Papers brings you the steps to follow to create a company in Andorra while you continue living in Spain. Learn also about the benefits of forming a corporation in this small principality, which range from low taxation to high-quality infrastructure.
Mar 10, 2024
Located on the southern slopes of the Pyrenees, between the territories of Spain and France, the Principality of Andorra has positioned itself as an ideal destination for entrepreneurs looking to start a business.
Although the process has its peculiarities, it's important that you get ready, act ahead of time and fulfill all the requirements from the relevant authorities as well as from the banking entities.
The requirements for starting a business in Andorra vary according to the types of companies, the activity to be carried out, among others. Below, we provide you with all the information you need to know, updated to 2024.
The corporate tax in Andorra is a maximum of 10%, being one of the most attractive in the Eurozone.
Thanks to its double taxation agreements, companies set up in Andorra are not taxed twice for the same concept.
Creating a company in Andorra and living abroad is completely legal, complying with the existing legal obligations.
A foreign investment authorization, company name reservation, and bank account opening are the main requirements.
In this first part, we will learn what the necessary documents are to start your business project in Andorra.
The individual who will set up the company.
You must send an application to the Government of Andorra indicating the company name, in order to be able to reserve it. You must propose up to three different names. In the document, you should also detail the activity of your business and its legal structure (S.L., S.A., SLU, SAU.). You will receive an answer within approximately ten days.
This application is also made to the Andorran authorities, and is a requirement for non-residents who want to have a shareholding from 10%. It is important to send a detailed file that includes the following information.
Certificate of company name reservation
Identity document of the founders (legalized and apostilled)
Proofs of work and professional experience
Criminal record certificate from the country of origin and the last place of residence apostilled with the Hague Convention.
Information about the nature of the company and the services it will provide, developing a specific business plan for the company to be developed.
In this case, the government's resolution will be issued within a month and 15 days at the latest.
In parallel with the previous step, you must manage the opening of a bank account in the name of your company, in order to make the deposit of the share capital and to be able to unlock banking operations once your company is operational. The procedure must pass all the compliance requirements of each banking entity. At this time you must provide all the documents detailed above, as well as the last personal and professional tax returns of the immediately previous year or the current year.
Keep in mind that the minimum investment capital varies according to the type of company you intend to establish. At Papers, we have professionals who can advise you on choosing the bank and gathering the necessary documentation.
Based on the characteristics of the company, it is appropriate to draw up the public deed and define its statutes. You can carry out this step once you have obtained the company name and the certificate of the deposit of the share capital.
This documentation must be presented before a notary, who will be responsible for signing and incorporating the public deed of incorporation of the company to the Register of Companies, to formalize the establishment of the company
Having a Tax Registration Number (NRT) is essential to be able to carry out various procedures at a fiscal and commercial level. The application is made to the Andorran Tax Administration and must be made once the company is constituted and registered.
Once the above process is completed, the next step is to request a license from the corresponding Comú to endow the constituted society with commercial operability; , which will in turn be responsible for forwarding the documentation to the Registry of Commerce and Industry.
To obtain the certificate of Trade Register, your company must have an established domicile, pass the relevant inspections and attach apart from the official applications a bulletin of electrical installation and a contract for the maintenance of fire extinguishers, as well as the lease contract.
The final step consists of registering your company, along with the partners and employees, with the Andorran Social Security Fund (CASS). After that, your business will be authorized to start its activities.
Have you ever wondered why many investors and entrepreneurs decide to establish their businesses in Andorra? Probably the main reason lies in its fiscal benefits. But there are other reasons worth knowing about.
Andorra has double taxation treaties in force with several European Union countries -including Spain- that prevent paying two or more taxes on the same income during a fiscal period. Without this initiative, managing companies in the principality while living in another country would be very complicated. We must not forget the obligations of non-resident companies, on a personal, banking and professional level.
One of the great advantages of setting up a company in Andorra is its low taxation. For example, corporate income tax ranges between 2% and 10%, while personal income tax is between 5% and 10%. In addition, VAT is 4.5% (compared to 21% in Spain).
Although it is necessary to follow several steps and present detailed and specific documentation, setting up a company in Andorra is more accessible than doing so in other countries. This is also favored by a high degree of stability at a political and economic level.
Andorra benefits from modern infrastructure and a strategic location in the heart of Europe. It also has high connectivity, as well as a stable and safe legal framework. In the Principality you can also access a highly skilled workforce.
