We act as your representatives before the country’s competent bodies so the process of opening your company or corporation can be as nimble as possible while necessitating minimal face-to-face appointments.
Create a company in Andorra
Professional guidance throughout the process of creating a company in Andorra
Advice
We put our experience and knowledge of the country at your disposal so you can choose the most appropriate type of company or corporation for you, in accordance with your needs and plans for the future.
Procedure
The advantages of creating a company or corporation in Andorra
Fiscal Advantages
This is the major attraction for many investors and can be summarised as follows: a maximum of 10% corporation tax on profits (which in some cases, depending on the activity of the company, can be reduced to 2% or even complete exemption), value added tax (VAT) of 4.5% (the lowest in Europe), and annual company maintenance fees below €850 for ordinary businesses.
Labour costs and reduced social contributions
Labour costs in Andorra are substantially lower than in Spain or France. The same is true for Social Security contributions, which are set at 15.5% for companies, despite being over 30% in both Spain and France. This facilitates the recruitment of employees and reduces the fixed costs for any entrepreneur who decides to create a company in Andorra.
Salaries in Andorra
Salaries also offer highly competitive rates. Since 2018, the average salary in Andorra has been around €2,100 per month, while the minimum wage is €1,157.87 per month. Although the most recent figures from the INE demonstrate that the average salary in Spain is similar to Andorra, the difference in labour costs as a result of Social Security contributions means that Spanish salaries are actually up to 15% higher than those in Andorra. In France, the average salary stayed at €2,957 per month in 2016; when 32% is added to cover Social Security, the final total is €3,844 per month (while in Andorra it is €2,346 per month, nearly 40% less).
Other advantages of setting up a company in Andorra:
In addition to the tax benefits of opening a business or company in Andorra, investors who relocate to live in the country also highlight other important aspects that offer its inhabitants a great quality of life:
- Just 5% of Andorra is covered by urban areas and infrastructure, leaving the rest as nature intended. The air quality is enviable and the level of noise pollution is low.
- It has the 5th highest life expectancy of any country in the world. In addition, the principality is among the healthiest countries and appears at the top of world rankings for healthcare systems.
- In the field of education, Andorra has three public systems of primary, secondary and higher education: Andorran, French and Spanish (with congregational and secular centres). In addition, there are also private English schools of recognised prestige.
Corporation tax
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Social contributions
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Personnel costs (-40% compared to France)
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Models of entities for creating companies in Andorra and how much each one costs:
There are two possible types of entities when creating companies or corporations in Andorra:
The S.L. "Sociedad Limitada" (Private Limited Company), a limited liability company with a minimum of €3,000 in capital. This type of company is the best option for those who want to establish small companies or businesses. When the company has a single shareholder, it will be a Sociedad Limitada Unipersonal (S.L.U.). When setting up a limited company or a sole proprietorship, the costs for registering are just €1,000 and an annual maintenance fee of around €850 should be taken into consideration.
The S.A. "Sociedad Anónima" (Public Limited Company), a type of public limited company with a minimum of €60,000 in capital. This is the best option for companies with a larger turnover and typically with several shareholders contributing capital. Similar to the previous example, when the company has a single shareholder it will be a Sociedad Anónima Unipersonal (S.A.U.). The costs for registering an S.A. are around €1,500, plus €950 for the annual maintenance fee.
Tall companies in Andorra
are obliged to have a corporate address and an administrator, and must prepare periodic statements along with presenting the associated tax returns.
Steps to follow when creating a corporation in Andorra:
What documentation do I need to create a corporation in Andorra?
I am a private individual
I am a company or corporation
I am a private individual
Copy of your passport with Hague apostille
Criminal record certificate with Hague apostille (country of origin and country of residence)
I am a company or corporation
Photocopy of the deed of incorporation with Hague apostille
Photocopy of the passport of the representatives or attorneys-in-fact of the corporation with Hague apostille
Photocopy of the deed of the powers of the representatives or attorneys-in-fact of the corporation with Hague Apostille
Criminal record certificates from the country of origin and the country of most recent residence of the representatives or attorneys-in-fact of the company, duly legalised with the Hague apostille
An original copy of the certification of the board consenting to the requested foreign investment
Record of actual ownership (ultimate beneficial owner)
Register certificate demonstrating that the corporation has been entered into the company register
Noteworthy services for the creation of companies in Andorra
Creation of corporations
We advise you on the legal forms of companies in the Principality of Andorra and the procedures required to open a corporation within the country.
Immigration and Residency
If you need to establish your residence in Andorra, be it through active or passive residency, we will assist you with the procedures for procuring the permit. .
Management of companies
We supply you with an Andorran address that will enable you to benefit from corporation tax of less than 10%, with tax benefits of up to 80%.