How to set up a business and obtain residency in Andorra: Guide to the new legislation

With the new legislation introduced in Andorra in 2025, the procedure for establishing a company and obtaining residency as an investor has been reorganized and strengthened.

This regulatory framework aims to ensure the consistency of business projects, improve administrative efficiency, and ensure the responsible use of public resources.

Below, we explain the new process step by step, with a clear, practical, and up-to-date description.

Key Changes Introduced in 2025

Before delving into the details of the process stages, it is worth highlighting the key changes that directly affect foreign investors:

1. Prior Immigration Quota Reservation: It is now mandatory to apply for and secure a residency slot before proceeding with foreign investment if the project involves the investor’s relocation.
2. Digitization of the Process: Several initial stages can be completed online, speeding up the process and reducing the need for travel.
3. Mandatory Bank Account in Andorra: Opening a local account is a crucial requirement for establishing the company and operating.
4. 18-Month Monitoring: The Government will verify compliance with the submitted business plan after the company is established.

1. Initial Preparation and Preliminary Procedures

Digital Certificate and NIA: The process begins with the application for a digital certificate and the Administrative Identification Number (NIA), which are necessary to manage any official procedures.

Document Legalization: A notarized copy of the identity document must be obtained, a crucial step for progressing.

Definition of Corporate Purpose: A clear and precise description of the activities the company will engage in must be drafted, aligned with Andorran legislation.

Reservation of Corporate Name: The future company’s name must be officially requested, ensuring it is available and suitable for the intended activity.

2. Reservation of Immigration Quota

Mandatory Prior Application: If the project involves active residency, an immigration quota must be applied for and secured before continuing with the investment process.

Basic Processing: This stage ensures that the applicant will be able to obtain residency once their company is approved.

3. Application for Foreign Investment Authorization

Project Documentation: A file must be submitted, including the investor’s CV, a descriptive report of the project, financial forecasts, and a five-year hiring plan.

Personal Requirements: A copy of the apostilled passport and apostilled criminal record certificates from the countries of nationality and residence must be presented.

Institutional Evaluation: The file will be reviewed by various bodies, such as the Foreign Investment Service, the Company Registry, the Commercial Registry, and, in some cases, the AFA (Andorran Financial Authority).

4. Company Establishment and Registration

Drafting of Bylaws: The company’s bylaws (SL or SA) are prepared in accordance with current regulations and adapted to the client’s business model.

Bank Account Opening: A bank account must be opened in an Andorran entity, with a minimum deposit of €3,000. Each bank has its own compliance criteria.

Notary Signature: Once the documents are ready, the company’s deed of incorporation is signed before a public notary.

Tax and Social Security Registration: The company is registered in the Company Registry, obtains the NRT (tax registration number), and is registered in the CASS (Andorran Social Security) as an employer.

5. Commercial Registration and Business Location

Reservation of Trade Name: The name under which the company will operate publicly is registered with the local Comú (municipality).

Property Management: A lease agreement for a physical location, coworking space, or domiciled office is signed. The electrical bulletin, fire extinguisher contract, and Comú inspection are also processed.

Business License: Once all requirements are met, a business license is obtained, and the workplace is registered with the Chamber of Commerce and CASS.

6. Application for Residency as an Investor

Active Residency Application: Once the company is operational, the investor can submit a residency application to the Immigration Service.

Mandatory Deposit: A deposit of €50,000 must be made to the Andorran Financial Authority (AFA), which is essential for processing the residency.

Registration: The new resident must register with social security as a self-employed individual or executive and with the tax authorities as a resident individual.

Family Reunification: If applicable, residency for the spouse and dependent children can be managed later.

7. Business Project Monitoring (18 Months After)

Administrative Control: During the 18 months following company formation, the Government will verify that the declared project is being carried out as planned.

Proof of Activity: It will be necessary to demonstrate that the company is active, with an operational bank account in Andorra, commercial transactions, and a staff, in line with the business plan presented.

This updated procedure focuses on transparency, the quality of business projects, and legal security for all parties involved.

At MCA Andorra, we guide our clients through every step of the way to ensure a solid, efficient, and fully tailored establishment to meet their strategic goals.

Are you considering starting a business and relocating to Andorra? Contact us to receive a free initial consultation. Our team will help you create a personalized plan, step by step.