Andorra Company Registration
Explore company formation in Andorra for international trading, investment holding, local business operations and regional expansion. ShunyaTax Global supports the process from entity selection and incorporation planning to banking coordination and ongoing compliance.
*Indicative information based on the referenced research. Eligibility, tax treatment and current legal requirements must be independently verified.
A European base for international business
Andorra is a small European jurisdiction located between France and Spain. It uses the euro but is not a member of the European Union. Its business environment may be relevant to entrepreneurs considering regional operations, investment holding and selected international activities.
The appropriate structure depends on the proposed activity, shareholder profile, management arrangements, tax residence, banking requirements and the countries in which the business will operate.
A company registration decision should therefore be based on a review of both Andorran obligations and the tax rules applicable to the owners in their countries of residence.
Key considerations
- Foreign ownership is generally possible, subject to applicable approvals and activity restrictions.
- An Andorran LLC is commonly referred to as an SL.
- The referenced material lists €3,000 minimum capital for an SL.
- Corporate tax and VAT registration obligations should be reviewed before commencing operations.
- Bank account approval is a separate due-diligence process and is not guaranteed by incorporation.
- Annual accounting, financial statement and tax filing obligations continue after formation.
Compare Andorra business entities
The following overview summarises the entity categories and indicative information presented in the research source. The final choice should be confirmed with qualified local legal and tax advisers.
Tax Resident LLC (SL)
For businesses seeking an Andorran operating company for eligible local and international activities.
Tax Exempt LLC
A structure described by the source as an offshore company. Tax treatment depends on legal eligibility and actual activities.
Holding Company (ETVE)
Designed for holding and managing qualifying participations in other companies.
Fast Solution LLC
An accelerated formation option presented for businesses with urgent commercial requirements.
Public Limited Company (SA)
A public limited structure that may be considered for larger projects and specific funding requirements.
Representative Office
For limited non-trading activities such as market research and promotion of a foreign parent business.
Branch Office
An extension of a foreign parent company for specific projects and local operations.
| Comparison | Tax Resident LLC | Tax Exempt LLC | Holding | Fast LLC | PLC | Representative Office | Branch |
|---|---|---|---|---|---|---|---|
| Also known as | SL | Offshore company | ETVE | Fast Solution LLC | SA | Oficina de representacion | Sucursal |
| Best use (source description) | Becoming tax resident | Trading / holding | Manage investments | Urgent customer deal | Public funding | Marketing / research | Specific projects |
| Indicative time to invoice | 1 month | 1 month | Not permitted | 2 weeks | 2 months | Not permitted | 2 months |
| Limited liability | Yes | Yes | Yes | Yes | Yes | No | No |
| Resident representative required | No | No | No | No | No | Yes | Yes |
| Minimum capital | €3,000 | €3,000 | €3,000 | €3,000 | €60,000 | None listed | None listed |
| Corporate tax shown | 10% | 0%* | 0%* | 10% | 10% | N/A* | 10% |
| VAT on local sales shown | 4.5% | 4.5% | No sales | 4.5% | 4.5% | No sales | 4.5% |
| Indicative engagement cost | €24,850 | €22,750 | €24,750 | €33,750 | €25,750** | €25,750 | €28,750 |
| Indicative period | 3 months | 3 months | 3 months | 2 months | 4 months | 4 months | 4 months |
Andorra corporate tax and VAT overview
The referenced accounting page describes the following tax and compliance points. Actual tax treatment depends on the company, income type, activity, substance and any applicable special regime.
Corporate income tax
The source describes a standard 10% rate and a reduced 2% rate for certain qualifying income categories.
General VAT
The source lists a general VAT rate of 4.5% on goods and services.
Dividends and interest
The source states that payments to non-resident businesses and individuals may be exempt from withholding tax.
Royalties and services
The source lists 5% withholding tax on royalties and 10% on certain technical services.
Social security
The source refers to employer social security contributions of 14.5% on employee salaries.
