Located in the Indian Ocean in Africa on a land mass of 1,660 square kilometers, this African country has an estimated population of over 850,688 persons making it one of the least populated countries in the world. Aside from this, the small nation is underdeveloped and faces numerous challenges in terms of doing business. Ranked 164 out of 190 countries by World Bank in its ease of doing business index, the country lacks the necessary facilities and amenities to promote the growth of businesses within its territory. Aside from these, its rising population and external national debt make it difficult for companies to strive. Setting up a company in the country is easy and takes little time to process. The cost of registering a company is cheaper here than in other African countries. However, even with the numerous companies, the low educational standard, a minimal number of natural resources, and poverty, make finding good buyers difficult.
If you are a business owner looking to sell off your company or you are interested in learning how to sell companies in the country, here is an article on selling a company to buyers within the African region.
Doing business in Comoros
In 2020, the country ranked 160th out of 190 countries in terms of ease of doing business. This was higher than the previous year, indicating that the government is making a change as regards investments and business in the country. Although the investment code does not provide an explicit definition of FDI, which imposes burdens on foreign investors, the government is set to revise the code to establish a contract for incorporating a company. There is no protection of Property rights, poor enforcement of the Sharia and french legal code, and corruption is at its highest peak. It is lucid that doing business might be hard in the country but there are lots of opportunities for it such as unexplored potentials in Agriculture. The country is the world’s largest producer of Ylang-ylang, a perfume scent producing trees and vanilla. Aside from that, the corporate tax rate is quite favorable to corporate bodies.
Types of business structures
Different forms of business entities are established by persons in the country. The kinds of structures allowed are:
Sole proprietorship
This is usually established by a person who can be a resident of any country. It is quite simple to manage and easy to set up. The business does not have to pay corporate tax and all debt or loss belongs to the owner.
Partnership
This may be set up by two or more individuals known as partners. They are liable for all debts and losses incurred. The partners are usually the board members.
Company
Examples of companies are limited liability companies, branch offices, stock companies, etc. Companies pay a certain percentage as tax to the government. During incorporation, some companies require at least two directors while others require a few shareholders limited to 50 persons. Public companies may sell their shares, but private companies cannot.
Selling a company
Although the country is struggling, it has prospects. And if you are interested, with a good business idea, you can convince buyers to purchase your company. Businesses are sold daily on a platform called Easy Buy Sell Business. Sometimes these companies are closed existing businesses or operating businesses. If you are looking to sell off your business, contact an agent who will create business ads to promote the business for sale. This will help interested buyers find you easily. Whatever the reason for selling your business is, be patient and avoid falling into the hands of scammers. You should seek the assistance of a professional who is skilled and reliable.
