Company registration in Andorra - COREDO

Company registration in Andorra

The small Western European principality of Andorra, located between Spain and France, provides favourable conditions for conducting business. The region welcomes foreign investment, and local regulations permit complete foreign ownership of companies. The applicable law was enacted in 2012, overturning the previous restriction that capped foreign ownership at 49% of the capital.



This jurisdiction boasts several noteworthy advantages:

  • Prestige and excellent reputation in business circles.
  • Economic and political stability.
  • Convenient location for conducting business in Europe.
  • One of the lowest tax rates in Europe (corporate tax is only 10%, and with CashPooling mode it is possible to get an additional bonus of 80%! Sales VAT is 4.5%, and there is no inheritance tax).
  • Absence of foreign exchange and stamp duties.
  • Flexible, favourable banking policy.

Andorra, functioning as a post-industrial state, derives its primary income from tourism, with the banking sector, service industry, and trade in luxury goods also playing pivotal roles. Noteworthy is the minimal state intervention in economic management, with few restrictions on private enterprises.


Non-residents have the option to register a legal entity in Andorra. The prevalent organisational and legal forms include:

  • SA — state limited company, ideal for larger enterprises eyeing activities on stock exchanges. It requires a minimum authorised capital of 60,000 euros and at least two shareholders.
  • SL — a limited liability company suitable for small businesses engaged in both commercial and non-profit activities. The minimum authorised capital is 3,000 euros, with a requirement for at least one director and two shareholders.
  • SLU — a limited liability company, that can be organized by a single shareholder. The minimum authorised capital is also 3,000 euros.

Less commonly opted for among foreigners are sole proprietorships and general partnerships. Additionally, opening a trust or foundation is possible, but specific requirements govern their activities.


No mandatory residency requirements apply to founders and owners of a company, regardless of its type, in Andorra. However, the company must establish an official legal address within the jurisdiction and open an account with a local bank.

The registration process for a company with non-resident shareholders in Andorra involves specific steps. Initially, obtaining approval from authorised bodies to attract foreign investment is essential. Additionally, all new companies must undergo a mandatory name check and approval. The entire document processing procedure typically spans 3–4 weeks.


The memorandum of association and the company’s charter must undergo certification by a local notary. The notary is also responsible for registering a public deed and recording it in the Register of Companies, this task must be completed within a maximum of 20 days. Among the subsequent mandatory procedures, it’s essential to highlight obtaining an NRT tax number and registering a trade licence, or a special permit for other types of activities in the Commercial Register of the district.

Clearly, the process of registering a legal entity in Andorra can prove to be quite intricate. To simplify the task and safeguard against potential errors and challenges, seeking assistance from professionals at COREDO is highly recommended. They possess a thorough understanding of all the legal nuances and intricacies involved in the process.


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