Country investment factsheet · OHADA business law
Legal & tax framework for investment — August 2026 edition
Series: OHADA country factsheets — a country-by-country overview of investment across the OHADA area.
A small Indian Ocean archipelago and an OHADA member, the Union of the Comoros has a distinctive profile: a national currency (the Comorian franc) pegged to the euro at a fixed parity, ensuring exchange-rate stability, alongside business law harmonised across 17 states. An island economy driven by cash crops (ylang-ylang, clove, vanilla), fisheries and diaspora remittances, it offers investors a predictable legal framework. This factsheet summarises the macroeconomic, tax and legal data relevant to an entry decision, with particular focus on the legal securing of the investment.
The Comoros at a glance
A harmonised business-law framework
- OHADA — the Comoros apply the uniform business law of the Organisation for the Harmonisation of Business Law in Africa (17 member states, 9 Uniform Acts: companies, security interests, debt recovery, insolvency, arbitration, etc.) — a major source of predictability for a small island economy. Disputes may be brought before the CCJA, whose awards are enforceable across the 17 states.
- Monetary framework — currency = Comorian franc (KMF), pegged to the euro at a fixed parity under a monetary cooperation agreement with France; convertibility guaranteed. Central bank: Central Bank of the Comoros (national foreign-exchange regulation, see below).
- Revised SYSCOHADA accounting — the mandatory accounting framework, readable by any investor across the OHADA area.
- Also a member of the African Union, the AfCFTA, COMESA and the Arab League.
Common OHADA company forms
| Form | Minimum capital | Typical use |
|---|---|---|
| SA (public limited co.) | FCFA 10,000,000 (OHADA, KMF equivalent) | Codified governance, access to public savings |
| SAS (simplified joint-stock co.) | Set freely by the by-laws | Statutory flexibility — joint ventures, holdings |
| SARL (LLC) | Set freely by the by-laws | Simpler projects, light structure |
| Branch | Attached to the foreign company | OHADA duration limit to anticipate |
Registration with the RCCM; investment promotion: ANPI Comoros (National Investment Promotion Agency).
Tax regime — the essentials
| Tax | Rate | Details |
|---|---|---|
| Corporate income tax (CIT) | ~35% | Higher rate for certain public/parapublic companies. To be confirmed against the Comorian General Tax Code. |
| Indirect taxation | To be confirmed | The existence and rate of a classic VAT are not confirmed by official sources (the IMF refers to consumption taxes and excises) — to be checked against the text in force. |
| Minimum tax | ~3% of turnover | Figure from third-party sources, to be confirmed against the GTC. |
| Tax treaties | Very limited network | No France-Union of the Comoros tax treaty in force (not to be confused with the document concerning Mayotte). |
⚠️ The Comorian tax apparatus is poorly documented online; the rates above, from third-party sources, must be confirmed against the General Tax Code / with the tax administration (AGID) before any decision.
Attractive sectors
- Cash crops — ylang-ylang (historically the world’s leading producer), clove, vanilla; exports sensitive to world prices.
- Fisheries — a “blue economy” resource; value-addition potential.
- Tourism — a still-emerging island asset.
- Diaspora & services — diaspora remittances (~11% of GDP) support consumption and real-estate investment.
- Energy & infrastructure — significant needs, opportunities in renewables.
Investment incentives
- Investment Code — tax and customs benefits (terms to be checked with the Comorian authorities; up-to-date text to be confirmed).
- ANPI Comoros — investment-promotion agency, support desk.
- Exchange-rate stability — the fixed KMF/euro parity reduces currency risk, an asset for euro-zone investors.
Work permits for expatriates
- Issuance of residence and work permits to expatriate staff holding a local contract.
- Free transfer of salaries to the home country, after payment of Comorian taxes and social contributions.
Foreign-exchange regulation
- Comorian franc pegged to the euro. The KMF is linked to the euro at a fixed parity (€1 = KMF 491.96775) under a monetary cooperation agreement with France; the Central Bank of the Comoros administers the national foreign-exchange regulation, with convertibility guaranteed through an operations account.
- Repatriation of dividends and capital. Transfer abroad of profits, dividends and disposal proceeds is permitted within the monetary agreement, subject to documenting the flows and paying the taxes due.
