Andorra company registration

DOING BUSINESS IN ANDORRA IN 2017

Since 2003, Healy Consultants Group PLC has assisted our Clients with services including i) Andorra business registration ii) government license registration iii) corporate banking solutions iv) employee recruitment v) visa and migration strategies and vi) office rental solutions.

SummaryTax resident LLCTax exempt LLCHolding companyFast solution LLCPublic limited companyRepresentative officeBranch office
Also known asSLOffshore companyETVEFast solution LLCSAOficina de representacionSucursal
Best use of company?Becoming tax residentTrading/holdingManage investmentsClose a customer deal nowTo secure public fundingMarketing & researchSpecific projects
How soon can you invoice Clients/sign sales contracts?1 month1 monthNo sales allowed2 weeks2 monthsNo sales allowed2 months
How soon can you sign sales contracts?1 month1 month2 months2 weeks2 monthsNo contracts allowed2 months
How soon can you hire staff?1 month1 month1 month2 weeks2 months2 months2 months
How soon can you sign a lease agreement?ImmediatelyImmediatelyImmediatelyImmediatelyImmediatelyImmediatelyImmediately
How long to supply corporate bank account numbers?2 months2 months2 months1 month3 months3 months3 months
How long to supply company registration/tax numbers?1 month1 month1 month2 weeks2 months2 months2 months
Corporate tax rate on annual net profits?10%0%0%10%10%0%10%
Limited liability entity?YesYesYesYesYesNoNo
Resident director/partner/manager/legal representative required?NoNoNoNoNoYesYes
Minimum paid up share capital (in €)?€3,000€3,000€3,000€3,000€60,000NoneNone
Corporate bank account location?AndbankCrèdit AndorràBanc SabadellAndbankVall BancCrèdit AndorràMora Banc
VAT payable on sales to local customers?4.5%4.5%No sales allowed4.5%4.5%No sales allowed4.5%
Average total business set up engagement costs (in €)?23,75022,75022,75033,75025,75023,75026,750
Average total engagement period?3 months3 months3 months2 months4 months4 months4 months

See full table

Accounting and tax considerationsTax resident LLCTax exempt LLCHolding companyFast solution LLCPublic limited companyRepresentative officeBranch office
Statutory corporate tax payable?10%0%0%10%10%N/A10%
Legally tax exempt if properly structured?NoYesYesNoNoYesNo
Group HQ tax incentives?YesNoYesYesYesNoYes
Must file an annual tax return?YesYesYesYesYesYesYes
Must file annual financial statements?YesYesYesYesYesYesYes
Must appoint an auditor?NoNoYesNoYesNoNo
Access to double taxation treaties?YesNoYesYesYesNoYes
Withholding tax on payments to foreign shareholders?0%0%0%0%0%0%0%
Company RegistrationTax resident LLCTax exempt LLCHolding companyFast solution LLCPublic limited companyRepresentative officeBranch office
Resident director/partner/manager/legal representative required?NoNoNoNoNoYesYes
Minimum number of shareholders/partners?21122Parent companyParent company
Maximum shareholding for foreigners?100%100%100%100%100%100%100%
Minimum statutory paid up share capital (in €)?€3,000€3,000€3,000€3,000€60,000NoneNone
Shelf companies available?YesYesNoYesYesNoNo
Time to incorporate a new entity?1 month1 month1 month2 weeks2 months2 months2 months
Can easily convert to a PLC?YesYesYesYesYesNoNo
Can have preference shareholders?YesYesYesYesYesNoNo
Business ConsiderationsTax resident LLCTax exempt LLCHolding companyFast solution LLCPublic limited companyRepresentative officeBranch office
Good entity for trademark registration?YesNoYesYesYesNoYes
Can secure an import and export license?YesNoNoYesYesNoYes
Can bid for foreign Government contracts?YesYes, abroadYesYesYesNoYes
Can secure trade finance?YesYesYesYesYesNoYes

