Legal forms of companies in Andorra: SL – SA – Collective Companies
Companies, whether large or small, face tax requirements in their respective countries. These taxes can sometimes be very heavy, amounting to thousands of euros. However, the Principality of Andorra offers attractive tax advantages, making it a popular destination for company formation. It is essential to follow the legal recommendations to choose the appropriate type of company when setting up a company in Andorra.
Types of Company in Andorra
The legal forms of companies in Andorra
Whether you are an individual or a company wishing to set up in Andorra, the choice of the type of company is crucial. In Andorra, there are three main types of companies:
- The Limited Company (SL)
- The public limited company (SA)
- The Collective Company
These distinctions are clearly established by the Andorran jurisdiction, and each entrepreneur must comply with the legal requirements to choose the type of company best suited to their needs.
1. The Limited Company (SL)
The Limited Company (SL) in Andorra, similar to the Limited Liability Company (SARL) in France, is a commercial company with mixed characteristics. The financial shares of the capital are not directly accessible; Shareholders’ consent is required. Management can be carried out by several partners, but single-member management (SLU) is also possible. The creation of an SL involves tax costs of around 6000 euros and annual taxes of around 850 euros.
2. The Public Limited Company (SA)
The Société Anonyme (SA) is an offshore company in Andorra, aiming to bring together large companies and many shareholders. Only one person may be appointed to manage this company (SAU). The creation of a public limited company requires a minimum capital of 60,000 euros, with an annual payment of 1016.67 euros to the State.
3. The Collective Society
Unlike the companies mentioned above, a collective company in Andorra is managed by the family. It involves the participation of corporate assets, shareholders and employees. The company’s capital is regularly used in the presence of the various partners.
Creation of your company in Andorra
Primordial Conditions for Creation
- Submit a completed application for a reservation of legal name.
- Apply for an investment permit for foreigners from the competent authorities.
- Register in a commercial register to obtain a tax register number.
For quick creation, it is recommended to use a competent service. Clickand’s tax and accounting experts offer expertise in administration, particularly for the installation of expatriates and the creation of their residence and company.
Administration of the Company
The management of a company in Andorra can be entrusted to a person of trust or to a board of directors. The provision of certain administrative documents, such as the copy of the status of the directors, the criminal record, the copy of the passport of the legal representatives, and the Andorran investment permit, is necessary depending on the type of company chosen.
Taking these administrative documents into account, you will be able to set up a competent company in Andorra, benefiting from the tax and economic advantages offered by the Principality.
