Forex licenses, asset management,
investment funds, invest consulting,
brokerage licenses, AML for investment
The Comoros Forex License is an offshore brokerage authorization issued by the Mwali (Mohéli) regulator (MISA). It allows licensed companies to operate internationally in foreign exchange and related financial markets. Comoros (an archipelago in the Indian Ocean) has emerged as a low-tax, business-friendly jurisdiction for financial services. Entrepreneurs can set up an International Business Company (IBC) on Mwali in days and obtain a MISA “International Brokerage” license to offer forex, CFDs, and other trading services. Crucially, Comoros IBCs enjoy strong privacy protections and pay no local corporate tax on foreign-sourced income, making it effectively a zero-tax jurisdiction for offshore forex brokers. The Mwali International Services Authority (MISA) applies a light-touch regime compliant with global AML/KYC standards, and a Comoros license is recognized by banks for opening international accounts.
What Is a Comoros Brokerage License
A Comoros brokerage (forex) license is the official permit for a company to act as a forex broker or securities broker under Comoros law. It is issued under the Comoros offshore IBC framework on Mwali island by MISA (or by the Anjouan Offshore Finance Authority for Anjouan Island). The most common license is the International Brokerage & Clearing House License, which covers activities such as currency trading, stock and securities brokerage, futures and options trading, CFDs (contracts for difference), and portfolio management. In other words, a Comoros license lets your company operate a trading platform or broker service legally for clients abroad. The license is recognized internationally, which eases bank account opening and global client relationships. Comoros offers both offshore (international client base) and onshore (local/regional client base) forex licenses, but most foreign brokers obtain the offshore International Brokerage license.
Who Needs It
A Comoros forex license is needed by any company that wants to offer online forex or multi-asset trading services from Comoros. Typical applicants include: international forex brokers, CFD and derivatives platforms, proprietary trading firms, and asset managers focusing on currency markets. It is especially suitable for startups and established financial operators that plan to serve clients outside Comoros, since an offshore license permits international customers. For example, a company offering online currency trading software, or a brokerage matching buyers and sellers of currencies and CFDs, must obtain this license to operate legally and to reassure banks and partners of its regulated status. The license is also sought by fintech ventures (e.g. automated trading platforms) that benefit from Comoros’s flexible “light-touch” regulations and global recognition.
Scope of Permitted Activities
A Comoros brokerage license authorizes a wide range of financial activities, including:
- Forex trading and brokerage. Buying/selling currencies and managing client FX transactions, serving as an FX counterparty or intermediary.
- Securities and derivatives. Trading of stocks, bonds, futures, options, CFDs and other derivatives. License holders can act as stockbrokers or derivatives brokers on behalf of clients.
- Client asset management. Holding and managing client funds (subject to strict segregation and AML rules), and providing portfolio or investment advisory services in forex and related markets.
- Clearing and settlement. (If permitted) As an International Brokerage & Clearing House license, a company may execute and settle trades for clients, acting as a clearing agent on financial exchanges.
- Related services. Back-office support, trade execution, liquidity provision, and white-label brokerage services under the license holder’s oversight.
The offshore license covers international activities only; if you plan to take local Comoros clients, you would need a separate onshore license with stricter local requirements. In all cases the license mandates adherence to AML/KYC, client fund protection, and financial reporting rules.
Comoros License Factsheet
| Parameter | Detail |
|---|---|
| Regulator (Authority) | Mwali International Services Authority (MISA) on Mohéli island, Union of the Comoros |
| License Type | International Brokerage License (offshore Forex/Securities Broker) |
| Structure Required | International Business Company (IBC) incorporated on Mwali (Mohéli) |
| Minimum Capital | ~24 million KMF (≈€50,000) for a basic broker; the International Brokerage & Clearing license may require up to €250,000 in nominal share capital, which may remain unpaid as the regulator does not require bank confirmation of its payment. |
| Local Presence | Must appoint a registered agent with office/address on Mwali; at least 1 company director (may be non-resident) and 1 shareholder. |
| Application Fee | ~1.9 million KMF (≈€1,600) one-time license application fee |
| Annual Fee | ~1.2 million KMF (≈€2,400) yearly license fee |
| Processing Time | Typically 4–6 weeks from submission (if documents are in order) |
| Corporate Tax Rate | 0% on foreign-sourced income for an IBC (no income tax if business is conducted abroad). Otherwise 10% on local income |
| Other Taxes | No tax on dividends or capital gains. No local VAT on financial services; a stamp duty may apply on documents. |
| Reporting | Annual financial statements, audits (if required), and periodic AML/CFT compliance reports to MISA. |
| Currency Controls | None – Comoros imposes no currency exchange controls |
| Validity & Renewal | License is valid for 1 year and renewable indefinitely with payment of fees and compliance updates |
Benefits of the Comoros Forex License
Obtaining a Mwali (Comoros) forex license offers several advantages:
- Low Capital & Cost. Comoros requires relatively low minimum capital compared to tier-1 jurisdictions. Startup fees (company formation and license) are modest, and ongoing fees are far below EU/US equivalents. This makes it affordable for new brokers and fintech startups.
