Start a business in Andorra: step-by-step guide for 2025

Andorra, an attractive destination for entrepreneurs

Situated on the southern slopes of the Pyrenees, between the territories of Spain and France, the principality of Andorra has become an ideal destination for entrepreneurs looking to start a business.

While the process has its peculiarities, it's important to prepare yourself, act in advance, and meet all the requirements from the relevant authorities as well as banking entities.

The requirements to create a company in Andorra vary according to the types of societies, the activity to be developed, among others. Below, we provide you with all the information you need to know, updated to 2025.

Main points:

• The corporate tax in Andorra is a maximum of 10%, one of the most attractive in the euro area.

• Thanks to its double taxation agreements, companies set up in Andorra are not taxed twice for the same reason.

• Creating a company in Andorra and living abroad is completely legal, complying with existing legal obligations.

• A foreign investment authorization, corporate name reservation, and bank account opening are the main requirements.

What are the requirements to create a company in Andorra?

In this first part, we will learn what documents are necessary to start your business project in Andorra.

1. Request for the Administrative Identification Number (NIA)

   Of the individual who will establish the company.

2. Corporate name reservation for the company

   You must send a request to the Government of Andorra indicating the name of the company, in order to reserve it. You must propose up to three different names. In the document, you must also detail the activity of your business and its legal structure (S.L., S.A., SLU, SAU.). You will receive a response within approximately ten days.

3. Foreign investment authorization

   This request is also made to the Andorran authorities and is a requirement for non-residents wishing to have a capital share starting from 10%. It is important to send a detailed file, which includes the following information.

   • Social name reservation certificate

   • 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 by the Hague Convention.

   • Data about the nature of the company and the services it will provide, developing a specific business plan for the business to be developed.

   In this case, the government will issue a decision within one month and 15 days at the latest.

4. Bank account opening

   In parallel with the previous step, you must arrange the opening of a bank account in the name of your company in order to make the deposit of the share capital and be able to unlock banking operations once your company is operational. The process must meet all the requirements of the bank's compliance department. At this time, you must provide all the previously detailed documents, as well as the latest professional and personal tax returns from the previous year or the current year.

   Keep in mind that the minimum investment capital varies depending on the type of company you wish to establish. At Papers, we have professionals who can advise you on choosing the bank and gathering the necessary documentation.

5. Drafting of the corporate statutes

   Based on the characteristics of the company, it is necessary to draft the public deed and define its statutes. You can perform this step once you obtain the corporate name and the share capital deposit certificate. This documentation must be submitted to a notary, who will be responsible for signing and incorporating the public deed of incorporation of the company into the Companies Register to formalize the creation of the company.

6. Obtaining the Tax Registration Number (NRT)

   Having a Tax Registration Number (NRT) is essential to perform various fiscal and commercial procedures. The request is made to the Andorran Tax Administration and must be done once the company is incorporated and registered. 

7. Registration in the Commercial Register

   Once the previous process is completed, the next step is to request a license from the corresponding Comú to give the established company commercial operability, which in turn will be responsible for submitting the documentation to the Trade and Industry Register. In order to obtain the Trade Register certificate, your company must have an established domicile, pass the pertinent inspections, and attach apart from the official requests   an electrical installation bulletin and a fire extinguisher maintenance contract, as well as the lease contract.

8. Registration with the Andorran Social Security (CASS)

   The final step is to register 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.

Tax advantages of establishing a company in Andorra:

Have you ever wondered why many investors and entrepreneurs choose to set up their businesses in Andorra? Probably the main reason lies in its tax advantages. But there are other reasons worth knowing.

• Double taxation agreements

Andorra has double taxation agreements in place with several European Union countries - including Spain - that prevent the payment of two or more taxes on the same income during a fiscal period. Without this initiative, it would be very complicated to manage companies in the principality while living in another country. We must not forget the obligations of non-resident companies on a personal, banking, and professional level.

• Competitive taxation

One of the great advantages of creating a company in Andorra is its low taxation. For example, the corporate income tax ranges between 2% and 10%, while the personal income tax is between 5% and 10%. Also, the VAT is 4.5% (compared to Spain's 21%). It is also important to mention the corporate tax, which offers reduced rates under certain requirements and is comparatively lower than in other countries like Spain.

