Published on and written by Cyril Jarnias
Setting up a company in Andorra is a dream for many entrepreneurs, attracted by a favorable tax system and a stable business environment. But one question always comes up before taking the plunge: how much will it really cost in 2026? Between share capital, official fees, notary fees, legal support, possible deposit with the financial authority, and recurring charges, the bill can quickly become opaque if each item is not detailed.
The total cost varies depending on the legal form (SL or SA), the complexity of the project, and the entrepreneur’s situation (active residence or not, simple or regulated activity, local or international project).
Understanding the overall cost structure
When talking about the “cost of incorporation” in Andorra, several layers must be distinguished: what you immobilize in the company, what you pay to the state, what you pay the notary, and what law firms or management firms charge you.
From a practical standpoint, the initial setup budget is built around four main blocks:
– share capital,
– official registration fees,
– notary fees,
– professional fees (lawyers, tax advisors, managers, incorporation firms).
Specific administrative costs such as the foreign investment authorization, the business license, and the bank account opening are added. For some profiles, a deposit with the Andorran Financial Authority is also required.
Studies converge on an overall range of €4,500 to €9,000 for incorporating a “standard” Andorran company, including taxes, registration tax, notary, and administrative fees, but excluding share capital. For complex or highly international projects, setup costs can exceed €10,000.
SL or SA: two models, two budgets
The choice between the Societat Limitada (SL) — the Andorran equivalent of an LLC — and the Societat Anònima (SA) has an immediate impact on the entry ticket, both in terms of capital and fees.
Regarding capital, the gap is staggering: an SL starts with a minimum of €3,000, while an SA requires a minimum capital of €60,000, of which at least 25% must be paid up upon incorporation, i.e., an effective deposit of €15,000.
Share capital is not an expense but an asset of the company. It must be deposited in an Andorran bank account before the notarial deed is signed, and a bank certificate attesting to the deposit is given to the notary.
For an SL, the standard minimum capital remains €3,000 and must be fully paid up. Since 2025, some sources mention the possibility of starting with a symbolic capital of €1, but with enhanced liability for the founders until the threshold of €3,000 is reached: in practice, for a serious foreign entrepreneur, the €3,000 mark remains the norm.
The minimum share capital of €60,000 makes the SA a structure reserved for large projects, major holding companies, or regulated sectors.
| Company form | Minimum legal capital | Capital to be paid up at creation | Specifics |
|---|---|---|---|
| SL (Societat Limitada) | €3,000 | 100% (€3,000) | Capital immobilized but recoverable by the company |
| SA (Societat Anònima) | €60,000 | ≥ 25% (€15,000) | Higher capital, intended for large-scale projects |
Registration fees: a fixed cost via the Companies Register
After capital, the mandatory step is registration in the Companies Register. Again, the amounts differ depending on the chosen form.
For an SL, the observed registration fees are around €958 to €1,016.67 according to the rates cited. For an SA, the bill rises to approximately €1,395 to €1,480.54. The rates are public and confirmed “to the penny” at the start of the process, which avoids nasty surprises.
| Official registration fees (Companies Register) | Indicative amount |
|---|---|
| SL – current rate | ≈ €958 to €1,016.67 |
| SA – current rate | ≈ €1,395 to €1,480.54 |
These amounts appear in the vast majority of serious quotes. They constitute the “core” of the non-negotiable costs payable to the Andorran state at the time of registration.
Beyond capital and registration, creating a company involves a whole series of administrative procedures, each with its own cost: name reservation, foreign investment authorization, notarial deed, business license, bank account opening, etc.
Notary fees: from €500 to €3,000 depending on complexity
The fees of the public officer who receives the incorporation deed represent a significant item. The observed ranges go from €500 to €3,000 excluding IGI (the Andorran VAT), with nuances:
– for a single-member SL with simple bylaws, it is at the lower end, around €500 to €800;
– for a structure with multiple shareholders, specific clauses (pre-emption rights, complex agreements, sophisticated governance), the cost rises to the upper end, up to €3,000.
Notary fees for a standard file are estimated at around €550.
Administrative procedures: a block of €2,000 to €2,500
Beyond the notary, all the “technical” procedures to bring the company to life represent a significant cost block. For an SL, administrative and procedural fees are generally estimated between €2,000 and €2,500.
This block notably covers:
Name reservation costs €5.69 for six months, the foreign investment file is €300 per non-resident shareholder (or about €250 in authorization fees), drafting of bylaws in Catalan and file assembly are required, registration in the register is necessary, and the operating license varies from €100 to €1,000 depending on the parish and activity, with a frequent range between €200 and €400.
