How to incorporate a company in Andorra

¿How to incorporate a company in Andorra?

The Principality of Andorra is a country that offers many strategic advantages, from a geographical and fiscal standpoint. That is the reason why many business people choose Andorra as their platform to develop their economic activity. Incorporating a company in Andorra (operational) or establishing the Andorran holding of a multinational company is beyond doubt a magnificient option to benefit from a variety of advantages.

There are several requirements to incorporate a company in Andorra. They all stem from the principle of substance that aims at preventing the incorporation of “empty companies” (very common in offshore platforms). As a country having implemented the criteria of the OECD and compliant with the international rules on anti-money laundering, the Principality has set up very strict rules in this field in order to secure investments in Andorra. Therefore, it is fundamental that the administrator of the company be a resident in the Principality, that the company be granted the use of a physical space where the activity can be conducted and that the company develops a real activity.

The steps to be followed to incorporate a company bearing the Andorran nationality consist in a multitude of formalities that must be performed with various administrations of the Principality. Among said formalities, we can highlight the presentation of a complete file of foreign investment with the Andorran Government. Its purpose is to explain, in a detailed manner, the contemplated investment, containing several economic previsions pursuant to a business plan. In parallel, the bank compliance is initiated for the opening of the bank account of the Andorran company and therefore be able to incorporate the company by Notary deed. Unlike most European countries, when the company is recorded at the Andorran corporate registry, it still cannot operate. In Andorra there are two registries: the corporate registry and the commercial registry. Therefore, until the company has a registered commercial activity, or obtains the certificate allowing it to initiate its activity, the company cannot emit any invoice.

  • NIA application

    NIA application

    Administrative Identification Number.

  • Corporate Name Reserve

    Corporate Name Reserve

    Company name and corporate purpose.

  • Foreign Investment Authorization

    Presentation of the Foreign Investment Dossier

    before the government authorities.

  • Bank account opening request

    Bank account opening request

    and deposit of social capital.

  • Constitution of the Company before a Notary

    Constitution of the Company before a Notary

    And registration of the company in the Companies Registry.

  • NRT request

    NRT request

    Tax Registration Number.

  • Trade name

    Reservation of trade name

    Commercial designation.

  • Registration in the Commercial Registry

    Registration in the Commercial Registry

    Possible complementary procedures may occur depending on the activity

The whole process, with the respective legal steps to incorporate a company in Andorra, can take around 2-4 months (depending on the complexity of the contemplated activity). Augé Legal&Fiscal has a vast experience in incorporating companies in the Principality and has managed to incorporate Andorran companies in a more reduced time frame than the time line exposed above, always strictly respecting compliance rules and in the most diligent manner.

Having an Andorran company not only allows for a fully optimized taxation (the taxation on profits is 10%) but also offers incomparable possibilities to optimize one’s personal assets. If you wish to know the cost of setting up an Andorran company and obtain legal advice from our team, do not hesitate to contact our professionals composed of Lawyers, tax advisers and experts in tax optimization strategies.

The Management

Augé Legal & Fiscal

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