Andorra Company Formation
Andorra Company Formation: A Prestigious and Tax-Efficient European Jurisdiction Main Characteristics and the basic rules of a Company registration in Andorra
Andorra Company Formation with BRIS Group
BRIS Group provides expert Andorra company formation services for entrepreneurs and international investors seeking a strategic European base. Establishing an Andorran company offers limited liability protection, access to the European market, and a favorable tax environment, making it an attractive choice for international business.
Our specialists manage the complete Andorra company registration process remotely, including corporate banking support, compliance, and ongoing administration, ensuring your company in Andorra is fully compliant and ready for European and global operations.
Guide to Forming a Company in Andorra
Andorra, nestled between France and Spain in the Pyrenees Mountains, is a highly attractive destination for entrepreneurs and investors seeking a stable, reputable, and low-tax European jurisdiction. Known for its political neutrality, favorable tax regime, and strategic location, Andorra company formation offers both privacy and credibility, making it an excellent choice for international business, investment holding, and wealth management.
This guide provides a comprehensive overview of forming a company in Andorra — including advantages, requirements, incorporation procedures, and the Andorran corporate tax system.
Why Choose Andorra Company Formation?
Andorra has evolved from a discreet financial center into a modern, business-friendly economy with transparent regulations that comply with international standards. It combines European access, financial security, and low taxation, making it one of Europe’s most efficient jurisdictions for entrepreneurs and high-net-worth individuals.
Key Benefits of Andorra Company Formation
- Attractive Corporate Tax Rates – Standard corporate tax rate capped at 10%, one of the lowest in Europe.
- Political and Economic Stability – A secure, independent state with a robust banking and legal system.
- Strategic European Location – Conveniently located between Spain and France, offering access to the EU market.
- Strong Banking and Financial Infrastructure – A reputable financial sector with high standards of compliance.
- 100% Foreign Ownership – Since recent reforms, non-residents can fully own Andorran companies.
- High Quality of Life – Safe environment, clean air, and top-quality healthcare and education.
- Modern Legal Framework – Transparent and business-friendly legislation aligned with OECD standards.
Types of Companies in Andorra
Andorra offers several legal structures suitable for local and international investors.
|
Company Type |
Description |
|
Societat Limitada (SL) |
Limited Liability Company – suitable for small to medium-sized businesses; minimum share capital of €3,000. |
|
Societat Anònima (SA) |
Joint Stock Company – ideal for larger corporations; minimum share capital of €60,000. |
|
Branch Office |
A foreign entity can open a registered branch in Andorra to operate locally. |
|
Holding Company (Societat de Tinença d’Accions o de Participacions) |
Designed for managing international assets and investments under favorable tax treatment. |
Advantages of Andorra Company Formation for Non-Residents
|
Advantage |
Details |
|
Low Corporate Taxation |
Maximum 10% corporate tax rate, with exemptions for certain activities. |
|
No Wealth or Inheritance Tax |
Ideal for wealth management and asset protection. |
|
Flexible Business Environment |
Minimal bureaucracy and efficient registration process. |
|
Access to European Markets |
Strategic location between France and Spain, near EU economic hubs. |
|
Privacy and Security |
While compliant with global standards, Andorra maintains business confidentiality. |
|
Stable Currency |
Euro (€) is the official currency, offering convenience for trade and investment. |
Requirements for Company Registration in Andorra
To establish a company in Andorra, investors must meet several legal and administrative requirements:
- Company Name Approval – Must be unique and approved by the Andorran Company Registry.
- Shareholders and Directors – At least one shareholder and one director (can be the same person).
- Registered Office Address – A physical address in Andorra is mandatory.
- Minimum Share Capital:
- SL: €3,000 (fully paid up)
- SA: €60,000 (at least 25% paid up at registration)
- Due Diligence Requirements – Submission of passport copies, proof of address, and financial background of shareholders.
- Business Plan – For foreign ownership approval, a business plan must outline company objectives and financial projections.
- Bank Account Opening – A local Andorran corporate bank account is required to deposit share capital.
Step-by-Step Procedure for Andorra Company Formation
Step 1 – Initial Consultation and Structure Planning
Define your business goals and determine the appropriate legal structure.
Step 2 – Company Name Reservation and Business Plan Submission
Reserve your company name and submit a business plan to obtain foreign investment approval.