- Favorable Taxation. As an offshore regime, Comoros IBCs pay no corporate tax on foreign profits. There are no dividend, capital gains, or withholding taxes on repatriated funds. In practice, an offshore broker in Comoros can keep virtually all revenues earned from international clients.
- Fast & Flexible Setup. Company registration on Mwali can be completed in a few days (online filings) and the license process takes only weeks. Regulators offer a streamlined, “light-touch” application: you submit your compliance documents, and once complete, the license is issued promptly.
- Global Recognition. Although not a top-tier regulator, MISA’s International Brokerage license is broadly recognized by banks and payment providers for offshore operations. Licensed entities can open international bank accounts and service clients worldwide with credibility.
- Regulatory Stability. Comoros’ financial laws are well-established and the islands have avoided any FATF blacklisting. Regulators actively monitor AML/CFT compliance, which helps maintain confidence. The jurisdiction has 50+ tax treaties and no major currency controls.
- Privacy. Comoros IBCs enjoy strong confidentiality: ownership records are private and not disclosed publicly. For entrepreneurs, this means added privacy for corporate and financial structures.
- Additional Services. Comoros also offers licenses in crypto, securities and other finance sectors. A single Comoros IBC can potentially hold multiple licenses (forex, crypto, etc.), simplifying cross-industry operations.
These factors make Comoros especially attractive for startups and smaller operators that need a cost-effective yet legitimate license to launch global forex and financial services.
Disadvantages and Considerations
While beneficial, a Comoros forex license comes with caveats:
- Limited Investor Protection. MISA operates more like an offshore registrar than a strict regulatory authority. There is no local investor compensation fund or formal complaint body under MISA, so client funds lack the protections found in EU/US jurisdictions.
- Regulatory Scrutiny. Major financial regulators and institutions view MISA licenses as low-tier. Brokers may face additional scrutiny from banks or counterparties due to the offshore status. This means ongoing diligence and strong corporate governance are crucial.
- Onshore Restrictions. The Comoros license is intended for offshore business only. Serving Comorian residents requires a separate onshore license (with stricter rules). The local market in Comoros is small, so practical operations must focus on foreign clients.
- Compliance Obligations. Licensees must strictly follow AML/KYC rules and file regular reports. Violations or lapses can lead to heavy fines or license revocation (up to $100,000). Entities must be prepared for these compliance burdens.
- Language/Geography. The regulators require documents in English or French, and occasional liaison may involve local travel. Although not onerous, some applicants find offshore setups less straightforward than fully online processes.
- Evolving Regulation. Being a relatively new offshore center, laws can change. Companies must stay alert to any updates in Comoros’ AML or financial regulations. (To date, no major licensing changes have been announced for 2024–2025.)
Despite these considerations, many firms determine the low cost and flexibility outweigh the downsides for an international brokerage business.
Types of Comoros Financial Licenses
Apart from the standard forex brokerage license, Comoros offers several related financial permits:
- International Brokerage & Clearing License. (MISA, Mohéli) – Allows full brokerage of securities, currencies, and derivatives, plus clearing/settlement services.
- Securities Dealer License. (MISA) – Authorizes dealing in securities and asset management activities.
- Investment Adviser/Manager License. – Permits portfolio management and investment advisory.
- Crypto Exchange/Service License. (Anjouan) – Issued by AOFA on Anjouan island for cryptocurrency trading platforms. Conditions are similar (flexible, low-tax).
- Electronic Money or Payment Service License. – For issuing e-money or operating payment systems.
- Banking License. (MISA) – Comoros offers a full banking license, though minimum capital is high (package cited ~€62,750). This is suitable for fintech or crypto banking ventures.
Each license type has its own capital requirements and permission set, but they all operate under the Comoros IBC framework. Notably, many companies incorporate a single Comoros IBC and then apply for multiple licenses (e.g. forex + crypto) under that entity.
Requirements for Obtaining a License
To secure a Comoros forex brokerage license, an applicant must typically:
- Incorporate a Mwali IBC. Register an international company on Mohéli (Comoros) and obtain a corporate address via a local agent. The company must have at least one director and one shareholder. (Directors/shareholders can be foreigners; a local director is often required by regulator.)
- Demonstrate Good Standing. Directors, shareholders and key staff must pass background checks. Copies of passports, proof of address, CVs and police clearance certificates are needed. All individuals must be of good repute (no criminal history).
