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Company Formation in Andorra

Why Register a Company in Andorra

Andorra is a prestigious European jurisdiction between Spain and France, offering low taxation, a stable economy, and a favourable environment for international business. The country allows 100% foreign ownership of companies, providing entrepreneurs with flexible corporate regulation and minimal government intervention in business activities.

Andorra is especially attractive for projects in tourism, private banking, luxury industries, international trade, and services.

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Cost of the service
EUR 10,800 + VAT

Types of Companies in Andorra

Non-residents can register a legal entity in Andorra in one of the following legal forms.

SA (Societat Anònima)

This form is designed for large enterprises with prospects of operating on stock exchanges. The minimum share capital is EUR 60,000, and at least two shareholders are required. The capital must be fully paid up at the time of registration. Management is carried out by a board of directors, and shareholder liability is limited to the amount of their contribution to the share capital. SA is suitable for companies planning to attract external financing or enter public markets.

SL (Societat Limitada)

The most popular form for small and medium-sized businesses, both commercial and non-commercial in nature. The minimum share capital is EUR 3,000, and at least one director and two shareholders are required. Ownership interests are not freely transferable securities, ensuring the closed nature of the company. Transfer of shares to third parties generally requires the consent of the other participants.

SLU (Societat Limitada Unipersonal)

The minimum share capital is also EUR 3,000, and the company can be established and managed by a single person. This form is particularly convenient for individual entrepreneurs who wish to benefit from limited liability without involving additional founders.

Less common among foreign investors are sole proprietorships and general partnerships. It is also possible to establish trusts and foundations, although their activities are subject to special requirements.

Company Registration Procedure

Registering a company with non-resident participation in Andorra involves several mandatory stages.

Obtaining a Foreign Investment Permit

Submission of an application to the authorised authorities. Processing time — 10–15 business days. Since June 2021, applications can be submitted electronically via the e-tramits.ad portal.

01

Approval of the Company Name

The company name must be approved separately. Processing time — 1–2 business days.

02

Signing the Incorporation Documents Before a Notary

The shareholders sign the company’s incorporation agreement and articles of association in the presence of a notary in Andorra.

03

Registration in the Commercial Register

The notary submits the documents to the Registre de Societats Mercantils for official company registration. Processing time — up to 20 days.

04

Obtaining the NRT Tax Number

After the company is registered, an NRT (tax identification number) must be obtained.

05

Obtaining a Trade Licence or Special Permit

Depending on the business activity, a trade licence or the relevant special permit must be obtained.

06

It should be noted that certain types of activities (financial services, insurance, gambling) may require additional licences from the relevant regulators of Andorra.

Required Documents

To register a company in Andorra, the following documents are required:

valid passports of founders and directors;

a criminal record certificate issued no earlier than 3 months before submission;

a business plan describing the company’s activities and objectives;

proof of residential address of the founders;

a bank certificate confirming the deposit of share capital (EUR 3,000 for SL/SLU or EUR 60,000 for SA).

For the foreign investment authorisation stage, additional documents are required: curriculum vitae of each shareholder, last two tax returns (or a certificate from the tax authority confirming absence of tax debts), personal bank account statement for the past year, list of target markets, and approximate annual revenue.

All documents issued outside Andorra must be translated into Catalan, Spanish, or French and apostilled in accordance with the Hague Convention. The company must also have a registered office in Andorra and open an account at a local bank.

Registration Timeline

The overall document processing time for company registration in Andorra is 3–4 weeks. Including the foreign investment authorisation stage and all formalities, the full process can take 2 to 3 months. The longest stage is obtaining the foreign investment authorisation (10–15 business days), while name verification and approval takes only 1–2 business days. Notarial certification and registration at the Commercial Registry after signing the incorporation documents must be completed within 20 days.

Cost of Services

Company formation package in Andorra

EUR 10,800 + VAT

Obtaining a NIA (administrative number) for non-residents.
Company name reservation.
Foreign investment authorisation from the Government of Andorra.
Opening a bank account in Andorra.
Notarial establishment and registration.
Obtaining a commercial licence.

Additional services

from EUR 420

Preparation of corporate documents — EUR 420 + VAT per document.
The minimum share capital for an SL is EUR 3,000.

Tax System of Andorra

Andorra offers one of the most attractive tax systems in Europe. The corporate income tax rate is only 10%, with a reduced rate of 2% available for investment companies and 0% for holding companies that meet certain criteria. The value-added tax (IGI) is 4.5% — one of the lowest rates in Europe. The jurisdiction has no currency or stamp duties, nor inheritance or gift taxes.

