The requirements to start a business in Andorra in 2025

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:

1. Reserve a company name with the Andorran Government
   
2. Request foreign investment authorization (if applicable)
   
3. Open a local business bank account
   
4. Deposit the required minimum capital
   
5. Sign the incorporation deed before a notary
   
6. Register with the Companies Registry
   
7. 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.