Starting a business in Andorra: the keys to success
If you have a business creation project, have you considered Andorra? Located between France and Spain, the Principality attracts many entrepreneurs every year. This complete guide explains why and how to successfully launch your Andorran company.
5 good reasons to set up your business in Andorra
Andorra combines many advantages for business creators. Here are 5 of the most attractive:
1. An advantageous tax system
With a corporate tax rate capped at 10%, and even 2% in some cases, as well as one of the lowest VAT rates in Europe (IGI at 4.5%), the Principality allows you to optimize your profits.
2. Reduced charges
With employer contributions lower than many neighboring countries, hiring costs less in Andorra. Ideal for controlling your payroll.
Overview of taxation in Andorra
3. An exceptional quality of life
Between preserved mountains, clean air, an efficient healthcare system and optimal security, Andorra offers a privileged living environment to its residents. Life expectancy is one of the highest in the world!
The advantages of the Andorran healthcare system
4. A strategic geographical location
Only 2.5 hours drive from Toulouse and Barcelona, Andorra is ideally located for quick access to the French and Spanish markets.
5. Simplified procedures
Setting up a company is often simpler and faster in Andorra than elsewhere. With good support, you can be operational in about 3 months.
All about Andorran legal forms
Between SL, SA or Collective Company, the choice of status depends on the size of your project and your situation.
For small structures: the SL
Equivalent to the French SARL, the Limited Company (SL) requires a starting capital of €3,000. Ideal solo (SLU) or with several partners.
For larger projects: the SA
The Public Limited Company (SA) requires more capital (min. €60,000) and formalities, but offers better credibility. It can also be sole shareholder (SAU).
The Collective Company: capital shared between partners
Here, the capital is shared between the different partners, as for the SL or SA.
Choosing the right legal status in Andorra
5 steps to start your business in Andorra
Here is the path to follow to launch your Andorran company:
- Choose the company name: propose 3 names to the government, which will validate one within 10 days.
- Obtain investment authorization: each foreign partner must make a prior request (10-15 days).
- Deposit the share capital: open a provisional bank account in Andorra (1 to 4 weeks).
- Go to the notary and register the company: sign the articles of association, then head to the commercial register.
- Declare the opening of the business: final administrative step (except for holdings). You need to provide a registered office address and an electrical certificate.
Rules to follow as a manager
Once your company is launched, you will have to keep proper accounts, pay social contributions for your employees (max. 22%)…
Become an Andorran resident thanks to your company
Creating your company in Andorra or domiciling your company there can make it easier for managers owning at least 21% of the shares to obtain residency. But it is also possible to manage remotely.
The chartered accountants at Clickand support you at every stage of your establishment. Benefit from tailor-made advice from specialists in entrepreneurial expatriation to serenely realize your project.