Ongoing filings
Annual tax returns and financial statements, together with applicable periodic VAT and payroll reporting.
Indicative company setup costs
The source's dedicated fees page states that its average engagement fees include incorporation, corporate bank account opening, project management and government fees. These are third-party reference figures, not ShunyaTax prices.
| Entity type | Indicative engagement fee |
|---|---|
| Tax resident LLC | €24,850 |
| Branch of a foreign company | €28,750 |
| Public limited company (PLC) | €27,750 |
| Representative office | €25,750 |
| Holding company | €24,750 |
| LLC with work permit | €28,700 |
Indicative engagement timeline
| Stage | LLC | PLC | Branch | Representative office | Holding |
|---|---|---|---|---|---|
| Engagement planning | 2 weeks | 2 weeks | 2 weeks | 2 weeks | 2 weeks |
| Incorporation | 4 weeks | 4 weeks | 6 weeks | 6 weeks | 4 weeks |
| Bank account approval | 4 weeks | 4 weeks | 4 weeks | 4 weeks | 4 weeks |
| Internet banking | 1 week | 1 week | 1 week | 1 week | 1 week |
| Completion | 1 week | 1 week | 1 week | 1 week | 1 week |
| Total shown by source | 12 weeks | 12 weeks | 14 weeks | 14 weeks | 12 weeks |
Actual timelines depend on due diligence, name approval, government processing, bank compliance review and the completeness of submitted documents.
How the incorporation process works
The source describes an 11-stage workflow. The following is a simplified overview for prospective clients.
Initial engagement
Confirm scope, engagement terms, required documents and due diligence.
Choose the structure
Review the business activity, company name, shareholders and directors.
Project plan
Prepare a schedule for incorporation and banking workstreams.
Name search
Submit the proposed name for availability review with the relevant authority.
Prepare documents
Draft incorporation documents, constitutional documents and consent forms.
Government submission
Submit the incorporation application and supporting documents.
Banking application
Coordinate capital deposit and corporate bank due diligence, subject to bank approval.
Registration certificate
Receive the official company incorporation confirmation.
Company document kit
Compile constitutional documents, certificates and share documentation.
Operational readiness
Coordinate business address, office requirements, telephone and staffing support.
Post-setup support
Review tax registrations, accounting, merchant banking and other operational needs.
Business setup and ongoing support
Company formation
Entity selection, incorporation coordination and documentation support.
Corporate banking
Banking application preparation and coordination, subject to bank acceptance.
Tax and accounting
Tax registration coordination, bookkeeping, accounting and compliance support.
Licensing and compliance
Support to identify applicable business licensing and ongoing obligations.
HR and recruitment
Staffing, payroll coordination and employment administration support.
Office solutions
Registered address, workspace and operational launch coordination.
When Andorra may be suitable
- Businesses seeking a European base between France and Spain.
- Entrepreneurs evaluating an Andorran operating company.
- Groups considering a qualifying investment holding structure.
- Businesses that can meet local substance, reporting and banking requirements.
- Founders who need professional support with cross-border setup coordination.
What needs careful assessment
- Bank account opening is subject to independent bank approval.
- Annual accounts and tax filings remain necessary after incorporation.
- Special tax exemptions require eligibility and may require formal approval.
- Owners must assess tax obligations in their country of residence.
- Local trading activity, licensing and substance rules may affect the structure.
Andorra business resources
Useful official and reference resources for additional research. External websites open separately.
Discuss your Andorra business setup
Share your proposed activity and preferred structure. Our team can review your requirements and coordinate the next steps with relevant local professionals.
- Company formation and administration
- Corporate banking coordination
- Accounting, tax and compliance support
- Licensing, HR and office requirements
Please do not submit passwords, bank credentials or highly sensitive identity documents through this initial enquiry form.
Explore company formation in Andorra
Discuss the right company structure, expected setup requirements, banking considerations and ongoing compliance before proceeding.