Andorra has become a preferred destination for foreign entrepreneurs. Its low corporate tax, stable economy, and excellent quality of life attract business-minded individuals each year. If you are considering relocating your company, start a business in Andorra offers long-term strategic benefits.
The Principality is not only tax-efficient but also offers political stability and a high standard of infrastructure. Whether you are a freelancer, investor or business owner, understanding the costs and legal requirements is essential before making the move.
What are the benefits of starting a business in Andorra?
Choosing to set up a business in Andorra brings significant advantages:
- Low corporate tax rate (between 2% and 10%)
- No tax on dividends distributed to shareholders
- Strategic location between Spain and France
- Access to modern banking and financial services
- A safe environment with a high quality of life
These benefits make the country highly attractive, especially for high-income individuals and international entrepreneurs.
Business structures available in Andorra
Societat Limitada (SL) – Limited Liability Company
The SL (Societat Limitada) is the most common structure for small and medium-sized businesses. It is ideal for individual entrepreneurs or partnerships with limited liability.
Key features:
- Minimum share capital: €3,000
- One or more shareholders allowed
- Flexible structure and governance
- Suitable for commercial and service activities
SL costs in Andorra are predictable, and this format provides efficient tax planning opportunities.
Societat Anònima (SA) – Public Limited Company
The SA (Societat Anònima) is suited for larger companies or those planning to attract investors. It is more complex and has higher capital requirements.
Key features:
- Minimum share capital: €60,000
- Board of directors required
- Ideal for holding companies and larger operations
Real costs of start a business in Andorra
When considering starting a business in Andorra, understanding the full cost is crucial. Here’s an overview of the limited company costs and other expenses:
| Type of Expense | Estimated Cost (EUR) |
| Share capital (minimum) | €3,000 |
| Legal and administrative fees | €1,500 – €2,500 |
| Notary and registry costs | €1,000 – €1,800 |
| Professional advisory services | €2,000 – €5,000 (one-time) |
| Accounting and compliance (annual) | From €1,200 / year |
| Bank account opening | €300 – €600 |
Note: These are average prices. Actual fees may vary depending on company size and services required.
Legal requirements to start a business
Main legal requirements include:
- Non-residents can hold 100% of shares with prior government approval
- Clean criminal record and proof of funds
- Business plan outlining economic interest for Andorra
- Registered office address in Andorra
- Appointment of a local administrator (if applicable)
The government aims to ensure new companies contribute to the local economy. Therefore, documentation must prove real business activity.
Administrative procedures for entrepreneurs in Andorra
Step-by-step guide to administrative procedures in Andorra:
Step 1: Name reservation and approval
Reserve a unique company name with the Andorran government. This process usually takes 3–5 working days.
Step 2: Foreign investment approval
Non-resident shareholders must obtain authorization for foreign investment. Approval generally takes between 1–3 weeks.
Step 3: Incorporation and notary
Sign the incorporation deed before a notary. Once signed, the company is officially formed.
Step 4: Tax and social security registration
The company must be registered with the Andorran Tax Administration and Social Security System (CASS).
Step 5: Opening a bank account
To activate the company, a corporate bank account must be opened. Banks may request detailed due diligence and personal documentation.
How long does it take to start a business in Andorra?
The complete process to start a business in Andorra usually takes 4 to 8 weeks. This includes name registration, investment approval, incorporation, and operational setup.
Working with local experts significantly speeds up the timeline. They help ensure compliance with all legal and administrative steps.
Can non-residents start a business in Andorra?
Yes, non-residents can start a business in Andorra, either remotely or by relocating to the country. However, foreign investors must follow specific steps, including obtaining prior government approval for shareholding.
Additionally, Andorra offers residency options for business owners, making it attractive for entrepreneurs seeking tax residency. These options include active residency (with physical presence) or passive residency (with minimal presence requirements).
Start a business in Andorra in 2026 remains a smart decision for international entrepreneurs. The combination of low taxes, legal security, and lifestyle makes the country one of Europe’s most appealing destinations.
To avoid delays or mistakes, it’s best to rely on experts who understand local legislation and procedures.If you are planning to start a business in Andorra, our expert team at MCA Assessors is ready to guide you. Contact us today for a personalised consultation and take the first step toward establishing your company in Andorra.
