forex trading, contracts for difference, and derivatives trading. The straightforward nature of the operational rules of Comoros has made it very easy for a broker with a Forex License in Comoros to expand their business, as indicated in various industry-based reports.
Privacy improvement and political stability
- Comoros has a law that ensures that all client transactions and client records are kept confidential, in addition to being politically stable in the Indian Ocean region. These characteristics provide clients with a strong level of trust and create an increased potential for growth of brokerages competing in the global marketplace.
Types of the Comoros Forex License
License for offshore forex operations
- This license is usually given by Mwali International Services Authority (MISA) and is targeted at clients around the world. It allows the full spectrum of trading, including but not limited to, forex trading (foreign exchange), CFDs (Contracts for Difference), derivatives, futures, stockbrokerage, etc. Offshore forex licenses also offer flexibility because they are recognized by most international banks, and this facilitates the building of relationships with banks around the world and customizing each firm’s operational framework, as needed to best suit its business model.
License for onshore forex operations
- An onshore forex operations license is issued to companies providing the same or similar forex brokering services to the residents of Comoros. This license is subject to compliance with all applicable laws and regulations of the Comoros. Companies with this license must have significantly more compliance oversight in place to serve the residents of Comoros under the jurisdiction of Comoros.
International brokerage/clearing license
- The international brokerage license is the most commonly issued offshore license. Issued by MISA, it authorizes complete brokerage and clearing services, including settlement and multi-asset trading, such as currencies and securities, and the management of portfolios, on behalf of clients. Brokers or clearing firms that have this type of license should find it very easy to operate internationally with minimal restrictions.
Securities dealer license
- A Securities Dealer License is granted to companies that provide services related to trading in securities, managing assets, and providing advisory services for their clients in addition to their forex operations. Licenses of this nature are usually granted by MISA, and they are ideal for companies that are diversifying their products and services beyond forex trading to include stock and bond trading while ensuring compliance with the laws of Comoros related to offshore operations.
Timeline for the Comoros Forex License
- Through a structured and methodical approach from data collection to submission of a complete application, we will ensure that your Comoros Forex License application has met all regulatory requirements while also being processed efficiently. The first step includes the collection and processing of critical documents (KYC, due diligence, and name checks), which, for most applications, will take around 2 weeks before moving on to the preparation stage. Further, we proceed with the drafting, reviewing, and finalization of all documentation required for the application to be submitted to the Ministry of Finance in Comoros by our staff, which typically requires an additional 2 weeks.
- An estimated 4 weeks are needed after the application has been submitted before a case officer is assigned to the case. During this time, we will be available to answer any questions from the regulator and provide any information requested pertaining to the application. It is expected that once this process is done, it will take between 3 months before the application has been approved and the license issued. After the license has been issued, we can assist with the corporate bank account opening, which generally requires another 4 to 6 weeks. In conclusion, the estimated timeframes for obtaining the Comoros Forex License and establishing the banking arrangements needed are about 24 to 26 weeks.
Regulatory authority of the Comoros Forex License
- The Ministry of Finance of the Union of Comoros is the governing body responsible for the regulation of the Comoros Forex License on Mohéli Island, specifically for licensing and compliance of offshore forex operations. The DNMF (Direction Nationale des Marchés Financiers) oversees trade and monitors currency operations. The Ministry of Finance is the primary agency for the development of regulations and the collection of taxes on these types of businesses. Key regulations for Foreign Exchange include securities statutes, which define the standards for the trading of securities, banking and financial institutions statutes.
- The Anti-Money Laundering Statute requires businesses to perform KYC (Know Your Customer) and to report any suspicious activity. The Financial Services Act governs the operations of compliance agencies and client fund management. The Clients Money Protection Act provides separate handling of client funds, and the Financial Reporting Act establishes reporting criteria for the conduct of audits by independent auditors. The Central Bank Comoros (Banque Centrale des Comores) and SICAF (Société d’Investissement et de Contrôle de l’Action de Financement) regulate monetary stability and oversee the conduct of internal audits by financial institutions.
Who need to apply for the Comoros Forex License
- Forex brokers and trading platforms, which serve global customers
- International business companies (IBCs), Limited Liability Companies (LLCs), or Corporations that operate and supply services in the Forex, CFD, and derivative markets.
- Multi-asset brokerage firms supplying services such as currency trading, security trading, future trading, and portfolio management.
- Start-ups developing a Forex operation globally, without specifically marketing their services to customers residing in Comoros.
Activities allowed under Comoros Forex License
Brokerage, dealing and market making for forex
- The ability to facilitate forex trades, provide quotes, serve as counterparty and manage risk/hedge exposure through liquidity providers in compliance with regulations.
Trading platforms and client funds
- Operating a trading platform, processing deposits & withdrawals on behalf of clients, and managing client funds in accordance with appropriate level of segregation and a strong system of internal financial controls.
