Starting a business in Andorra has become an increasingly attractive option for many entrepreneurs due to its favorable tax environment, economic stability, and high quality of life. In this guide, we will cover all the steps, requirements, and benefits that this small but prosperous European country offers.
1. Requirements to start a business in Andorra
For Andorran citizens or residents, there are no additional requirements beyond the steps to establish a company.
For foreigners, the requirement includes, among others, the foreign investment application, the corresponding authorizations from the competent government bodies, and the opening of a bank account registered with an Andorran bank.
2. Steps to create a company in Andorra
The constitution of a company is the first step to starting a business in Andorra. The steps to establish a company in Andorra for foreigners are summarized as follows:
- Reservation of the company name
- Foreign investment application
- Opening a bank account and depositing the share capital
- Constitution of the company before a notary
- Automatic registration with the Registry of Companies
Additionally, depending on the business activity, opening a retail location may be required.
Once the company is registered with the Registry of Companies, it must be enrolled in the Andorran Social Security Fund (CASS) and registered with the Department of Taxes and Borders, among other administrative procedures.
In Andorra, you can choose different legal structures for your business. The most common are:
- Limited Liability Company (SL): Ideal for small and medium-sized enterprises. Requires a minimum capital of 3,000 euros.
- Public Limited Company (SA): Suitable for larger companies. Requires a minimum capital of 60,000 euros.
The required documentation to establish a company includes, among others:
- Company statutes
- Constitution act
- Copy of the partners' ID or passport
- Proof of deposit of the minimum capital in an Andorran bank account (bank certificate)
- Foreign investment authorization resolution
- Certificate of company name, etc.
3. Benefits of starting a business in Andorra
3.1 Tax incentives
Andorra offers several tax incentives to attract entrepreneurs and investors. These include low corporate and personal tax rates, tax exemptions for certain activities, and double taxation agreements with various countries to avoid double taxation.
- Corporate tax: 10%
- Personal income tax: 10%
- General indirect tax: 4.5%
3.2 Business-friendly environment
The Andorran government has implemented several policies to create a favorable business environment. This includes a stable legal framework, access to financing, and support for innovation and entrepreneurship.
3.3 Infrastructure and connectivity
Despite its small size, Andorra boasts modern infrastructure and excellent connectivity. The country has an efficient transportation network, advanced telecommunications services, and access to cutting-edge technology, making business operations easier.
3.4 Safety and stability
Andorra is one of the safest countries in Europe, with low crime rates and high political stability. This provides a secure and predictable environment for businesses.
3.5 Quality of life
In addition to its tax and business advantages, Andorra offers an exceptional quality of life. With its stunning natural environment, high-quality healthcare services, and education system, the country is an attractive place to live and work.
4. Conclusion
Starting a business in Andorra is a strategic option for those looking for a business-friendly environment with tax benefits and a high quality of life. With this guide, we hope to provide all the necessary information to help you successfully launch your project in this prosperous country.