Creating a Company
in Andorra
Create your company in Andorra and take advantage of one of the lowest tax systems in Europe. We’ll guide you step-by-step through the process of incorporating your company, optimizing your taxes, and obtaining active residency easily and securely.
STARTING A BUSINESS IN ANDORRA
Guide to creating a company in Andorra
We explain step-by-step how to incorporate your company in the Principality, the costs, timelines, and the huge tax advantages that await you. The definitive guide to establishing your business.
What will you find in this guide?
🏆 Key Advantages: Why Andorra?
Andorra has transitioned from being considered a tax haven to a low-tax, modern, and fully transparent jurisdiction, recognized internationally. This, combined with its stability and quality of life, creates an ideal ecosystem for business.
10%
Corporate Tax
4.5%
IGI (General VAT)
0%
Inheritance Tax & Dividends from Andorran companies
A key fact: Foreign investment in Andorra has grown by over 7,600% since the economic opening in 2012, demonstrating international confidence in the Principality’s model.
📋 Roadmap: Your Company in Andorra in 6 Steps
We have simplified the incorporation process into a visual roadmap. The entire journey usually takes between 2 and 4 months, and we will guide you at every stage.
Each of these milestones requires precise document management. You can read the details in our FAQ section or contact us directly.
Don’t miss a single detail
The process of creating a company has many nuances. Download our free checklist to ensure you meet all requirements, documents, and deadlines.
📥 Download Free Checklist🏢 Company Types: SL vs. SA
Choosing the legal structure is one of the first decisions. The two most common forms are the Limited Liability Company (Societat Limitada – SL) and the Public Limited Company (Societat Anònima – SA).
| Feature | Limited Liability Company (SL) | Public Limited Company (SA) |
|---|---|---|
| Minimum share capital | €3,000 | €60,000 |
| Best for | Small businesses, startups, professionals, and consultants. | Large companies, regulated activities (financial), or those with multiple shareholders. |
| Registration costs | Approx. €1,016 | Approx. €1,480 |
| Annual maintenance | Approx. €851 (Registry Fee) | Approx. €935 (Registry Fee) |
Both types can be Sole Proprietorships (SLU or SAU) if they have a single shareholder.
⏱️ Cost and Timeline Chart
To plan correctly, it’s vital to understand the associated costs and times. In addition to government fees, you should consider professional service fees, notary fees, and office rent (approx. €400/month and up).
Estimated Timeline: 2-4 months
- Name Reservation: ~10 days
- Foreign Investment: ~1 month
- Account Opening: ~2-4 weeks
- Notary and Registration: ~2 weeks
- Business Opening Permit: ~1-2 months (may vary)
Incorporation Costs
- Share Capital (deposit): €3,000+ (SL) / €60,000+ (SA)
- Government and Parish Fees: €1,500 – €2,500
- Notary: €600 – €1,200
- Professional Service Fees: Variable (Consult)
- Annual Parish Cost: ~€500
🗓️ Annual and Quarterly Obligations of Your Company
Incorporating the company is just the beginning. To operate legally and avoid penalties, it is essential to comply with a series of recurring obligations. Proper management is key to the health of your business in Andorra.
📊 Accounting and Annual Accounts
Every Andorran company must maintain accounting records in accordance with the General Accounting Plan. Annually, the accounts (balance sheet, profit and loss statement, etc.) must be prepared and filed with the Company Registry within 6 months after the end of the fiscal year.
🧾 Tax Filings
The main tax obligations are:
• Corporate Tax (IS): Annual filing in July.
• IGI (Andorran VAT): Quarterly (April, July, October, January) or semi-annual filings, depending on the company’s annual turnover.
✅ Fee Renewals
Certain fees must be renewed annually to keep the company active. The most important are the Company Registry maintenance fee (approx. €851 for an SL) and the Parish’s commercial activities tax, which is around €500.
Expert Tip: Don’t underestimate the administrative burden post-incorporation. Using a local professional service like AndorraWay frees you from these tasks, ensures regulatory compliance, and allows you to focus 100% on growing your business.
🔑 Your Company: The Key to Active Residency
For most entrepreneurs, creating a company is the necessary first step to obtaining self-employment residency in Andorra. To do this, the applicant must meet certain requirements:
- Own more than 34% of the shares of the newly created Andorran company.
- Be listed as a Director of said company.
- Reside effectively in Andorra for a minimum of 183 days a year.
- Make a deposit of €50,000 with the AFA (Andorran Financial Authority), which is returned if you leave the country.
Expert Tip: Incorporating a company without residing in Andorra is possible, but risky. The tax authorities in your home country could determine that the “effective management” of the company is still there and demand tax payments from you. Proper tax planning is essential.