Step 3 – Document Preparation and Legalization
Prepare all required documents (Articles of Association, shareholder identification, etc.) and have them notarized and translated if necessary.
Step 4 – Share Capital Deposit and Bank Account Setup
Open a corporate account with an Andorran bank and deposit the required share capital.
Step 5 – Company Registration
Submit incorporation documents to the Andorran Company Registry for official registration.
Step 6 – Tax Registration
Register with the Andorran Tax Department to obtain a Tax Identification Number (NRT).
Step 7 – License Issuance and Operational Setup
Once approved, your company receives its Certificate of Incorporation and business license, allowing you to begin operations.
Timeframe for Company Formation in Andorra
|
Stage |
Process |
Estimated Duration |
|
Name Approval & Business Plan Submission |
Initial approval from authorities |
1–2 weeks |
|
Document Preparation & Bank Account Opening |
Document notarization and capital deposit |
1–2 weeks |
|
Company Registration |
Submission and registry approval |
2–3 weeks |
|
Tax & License Registration |
Final approval and issuance |
1 week |
Total Estimated Time: 4–8 weeks, depending on the company type and document preparation.
Andorra Corporate Tax System
Andorra’s corporate tax regime is one of Europe’s most competitive, combining low rates with international transparency.
Key Tax Highlights
- Corporate Income Tax: Flat 10% rate (effective rate may be reduced for specific industries or holding structures).
- Personal Income Tax: Progressive rates from 0% to 10%, among the lowest in Europe.
- Dividend Income: Generally exempt from withholding tax for non-resident shareholders.
- Capital Gains Tax: 10% standard rate; exemptions available under specific conditions.
- No Wealth, Inheritance, or Gift Taxes.
- VAT (IGI): Andorra applies a low indirect tax (IGI) rate of 4.5%, much lower than typical EU VAT rates.
Tax Compliance
- Annual filing of financial statements is mandatory.
- Audit required for larger companies (SA type).
- Accounting records must comply with Andorran financial regulations.
- Compliance with OECD CRS and AML/KYC standards.
How We Can Help You
Our team of Andorra company formation specialists provides complete end-to-end assistance, ensuring a smooth, compliant, and efficient setup process.
Our Services Include
- Business structure consultation and tax optimization planning.
- Company name approval and document preparation.
- Bank account opening assistance with Andorran banks.
- Submission and registration with the Andorran Company Registry.
- Legal, accounting, and compliance advisory.
- Residency and investment permit support.
- Ongoing corporate maintenance and annual renewals.
Start Your Andorra Company Formation Today
With its stable economy, low taxation, and reputable European standing, Andorra offers unmatched opportunities for entrepreneurs and investors seeking a secure and efficient base for global operations.
Partner with our professional consultants to simplify your Andorra company formation process, ensure legal compliance, and optimize your business structure for long-term success.
Contact us today to discuss your goals and learn how we can help you establish a successful business presence in Andorra, one of Europe’s most respected and tax-efficient jurisdictions.
Questions & Answers
1. What is the Corporation Tax rate in Andorra?
The Corporation Tax rate in Andorra is set at a standard rate of 10%. However, specific industries may benefit from reduced rates, and certain incentives can lower the effective tax rate even further. For example, eligible companies can pay as low as 2% on their profits.
2. How is Income Tax structured for residents in Andorra?
Residents of Andorra pay a progressive Income Tax rate, starting at 0% for incomes up to €24,000, and reaching a maximum rate of 10% for incomes over €40,000. This structure makes Andorra’s personal tax system very attractive for individuals.
3. What is the taxation on the income of non-residents in Andorra?
Non-residents in Andorra are subjected to a flat Income Tax rate of 10% on their Andorran-source income. This includes income earned within the country but excludes foreign income.
4. Is there a VAT Tax in Andorra?
Yes, Andorra has a value-added tax (VAT) called ‘IGI’ (Impost General Indirecte). The standard IGI rate is 4.5%, which is relatively low compared to VAT rates in other European countries. There are reduced rates of 1% for certain goods and services, such as hotel accommodations and basic food products.
5. Are there any tax incentives available in Andorra?
Yes, Andorra offers various tax incentives aimed at attracting foreign investments and fostering entrepreneurship. These include reduced tax rates for specific sectors like technology and innovation. Additionally, there are exemptions for certain types of income, which further enhance the investment climate.
Learn more: Visit our
Full Andorra FAQ page
or contact our tax and company formation team at[email protected]
What types of companies can non-residents form in Andorra?