- AML/KYC & Risk Policies. Prepare internal procedures for anti-money laundering (AML), counter-terrorist financing (CFT), and client risk management. This includes a compliance manual, KYC forms, transaction monitoring and ongoing due diligence systems.
- Business Documentation. Submit a detailed business plan, ownership structure, and descriptions of services. Key documents include the Memorandum and Articles of Association, corporate extracts, client agreements, website policies and technical descriptions of trading platforms. For example, Regulated United Europe advises providing a full business plan outlining trading strategies and financial forecasts.
- Apply & Pay Fees. File the official license application (online via MISA) and pay the application fee (≈€1,600). All required forms and supplemental documents (translated into English or French) are submitted to the Mwali regulator for review.
Meeting these requirements carefully is crucial. The regulator conducts due diligence at each step to ensure compliance with Comorian law and international finance standards.
Costs and Taxes
Key costs involved are:
- Formation and Legal Fees. Company registration and registered agent fees (approx €500–€1,500). Agents handle drafting documents and registration.
- License Fees. MISA’s one-time application fee is about 1.9M KMF (≈€1,600). Upon approval, an annual license fee of roughly 1.2M KMF (≈€15,900) is due each year. (These fees vary slightly based on the scope of services.)
- Capital Injection. The paid-in capital (from €50k up to €250k) is not a fee but cash the company must hold.
- Taxes. Comoros imposes no tax on foreign-sourced income for IBCs. This means no corporate income tax on profits earned from international clients, and no withholding on dividends or interest. If the company did earn Comorian-source income (rare for offshore brokers), a flat 10% corporate tax would apply. Note also: Comoros has an 18% VAT (not typically applied to exported financial services) and a small stamp duty on some documents.
- Maintenance Costs. Expect annual costs for agent fees, bookkeeping (if audited statements are needed), and AML compliance reporting. Offshore Pro Group notes that annual renewal fees (agent + government fees) are very reasonable.
- Banking and Operations. International bank accounts for the IBC are typically required (additional due diligence costs). Fortunately, no currency controls exist, so accounts in USD/EUR are common.
Overall, the cost structure is extremely competitive. For comparison, other offshore broker licenses can cost tens of thousands of dollars in fees alone, while a Comoros license totals a few thousand per year.
Licensing Process
| Step | Action | Typical Timeline |
|---|---|---|
| 1. Company Incorporation | Register a Comoros IBC on Mwali (choose name, file Memorandum/Articles, appoint local agent and address). | ~1 week (rapid online filing) |
| 2. Prepare Application | Assemble documents: business plan, AML/KYC policies, background documents (passports, CVs, etc.), tech & platform info. Pay the license application fee. | 1–2 weeks |
| 3. Submit to Regulator | Submit the completed application and documents online to MISA (Mwali International Services Authority). | Day 1 of review |
| 4. Regulator Review | MISA conducts due diligence: verifies documents, performs background checks on owners, and ensures compliance with laws. Additional info may be requested. | 2–4 weeks |
| 5. License Issuance | Upon approval, the MISA issues the International Brokerage License. The company is now authorized to commence trading operations. | Immediately on approval |
| 6. Begin Operations | Open corporate bank account, launch trading services, and market to clients (within license conditions). | – |
According to practitioners, the total process typically takes 4–6 weeks when all requirements are met. If the regulator needs clarifications, the timeline can extend. Maintaining good communication with MISA and having a pre-vetted application package is key to avoiding delays.
Ongoing Maintenance and Reporting
Once licensed, a Comoros forex broker must comply with ongoing obligations:
- Financial Reporting. Prepare annual financial statements. MISA generally requires submission of audited or certified accounts to show solvency. These accounts demonstrate the company’s financial health and should be retained for inspection.
- Periodic Filings. Submit regular reports to the regulator: e.g. periodic transaction reports, risk exposure summaries, and AML/CFT compliance reports. Many offshore authorities require a quarterly or semi-annual report on business activities and KYC updates.
- AML/CFT Compliance. Maintain strict KYC procedures for all clients. Continuously monitor transactions and flag suspicious activity. Regulatory guidance (and FATF standards) mandate regular staff training and record-keeping for AML processes.
- Risk Management. Update and enforce risk controls (exposure limits, margining, liquidity provisions) to safeguard client funds. Regulators expect evidence of sound risk policies: for example, hedging strategies for currency risk or stress tests for extreme market events.
- Tax Filings. File an annual tax return in Comoros if any local income is generated. (Offshore companies with no local revenue generally owe no tax.) The fiscal year-end report is usually due by March 31 following the tax year.
- Regulator Audits/Inspections. Be prepared for on-site or remote audits by MISA. They may review corporate records, client agreements, and IT infrastructure to verify compliance.