Government grants available?No
Government approval required for foreign owners?No
Security deposit to be kept with government?No
Public register of shareholders and directors?Yes
Sponsorship by a local citizen required?No
Our Client needs to travel to Andorra for business set up?No
Temporary physical office solutions available?Yes
You need a local resident as bank signatory?No
Can be wholly foreign owned?Yes
The entity will likely be regulated by?Govern d'Andorra
Minimum number of directors/managers?1
Monthly VAT reporting to the government?Yes
Must sign an office lease agreement during incorporation?No
Shareholders & directors documents to be attested/translated?Yes
Each foreign director needs a personal income tax number?No
Foreign director needs a residence visa?No
Maximum number of staff allowed?No maximum number for any entity
Expatriate to local staff ratio?None
Can secure residence visa for business owner?Yes
Other useful information
What will be included in my customer sales invoice?Click link
This country has signed free trade agreements?Yes
This country is a member of WIPO?Yes
This country is a member of the ICSID?No
Average custom duties suffered?0.60%
Government foreign investment approval required?No
Average monthly office rental? (EUR per sq m)15
Minimum statutory monthly salary?976
Average monthly EUR salary for local skilled employees?1,900
US$ deposit interest rate? (1 year average)0.00%
Overseas remittance currency controls?None
Banking considerations
Multi-currency bank accounts available?Yes
Corporate visa debit cards available?Yes
Quality of e-banking platform?Good
Crowd funding available in this country?Yes/No

Press the link headings below to read detailed, relevant, up to date information.

  • Advantages and disadvantages

    Advantages of Andorra company registration

      Andorra business registration facts

    1. A limited liability company in Andorra can be formed with only i) two shareholders ii) one director and a minimum paid-up capital of €3,000. Our Clients are not required to live in Andorra to be appointed as shareholders and directors;
    2. Andorra companies are allowed to conduct business in the country and overseas without suffering from punitive tax rates making at an attractive EU solution for international entrepreneurs;
    3. Our Clients forming a company in Andorra will benefit from advantageous tax incentives, including: i) a corporate income tax rate of only 10% ii) capital gain tax of only 10% and iii) no withholding tax on dividends and interest remitted abroad;
    4. Andorra also offers an attractive holding company regime, through which holding vehicles are legally exempt from corporate income tax from their global subsidiaries, provided that such entities have no permanent establishment in Andorra. See other tax considerations;
    5. Since 2013, Andorran VAT is the lowest in Europe at 4.5% followed by the Canary Islands at 5%. EU VAT registered companies can be tax exempt and recover any VAT incurred when doing business in Europe through an Andorran company. Healy Consultants will be happy to assist with EU VAT registration for our Clients Andorran company for a one-time fee of €950;
    6. While Andorra is not part of the European Union, the country uses the euro as its currency and does not implement any exchange controls;
    7. In 2012, Andorra approved a new law that allows 100% ownership of any company by foreign investors. Some restrictions however continue to apply on companies having trading activities within the territory.

    Disadvantages of Andorra company registration

    1. While Andorra has recently introduced regulations to reduce banking secrecy, the country is still perceived as a tax haven by foreign tax administrations. Andorra is notably included into the blacklisted tax haven lists of several countries including Spain, Canada, Italy, Sweden, Australia and Monaco. Our Clients registering a company in Andorra can hence be subject to additional scrutiny by their tax authority. It is critically important that our Clients are aware of their corporate and personal income tax obligations in their country of residency and comply with them. Let us know if our Firm can assist you with this matter;
    2. Annual accounts must be submitted to the government for the fiscal year following Andorra company formation. Healy Consultants will assist our Clients efficiently and effectively to complete this annual obligation;
    3. No global bank is directly present in Andorra. While it is still possible to open a corporate bank account to support Andorra company formation, this will have to be done with a local Andorra bank, including i) Banqua Privata Andorra ii) Andbank and iii) MoraBanc.
  • Best uses of an Andorra company

    1. Non-resident business involved in international trade, international investment and financing may be subject to only 2% corporate tax. A VAT rate at 4.5% being the lowest in Europe makes the Principality one of the most tax efficient legal structure to significantly reduce European tax liabilities;
    2. Holding companies with tax exempt status are especially attractive for wealthy businessmen in neighboring countries Portugal, France and Spain;
    3. Andorra is a cheaper European alternative for Clients interested in setting up asset protection structures to conserve family wealth compared to Monaco, Switzerland, Liechtenstein, San Marino, Malta or Cyprus.

Tell us what you need - we’ll send you a customised proposal in 5 hours!

Company registration

  • Time to incorporate: Four weeks
  • Cost to set up: €23,750
  • Minimum capital: €3,000
  • Physical office required: No

Required appointments

  • Shareholders: 2
  • Directors: 1
  • Company secretary: No
  • Resident director: No

Key facts

  • Corporate tax rate: 10%
  • Corporate tax base: Worldwide
  • Shelf companies: No
  • Main company type: SL Company

Contact us

For additional information on our company registration services in Andorra, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Seth Ochieng, directly:
client relationship officer - Seth
andorra chmaber of commerce, Industry and services (CCIS) government of andorra-finance andorra-ntl immigration andorra international financial centre