Andorra is one of the promising European jurisdictions where starting and doing business is possible under strict conditions. First of all, this is evident from the simplified registration procedures. The country's economy is developing rapidly and is open to foreign capital. Andorra's most developed sectors are the financial sector, trade and tourism. Setting up a business in Andorra la Vella can provide the following benefits.
Why registering a company in Andorra is useful
The decision to open a company in Andorra will automatically provide access to the following benefits:
Strategic location in the European region;
Ability to do business in an environment that is economically and politically stable;
High level of asset protection;
Simple and transparent procedures for establishing a new company;
High level of privacy
Extremely favorable tax environment (one of the lowest tax rates in Europe);
existing double taxation agreements with key European jurisdictions (Spain, France, Luxembourg and others).
Organizational and legal forms in Andorra
One can open a business or establish legal presence in Andorra in one of several ways:
The
Limited Liability Company (SL, the equivalent of an LLC) is the most popular type of business because of its ease of start-up and minimal formalities to be followed. It is also important to note that the liability of the shareholders of this company is limited to their contributions only. The establishment of this legal entity requires an initial share capital of 3000 Euro. Two shareholders can register a business in this form. It is ideally suited for small businesses.
A joint-stock company is a type of company registered to attract external capital in large volumes. JSC issues shares that can be freely transferred to third parties. The liability of the shareholders under no circumstances may exceed the value of their shares - the participants will not cover the potential losses of JSC above this amount. A minimum of two shareholders can register a Stock Company. A minimum of 60,000 Euro capital is required to establish this business. This legal form is suitable for the development of both medium and large companies.
The
Branch allows foreign legal entities to enter the market with minimal monetary and time costs. Setting up a branch requires a simplified registration procedure. The branch will not have the status of a legal entity and the parent company will bear 100% responsibility for its work. The branch is convenient because it organizes interaction with local partners and customers.
Representative Office – the format is suitable for a foreign company that plans to promote goods/services in Andorra and explore the local markets. In this case, legal entity status is also not granted. Only a simple registration procedure is required.
How to start a business in Andorra
Choosing an appropriate legal form for the future business, tailored to its specifics and goals.
Preparation of a business plan and selection of the most optimal types of activities on it.
Find, formulate and maintain a unique business name for the company.
Collection of the necessary data on the participants, the parent company (if any), the final beneficiaries and the company managers.
Deposit the amount of the share capital into a newly opened bank account.
Preparation and certification (maybe with an electronic signature) of the necessary documents for incorporation and filling in the application forms.
Prepare the package of registration documents, including a bank statement confirming the registration fee paid. Creation of a new entry in the Commercial Register regarding the registered company in case of a positive decision based on the results of the review of the documents.
Subsequent registration of the established business for payment of taxes and necessary social contributions.
Opening corporate bank accounts for the new company in Andorra.
Application for license (may be required for certain regulated activities).
Legislation and Regulatory Environment
Andorra is interested in attracting foreign capital. Therefore, the country removed some restrictions that apply to foreign investors. For example, foreigners now enjoy equal opportunities to do business on an equal footing with local citizens, and sole ownership of the company is allowed (previously foreigners were only allowed to own a maximum of 49% of the company). However, foreign investors must provide very specific documents that refer to the absence of a criminal record of the participants in the future legal entity, confirmation of the source of their income, the justification for choosing Andorra as a jurisdiction, as well as a realistic business plan. The lawyers at Smart Startup UK are ready to assist with all the nuances of local law so that you can take full advantage of the low tax burden in this jurisdiction.
Taxation in Andorra
If you want to open or buy a company in Andorra, this decision must be taken into account together with the local tax system:
Total income tax - 3-10%*
Personal income tax 5-10%
VAT 4.5%
Tax on source of income - (1) Dividends - 0% (2) Interest - 10% (3) Royalties - 5%
Tax on capital gains - none. The income is included in the basis for taxation on the income of natural persons.
*may be reduced to 0% under certain conditions.
How our experts can help
Suppose you are evaluating establishing or purchasing a company in Andorra. In such a case, Smart Startup UK lawyers are ready to put this option into practice by providing legal support to the following aspects of business registration in Andorra:
To request and collect all data and documents for opening a business in Andorra;
To choose the name and in the interest of the client, all negotiations are conducted by us with local authorities and banks;
We arrange the legal address, accounts and employees, as well as all necessary application documents for the future company;
We provide comprehensive legal support for the further functioning of the new legal entity in Andorra.
The portfolio of "Smart Startup UK" specialists is formed by more than 8,000 cases in the field of international business registration and support. Our lawyers will apply this experience to the objectives of your project.
CREATE A COMPANY
Check and reserve a company name
Company registration, including state fees
Obtaining an Administrative Identification Number (NIA)
Registration of the company in the state structures
Writing company articles of association
Set of statutory documents of the company in electronic form
Bank contribution for the authorized capital of the company
VAT registration
Company seal
Obtaining a Foreign Investment Permit
Opening an account in: ANDBANK, MORABANC
Opening a personal bank account
Apostilled and translated corporate documents
Obtaining a residence permit
Free consultation
Help with online trading and opening an account at viva.com for online trading
Accounting services - 12 months
Accounting Services
Annual renewal (payable from the second year)
*Within 30 days
IMPORTANT! We can provide you with the initial share capital (if the amount is over EUR 5,000) for the registration of your company in the form of a loan from our company.
Please, if you are interested, make an inquiry to us.
What is the procedure!
1. You submit a request for company registration using the request form.
2. We check if the registration company name is free and eligible for registration.
3. Choose a bank that suits your company's needs from a list of Smart Startup UK partner banks provided.
4. We send you a proforma payment invoice to pay to our bank account + the initial capital amount of your company.
5. You receive all necessary company documents for verification.
6. You receive details of your newly opened bank account.
7. In the specified period (for Andorra it is 30 days), you receive all the services included in the package.
8. You can manage through our platform all the services included in the package, as our team works 24/7 and you can get help from us within up to 30 minutes. We have built an internal ticketing system for our customers through which we process your every support request.
All services like management, accounting, request to open bank accounts, licensing, filing tax returns, paying taxes and more are done through your account on our platform, it makes it easy managing your business!
