Creating a Company in Andorra in 2025: The Complete Guide

Setting up a company in Andorra is attracting an increasing number of entrepreneurs drawn to its advantageous tax system and exceptional quality of life. In this detailed guide, discover all the steps to create your company in this business paradise nestled between France and Spain.

Why Choose Andorra for Your Business?

Andorra has established itself as a prime destination for entrepreneurs thanks to its numerous advantages. At the heart of its attractiveness lies a particularly advantageous tax regime that allows businesses to develop under optimal conditions.

Key tax benefits include:

• Corporate tax capped at 10% (reducible to 2% under certain conditions)
• VAT (IGI) at 4.5%, the lowest rate in Europe
• Social security contributions capped at 22%
• Advantageous tax treaties with numerous countries

Beyond its attractive taxation, Andorra offers an exceptional living environment characterized by:

• Recognized political and economic stability
• An efficient healthcare system
• A preserved natural environment
• One of the highest life expectancies in the world
• A quality education system

Legal Structures at Your Disposal

The Andorran legal system offers several types of companies, each adapted to different types of business projects. Understanding these options is essential to make the most suitable choice for your situation.

Limited Liability Company (SL)

This structure has the following characteristics:

• Minimum capital: €3,000
• Liability limited to contributions
• Possibility of creation as a single-member company (SLU)
• Simplified management
• Ideal for small and medium-sized businesses

Public Limited Company (SA)

Designed for more ambitious projects, the SA is distinguished by:

• Minimum capital of €60,000
• A structure adapted to large companies
• Easier fundraising capabilities
• Option for single-member company (SAU)
• More formalized governance

The Creation Process: A Five-Stage Journey

Creating a company in Andorra follows a structured process that requires careful preparation. Here are the key steps to successfully establish your business.

1. Company Name

This first step is crucial for your company’s identity. The process involves:

• Proposing three names in order of preference
• Validation by authorities within 10 days
• Verification of name availability

2. Investment Authorization

For non-residents, this step is fundamental:

• Processing time: 10 to 15 days
• Detailed project file required
• Verification of financial capabilities
• Business plan validation

The process of obtaining investment authorization requires particular attention, as it conditions the continuation of your project. Andorran authorities carefully examine each file to ensure its viability and compliance with local regulations.

3. Opening a Bank Account

This step requires:

• Choosing an Andorran bank
• Preparing a complete banking file
• Depositing statutory capital
• Processing time of 1 to 4 weeks

4. Constitution and Registration

This phase formalizes your company’s creation through:

• Drafting and signing articles of association before a notary
• Registration in the commercial registry
• Obtaining a tax identification number
• Implementation of official documents

Residency in Andorra: An Opportunity to Seize

Establishing a company in Andorra can open the door to Andorran residency. This opportunity presents numerous advantages for entrepreneurs who wish to establish themselves in the Principality.

Main conditions for obtaining residency:

• Owning at least 21% of company shares
• Exercising effective activity in the company
• Demonstrating sufficient financial means
• Residing at least 183 days per year in Andorra

Conclusion

Creating a company in Andorra represents a strategic opportunity for entrepreneurs seeking to combine tax optimization with quality of life. While the process is clearly structured, it requires careful preparation and a good understanding of local specificities. Professional guidance can be valuable in effectively navigating the different stages and ensuring successful establishment in the Principality.

Remember that each project is unique and deserves particular attention. Take the time to carefully evaluate your objectives and plan each stage of your establishment in Andorra to maximize your chances of success.