- Good practice. The stable parity simplifies financial planning; keeping documentary traceability of each flow secures transfers.
Regulation subject to change — precise terms to be checked with the Central Bank of the Comoros and a licensed bank.
Securing the investment — the UGGC angle (OHADA levers)
Beyond the figures, a successful entry rests on command of the legal framework. For a small island economy, the combination of predictable OHADA business law and a euro-pegged currency is a valuable security base for the investor.
- CCJA arbitration — dispute resolution before OHADA’s Common Court of Justice and Arbitration; awards enforceable across the 17 member states.
- Security interests (Uniform Act) — a full range of guarantees (mortgage, pledge, autonomous guarantee, security agent) to secure financings.
- Exchange-rate stability — fixed KMF/euro parity: a rare advantage of monetary predictability.
- Governance & compliance — OHADA company law, SYSCOHADA, early-difficulty prevention.
Our teams support these transactions across M&A, tax law and litigation & arbitration (CCJA).
Our reading — the practitioner’s view
The figures don’t tell the whole story. Here are the points we flag to our clients before any entry into the Comoros — where field experience makes the difference.
Which structure to choose?
For a foreign operator, the choice is most often between the SA (codified governance, reference capital FCFA 10,000,000 in KMF equivalent) and the SAS (statutory flexibility). The SARL remains suited to simpler projects. Applying OHADA law offers a familiar, predictable reference framework to investors from the zone.
Three pitfalls investors underestimate
- Tax data to be verified. The Comorian tax apparatus is poorly documented online and not covered by the reference international tax databases; rates (CIT, indirect taxation, minimum tax, withholdings) must be confirmed directly against the General Tax Code / with the AGID before any pricing.
- The euro-peg advantage. The euro-pegged Comorian franc sharply reduces currency risk — an advantage to highlight for euro-zone investors, compared with neighbouring floating currencies.
- Market size and concentration. A small island economy dependent on cash crops and the diaspora: analyse demand, inter-island logistics and the strength of the local counterparty carefully.
From text to practice
ANPI Comoros is the entry point for investment promotion and Investment Code benefits. The OHADA + euro-peg combination is the main security factor; for any project, checking tax rates against the official text and anticipating sector authorisations are essential.
Frequently asked questions
What is the minimum capital to set up an SA in the Comoros?
The minimum capital for an SA is FCFA 10,000,000 by reference to the OHADA Uniform Act, applied in Comorian-franc equivalent. SARL and SAS: capital set freely by the by-laws. The Comoros apply OHADA law while keeping their national currency.
What is the corporate income tax rate in the Comoros?
The rate is around 35% (higher for certain public companies), to be confirmed against the Comorian General Tax Code, as the tax apparatus is poorly documented online.
What is the currency of the Comoros and its exchange regime?
The Comorian franc (KMF), pegged to the euro at a fixed parity (€1 = KMF 491.96775) under a monetary cooperation agreement with France; convertibility guaranteed. Franc zone in monetary terms, but outside the CFA zone.
How can an investment be secured in the OHADA zone in the Comoros?
Investors benefit from OHADA’s CCJA arbitration (awards enforceable across the 17 member states), OHADA security interests, the SYSCOHADA framework, and from the stability of the euro-pegged Comorian franc. Transfers fall under the national regulation of the Central Bank of the Comoros.
Do the Comoros apply OHADA law?
Yes. The Union of the Comoros is one of the 17 OHADA member states. It applies the 9 Uniform Acts and the revised SYSCOHADA framework, while keeping its national currency and its own central bank.
Considering an entry into the Comoros?
Contact the UGGC Africa team · Download the country factsheet (PDF)
Disclaimer. This country factsheet is provided for general information, as at August 2026; it does not constitute legal or tax advice and cannot bind UGGC Africa. As this country’s international tax coverage is limited, several rates are to be confirmed against the official text. Any investment decision should be the subject of a tailored analysis.
Sources: IMF (country report 26/47, Feb 2026) · World Bank (2024 data) · Banque de France — franc-zone / CMAF note (Apr 2025) · UN / Worldometer (population, 2025) · ANPI Comoros · third-party tax sources (to be confirmed against the GTC) · OHADA. uggcafrica.com.