Non-residents can form several types of companies in Andorra, with the most popular being the Societat Anònima (SA) and Societat Limitada (SL). The SA is similar to a public limited company, suitable for larger businesses, while the SL resembles a private limited company, ideal for small to medium-sized enterprises. Non-residents also have the option to establish a branch of an existing foreign company. Understanding the distinctions and benefits of each type can help in choosing the right structure for your business needs.
What are the benefits and advantages of forming a company in Andorra?
Forming a company in Andorra offers numerous advantages. Firstly, the country boasts one of the lowest corporate tax rates in Europe, often around 10%, making it a tax-efficient location for businesses. Additionally, Andorra is known for its privacy laws, providing a level of confidentiality not easily found elsewhere. The ease of doing business, combined with political stability and a favorable regulatory environment, further enhances Andorra as a destination for company formation. Entrepreneurs can also enjoy access to EU markets due to Andorra’s strategic location.
What are the requirements for establishing a company in Andorra?
To establish a company in Andorra, non-residents must fulfil certain requirements. These include having a minimum share capital, which is €3,000 for an SL and €60,000 for an SA, with at least 10% paid up during registration. Additionally, individuals must provide valid identification and proof of legal residence if applicable. It’s also necessary to appoint a local registered agent or lawyer to assist with the incorporation process and adherence to local regulations.
Are there any restrictions on non-residents forming companies in Andorra?
Yes, there are some restrictions for non-residents looking to form companies in Andorra. Non-residents are generally not allowed to carry out certain activities such as the provision of local services unless they have established a legal presence in the country. Furthermore, non-residents must appoint at least one director who is a resident of Andorra. This ensures that there is local representation in the company administration. Compliance with local laws and regulations is essential to avoid any legal issues.
How long does it take to form a company in Andorra?
The duration to form a company in Andorra typically ranges from a few weeks to a couple of months. The process begins with securing the company name and obtaining a certificate of good standing, followed by drafting the bylaws and registering the company with the Andorran government. While the overall timeframe can vary based on factors such as the responsiveness of required documents, applicants who are organized and guided by a local expert can expedite the process.
Can I manage my Andorra company remotely?
While it is possible to manage an Andorran company remotely, there are certain obligations that require local presence. One of the key requirements is having at least one director who is a resident of Andorra. Additionally, proper bookkeeping and accounting must adhere to Andorran regulations, which may necessitate hiring local professionals. While administrative tasks can certainly be handled from abroad, understanding local laws and actively participating in business operations may enhance the success of the company.
Full Andorra FAQ page
or contact our tax and company formation team at
This publication is provided for information purposes only. This info should not be treated as a substitute for a tax or legal consultation or legislation. You should not act on the basis of the information contained in this publication without having obtained individual advice from the professional expert.
BRIS GROUP does not assume responsibility for any damage resulting from decisions made by the reader on the basis of this publication.
About Andorra
Capital city: Andorra la Vella
Region: Andorra belongs to the Atlantic European province of the Circumboreal within the Boreal Kingdom. A landlocked country in the Pyrenees mountain range between Spain and France
Language: Catalan
Currency: Euro (EUR)
Time Zone: GMT+1
Dial Code: +376
Abbreviations: ANDO (AD)
Helping Your Company Thrive in Andorra With us, starting and running a business in Andorra will be easy and efficient!
- Full support of the company’s registration in Andorra: from the preparation of documents to their submission.
- Remote registration: all processes are online, wherever you are.
- Secretary and Treasurer: we can take on these important roles.
- Nominal directors and shareholders: we will ensure the confidentiality of your information.
- Help in opening a bank account: we will simplify this complex process.
- Registration for taxes, VAT and EORI: ensure all requirements are met.
- Website development: we will create a professional online representation for your business.
- Logo creation: we will design a unique and memorable logo for your brand.
- Full administrative support of the company: we will take over routine tasks.
- Mailing address organization: we provide a reliable mailing address for your business.
- Organization of the virtual office: we will ensure the professional image of your company.
- Telephone answering service: we will answer calls on behalf of your company.
- Accounting, audit and reporting: ensure accurate and timely accounting.
- Preparing and filing a VAT declaration: let’s save you the trouble.
- Interaction with local authorities: take over communication with state institutions.
- Trademark registration: protect your brand.
- More Emphasis on Customer Input.