Incorporation of companies

The greater complexity involved in setting up a company in our territory in the current economic climate, despite the countless advantages enjoyed by our clients once they are operational, has led the company to provide specialisation training to our professionals so that each one has specific expertise in all the essential points of setting up a company.

For the last three decades, our professionals in commercial law have been involved in all types of corporate operations, and particularly in the last 10 years, in which the Principality’s processes of international regulatory harmonisation have provided us with extensive experience in advising international companies that have chosen to settle in our country to undertake their operations with all the privileges that Andorra offers. Andorra’s economic openness has led our team to become thoroughly trained in addressing and structuring foreign investments, especially with regard to the incorporation of a company or the acquisition of real estate or financial products. Our intention is none other than to enable our clients to comply with all the requirements of the Government of Andorra, while meeting the standards to carry out the incorporation of an Andorran company. In this sense, from the moment of the reservation of the company name, we weigh up all the implications that the wording of the corporate purpose of the newly created companies will have for the purposes of commercial authorisations. In addition, we have developed an internal system to streamline foreign investment cases in order to obtain authorisations as quickly as possible. We have qualified personnel in the field of banking regulatory compliance in order to assist our clients in all the most important issues in the area of opening an account, as we maintain an active connection with all the banking institutions in Andorra. We take care of all formalities with the notary on behalf of our client and we protect the commercial authorisation of the company from the date on which the company is duly registered.

Similarly, and despite the countless corporate manoeuvrings and operations that we deal with on a daily basis, the following is a generic classification of the types of companies that represent the vast majority of those that are set up in the Principality of Andorra:

Commercial company

This is the most common profile for a commercial company but is not necessarily the most basic at the structural level. This is the most common profile for a commercial company but is not necessarily the most basic at the structural level. Its activity may involve the sale of goods or the provision of services. Its general tax rate is 10%.

Client profile: Active business-owners with real economic activity and substance.

For example: Provision of marketing services to national or international clients, clothing or electronics store in Andorra. A company with this profile may have a domestic market or invoice internationally for distance services, being taxed on 10% of its profits.

Wealth management company

These are companies dedicated, partially or exclusively, to investing in holdings in other companies, real estate or financial assets both nationally and internationally.

Client profile: Business-owners who wish to restructure their group of companies, investors in venture capital funds seeking diversification or individuals who wish to obtain passive income by putting their capital to work.

For example: A holding company that has stakes in companies in the new technologies sector, a property investment and lease company.

Special regimes

Intangible goods companies

A company that creates/designs and sells or transfers the exploitation of intangible assets, such as a trademark, patent or intellectual property element, to a third party. Complying with a series of requirements laid down in corporate income tax legislation, this type of company may opt for a special regime taxed at an effective rate of 2%.

Client profile:Software designers, inventors, researchers, developers.

For example: An inventor who designs revolutionary products or patented methodologies, whose designs and patents will be sold or assigned to industrial companies in exchange for a royalty.

Collective investment undertakings

SICAVs are collective investment undertakings that allow considerable tax savings and exist in Andorra despite their lack of popularity. These types of undertakings, as with investment funds or financial advisory activities (among others) are regulated by the AFA (the Principality’s financial regulator). These companies may invest in transferable securities, properties or other assets taxed at a rate of 0% on corporate income tax. However, in Andorra, a non-resident can only own 50% of a SICAV.

Client profile: An investment group that wishes to diversify the returns on its assets.