- Renewal Preparation. Each year before expiry, the company must renew its license by paying the annual fee and demonstrating continued compliance (often via a short renewal form and updated filings).
License Renewal
The Comoros Forex License is valid for one year and can be renewed indefinitely. To renew: the company and license must submit a renewal application to MISA, pay the annual fee (~1.2M KMF/€15,900) and provide up-to-date documentation (such as current audited statements, any changes in management, etc.). It’s essential to apply for renewal before the expiration date; MISA generally allows extensions upon timely compliance. Offshore Pro Group notes that agent services typically include handling these renewals on schedule. Assuming all conditions are met, renewal is routine. However, if the regulator finds compliance issues or unpaid fees, it can refuse renewal. Therefore, keeping books clean and obligations up to date is critical to uninterrupted licensing.
Revocation or Suspension Conditions
A Comoros license can be suspended or revoked by the regulator for serious violations. Triggers for revocation include:
- AML/CFT Breaches. Failure to implement or follow anti-money laundering procedures can lead to immediate suspension. MISA’s Financial Intelligence Unit may impose fines (up to $100,000) or withdraw the license for blatant AML lapses.
- Fraud or Misconduct. Any evidence of fraud, embezzlement of client funds, or misleading practices will result in enforcement action. Licenses have been revoked for misreporting financial data or misusing client trust accounts.
- Regulatory Non-Compliance. Not filing required reports or audited accounts, or failing to meet capital and solvency requirements, can cause penalties. Persistent non-compliance (for example, not appointing required compliance officers) risks suspension.
- Legal Violations. Operating outside the scope of the license (e.g. targeting prohibited markets, offering non-authorized services) can invalidate the license. Also, bankruptcy or insolvency of the broker triggers license cancellation.
In practice, MISA tends to issue warnings and corrective instructions before revoking a license. However, the authority retains the power to act decisively if a broker’s actions endanger financial integrity. Licensees must therefore rigorously meet all legal obligations and ethical standards.
Regulatory Updates (2024–2025)
As of 2025, no major overhaul of Comoros financial licensing has been announced. Comoros continues to align its AML/CFT framework with international norms. Notably, the FATF published a mutual evaluation report on Comoros in 2024, reflecting ongoing improvements in regulation. Companies should monitor MISA’s communications for any changes (for example, digital reporting requirements or fee adjustments). In general, the existing structure remains stable: MISA (for Mwali) and AOFA (for Anjouan) each administer licenses under their 2000s-era laws. Staying informed via legal advisories is recommended, but brokers can expect consistent rules through 2024–25.
Why It’s a Good Fit for Startups
The Comoros forex license is especially appealing to start-ups and small operators for several reasons:
- Simplicity & Speed. The process is straightforward and fast: a company can often be set up in Comoros and licensed in just a few weeks. This quick turnaround lets startups launch earlier than in heavily regulated markets.
- Low Entry Barriers. Initial capital requirements and fees are among the lowest in the world. A small fintech or trading startup can meet the capital rule with a modest cash commitment, preserving working capital. Compared to jurisdictions like Cyprus or Mauritius, the cost savings are substantial.
- Favorable Tax Regime. Zero tax on foreign profits means every dollar earned by the startup from clients abroad is reinvested in the business. This provides cashflow benefits critical for growing companies.
- Regulated Status. Having a formal license, even in an offshore jurisdiction, signals credibility to partners and customers. Startups can advertise that they are licensed and supervised by a regulatory authority (MISA), which builds trust compared to unregulated operations.
- Flexibility. The licensing framework allows a wide variety of financial services under one entity. A startup could combine forex trading, payment services, or even fintech solutions within the same Comoros IBC, providing strategic flexibility.
Official Sources & Primary Legislation (Comoros / Mwali)
Primary Acts
- International Business Companies Act (Mwali, 2014) – legal framework for IBC incorporation on Mohéli.
- Brokerage Act (Mwali, 2013) – basis for the International Brokerage & Clearing House License on Mohéli.
- Customer Protection Act (Mwali, 2009) – consumer disclosure/logo requirements for regulated companies.
Mwali International Services Authority (MISA)
- MISA – Official website – regulator & registrar of companies for the Autonomous Island of Mwali (Mohéli).
- Laws & regulatory framework – overview of governing laws and regulations on Mohéli.
- License/Entity verification – sample verification entry in the MISA register.
- Official contacts – address and contact details for MISA (BP 724, Fomboni).
Union of the Comoros – Government & Investment
- Government of the Union of the Comoros – central government portal.
- ANPI Comores (Invest Comoros) – National Investment Promotion Agency (official).
- Comoros Customs – official customs administration site.
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