Have you considered company incorporation in Andorra?
Andorra is one of Europe’s most favorable jurisdictions for company incorporation as it has low taxes, minimal bureaucracy, and entrepreneurial culture.
So, how do you register a company in Andorra? It’s often a huge challenge for foreigners to start an Andorra business many of them miss out on this lucrative opportunity.
This quick guide will show you the basics of Andorra company set up with the minimal hassle.
Here’s what you need to know:
Find a Bank First
Before you register a company in Andorra, you should first consult with different banks. You want to ask them if they’re willing to open an account for your business.
If they aren’t, you’ll end up having to close your business, as an Andorran bank account is crucial for company formation. You can look at a bank such as BancSabadell dAndorra which is one of the best banks for entrepreneurs.
The Different Company Structures
Once you’ve found the ideal bank you can get started with company incorporation. You have to choose the type of business entity you want.
The three major types of business entities in Andorra are as follows:
- Societat Limitada (S.L.): This is an equivalent to a small limited company and requires an initial investment of 3,000 Euros
- Societat Limitada Unipersonal (S.L.U.): This is a business structure that only requires a single shareholder and also requires an initial investment of 3,000 Euros
- Societat Anonima (S.A.): This is a large corporation with multiple shareholders and requires an initial investment of 60,000 Euros
You’ll also have to pay legal fees and incorporation fees in addition to your initial investment fees.
Company Incorporation Process
Now let’s look at the basics of company formation in Andorra. Once you choose your desired company structure you can consult with a lawyer to help you set it up.
You have to first register a company name for your business. It can be in any language as long as it’s written in Latin letters.
You’ll then have to draft articles of incorporation and a business plan to show the company registry. As a foreigner, you’ll also have to provide a criminal record via your country’s embassy.
Once you do this, you’ll open your bank account and provide a statement that shows you’ve made your initial investment. You then go to the Registre de Societats Mercantile to register your company.
Once your company gets registered, the final step is to register with the tax office. When this is completed, you’re ready to start operating your business in Andorra!
Start Your Entrepreneurial Journey
Now you know the basics of company incorporation in Andorra and can begin your entrepreneurial journey.
You should start by consulting with an Andorran bank to see if they’re willing to open an account for your type of business. If they approve, you want to then consider the ideal business entities in Andorra for your type of venture.
Follow the steps for company incorporation and use a lawyer to help you expedite the process. Once you’ve provided the documents, opened a bank account, and registered with the tax office you’re ready to get started!
You can find more articles on entrepreneurship here on our website.
