Andorra, a small country nestled between France and Spain, is attracting more and more entrepreneurs thanks to its favorable tax system and pleasant living environment. Here is a comprehensive guide to the steps required to establish your company there.
Key steps to launch your business in the Principality
Establishing a company in Andorra involves following a well-defined administrative process. Here are the main procedures to complete:
1. Choose the legal structure suited to your project
The first step is to select the most appropriate legal status for your activity. The most common forms in Andorra are:
– Public Limited Company (SA) – Limited Liability Company (SL) – Single-Member Limited Liability Company (SLU)
Each structure has its specificities in terms of minimum capital, number of partners, or liability. It is recommended to seek advice from an expert to make the best choice.
For non-resident entrepreneurs, prior foreign investment authorization is mandatory. This application must be submitted to the Andorran Ministry of Economy.
3. Reserve your company name
You must then reserve your company’s corporate name with the Companies Registry. This reservation is valid for 6 months.
4. Open a professional bank account
Opening a bank account in Andorra is necessary to deposit the share capital. Andorran banks are known for their discretion and professionalism.
5. Draft and sign the articles of association before a notary
Your company’s articles of association must be drafted in Catalan and signed before an Andorran notary. This is a crucial step that defines how your company will operate.
6. Register your company with the Commercial Registry
Once the articles of association are signed, your company must be registered with the Andorran Commercial Registry. This procedure formalizes the creation of your business.
7. Obtain necessary licenses and permits
Depending on your activity, specific licenses or permits may be required. Check with the relevant authorities.
Essential documents to bring your project to life
Establishing a company in Andorra requires providing several documents. Here are the main ones, depending on the chosen legal structure:
For a Public Limited Company (SA):
– Founders’ identification documents – Proof of address – Bank certificate of share capital deposit (minimum €60,000) – Draft articles of association – Foreign investment authorization (for non-residents)
For a Limited Liability Company (SL):
– Partners’ identification documents – Proof of address – Bank certificate of share capital deposit (minimum €3,000) – Draft articles of association – Foreign investment authorization (for non-residents)
For a Single-Member Limited Liability Company (SLU):
– Sole partner’s identification document – Proof of address – Bank certificate of share capital deposit (minimum €3,000) – Draft articles of association – Foreign investment authorization (for non-residents)
Note: All documents must be translated into Catalan, the official language of Andorra, by a sworn translator.
Get professional assistance for a successful establishment
Although the business creation process in Andorra is relatively straightforward, it can be complex for a foreign entrepreneur. It is highly recommended to seek assistance from local professionals (lawyers, accountants) who are thoroughly familiar with Andorran legislation and can effectively guide you through the procedures.
Establishing a company in Andorra opens up numerous opportunities, particularly tax-related ones. With proper preparation and appropriate support, you can bring your entrepreneurial project to life in this small Pyrenean paradise.
Good to know:
The average time to establish a company in Andorra is about 2 to 3 months. Therefore, plan enough time to successfully carry out your establishment project.
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