• Ease of doing business

While it is necessary to comply with several steps and present detailed and specific documentation, establishing a company in Andorra is more accessible than in other countries. This is also supported by a high level of political and economic stability.

• Modern infrastructure

Andorra benefits from modern infrastructure and a strategic location in the heart of Europe. It also offers high connectivity, as well as a stable and secure legal framework. In the Principality, you can also access highly qualified labor.

• Corporate flexibility

Another advantage of creating a company in Andorra is the flexibility in its corporate structure, which will allow your company to adapt to changing market needs in an agile and efficient way.

• A great place to live

If you're looking to move to Andorra to live and work, rest assured that you will be in a place that offers a good quality of life, a pleasant climate, and an extraordinary natural environment. Its healthcare, education, and communication systems are top-notch, and you can enjoy many outdoor activities.

What types of corporations can you set up in Andorra?

One of the key aspects you should consider when creating a company in Andorra is choosing the type of corporation that best suits your business needs. Although there are several alternatives, the main ones are two: Sociedad Anónima (S.A.) and Sociedad Limitada (S.L.), which can also be sole proprietorships (SAU) and single-person limited companies (SLU).

• Sociedad Anónima

  It is the main option for large companies, whose capital is divided among several shareholders. The minimum capital for its incorporation is €60,000. For companies established by a single partner under these conditions, the corresponding model is a Sole Proprietorship (SAU).

• Sociedad Limitada

  The Sociedad Limitada option is aimed at smaller companies, with the most common sectors being trade and services. The minimum capital is €3,000. This model can also be adopted individually, through a Single-Person Limited Company (SLU).

• Patrimonial

  If you're an entrepreneur interested in acquiring real estate and holding securities, you can choose to establish a patrimony in Andorra, which is subject to a series of specific requirements.

Procedures for creating a company in Andorra

Creating a company in Andorra involves following a series of mandatory official procedures. Below are the necessary steps to establish a company in Andorra:

1. Social Name Request: The first step is to validate the company's social name before the Govern d’Andorra. You must fill out a form available on the electronic headquarters of the Govern d’Andorra's procedures department. This process is essential to ensure that your company's name is unique and not in use by another entity.

2. Submission of the Foreign Investment Request Form: If the company is of foreign capital, it is necessary to submit the foreign investment request form to the Govern d’Andorra. This step is crucial to obtaining foreign investment authorization, allowing non-residents to participate in the company's share capital.

3. Opening of a bank account: It is essential to have an operational bank account to create a company in Andorra. The company's share capital must be deposited in a bank in the country. This deposit is a requirement to demonstrate the company's economic solvency and to comply with bank compliance regulations.

4. Drafting of the Corporate Statutes: Once the previous points are fulfilled, all the corporate documentation must be drafted. The Corporate Statutes should include the company's legal form, corporate name, corporate purpose, and share capital. This document is fundamental for defining the rules and structure of the company.

5. Signature before Notary and Registration in the Companies Register: Once the requirements are met, the public deed of incorporation must be executed before a Notary of the Principality of Andorra. You must provide a negative certification of the corporate name, foreign investment authorization (if applicable), share capital deposit certificate, and the text of the Corporate Statutes. This step formalizes the creation of the company and its registration in the Companies Register.

Registration and authorizations

Once the company is established, it is necessary to obtain the necessary authorizations and registrations to operate in Andorra. Below are the necessary steps:

1. Tax Registration: It is necessary to obtain the tax registration number (NRT) from the Department of Taxes and Borders. This number is essential for the company to fulfill its tax obligations and operate legally in the country.

2. Commercial Registration: The commercial name reservation request must be filled in and submitted to the Comú where the company's registered office is located. This registration is necessary for the company to conduct business activities and be officially recognized.

3. Registration with the Social Security: The final step to create a company in Andorra involves submitting the registration request to the Andorran Social Security Fund (CASS). This process is mandatory so that the company and its employees can access social security benefits in Andorra.

Operating in Andorra and Spain

It is possible to create a company in Andorra and operate in Spain. However, it is necessary to comply with the requirements of economic substance in Andorra and have at least one employed resident who is an Andorran resident and an employee. The company would pay taxes in Andorra, and the entrepreneur would be subject to Spanish regulations.

