F&B REAL ESTATE INVESTMENTS

SETTING UP A BUSINESS IN ANDORRA

THE IDEAL OPTION TO FULFIL YOUR DREAM OF LIVING IN ANDORRA OR TO INVEST IN A MARKET WITH PLENTY OF OPPORTUNITIES
Professional expertise for setting up a business in Andorra

CONSULTANCY

We offer you our knowledge of the country and our expertise so that you can choose the type of business or company that best suits your needs and future plans.

PROCESS

We represent you before the relevant authorities in Andorra so that the procedures for opening your business run as smoothly as possible and you have to complete as few formalities as possible in person.

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Corporate tax (max.)

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Total cost to the company

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Personnel costs

ADVANTAGES OF SETTING UP A COMPANY OR BUSINESS IN ANDORRA

TAX BENEFITS
For many investors, this is the main attraction. These benefits can be summed up as follows: a maximum of 10% corporate tax on profits (which can be reduced to 10% or even exempted in some cases, according to the company’s activity), a 4.5% VAT (the lowest in Europe) and annual maintenance costs of less than 850 euros for limited liability companies.
WAGES
Wages are also very competitive. In 2018, the national average salary in Andorra was around €2,100/month and the minimum wage was €1,286.13/month. Although the latest INE figures show that the average salary in Spain is similar to Andorra, the difference in labour costs due to social security contributions means that the Spanish salary is up to 15% higher than in Andorra. In France, the average salary in 2016 was €2,957/month. If we add the 32% for social security, the figure is €3,844/month (while in Andorra it is €2,346/month, almost 40% less).

ANDORRAN BUSINESS ENVIRONMENT

All Andorran companies are required to have a registered office and a director, to draw up periodic statement and to file the corresponding tax returns.

Business models for setting up a company in Andorra

There are two types of business models for setting up a company in Andorra:

  • The S.L. “Sociedad Limitada“, a limited liability company with a minimum capital of €3,000.
  • The S.A. “Sociedad Anónima“, a type of corporation with a minimum capital of €60,000.

 

 

Steps to follow to set up a business in Andorra:

2. Application for investment authorisation:

Each non-resident shareholder/partner must request prior authorisation for foreign investment in an Andorran company. This procedure takes approximately four weeks.

3. Pre-opening of the company’s bank account:

An application should be submitted in order to open a bank account, together with the documents required by the bank. You will need to explain your business, the source of funds and present your profile in a transparent manner. You should allow between a week and four weeks for your account to be authorised.

4. Incorporation and registration of the company at the board of trade:

The company bylaws are registered with an Andorran notary public and the company’s records are filed with the Andorran board of trade.

5. Opening of the company’s business:

You apply to open the company. At this stage, you must have the address of your business, an electrical certificate for your office or premises and a valid fire extinguisher service contract.

1. Application on behalf of the company

You can choose three different names in order of preference. The government will send its confirmation within 10 days.

ANDORRAN BUSINESS ENVIRONMENT

All Andorran companies are required to have a registered office and a director, to draw up periodic statement and to file the corresponding tax returns.

Business models for setting up a company in Andorra

There are two types of business models for setting up a company in Andorra:

  • The S.L. “Sociedad Limitada“, a limited liability company with a minimum capital of €3,000.
  • The S.A. “Sociedad Anónima“, a type of corporation with a minimum capital of €60,000.

 

 

Steps to follow to set up a business in Andorra:

2. Application for investment authorisation:

Each non-resident shareholder/partner must request prior authorisation for foreign investment in an Andorran company. This procedure takes approximately four weeks.

3. Pre-opening of the company’s bank account:

An application should be submitted in order to open a bank account, together with the documents required by the bank. You will need to explain your business, the source of funds and present your profile in a transparent manner. You should allow between a week and four weeks for your account to be authorised.

4. Incorporation and registration of the company at the board of trade:

The company bylaws are registered with an Andorran notary public and the company’s records are filed with the Andorran board of trade.

5. Opening of the company’s business:

You apply to open the company. At this stage, you must have the address of your business, an electrical certificate for your office or premises and a valid fire extinguisher service contract.

1. Application on behalf of the company

You can choose three different names in order of preference. The government will send its confirmation within 10 days.

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Individual income tax (IRPF)

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Non-resident income tax

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General indirect taxes

TAX INFORMATION EXCHANGE AGREEMENTS

Since 2009, Andorra has signed tax information exchange agreements (TIEAs) with 24 countries:

Germany, France, the Netherlands, Argentina, Greenland, Poland, Australia, Faroe Islands, Portugal, Austria, Iceland, Czech Republic, Belgium, Italy, South Korea, Denmark, Liechtenstein, San Marino, Spain, Monaco, Sweden, Finland, Norway, and Switzerland.

EXCEPTIONAL SERVICES FOR SETTING UP A BUSINESS IN ANDORRA

BUSINESS START-UPS
We can advise you on the types of legal entities in the Principality of Andorra and on the procedures required to open a company in the country.
IMMIGRATION AND RESIDENCE
If you need to establish your residence in Andorra, whether with taxable or non-taxable income status, we can help you with the entire residence permit application and process.
BUSINESS MANAGEMENT
We provide you with an address in Andorra that will enable you to benefit from a corporate tax rate of less than 10%, with tax relief of up to 80%.

WANT TO OPEN A BUSINESS IN ANDORRA?

WE CAN ASSIST YOU