Legal Forms of Companies in Andorra

SOCIETAT LIMITADA (S.L.)

The equivalent of a limited liability company. This legal form is suitable for small and medium-sized businesses and is widely used in local trade and service activities. The minimum share capital required to incorporate an S.L. is 3 000 €.

SOCIETAT ANÒNIMA (S.A.)

The equivalent of a joint-stock company. This legal form is suitable for larger businesses with a significant number of shareholders. The minimum share capital is 60 000 €.

SOCIETAT COL·LECTIVA

This is a type of company whose capital is divided among partners who have unlimited liability. The incorporation procedures are the same as for an S.L. or S.A.

Company Formation Process

1. Obtaining an NIA (Administrative Identification Number). This is required by foreign individuals to carry out administrative procedures in Andorra. A copy of the passport, registered address, telephone number and email address are required.
2. Reservation of the company name. You will need to provide one primary name and two alternative options. The name may not contain references to financial activities, cryptocurrencies or Andorra, including the prefix “AND”.
3. Foreign direct investment authorisation. This is a key step for non-residents establishing a company in Andorra. The application requires a notarised and apostilled copy of the passport, certificates of no criminal record from the country of birth, country of citizenship and all countries of residence during the past 10 years, a CV, as well as a description of the planned business activity, including projected investment, turnover and profit for the next five years.
4. Opening a corporate bank account in Andorra for the company in formation. It is recommended to initiate this process in parallel with Step 3.
5. Payment of the share capital — 3 000 € for an S.L.
6. Execution of the public deed of incorporation before a notary. Personal attendance is required.
7. Registration of the company and obtaining the relevant registration and tax documentation, and registration with the Andorran Social Security Fund (CASS).

Once these steps have been completed, an application may be submitted for residence and work as a self-employed person (compte propi). Within three months of the date the immigration permit application is registered, evidence must be provided that the company’s commercial activity in Andorra has been registered and is actually being carried out. The registered office may be established at the residential address, provided this is permitted under the lease agreement and applicable parish regulations.

Special Tax Regimes

Certain types of activities in Andorra may qualify for special tax regimes, in particular activities involving intangible assets and holding companies. The application of such regimes may require prior authorisation from the Tax Department and evidence of genuine economic substance in Andorra. We assess the potential applicability of a special tax regime to your business as part of the initial consultation.