To operate in both countries, it is essential to maintain a corporate structure that complies with the regulations of both territories. This includes hiring local staff in Andorra and fulfilling tax and labor obligations in Spain. This way, you can take advantage of Andorra's tax incentives while operating in the Spanish market.

Online businesses in Andorra

Andorra is an ideal place to establish an e-commerce business. The legislation has been changing and it is now much more feasible for foreign investors to create companies in Andorra. It is important to consider the possible options and alternatives for your business, such as creating a limited or anonymous company, and comply with the legal and fiscal requirements of the country.

The digital environment in Andorra offers multiple advantages, such as advanced technological infrastructure and high-quality connectivity. Additionally, the legal and tax framework is favorable for online businesses, allowing companies to benefit from low taxation and flexible regulation. If you're planning to venture into e-commerce, Andorra might be the perfect place for your project.

These new sections complement the existing information in the article, providing additional details about the procedures, registrations, and operations necessary to create and manage a company in Andorra. In addition, key SEO words have been naturally integrated to improve the visibility of the article in search engines.

Other aspects to consider

Regardless of the model you choose, you must meticulously follow the company's registration process in the Commercial Register, as it will ensure that you can operate legally, benefiting from the advantages that Andorra offers.

To ensure a successful process, you can rely on the advice of professionals specialized in company formation, like Papers. We assist you in all process steps, from choosing the type of company tailored to your needs to registration in the Commercial Register.

Implications of residing in Andorra when creating a company

Establishing yourself in Andorra and creating a company in the country has significant implications. While it is necessary to demonstrate economic solvency, the principality offers multiple benefits, both fiscally and in terms of quality of life. This is why this destination is so attractive to investors, entrepreneurs, artists, YouTubers, athletes, and other personalities.

The robustness of the foreign investment process in Andorra is worth highlighting, as it allows non-residents to establish businesses efficiently. Besides the already mentioned tax advantages, there is the absence of personal income and wealth taxes.

Let’s not forget that Andorra has a network of international tax agreements providing legal security to businesses operating on its territory.

What's the process for opening a bank account for the company?

Opening a bank account in Andorra is a crucial process for your company to start activities. When choosing a bank, you should consider aspects such as the variety of services offered, fees, and applicable regulations.

We also advise you to stay informed about the guidelines and regulations concerning business accounts in Andorra. This way, you will be sure that all financial transactions are carried out in compliance with the current legal framework.

It's possible that, in addition to the documents required by banks (registration certificate, personal documents of partners, proof of address, etc.), the physical presence of the legal representatives may be required during the account opening.

Finally, remember that banks have the authority to request additional documents - both personal and professional - to ensure the legitimacy of your business. Therefore, you may also need to prepare financial reports, business plans, bank references, etc.

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FAQ – Frequently Asked Questions

Is it possible to create a company in Andorra without living in Andorra?

Yes. There is no legal impediment to establishing a business in Andorra while living in Spain or another country. However, it is essential to comply with existing legal obligations at all times and respect anti-money laundering regulations.

What is the capital needed to start a company in Andorra?

The minimum capital required varies according to the type of company. For S.L. it is €3,000, while for S.A. the amount is €60,000. In addition, there are expenses for fees, procedures, and notaries.

How long does the process of creating a company in Andorra take?

The time it takes to complete the creation of a company in Andorra depends on several factors. It largely depends on the response times of the Government and banks to address requests, as well as the speed of response to requests for additional documentation. However, the estimated time ranges between 10 to 12 weeks.

Can I relocate my company to Andorra?

If you already have a company operating in Spain or another country, it's possible to relocate it to Andorra. However, it's a somewhat more complex process that requires skilled professionals to carry out this process. At Papers, we can help you choose the best option for you and your company with the collaboration of specific professionals who will ensure you choose the best option.

Are there any aids for creating a company in Andorra?

Depending on the business case, there are incentive programs to help legally established companies in Andorra that are taking their first steps. These initiatives include financing and direct aids, especially in technology and innovation areas.

Is Andorra a tax haven?

Currently, Andorra is not considered a tax haven. This is because it has adopted measures to improve its transparency and  prevention of money laundering, along with its international cooperation agreements with the European Union and the OECD.

How will we help you at Papers?

At Papers, we take care of collecting and reviewing all the necessary documents to establish your company in Andorra in detail. In summary, we ensure that your company complies with current regulations and that the process is successful.