Personal income tax in Andorra also features moderate rates: income up to EUR 24,000 per year is tax-exempt, and the maximum rate is 10%. Andorra has concluded a number of double taxation avoidance agreements with key trading partners, making the jurisdiction convenient for international planning. Annual financial statements of the company are subject to a mandatory audit if turnover, assets, or the number of employees exceed the established thresholds.

Opening a Bank Account

Opening a corporate bank account at one of Andorra’s banks is a mandatory step after company registration. The country’s banking system is characterised by high reliability and confidentiality. To open an account, the company’s incorporation documents, identification of beneficial owners, and confirmation of the source of funds and the nature of planned activities are required. The account opening procedure typically takes 2 to 4 weeks and may require a personal visit by a company representative to the bank. COREDO specialists assist in preparing the banking dossier and coordinate interaction with the selected bank.

Advantages of Company Registration in Andorra

The jurisdiction offers a number of significant advantages for foreign entrepreneurs and investors.

Low Tax Burden

Corporate tax in Andorra is 10%, while the general indirect tax (IGI) rate is 4.5%, making the jurisdiction attractive for international businesses.

No Inheritance or Gift Tax

Andorra does not levy inheritance or gift taxes, as well as currency or stamp duties.

100% Foreign Ownership

Since 2012, foreign investors have been allowed to own 100% of the share capital of Andorran companies without the mandatory participation of a local partner.

Strategic Location

Andorra is located between Spain and France, providing convenient access to European markets and the business centres of neighbouring countries.

Political and Economic Stability

Limited government intervention in the economy and political stability create favourable conditions for long-term business operations and development.

Developed Digital Infrastructure

Andorra is actively developing digital government services and infrastructure, making it easier for entrepreneurs to interact with government authorities and regulatory bodies.

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Case Study: Registering an SL for International Trade

Challenge:

An entrepreneur from the CIS planned to establish a company in Andorra for trading activities with European partners. It was necessary to obtain foreign investment authorisation, register an SL with a share capital of EUR 3,000, and open a bank account at a local bank.

Solution:

COREDO specialists prepared the complete set of documents, including a business plan and an application for foreign investment authorisation. In parallel, a company name verification was carried out and notarial certification of the incorporation documents was arranged.

Result:

The company was registered at the Registre de Societats Mercantils within 6 weeks. After obtaining the NRT and trade licence, a corporate bank account was opened at one of the leading banks in Andorra. The client commenced operational activities and began working with European counterparties, taking advantage of Andorra’s tax system.

Our Experts

The COREDO team has been operating since 2016 and possesses deep expertise in company registration across various European jurisdictions.

Pavel Kos

Head of Legal. A member of the COREDO team since June 2017, responsible for legal support of corporate projects and company registration in European jurisdictions.

Daniil Saprykin

Head of Customer Success. Ensures comprehensive client support at all stages of company registration and post-registration services.

Frequently Asked Questions

Can a foreigner own 100% of a company in Andorra?

Yes, since 2012, Andorra’s legislation has permitted full foreign ownership of companies. Previously, there was a restriction of 49% of the share capital for foreign investors, but it has been abolished.

What is the minimum share capital for registering an SL in Andorra?

The minimum share capital for a limited liability company (SL) is EUR 3,000. The capital must be fully paid up before the company is registered.

Does the founder need to be an Andorran resident?

No, there are no mandatory residency requirements for founders and company owners regardless of the type of legal entity. However, the company must have a registered office in Andorra and open an account at a local bank.

How long does the registration process take?

Document processing takes 3–4 weeks, but including the foreign investment authorisation, the full process can take 2–3 months.

Can a company in Andorra be established with a single founder?

Yes, the SLU (Societat Limitada Unipersonal) form is available for this purpose, with a minimum share capital of EUR 3,000. The company can be fully established and managed by a single person.

What tax advantages does Andorra offer?

The standard corporate tax rate is 10%, with a reduced rate of 2% for investment companies and 0% for holding companies meeting certain criteria. VAT (IGI) is only 4.5%. Andorra has no inheritance or gift taxes, nor currency or stamp duties.

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COREDO specialists provide comprehensive support for the company registration process in Andorra — from obtaining foreign investment authorisation to notarial certification of documents and registration at the Commercial Registry. We have been operating since 2016 and help entrepreneurs from dozens of countries build business structures in Europe.

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