If you are considering launching your company in a stable, tax-efficient, and high-quality environment, Andorra is an ideal destination.
With its attractive tax regime, safe environment, and EU-adjacent location, the country continues to gain interest from international entrepreneurs.
In this article, we explain how to start a business in Andorra in 2025. You’ll learn about legal steps, minimum capital, administrative costs, and other key elements to ensure a smooth setup process.
Why choose Andorra for your business in 2025?
Starting a business in Andorra offers multiple advantages, especially for foreign entrepreneurs looking for efficiency, simplicity, and stability.
Key benefits for international founders
- Low corporate tax rates (maximum 10%)
- Strategic location between France and Spain
- No double taxation agreements with over 10 countries
- Efficient banking and financial systems
- High quality of life and safety
- Strong internet and digital infrastructure
Legal requirements to start a business in Andorra
Before launching your company, it’s important to understand the legal framework. These are the main steps and procedures for setting up a company.
Company types in Andorra
The most common business structures are:
- Societat Limitada (SL) – similar to a limited liability company
- Societat Anònima (SA) – for larger enterprises with higher capital
Both structures offer limited liability and require official registration.
Registration requirements
To start a business in Andorra, you must:
- Reserve a company name with the Andorran Government
- Request foreign investment authorization (if applicable)
- Open a local business bank account
- Deposit the required minimum capital
- Sign the incorporation deed before a notary
- Register with the Companies Registry
- Register for taxes and social security
Minimum capital requirements
Capital for each company type
To incorporate a company in Andorra, a minimum investment is required:
| Company Type | Minimum Capital |
| SL | €3,000 |
| SA | €60,000 |
At least 100% of the capital for an SL and 25% for an SA must be paid at incorporation. The funds are deposited into a local bank account under the company’s name.
Administrative costs involved in incorporation
Although Andorra offers competitive conditions, setting up a company requires certain administrative expenses.
Typical expenses in 2025
- Company registration: around €1,000 – €1,500
- Notary and legal fees: €1,000 – €2,000
- Foreign investment authorization: €600
- Annual accounting services: starting at €1,200 per year
- Company maintenance costs: varies by sector
These figures may vary based on the complexity of your structure and services required.
Timeline and process to start a business in Andorra
The average time to fully incorporate a business is between 4 to 6 weeks.
Step-by-step overview
| Step | Duration |
| Name reservation | 2–3 business days |
| Foreign investment approval | 2–4 weeks |
| Capital deposit and bank setup | 1 week |
| Notary signing and registration | 1–2 weeks |
Working with an expert advisory firm accelerates the process and avoids common pitfalls.
Who can open a company in Andorra?
Any foreign individual or entity can create a business in Andorra, subject to investment rules.
Residency is not required (initially)
You do not need to be a resident to start a business in Andorra. However, if you wish to manage it directly from Andorra, applying for residency is strongly recommended.
MCA Assessors: your trusted partner in Andorra
MCA Assessors is a specialized firm with years of experience helping foreign entrepreneurs. The team offers comprehensive support for every step of your business setup.
How MCA can help
- Guidance on legal and financial compliance
- Assistance with procedures for setting up a company
- Coordination with notaries and government entities
- Advice on minimum capital structure
- Ongoing support with accounting and reporting
Their expert team ensures you can focus on launching and growing your business confidently.
Setting up a company in Andorra in 2025 continues to be an attractive option for foreign entrepreneurs. Understanding the procedures for setting up a company, minimum capital requirements, and administrative costs is essential for a successful start.
Whether you’re seeking tax advantages, a secure location, or a business-friendly environment, Andorra offers a compelling combination.
If you’re planning to start a business in Andorra, contact MCA Assessors today. Our team is ready to guide you through every step of the process with professionalism and dedication.
