Creating a company in Andorra, make your steps easier with our Gestoria
Andorra is one of the countries in the world that is particularly favorable to entrepreneurs. If you have the project to develop an activity in the Principality, you can proceed to the creation of companies with simplified procedures. There are many advantages that you can enjoy with the establishment of a company in Andorra. We can talk about its tax system with a low tax rate for companies. It does not exceed 10%. There is no tax on dividends either. An incredible situation in the heart of Western Europe.
As we have an extensive network of partners, we have the necessary elements to accompany you in your entire investment project in Andorra.
Setting up a company in Andorra,
the preferred destination for investors
Low and transparent taxation is one of the reasons why investors choose to move to Andorra. With this low taxation, the amount of taxes generally does not reach 10% of the rent, regardless of its type and origin
Located in the Pyrenees, Andorra is situated between Spain and France. This location remains a great advantage on the economic level. In the heart of Europe, the Principality is not far from Toulouse and Barcelona.
The country has a strong connectivity with 100% fiber optic coverage. The mobile connection is 98% guaranteed. For these alliances, Andorra has signed bilateral agreements with several countries. About 9 double taxation agreements are highlighted, mainly to prevent tax evasion, which are among others:
- France;
- Spain ;
- Luxembourg ;
- Portugal;
- United Arab Emirates ;
- Malta ;
- Cyprus ;
- And Saint-Martin.
Since 2012, the Andorran government has been doing everything possible to encourage foreign investors. The installation of Andorran companies is facilitated. Besides a low tax rate, the social charges applied to Andorran companies also remain among the lowest in Europe.
Some advantages of creating a company in Andorra
As an indication, here are some benefits of creating an Andorran company.
- 10% maximum corporate tax ;
- 15.5% for social security contributions for employees;
- 4.5% VAT only, this is the direct tax or IGI;
- Less than 1000 euros annual fee and maintenance fee for ordinary companies
About residency: active residence
The creation of a company in Andorra gives you access to an active resident status. It allows you to fully benefit from the tax advantages offered in the Principality. The process can take up to 6 months to complete. You must eventually present a medical examination to the Ministry of Immigration.
In case you will not be the manager of the company to be created, but you still wish to have a resident status, you must have at least 21% of the shares to be eligible.
Creating an Andorran company: different types of companies to suit every entrepreneur
For your business creation project in Andorra, you have several types of companies to choose from depending on your needs. Two main structures stand out in the Principality:
The Limited Company or SL
This type of company is very similar to the French SARL. It is a limited liability company. Entrepreneurs choose it especially for small structures. This status is ideal for commercial and service companies.
If this type of company is run by a single person, it is called SLU or Single Person Limited Company. The required statutory capital for this status is about 3000 euros minimum.
Set-up costs should also be foreseen. These include notary fees and lawyer’s fees. There is also a flat-rate installation fee. Its cost is about 5000 to 6000 euros where the 1000 euros will be taken by the Andorran Government. The annual taxes will be about 1016,67 euros.
The limited company or SA
To create an offshore company in Andorra, you also have other types such as the SA or SAU. The limited company is for large companies. Contrary to the limited liability company, it can embark several shareholders, but can also be constituted of a single partner. In this case, it will become a SAU or Société Anonyme Unipersonnelle.
As for the required capital, it is 60,000 euros with registration fees, including a tax of 1016.67.
Other details to consider: tax, taxation and application for legislation or apostille
Once you have defined your social and residency status (active residence for entrepreneurs) and determined your services, you must also think about the fiscal modality related to your taxes. There are also other details, such as the application for legislation or apostille.
Taxation of Andorran companies
The tax rate that the company must pay is a maximum of 10% on the profit. In the case of international companies, holding companies, inter-group financial companies, they benefit from a lower rate, or even zero in certain circumstances.
The request for legislation or apostille
The apostille or the legislation is a formality that remains mandatory for the creation of a company in Andorra. It allows to attest the authenticity of the documents. Apart from the creation of a subsidiary, this system also applies to university registrations, marriage or expatriation documents.
The creation of companies in Andorra: numerous procedures in Catalan
The constitution of your company’s file is mostly done in Catalan, the official language in Andorra. It can therefore be difficult to fill in the documents if you do not master this language. Moreover, most of the procedures must be done on site. You will have to make a round trip from France or another country to Andorra to file your application.
Procedures for setting up a business in Andorra
The creation of a company in Andorra follows precise processes. The first step is to write a request for authorization of foreign investment. It must be addressed to the Government. The next step is to register your company in the Principality’s commercial register. This procedure must be done in parallel with the one of the active residence. It ends with the creation of the bank account and the registration in the commercial register.
It takes several weeks to set up an Andorran company. During this period, the Andorran authorities will examine the interest of your project. What is your motivation to invest in the Principality?
For each of the steps, precise procedures must be respected. In the case of a request for authorization for foreign investment, it is imperative to apply to the Govern (the Andorran government). The answer to this request can take from 1 to 1 1/2 months.
The application for a reserved company name must be filed after the application for an investment authorization. The name of your company must be defined in Catalan, be original and present your activity in the best possible way.
The application for incorporation is for the definition of the company’s purpose. You will need to mention the address of the company’s headquarters and the board of directors.
A notarial act will validate all your steps. Your company will then be registered with the Principality’s government. Creating a company in Andorra follows specific processes. The first step is to write a request for authorization of foreign investment. It must be addressed to the Government. The next step is to register your company in the Principality’s commercial register. This procedure must be done in parallel with the one of the active residence. It ends with the creation of the bank account and the registration in the commercial register.
It takes several weeks to set up an Andorran company. During this period, the Andorran authorities will examine the interest of your project. What is your motivation to invest in the Principality?
For each of the steps, precise procedures must be respected. In the case of a request for authorization for foreign investment, it is imperative to apply to the Govern (the Andorran government). The answer to this request can take from 1 to 1 1/2 months.
The application for a reserved company name must be filed after the application for an investment authorization. The name of your company must be defined in Catalan, be original and present your activity in the best possible way.
The application for incorporation is for the definition of the company’s purpose. You will need to mention the address of the company’s headquarters and the board of directors.
A notarial act will validate all your steps. Your company will then be registered with the Principality’s government.
Documents required to set up a business in the Principality
Prior to the registration process, a few documents may be required. These include:
- An extract from the clean criminal record of your country of origin,
- A certification of opening a bank account
- A document containing your business plan,
- A passport,
- The company name,
- And a draft of the company’s statutes.
The role of a Gestoria: to assist managers in the creation of their company in Andorra
For the creation of your offshore company in Andorra, let our Gestoria assist you. Through our network of partners, we can help you launch your business. Particularly in the choice of your social status of company and the professional concerned which can be a notary, a lawyer, a tax specialist or an accountant. If helping you in your expatriation project remains at the heart of our work, we also have the possibility to assist you with these experts in order to create your company.
We would like to specify that the registration of your company is not at the charge of our Gestoria. Our mission is to study your expatriate file and to put you in touch with the relevant partners. We will make sure that the fiscal conditions are respected.
Les étapes d’une création de société en Andorre
Retrouvez toutes nos explications sur les étapes de A à Z de la création d’une société en Andorre.
Bank presentation/Creation of accounts
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