Create a company in Andorra is a process that is best left to experts like MCA Assessors. Andorra is a country characterized by low taxation and transparency. Nowadays, it is much easier to create a company in Andorra, something that was complicated a few years ago. This makes the Principality one of the preferred destinations for investors.
Create a company in Andorra consists of very specific steps. They are not complex, but it is advisable to put yourself in the hands of experts, especially if you have not yet moved to the Principality. The business procedures in Andorra are as follows:
The whole incorporation process will take about three months.
If you want to create a company in Andorra, we tell you that there are two different types of models: the Sociedad Anónima and the Limitada. The Public Limited Company (S.A.) is characterized because it needs a minimum capital of 60,000 euros for its constitution. This type of Andorran company is aimed at large companies as it allows the capital to be distributed among the shareholders. There must be a sum of 1480,50 euros for registration and registration of the company, as well as 935,50 euros per year for maintenance expenses. For these purposes, there is also the Sociedad Anónima Unipersonal model.
The Limited Company (S.L.) is a model in which a minimum capital of 3,000 euros is necessary. This type of company is designed for small businesses, and it is necessary to consider other expenses, such as the company’s registration, which amount to 1016.67 euros. In addition, the annual maintenance costs must amount to 851 euros. There is also the Sociedad Limitada Unipersonal or S.L.U.; a single person will manage this company.
No matter what type of company you want to incorporate, having a tax domicile in the Principality is very important, even if the shareholders, suppliers, and clients are outside the country. On the other hand, companies incorporated in Andorra must have an administrator.
Why is it a good idea to set up a company in Andorra? We tell you that the Principality is becoming the preferred destination for many foreign investors because of the great benefits it brings. To begin with, Andorra has a strategic location, bordering France to the north and Spain to the south. It is approximately two hours away from cities such as Barcelona and Toulouse.
On the other hand, the country has an excellent infrastructure and one of Europe’s highest per capita incomes. The health and educational infrastructure is extensive, meaning residents have a high quality of life. But without a doubt, what most attracts investors and businessmen is the Andorran taxation.
Suppose you are going to set up a company in Andorra. In that case, you should know that the Principality has entered into several double taxation treaties that avoid double taxation at the international level. The countries with which this agreement has been signed are Spain, France, Portugal, Liechtenstein, Luxembourg, and the United Arab Emirates. Corporate income tax is between 2 and 10%, while income tax is between 5 and 10%.
On the other hand, Andorra is characterized by having one of the lowest VATs. Although the VAT in Andorra is IGI, you will be surprised to know that it is 4.5% in general IGI. And what about Spain? The general VAT in our country is 21%. As you can see, in Andorra, it is much lower.