IBS, affiliates, and white labels
- Providing professional IR brokerages to Introducing Brokers, developing affiliate programs, and providing white-label IR brokerage options through controlled & compliant partnerships.
Regulatory information no crypto activity
- The license does not allow for trading or offering brokering or custodial services for cryptocurrencies, or offering any type of virtual/digital asset.
Steps for obtaining the Comoros Forex License
Step 1: Gathering information and initial evaluation
- We help our clients gather all necessary documentation and information, including KYC, due diligence, and name checks. After compiling this information, we will evaluate the planned business model and corporate organization for compliance with the regulatory requirements of Comoros.
Step 2: Creation of licensing application
- We create, review, and prepare all required documentation for the licensing process. This includes creating an application form, establishing company policies, creating the required declarations, and providing all other documentation to demonstrate compliance with all applicable regulations.
Step 3: Filing of licensing application
- Once all documentation has been prepared, we file the licensing application on our client’s behalf with the appropriate Ministry of Finance. We have an established process for facilitating filings and ensuring that all submitted documents meet the correct format for review by regulators.
Step 4: Regulatory liaison and follow-up
- At this stage, we are the main point of contact with the appropriate regulatory agency during the application review process. We will coordinate with the assigned analyst, answer any questions regarding the request for a Forex license, and provide any additional materials or clarifications needed to complete the license approval process.
Step 5: Corporate bank account opening
- Once the Forex license has been issued, we will assist clients in setting up their corporate bank accounts, including operational and segregated accounts. This includes questions regarding banks, documentation requirements, and onboarding with the bank. Usually, the account opening process takes between four and six weeks to complete.
Requirements for the Comoros Forex License
- Incorporation as a legal entity (e.g., IBC, LLC, corporation) in the Comoros requires:
- A detailed business plan describing the Forex business and operations.
- Proof of authorized capital deposited (with minimum amounts required for each activity).
- Anti-Money Laundering (AML) and Know Your Customer (KYC) policies, risks management procedures, and measures to protect customer assets.
- A certificate indicating that all directors, shareholders, and employees have not been convicted of any crime.
- Copies of identification and passports for all directors, shareholders, and company founders.
- A policy to protect customer funds and insurance to protect against errors and omissions.
- The company must comply with the securities, banking, anti-money laundering, and Financial Services Statutes.
- List of services proposed to comply with regulations.
- The application must be submitted through a registered agent to MISA or the Ministry of Finance.
Cost for obtaining the Comoros Forex License
- The cost model used to acquire the Comoros Forex License with Tetra Consultants is designed with complete transparency, predictability, and client focus. We adhere to a strict, no hidden fees policy, so from the beginning of your relationship with Tetra Consultants, you will have complete visibility of the services that will be rendered to you. When working with Tetra Consultants, you can expect to receive value from us throughout the entire process.
- We can provide you with the documentation required by the regulator, assist in liaising with the regulators, and ensure you are compliant with the regulations, without the risk of incurring additional charges. Our approach to working with clients includes open, regular communication, outlined timelines for deliverables, and the professionalism of our staff, which allows you to plan effectively and confidently for your business’s readiness instead of having to continue to worry about how much it costs.
Why choose us?
- By working with Tetra Consultants on your Comoros Forex License application, you will have access to a complete and integrated Regulatory and Corporate Services platform, which is supported by industry-leading international consultants with practical offshore knowledge. Tetra Consultants’ team provides guidance at every stage of the licensing process, from initial application to post-licensing compliance, and provides ongoing support and advice to ensure compliance with the requirements for obtaining a license in the Comoros.
- Tetra Consultants also assists with offshore company incorporation, providing nominee directors and shareholders services, international trademark registration, and maintaining compliance with all applicable regulations. When you choose to work with Tetra Consultants, you will benefit from 1 point of contact, ongoing direct communication throughout the entire licensing process, and a detailed executive summary and implementation plan that allows you to enter the market quickly and easily while continuing to maintain strong governance and operational credibility.
Looking to obtain the Comoros Forex License
- Comoros Forex Licenses provide a realistic and strategically advantageous avenue for companies looking for a compliant manner to gain access to the international marketplace. If you surround yourself with a knowledgeable advisory team, you will not have any trouble obtaining a Comoros Forex license and being aligned with all Comoros regulations to allow for maximum long-term operational success. To maintain credibility in the global forex market, companies must take a methodical approach with an accurate understanding of all applicable laws and plan diligently for compliance. By building a strong foundation on theoretical and practical transparency, effective governance, and regulatory readiness from the beginning of the business, companies can develop a solid base for compliance and expandable capability.
- Contact us to know more about the Comoros Forex License, and we will get back to you within 24 hours.
FAQ
What is a Forex License from Comoros?
Who can apply?
What documents do I need to submit?
Do I need to have a physical presence in the Comoros?
What are the Anti-Money Laundering and Countering Proliferation Financing provisions that apply to the license?
Who is the authority that regulates the license?
What are my continuing obligations?
What services can I provide with the license?
How do I renew my license?