Corporate Law at Comoros
Corporate law in Comoros, a small island nation in the Indian Ocean, is governed by a combination of national laws and influences from the French legal system due to its colonial history. Here's a brief overview of corporate law in Comoros:
1. Legal Framework
Civil Law System: Comoros follows a civil law system influenced heavily by French law.
Company Formation: Companies are primarily regulated under the Commercial Code (Code de Commerce).
The legal system also reflects Islamic law and customary law in some areas, especially in family and personal law matters.
2. Types of Business Entities
The most common types of companies in Comoros include:
Société à Responsabilité Limitée (SARL) – Limited Liability Company
Société Anonyme (SA) – Public Limited Company
Société en Nom Collectif (SNC) – General Partnership
SARL is the most commonly used structure for small and medium-sized enterprises (SMEs).
3. Company Registration
Companies must register with the Registrar of Companies (Registre du Commerce).
Requirements typically include:
Articles of incorporation
Proof of address
Identification of directors and shareholders
Payment of registration fees
4. Corporate Governance
Companies are generally required to have at least one director and shareholders.
Annual general meetings (AGMs) are required.
Companies must maintain accounting records and, in some cases, submit annual financial statements.
5. Foreign Investment
Comoros has no major restrictions on foreign ownership.
The Investment Code encourages foreign direct investment (FDI), especially in sectors like tourism, fishing, and energy.
Foreign investors may receive tax incentives, but must comply with national regulations.
6. Taxation
Corporate income tax is levied on profits.
There may be additional taxes such as:
Value Added Tax (VAT)
Payroll taxes
Customs duties
7. Dispute Resolution
Commercial disputes can be resolved through the national court system, though enforcement and efficiency may be limited due to infrastructure challenges.
Arbitration and mediation are sometimes used for resolving corporate disputes.
Challenges
Bureaucracy, limited digital services, and weak legal enforcement can pose challenges for corporate operations.
There is limited legal infrastructure and business support compared to more developed economies.
If you're considering doing business or studying corporate law in Comoros, it's advisable to consult a local legal expert or law firm familiar with Comorian commercial regulations.
RELATED Blog
0 comments