The advantages of creating a company in Andorra are many, among them the low taxation, the international openness and the high standard of living that the country offers, make Andorra one of the best countries to set up and create a company. Emindset Law will assist you in the whole process of setting up your company, from the initial feasibility study to the opening of the business and, if necessary, the completion of all immigration formalities. Likewise, we will help you in all the legal needs you may have in the day to day running of your business, being your legal firm and traveling companion.
First of all you should know that companies or societies within the principality must have a registered office although it is possible that small companies can be established in a house or apartment. It is important to note that the director of a company can be a non-resident person. However, the company is required to have a presence in the country, as well as to have a resident employee, for example.
Andorran companies should comply with the BEPS rules according to the OECD.
Requirements to create a company in Andorra are as follows:
First of all, remember that the creation of a company in Andorra requires a process of diligence with the Andorran government. Thus, the documents of the procedure to be carried out for the incorporation of a company are written in the official language of the country, Catalan. On average it takes 2 months to create a company in Andorra.
Presentation by the directors and partners of the future company of the criminal record certificate from their respective countries of origin, duly apostilled and, if applicable, translated, as well as a photocopy of the current passport, also apostilled and, if applicable, translated. On the other hand, the business plan and investment strategy are required, which will be previously reviewed by our team.
An application for the reservation of a company name must be made to the Government of Andorra, which authorization takes approximately one week from the date of application. This denomination can be in a language other than Catalan. In the application, the activity of the future business must be precisely defined.
This authorization is requested to the Andorran Government whenever the non-national or non-resident investor in Andorra wants to hold more than 10% of the share capital. The resolution usually takes between 1 month and 1 month and a half.
Once the Andorran Government authorizes the investment, we start the phase of elaboration of the Company’s Articles of Association, where we will have to define the corporate purpose of the company, its domicile, the structure of the administrative body, as well as the designation/appointment of the same.
We will talk about point d) above, it will be necessary to carry out the procedures of pre-opening of the bank account of the company to proceed to the deposit of the share capital and thus to obtain the Certificate of disbursement of the share capital. Once the disbursement is made and the bank certificate is obtained, the investor will be able to sign the Deed of Incorporation of the Andorran Company, for its subsequent registration in the Register of Companies.
With the registration of the Company in the Companies Registry, the partners will be able to unblock the bank account, delivering to the financial entity the deed of incorporation of the company as well as the Certificate of Registration of the Company in the Companies Registry.
Once the company is incorporated and registered, the next step is to request the corresponding administrative authorization for the exercise of activities. Any person who wants to exercise a commercial, industrial or service activity needs an authorization from the municipality where the business is going to be established. For this purpose, the reservation of the commercial name and the authorization to open a business must be requested.
For both SL and SA companies, a minimum amount of capital is required to open a company in Andorra: 3,000 euros for S.L. and 60,000 euros for S.A. On the other hand, a series of expenses corresponding to taxes, deposits and notary fees must be assumed.