International entrepreneurs can choose Andorra as an optimal business destination. Even though it is not part of the European Union, the Andorran state uses the Euro currency, which is extremely advantageous for businessmen from abroad. We invite you to read some details about the main entities that you can establish in Andorra and then get in touch with our team of experts to find out more about the company formation process and other business-related matters.
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Types of companies available in Andorra
These are the main company types available for local and international investors in Andorra:
- the limited liability company (SL) is the most popular business structure in Andorra. It can be established with a minimum share capital of EUR 3,000;
- the public limited company (SA) is also a viable option for foreign entrepreneurs, with EUR 60,000 being the minimum share capital imposed;
- a one-person company is the single-shareholder LLC, suitable for a specific category of entrepreneurs in Andorra;
- general partnerships and holding companies are also proper business entities for foreign entrepreneurs in Andorra;
- branches and subsidiaries in Andorra are suitable for large enterprises from abroad;
- a liaison office in Andorra is also available for overseas entrepreneurs who want to test the market first, with various advertising & promotion projects.
Considering these business entities available in Andorra, all that remains is to choose the one that is optimal for your development plans in this country and get in touch with our team of specialists. We assist in company formation in Andorra and also represent our customers in all formalities linked to registration.
How to start an SL in Andorra
These are the main requirements for opening an SL in Andorra, the most popular business option:
- the Companies Registry in Andorra (Registre de Societats), overseen by the government in Andorra, is the institution that receives applications for the incorporation of companies;
- the company incorporation process in Andorra begins with the verification and reservation of the trade name;
- businessmen must open a local corporate bank account attached to their future company in Andorra;
- applications must receive approval for the business plan from the government in Andorra. This is about permission to invest as a foreigner in Andorra;
- the company’s Articles of Association must be notarized before submission;
- EUR 3,000 is the minimum share capital required for opening an SL in Andorra;
- the company must obtain the Tax Registration Number (NRT) from the Companies Registry in Andorra.
In addition to these important formalities and procedures related to opening a company in Andorra, applicants must present a valid passport/ID and a clean criminal record. It is worth noting that the registration fee for an SL in Andorra is around EUR 1,000-EUR 1,500. However, you can find out more about the entire process of incorporating an SL in Andorra from our specialists.
Main taxes in Andorra
Andorra is not an offshore jurisdiction, but it offers low taxation to international and local entrepreneurs. Here are some of the most important taxes in Andorra:
- 10% is the corporate income tax in Andorra, one of the lowest in Europe. The same rate applies to the worldwide income of non-residents in Andorra, starting from EUR 40,000/month.
- 4.5% is the General Indirect Tax (IGI, the VAT variant in Andorra) for most goods and services for sale. Lower rates also apply.
- 4% is the real estate transfer tax imposed on property acquisition in Andorra.
- The capital gains tax imposed on real estate in Andorra ranges between 1% and 15%.
Are you ready to open a company in Andorra? Now that you know some information about available entities, incorporation, and taxation, all you have to do is contact our local experts for further details. We offer a free case evaluation to our new customers, plus personalized services.