Taken together, these elements form an administrative block that systematically exceeds €2,000, even for simple setups, and can approach €2,500.
Bank account opening and bank fees
The bank plays a central role as it receives the capital, issues the certificate for the notary, and subsequently holds the company’s cash.
Account opening and compliance fees (KYC, checks) are generally between €0 and €200 in the lowest ranges, but several sources rather mention a practical cost around €200 to €400. This item includes:
– compliance and anti-money laundering analysis,
– verification of the shareholder profiles,
– setup of the company account.
Annual maintenance fees charged by the bank must be added, amounts vary from one institution to another, but they add to the recurring costs of the company.
| One-time administrative item | Cost range (indicative) |
|---|---|
| Name reservation (up to 3 choices) | €5.69 |
| Foreign investment authorization | €250 – €300 / non-resident shareholder |
| Administrative block (name, investment, license, etc.) | ≈ €2,000 – €2,500 |
| Account opening / KYC fees | €0 – €200 (often €200 – €400) |
| Business license (parish + activity) | €100 – €1,000 (often €200 – €400) |
Professional fees: lawyer, tax advisor, manager
Creating an Andorran company without professional support is theoretically possible, but very rare for a foreigner discovering the system. Most entrepreneurs use a local firm to handle incorporation, taxation, sometimes residence, and administrative follow-up.
Standard ranges for an SL
For a standard SL, professional fees (lawyers, managers, tax advisors) most often range between €3,000 and €4,000 for full setup. These amounts generally cover:
We assist you in all key stages of creating your company, from structuring to obtaining authorizations.
Analysis and recommendation of the legal structure and capital suited to your project.
Custom drafting of bylaws compliant with your activity and regulations.
Handling and follow-up of formalities for foreign investors, including obtaining approvals.
Interface and coordination with professionals (notary, bank) to facilitate procedures.
Assistance for registration and obtaining the Tax Register Number (NRT).
Support in procedures to obtain the business license required for operation.
Some packaged offers go higher, especially for “turnkey” services. For instance, a “minimum package” at €11,500 includes:
– creation of a “ready-to-use” company,
– provision of the registered office for one year,
– secretarial services,
– payment of all necessary taxes and fees,
– apostilled translation of the incorporation documents.
Other providers advertise a package at €10,800 + IGI covering the obtaining of the Administrative Identification Number (NIA), name reservation, foreign investment authorization, account opening, notarial incorporation, and obtaining the business license.
These packages are not essential but give an order of magnitude.
Cases of SAs, holding companies, branches, and complex projects
For more sophisticated structures, fees rise significantly. Several rate lists provide an overview of “all-inclusive” costs (incorporation, bank accounts, project management, all government fees) for different types of structures:
| Type of structure (full package) | Average fees (incl. incorporation + accounts + official fees) |
|---|---|
| LLC (taxed resident company) | €24,850 |
| Holding company | €24,750 |
| Representative office | €25,750 |
| LLC with work permit | €28,700 |
| PLC / SA (public limited company) | €27,750 |
| Branch of a foreign company | €28,750 |
These figures correspond to “Andorra engagements” with a high level of service (project management, bank coordination, etc.) and far exceed the €4,500 – €9,000 of a simple incorporation. They nevertheless show that for certain configurations (branch, highly structured SA, presence of a work permit), the overall budget can become very substantial.
Furthermore, some sources mention fees of €7,350 for corporate legal services (excluding preparation of financial statements), with additional fees of €420 + IGI per document for supplementary deeds (meetings, corporate decisions, etc.).
How much does a “standard” SL cost in practice?
To get a concrete idea, it is useful to look at the overall estimates of the different items for an average-complexity SL, owned by one or more non-resident foreigners, with an unregulated service activity.
Standard operational SL: €5,000 to €6,500 excluding capital
The most consistent estimates put the total cost of incorporating an SL between €5,000 and €6,500, excluding the €3,000 in capital which remains in the company. This budget includes:
– administrative procedures (€2,000 – €2,500),
– professional fees (€3,000 – €4,000),
– notary fees (€500 – €800),
– bank fees (€200 – €400),
– registration taxes (≈ €958 – €1,016.67),
– and the first annual register fee (≈ €200).
The amounts are not strictly cumulative because coverages overlap and some packages already include part of these items. The range gives a realistic order of magnitude, confirmed by several sources.
