Benefits of a Comoros company

A Comoros Islands Limited Liability Company (LLC) obtains the following benefits:

Totally Foreign Shareholders: Foreigners can own all of the LLC’s shares.
– Complete Tax Exemptions: As long as all of the income generates outside of its borders, no corporate or income taxes are imposed. However, U.S. taxpayers and everyone subject to global income taxes must declare all income to their government’s tax authorities.
– Privacy: Shareholders’ names never appear in any public records.
– Limited Liability: A shareholder’s liability is limited to his or her contribution to the share capital.
– Low Minimum Capital: Currently, the minimum authorized
– One Shareholder and One Manager: Only one shareholder and one manager are required to form the LLC where both can be the same person for greater control.

Comoros Islands Limited Liability Company (LLC) Name

The LLC must choose a company name completely different from any other business entity name in the Comoros Islands. Verification of a proposed company name can be obtained from the government Registry for free.

Since French is one of its three official languages, the LLC’s name can end with the words “Société à Responsabilité Limitée” or its abbreviation “SARL” which in English means a “Society with Limited responsibility”.

Limited Liability
Shareholders’ liabilities are limited to their contributions to the share capital.

Registration

A notarized copy of the company’s Articles of Association must be filed with the Registry. Then, file the company’s Bylaws with the Ministry of Finance. Finally, file documents with the Commercial Court. The following information will be required:

List of the managers who have the power to act on behalf of the company;
– Office lease agreement;
– Declaration of capital;
– Copy of the Bylaws; and
– Manager’s criminal records investigation report.

Shareholders
A minimum of one shareholder is required to form the LLC. Shareholders do have to reside in the Comoros and they can have citizenship with any country.

Shares can be issued as registered or preferential with or without voting rights.

Bearer and nominee shares are not allowed.

Managers
At least one manager is required to be appointed to form the LLC. The manager can be a natural person or a legal entity based in and residing in any country with citizenship from any country.

Comoros LLC Capitol
Minimum Share Capital
The minimum share capital for a LLC is 750,000 KMF ($1,763 USD as of July, 2017).

Taxes
The Comoros Islands taxation system is based on the French. The General Tax Code provides for a 35% corporate tax rate on Comoros source income. Companies earning more than 500 million KMF pay a 50% rate.

However, foreign source income is not taxed. Therefore, LLC’s whose sole sources of income are from outside of the Comoros Islands do not pay any taxes.

Accounting
Acceptable international standard bookkeeping and accounting practices are required. There are no required audits.

Every domestic company is required to register with the Ministry of Finance in order to receive a tax identity number for tax registration and tax return filings.

Annual tax returns are required along with an annual financial statement verifying where all income came from and that no taxes are due. Since the Comoros Islands are a territorial tax based country, only income generated within its borders are subject to corporate and income taxes.

Annual General Meetings
An annual general meeting of the shareholders is required, but the meeting can take place anywhere in the world.

Public Records
Since the names of the shareholders are not filed anywhere with the government, there are no public records revealing their identities. Managers’ names and details are required to be filed and kept up to date with the government so their names are part of the public records.

Time for Formation
The entire process for forming and registering the LLC may take up to one week.

Shelf Companies

Shelf companies are not for sale in the Comoros Islands.

Conclusion
A Comoros Islands Limited Liability Company (LLC) has these benefits: no taxes, complete ownership by foreigners, privacy, one shareholder who can be the only manager, low minimum share capital, and limited liability.

How we can help you

If you are considering forming a business or you need expert help with company registration in Comoros, LegalGenius™ is ready to assist you with its skilled team of lawyers, consultants and tax experts. We are committed to making the process as stress-free and streamlined as possible for you, and we will take care of all your document preparation and administrative tasks regarding the registration forms, payment of government fees, local address registration, banking support, etc., whilst always keeping your exact objectives and unique vision in mind throughout the process.

Please use our Company Formation Wizard if you would like to set up your registered company in Comoros or if you would like to know the costs involved prior to proceeding with our exceptional services. For other queries and special requests for complex or customised company formation services, please contact us at legal@7geniusgroup.com