Setting Up A Company In Andorra: Administrative Procedures

Published on and written by Cyril Jarnias

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.

2. Obtain foreign investment authorization

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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About the author
Cyril Jarnias

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.

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