For simpler projects (e.g., a holding company that only owns assets, without real commercial activity), the total incorporation cost is often estimated between €4,500 and €6,000. Conversely, for a company operating with several countries, sensitive or regulated activity, it rises rather between €6,000 and €9,000, or even above €10,000 for very international setups.
| Type of SL project | Estimated total incorporation cost* |
|---|---|
| Holding / simple passive company | ≈ €4,500 – €6,000 |
| Standard operational company | ≈ €6,000 – €9,000 |
| Complex / regulated / multi-country project | ≥ €10,000 |
– Excluding share capital, which remains an asset of the company.
The special case of active residence and the AFA deposit
For many foreign entrepreneurs, creating a company in Andorra is inseparable from a residence project. However, active self-employed residence comes with very specific costs, which completely change the budget equation.
The €50,000 deposit with the AFA
One of the most striking features is the obligation to deposit €50,000 with the Andorran Financial Authority (AFA) for active residence based on self-employed activity. This deposit, initially set at €15,000, was significantly increased to filter arrivals by level of purchasing power.
This deposit is: deposited as part of a procedure
– non-interest-bearing (it does not generate interest),
– guaranteed as long as the residence is maintained,
– refunded when active residence is abandoned (departure from the country or change of visa type).
For certain projects in the digital economy, innovation, or entrepreneurship, an exemption from this deposit may be granted if the project is validated by the authorities.
In addition to this deposit, there are authorization fees related to the AFA. Some sources report a cost of about €1,500 for the authorization, non-refundable in case of refusal.
“Path A”: an overall bill of €56,000 to €60,000
If we add up all the components for a standard active residence path (often referred to as “Path A”) — company incorporation, government fees, notary, legal support, AFA deposit — we arrive at a block of €56,000 to €60,000 in government and professional fees. Within this envelope, the €50,000 AFA deposit represents the bulk of the amount.
If your project includes active residence, the cost of creating the company cannot be separated from that of the residence, making the entry ticket much higher than for a simple corporate setup.
Annual recurring costs: what to budget after creation
Creating the company is only the first step. To anticipate the real cost of a project, you need to look at what the company will cost each year, regardless of its results.
Register fees and annual duties
Once registered, the company must pay various annual fees to the administration.
We mainly distinguish:
– the annual fee of the Companies Register (companies declared “without local activity”):
– for an SL: €851.00 per year,
– for an SA: €935.50 per year;
– the fee of the Trade and Industry Register, due for each declared commercial activity:
– if the company is registered in the trade register, it pays €214.21 per year for this register,
– in this case, it does not pay the “full” annual fee of the Companies Register, but only that of the trade register.
Some sources condense these various duties into an annual register tax around €200, or in a range of €850 – €957 for the annual “government block”, depending on whether the company is active or a holding.
Taxes and current taxation
On the tax front, the official pressure is moderate:
Corporate tax in Andorra is capped at 10% of net profit, with a reduced rate of 2% for certain export activities, a VAT of 4.5%, and exemption of dividends for residents.
In practice, the tax burden will largely depend on the business model (activity in Andorra or abroad, presence or absence of tax treaties, risk of double taxation, etc.), but the nominal rate of 10% remains an undeniable advantage of the country.
Accounting, tax advice, and administrative management
Keeping the books, filing accounts, and tax returns represent another block of recurring costs. Several scales are cited:
– accounting services + tax filings (first year):
– between €1,500 and €3,000,
– fees for an Andorran accountant:
– between €2,000 and €5,000 per year, depending on volume and complexity,
– annual packages (accounting, possible audit, licenses, registered office) for a medium-sized company:
– between €3,000 and €8,000 per year.
Additional costs may include:
– recurring consulting or tax advice fees (€1,500 – €3,000 per year),
– administrative management fees (payroll, social declarations, formalities), estimated between €1,000 and €2,000 per year.
Social security contributions and personnel costs
If the company employs local staff — or if the director is an employee — CASS contributions (Andorran Social Security Fund) must be counted:
– the total contribution represents 22% of gross salary,
– approximately 15.5% is paid by the employer,
– approximately 6.5% is deducted from the employee’s salary.
The minimum monthly contribution for a self-employed worker is about 300 euros, with a possible reduction in the first year.
Insurance, rent, operations
Some insurance policies are mandatory or strongly recommended: professional liability insurance, multi-risk insurance for premises, possibly directors’ insurance. Typical annual budgets range between €500 and €1,500, sometimes up to €2,000 depending on the sector and coverage.
On the real estate side, rent for a small office can start around €300 to €400 per month in the cheapest areas, to far exceed €700 per month in the most sought-after parishes (Andorra la Vella, Escaldes). Utilities (energy, telecoms) and an initial investment in furniture and equipment, often assessed at a minimum of a few thousand euros, must be added.
