Company Formation in Andorra

As we’ve mentioned before, Andorra passed a law in 2012 stating that foreigners can now own 100% of the shares of an Andorran company. This law eliminates the need for an Andorran business partner and levies no limitations on capital ownership. It also allows any person or entity to establish a business in Andorra for any purpose. Read our Andorra company formation guide for more information on how to get started.
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Two businessmen shaking hands - Company formation in Andorra

Éléments à prendre en considération avant de créer une société à Andorre

Andorra is home to a well-developed free market economy propelled by finance, retail and tourism. With generously low corporate taxation des sociétés généreusement bas et des politiques d'investissement offshore parmi les plus favorables, il va sans dire que Andorre est l'un des meilleurs endroits au monde pour ceux qui cherchent à déclarer une société à l'étranger.

However, this is not to say that incorporating a company here is completely free of hurdles. The process is quite straightforward, but finding detailed information on how to go about it can prove difficult—that’s where we come in.

Our team at MCA Assessors has consistently been helping foreigners to open and manage their businesses in Andorra since the approval of the aforementioned foreign investment law. Our expertise lies in a variety of business domains, such as retail, e-commerce, real estate, services, health, food, technology, blockchain, cryptocurrencies and holding companies, to name a few.

Before you set the Andorra company incorporation process in motion, there are some things to consider. These include:

The type of company you want to register

The various fees you'll incur throughout the entire process

Meeting the regulatory requirements for documenting your identity as well as your company’s Articles of Association (AoA)

As a foreigner, there'll be a few extra formalities when registering your company

It’s important to mention that an incorporated company registered at the Companies Registrar cannot conduct any commercial activity without also being registered at the Registry of Commerce. Requirements can also change depending on which part of Andorra you’ll be located in. At a minimum, you must own or rent an office, apartment or house that has a certified electrical installation and a fire extinguisher.

Andorra Company Formation Options

Choosing the right corporate structure for your company in Andorra is an important consideration. There are two types you can choose from—the principal difference between the two has to do with the issued share capital, the annual registry tax amount and the number of shareholders.

These are two main types of companies you can form here, each with their own characteristics.

Societat Limitada (SL) or Societat Limitada Unipersonal (SLU)

This corporate structure is ideal for small businesses—it’s very similar to what’s commonly known as a Limited Liability Company (LLC). Note that while SL and SLU companies are very similar in terms of how they operate, the latter (Societat Limitada Unipersonal) has only one shareholder. Hence the word “unipersonal” is used. The same applies to Societat Anònima Unipersonal (SAU) companies.

Minimum capital share: €3,000

Shares are called “Participacions”

Can be sole-owned, in this case the "U" depicting "Unipersonal" must be added to the name

Startup costs (notary fees, name registration, etc.): +-€2000

Annual registry tax: +-€850.00

Societat Anónima (SA) or Societat Anònima Unipersonal (SAU)

SA companies are typically suited for much larger businesses that have multiple shareholders. The most notable difference between SL and SA companies is the significantly higher initial capital outlay.

Capital social minimum: 60,000 euros

Les actions sont appelées "Accions".

Can be sole-owned, in this case the "U" depicting "Unipersonal" must be added to the name

Startup costs (notary fees, name registration, etc.): +-€2000

Annual registry tax: +-€950.00

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Étapes à suivre lors de l'enregistrement d'une société à Andorre

The process for registering your company here can vary in terms of difficulty depending on whether or not you have residency in Andorra.

As of 2012, it is now legal for non-residents to own more than 10% of the total stake in the company. However, this dies require a few more permissions from the government.

Once the process has been properly initialised, the following further steps are required:

Registering a name: When doing this, you need to make sure that your company name is unique and that no other company has been registered in that name.

Applying for incorporation: This step requires you to submit a proper business plan, draft your articles of incorporation, provide personal identification for all directors and proof of capital.

Getting your company registered by a notary: Just like in most other countries, you’re going to have to get your company registered by a notary in order to get it added to the official register of merchants in Andorra.

Completing your company registration: You’ll be required to submit a copy of your company’s lease to the Andorran government. You'll also need to request a tax identification number.

Comment nous pouvons vous aider

In order to help our customers comply with all the official requirements and free up their time to focus on the success of their project, we’re happy to provide advice and manage all the formalities required to incorporate your company successfully in the Principality.

We’ll handle everything from name registration and opening a bank account to notary incorporation and all public registrations. To ensure a long-term relationship with our clients, we also provide help with accounting, payrolls and all kinds of financial reports.

Got more questions about starting a business or de la vie à plein temps en Andorre? Feel free to get in touch! Our team of experts and consultants are here to help.