Find out how to set up a company in Andorra and make the most of all the tax benefits of having a business in the Andorran principality in 2025. Check out the requirements at Papers.
Jan 7, 2025
Andorra, the small Andorran principality located between Spain and France, has become an attractive destination for entrepreneurs who wish to set up a business in Andorra. In this article, we will explore the requirements, types of companies, implications of living in Andorra, and the steps to open a business bank account in this country.
To start a new company, certain requirements must be met. To set up a company in Andorra, the necessary documents include obtaining a foreign investment authorization, the company's corporate name, as well as the personal documentation of the founders. In addition, for the creation of a company in the country, a minimum capital is required, which varies depending on the type of company to be constituted. The process to open a company in Andorra involves presenting the required documentation to a notary, as well as registering it in the Commercial Registry. It is important to meet all legal requirements to ensure the successful creation of a company in Andorra. Furthermore, it is essential to consider aspects such as choosing the company structure, selecting the activity to be developed, as well as drafting the company's bylaws. Also, administrators must be designated, and the company's registered office must be established in the country.
After completing all these steps, it is necessary to apply for the Tax Identification Number (NIF) at the Andorran Tax Administration, as well as to open an account in the company’s name and make the capital investment.
Then you can start managing your company in Andorra and continue living legally in Spain. It is important to have the advice of professionals specialized in business creation. At Papers, we take care of creating the company and handle all aspects until the active residence is obtained. Contact us for more information.
Andorra offers attractive benefits, such as double taxation agreements, for companies that decide to create companies. Corporate taxation in Andorra is competitive, with a corporate tax that can be advantageous compared to other countries. Moreover, foreign companies that decide to set up a business can benefit from special tax advantages, making them more attractive for foreign investment. In this tax load comparison, Andorra stands out as a favorable destination for those looking to start a business. Additionally, Andorra also provides a stable and secure business environment, with modern infrastructure and a strategic location in the heart of Europe. This, along with its transparent legal system and highly skilled workforce, makes Andorra an attractive place for business investment and an excellent place to establish a company while continuing to live in Spain.
Another advantage of creating a company in Andorra is the flexibility in corporate structure, allowing companies to adapt to changing market needs quickly and efficiently. Furthermore, the country boasts a wide network of trade treaties that facilitate international trade and the expansion of companies in global markets.
When establishing a company in Andorra, it's crucial to consider the company structure that will best meet the business needs. One can opt to establish a Limited Company in Andorra, which offers advantages in terms of liability limitation for partners. Likewise, entrepreneurs interested in asset management can choose to establish a Holding in Andorra, subject to certain specific requirements. The process of registering the company in the Commercial Registry must be followed meticulously to ensure the company operates legally and benefits from the advantages that Andorra offers. Additionally, it's important to note that establishing a company in Andorra also requires meeting certain legal and administrative requirements, such as obtaining a Tax Identification Number (NIF) for the company and opening an account in Andorra.
Another important aspect to consider when constituting a company is the hiring of employees. It's necessary to comply with the country's labor laws, which set norms on labor contracts, salaries, social benefits, labor safety, among other aspects.
You can rely on the advice of professionals specialized in company constitutions, like Papers, who can guide entrepreneurs throughout the process, from selecting the type of company to registration in the Commercial Registry.
Residing in Andorra can have significant implications for company creation. The residence requirements for entrepreneurs involve demonstrating the ability to sustain oneself economically in the country. Nevertheless, business owners residing in Andorra enjoy benefits, both fiscal and of quality of life, making the principality an attractive place to venture. Additionally, the process of foreign investment in Andorra is robust, allowing non-residents to efficiently establish businesses in the country. The fiscal benefits that Andorra offers to resident entrepreneurs include a corporate tax rate of 10%, one of the lowest in Europe, and the absence of personal income and wealth taxes. Furthermore, the country has a network of international tax agreements that provide legal security to businesses operating in the country.
In terms of quality of life, Andorra offers a safe and peaceful environment, with a high educational and healthcare standard. The country also enjoys a pleasant climate and a spectacular natural environment that attracts numerous residents and tourists. All this, coupled with the absence of pollution and low crime rate, makes Andorra an ideal place to establish and develop a business.
On the other hand, the foreign investment process in Andorra is relatively simple and quick. Non-residents can establish businesses in the country through the constitution of companies or the acquisition of existing companies. Moreover, the Andorran government is open to foreign investments and has implemented measures to facilitate the arrival of entrepreneurs and business owners in the country.
Opening a bank account in Andorra requires fulfilling certain requirements. Choosing the right banking entity is crucial, considering aspects such as the variety of services offered, fees, and applicable regulations. It is essential to be aware of the regulations and rules on corporate accounts in Andorra, to ensure legal compliance in all financial transactions. Once the procedures are completed, the company can operate with its own account in this business-friendly country. Among the requirements for opening a corporate account in Andorra are the presentation of the required documentation, which includes the company’s registration certificate, personal documentation of the legal representatives, proof of address, among others. Additionally, it may be required for the legal representatives to be physically present at the time of account opening.
It is important to highlight that Andorra is a country with a strong reputation in the financial field, so it is essential to comply with established requirements and demonstrate the legitimacy of the company and its activities. This can involve presenting financial reports, business plans, bank references, among other documents that support the company’s solvency and seriousness.
Once the corporate bank account in Andorra is operational, the company can enjoy a range of advantages, such as the financial stability of the country, a wide array of financial services, robust and strict banking regulation, as well as the possibility of making transactions in euros, facilitating operations with other countries within the European Union.
