How to incorporate a company in Andorra
Brief summary of the process, costs and timing for incorporating a company in Andorra
Are you looking to set up a company in Andorra?
If so, you are on the right page. This article will give you all the information you need to know about incorporating your business in Andorra. This step-by-step guide will give you an overview of how to register Andorran companies and what the requirements are for doing so.
Why is a good option to incorporate a company in Andorra?
Andorra is a landlocked principality located in the Pyrenees mountains between France and Spain. Although it's a small country with a population of about 85,000 people, Andorra has some big advantages that make it attractive to businesses looking to incorporate there:
- It's one of the smallest countries in the world. This means that you'll be able to get started on your business quickly without having to wait for weeks or months before you get approval from government agencies.
- There aren't many regulations governing how companies must operate within Andorra's borders. Many larger countries have strict regulations about what types of businesses can operate within their borders—or even what industries are allowed. In Andorra. However, those restrictions are much less rigid; this makes it easier for entrepreneurs who want their business models around new technologies or models (such as blockchains) but need time for those ideas to come to fruition.
- One of the most efficient tax systems in Europe, fully recognized by the OECD and EU.
Is there any place better than Andorra for incorporating a Company?
Andorra is landlocked in the eastern Pyrenees mountains between France and Spain. It's a principality with its government.
The simplicity of requirements and the speed of the process are factors to consider. Still, it is also very important to get the legal certainty that you will run a business with full legal recognition locally and internationally.
Likewise, the tax treatment of profits is a great advantage compared with most European countries.
The Real Ways To Incorporate Your Company In Andorra: Limited Liability Company or Stock Shares Company?
- Decide if you want a private or public limited company (LLC or Stock shares Company or, in local words, Societat Limitada (SL) or Societat Anonima (SA)
- Choose the name of your Andorran company
- Choose a domicile for your Andorran business
- Apply for a TIN and register your company in the corporate registry
- Withdraw funds from an international bank account and open a local bank account.
How to Set Up A Company In Andorra?
(a) The first step in setting up a company in Andorra is choosing the right company for your needs.
(b) On the other hand, it is necessary to apply for foreign investment authorization from the Government.
(c) Reservation of Company name
(d) Choose the right corporate domicile.
(e) Open a local bank account.
(f) Appoint the Directors (we recommend at least 50% of the Directors' residents).
Why do you need a lawyer for setting up a company in Andorra?
Most business owners know the importance of having an attorney on their team. A good lawyer can help you set up your company in Andorra and register it with the government. They can also assist you with opening a bank account in Andorra and other related tasks. It's important to note that any person or entity wanting to start a business in Andorra must have a local legal representative. This means that if you plan on doing business in this country, hiring a lawyer is vital for ensuring everything goes smoothly and according to plan.
Timing to get the company running
Andorra Company Formation is a relatively easy process that can be completed within two months (the foreign investment process takes 1 month, and the incorporation requires another month as average timing).
Costs of incorporation of an Andorran Company.
Taxes.- About 1500 €
Notarial costs.- Depending on the amount of capital initially injected. Minimum 600 € for an LLC with a capital stock of 3,000 €
If you want the company to apply for active residence, a guarantee of 15,000 € (the government will change this guarantee from 15,000 to 50,000 soon).
Fees of the attorney.- Ranging from 2,000 up to 5,000.
If you consider Andorra the best option for you, you will be able to access the best opportunities in Europe and expand your business globally.
Please, be aware that Andorra is not considered A tax heaven anymore.
An Andorra company could perfectly open a bank account in a foreign or international bank when the operations require a more global service.
Andorra will sign an agreement with the European Union in 2023 that will give access to European freedoms without losing its particularities in terms of low taxes and certain restrictions.