How to set up a business activity in Andorra?
Andorra is attracting more and more entrepreneurs due to its advantageous taxation, peaceful living environment and status as a fast-growing economic hub. If you are thinking of setting up your business in Andorra, here is a detailed guide to help you with the essential administrative procedures and key aspects to consider when setting up a business activity in Andorra.
1. Key steps for setting up your business in Andorra
1.1 Choosing the right legal form
Andorra offers various legal structures for your company, each with its own tax and management benefits. Common options include the Limited Company (SL) for small and medium-sized businesses, the Public Limited Company (SA) for larger companies, and the collective company.
Read our article on Types of Companies in Andorra
1.2 Obtaining Foreign Investment Authorization
If non-Andorran residents hold more than 10% of the capital of your company, you must obtain a foreign investment permit. This process requires a detailed business plan and a minimal capital contribution.
1.3 Opening a bank account
Opening a bank account in Andorra is necessary to deposit the share capital and carry out the financial operations of your company. Several local and international banks offer services adapted to companies.
1.4 Drafting the articles of association and appointing the officers
The articles of association define the operation of your company, the distribution of capital and the powers of the managers. They should be drafted with the help of a legal expert to ensure compliance with the laws.
1.5 Obtain the Tax Registry Number (TRN)
The NRT is a unique tax identifier for your business, needed to issue invoices and pay taxes.
1.6 Registering for social security
As an employer, register your employees with the Andorran social security system and contribute to pension and health insurance schemes.
2. Set up a business activity in Andorra: Additional aspects to consider
2.1 Domiciliation and commercial premises
Any company must have a physical address in Andorra, which can be a commercial space or rent a shared office in a business center in Andorra, which offers shared services and departments.
2.2 Accounting and Tax Obligations
Rigorous accounting is mandatory in Andorra. Comply with corporate taxes, VAT (IGI in Andorra) and other local taxes.
3. Aid and support for business creation
The Andorran government and various organizations offer programs to help with business creation. Take advantage of these resources to get valuable advice and support.
Conclusion
Creating a business activity in Andorra offers promising opportunities. By carefully following these steps and being accompanied by professionals, you increase your chances of success in setting up your business in Andorra. Always consult legal and tax experts for personalized advice and assistance tailored to your specific needs.
