Registration of companies in Andorra
from 2620 c.u.
The Principality of Andorra (Principat d’Andorra) is a state between France and Spain. Andorra, although associated with them, is not a part of the EU, which has its advantages.
Today Andorra is very popular among investors and many choose it for their business. There are very good reasons why this small state has become so popular.
The territory of the country is 467.63 sq.m., the population is Andorrans, as well as Spaniards, French, Portuguese.
The official language approved at the state level is Catalan.
From an economic point of view, Andorra is a fairly developed principality: since 2012, the euro has been officially used, and 80% of the country’s GDP is tourism.
That is why the state interferes minimally in economic management, and private entrepreneurship is encouraged and stimulated in every possible way. It should be noted that the banking sector is as well developed and enjoys certain benefits.
About 10 years ago, a number of laws were introduced to encourage investment performance. Today, all non-residents of the Principality have the legal right to register companies on an equal basis with residents. However, there are some subtleties. So, the candidacy of the future investor is considered and approved by the official structures. There are some peculiarities regarding manufacturing companies and rather high environmental requirements.
What forms of doing business are most in demand in Andorra?
Among the most popular business areas are the following:
- tourism
- trade
- education
- high tech
- construction, etc.
In total, there are more than 150 areas of activity.
Registration of an offshore company is possible in the following way:
1. Limited liability company - Societat Limitada
This form is great for small and medium-sized businesses in the field of trade and services;
Authorized capital – from 3.000 €;
One-time registration fee – 563 €;
Annual state duty – about 850 €;
2. Joint stock company - Societat Anonima
This form is suitable for owners of large companies that manage a large number of shareholders;
Authorized capital – from 60.000 €;
One-time registration fee – 803 €;
Annual state duty – varies;
3. Partnership or company where the capital is divided between the partners and they have limited liability - Andorra Societat Colectiva
The procedure is the same as above.
It is also possible to register a company in the form of an Andorra Partnership, a sole proprietorship or a branch of a foreign company. However, these types are less in demand.
How to register a business in Andorra?
Как правило, сам процесс регистрации занимает около 2-3 месяцев. На это влияет много факторов. По завершению процесса, компания имеет свой адрес регистрации, пройдя подтверждение в муниципалитете.
As a rule, the registration process itself takes about 2-3 months. Many factors influence this. Upon completion of the process, the company has its registration address, having passed the confirmation in the municipality.
- submit an application with the name of the future company, the application must be in Catalan;
- submit a request for authorization of the investment process indicating the following information:
— area of activity of the company;
— the amount of investment;
— development strategy;
— market situation;
— partners, economic relations;
— other financial resources.
- apply for registration;
- inclusion of the company in the registers.
IMPORTANT!
Information about the persons owning the companies is confidential.
Legally, foreign founders can have up to 100% shares in the authorized capital. But it is important to keep in mind that for registration of ownership of more than 10% of the shares, it is necessary to request permission from the Ministry of Economics and go through
some additional certification procedures at the notary.
Tax system and some aspects of accounting
Andorra has a unified taxation scheme.
- Tax on income of non-residents — 10%;
- Personal income tax — 10% from January 1, 2015;
- Corporate tax — 10%;
- The VAT rate is 4.5%.
* You can reduce the amount of this tax by providing write-offs for the costs incurred; - Residents of Andorra providing certain services in the Principality are also subject to a 10% income tax;
In addition to the basic taxes, there are a number of benefits that need to be clarified on a case-by-case basis.
For example, international companies that trade in securities have a tax rate of 2%.
To receive a preferential rate, you must meet the requirements defined by the regulations, apply for the assignment of preferential status and obtain the approval of the competent authorities.
Andorra - your way to a comfortable and successful business
Andorra is the country where many successful companies that do business abroad have already been registered. We will be happy to guide you through the entire registration process, from applying to confirming the required benefit status.
Andorra — place where you can work for your own pleasure! We know exactly how! Contact our specialists, outline your key tasks and deadlines, and be sure that we will do everything and even more.