Another advantage of setting up a company in Andorra is the flexibility in its corporate structure, which will serve your company to adapt to the ever-changing market needs in an agile and efficient way.
If what you are looking for is to move to Andorra to live and work, rest assured that you will be in a place that offers good quality of life, a pleasant climate and an extraordinary natural environment. Its health, education, and communication systems are top-notch, and you can enjoy multiple outdoor activities.
One of the fundamental aspects that you should take into account when creating a company in Andorra is choosing the type of company that best suits the needs of your business. Although there are several alternatives, the main ones are two: Public Limited Company (S.A.) and Limited Liability Company (S.L.), which can also be single-member public limited companies (SAU) and single-member limited liability companies (SLU)
It is the main option for large-size companies, whose capital is divided among several shareholders. The minimum capital for its constitution is 60,000 €. For companies established by a single shareholder under these conditions, the corresponding model is the Single-Member Public Limited Company (SAU).
The Limited Liability Company option is aimed at smaller businesses, with commerce and services being the most common sectors. The minimum capital is 3,000 €. This model can also be adopted individually through a Single-Member Limited Liability Company (SLU).
If you are an entrepreneur interested in acquiring real estate and owning securities, you can opt for setting up an asset-holding company in Andorra, which is subject to a series of specific requirements.
Whatever model you choose, you must meticulously follow the process of registering the company in the Trade Register, as this will ensure that you can operate legally, taking advantage of the benefits offered by Andorra.
To ensure a successful procedure, you can count on the advice of professionals specialized in the formation of companies, such as Papers. We help you in all the steps of the process, from choosing the type of company adapted to your needs up to the registration in the Trade Register.
Settling in Andorra and creating a company in the country has significant implications. While it is necessary to demonstrate financial solvency, the principality offers multiple benefits, both tax-wise and in terms of quality of life. That is why this destination is so attractive to investors, entrepreneurs, artists, YouTubers, athletes, among other personalities.
The robustness of the foreign investment process in Andorra is worthy of note, as it allows non-residents to establish businesses efficiently. In addition to the aforementioned tax advantages, it stands out for the absence of personal taxes on income and wealth.
Let's not forget, in addition, that Andorra has a network of international tax agreements that provides legal certainty to businesses operating in its territory.
Opening a bank account in Andorra is a crucial process for your company to start activities. When choosing a banking entity, you should consider aspects such as the variety of services offered, fees, and applicable regulations.
We also advise you to be aware of the regulations and rules about corporate accounts in Andorra. This way you will be fully assured that all financial transactions are carried out in compliance with the current legal framework.
It's possible that, in addition to the documentation required by the banks (registration certificate, personal documents of the partners, proof of address, etc.), the physical presence of the legal representatives during the account opening may be required.
Finally, remember that banks have the authority to request additional documents - both personal and professional - to be certain about the legitimacy of your company. Therefore, you may also have to prepare financial reports, business plans, banking references, etc.
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Yes. There is no legal impediment to setting up a business in Andorra and living in Spain or another country. However, it is essential to comply with the existing legal obligations at all times as well as respect the regulations on the prevention of money laundering. .
The minimum capital required varies according to the type of company. For S.L., it is 3,000 €, while for SA the amount is 60,000 €. This is in addition to the expenses in fees, procedures, and notaries.
The time it takes to complete the creation of a company in Andorra depends on several factors. It largely depends on the Government's and banks' response time to attend to the requests, as well as the speed of response to the request for additional documentation. . However, the estimated time varies between 10 to 12 weeks.
If you already have a company operating in Spain or another country, it is possible to move it to Andorra. However, it is a somewhat more complex process, which requires professionals trained to carry out this process. At Papers we can assist you in choosing the best option for you and your company, with the collaboration of specific professionals who will ensure that you choose the best option.
Depending on the business case, there are incentive programs to help legally established companies in Andorra, which are taking their first steps. These initiatives include financing and direct aid, particularly in the areas of technology and innovation.
Currently, Andorra is not considered a tax haven. This is due to it adopting measures to improve transparency and prevention of money laundering, added to its cooperation agreements with the European Union and the OECD.
At Papers we take care of compiling and reviewing in detail all the necessary documents to incorporate your company in Andorra. In short, we make sure that your company complies with current regulations and the process is a success.