In summary, for a light structure without employees, the broad orders of magnitude for recurring costs are as follows:
| Annual item (simple company, no employees) | Indicative range |
|---|---|
| Register / trade fees | ≈ €851 – €935.50 or €214.21 (if in trade register) |
| Accounting + taxation + admin management | ≈ €1,500 – €5,000 |
| Legal / tax advice (if recurring) | ≈ €500 – €3,000 |
| Insurance(s) | ≈ €500 – €1,500 |
| Office rent (if dedicated premises) | ≈ €3,600 – €8,400 / year (€300 – €700/month) |
Depending on whether you opt for a coworking space, a virtual office, or a dedicated premises, the annual bill can vary greatly.
SL, SA, holding, branch: how to position your project budget-wise?
By cross-referencing sources, we distinguish three main incorporation budget profiles:
– 1. Simple investment company or holding company
– Capital: €3,000 (SL) or €60,000 (SA) depending on form, immobilized but not consumed.
– Incorporation cost (excluding capital): €4,500 – €6,000.
– Professional fees rather at the lower end (simple file, few partners).
– 2. Standard operational company (services, e-commerce, consulting, etc.)
– Capital: generally an SL at €3,000.
– Incorporation cost (excluding capital): €6,000 – €9,000.
– 1 to 3 shareholders, foreign investment, “standard” business license.
– Annual recurring costs: €3,000 – €8,000 depending on size and level of outsourcing.
The cost of certified translation can reach about £4,800 for a 40-page file.
To these three families are added projects combining company + active residence, where the €50,000 AFA deposit mechanically pushes the overall ticket into a zone above €50,000, even though this deposit is not strictly speaking an expense.
Creating a company in Andorra without residing there: what impact on cost?
It is entirely possible, under Andorran law, to hold a company without being a tax resident of the country. A Spaniard, for example, can create an Andorran SL, hold 100% of the shares, and not apply for residency. In this case:
Incorporation costs remain between €4,500 and €9,000. No €50,000 AFA deposit is required for active residence. The company pays Andorran tax at 10%. However, if the owner resides more than 183 days per year in Spain, they remain a Spanish tax resident and must declare their worldwide income, including dividends and remuneration from the Andorran company.
In other words, the tax savings realized at the company level can be largely “recaptured” by personal taxation in the director’s country of residence. This point is crucial in evaluating the “true cost” of an Andorran structure, especially in the absence of a double taxation treaty with certain countries.
Why the official range of €4,500 – €9,000 remains a good reference
Despite the abundance of figures, a common thread emerges: for a foreign entrepreneur launching a standard operational SL, without active residence or heavily regulated activity, the incorporation of the company in Andorra in 2026 reasonably falls within an envelope of €4,500 to €9,000 all inclusive, excluding share capital.
This range includes:
– official fees (Companies Register, Trade and Industry Register),
– the notary,
– administrative authorizations (name, foreign investment, business opening),
– bank account opening,
– and fees of local professionals in a “full service” logic.
Low fees (€3,000–€4,000) cover only notary, registration, and some taxes, without full legal support, license, or foreign investment follow-up. High amounts (€11,500, €24,850, €28,750, etc.) correspond to extended packages or specific forms such as branches, SA, representative offices, or work permits.
In practice, before starting, it is essential to request a detailed quote item by item, indicating:
– required capital,
– exact official fees (register scale),
– estimate of notary fees,
– breakdown of fees (incorporation, advice, taxation, possible residence),
– additional administrative costs (AFA, licenses, translations, etc.).
The public rates and the fact that there are no “hidden” fees allow you to secure the budget from the start: the only real variable, practitioners repeat, remains the complexity of the project.
Conclusion: a reasonable cost… within a demanding framework
Creating a company in Andorra in 2026 is neither out of reach nor a simple “formality for €500”. For a classic entrepreneurial project, you must accept the idea of an initial investment of several thousand euros, often between €5,000 and €10,000 including the main fees, plus €3,000 in capital for an SL — not counting the AFA deposit if active residence is on the agenda.
The entrepreneur benefits from a corporate tax of 10%, an IGI of 4.5%, and exempt dividends for residents, as well as legal security and economic stability. However, they must contend with longer procedures, strict control of financial flows, limited tax treaties, and a small domestic market, requiring an international orientation.
Ultimately, the real question may not just be “How much does it cost to create a company in Andorra?” but “Under what conditions does this initial investment, between €4,500 and €9,000 (or more depending on your project), translate into a lasting advantage for your activity?” The answer will depend on your business model, your country of tax residence, and your tolerance for the substance and compliance requirements that any serious establishment in the Principality now entails.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
