Company formation in Andorra

Incorporating an Andorran company generally involves: choosing the legal form, obtaining the administrative identification number (NIA), reserving the company name, the foreign investment authorisation when the project includes non-resident shareholders, defining the registered office, opening the incorporation account and depositing the share capital, drafting the articles of association, signing before a notary, registration with the Companies Register, then the formalities of actually starting up, in the broad sense: trade registration, registering the company and its employees with the CASS, tax registration and, depending on the activity carried out, any sector-specific authorisations that may be required.

The minimum share capital is €3,000 for an SL and €60,000 for an SA. For a complete file with no regulatory particularities, allow two to three months between the first steps and the start of activity — an indicative timeframe that mainly depends on administrative approval, bank checks and the quality of the documents submitted.

Our involvement isn't limited to incorporating a structure: we check beforehand that your business model, your organisation, your tax residency and your financial flows form a coherent whole.

Andorra's framework attracts entrepreneurs, consultants and executives looking for accessible administration and clear taxation: 10% corporate income tax (on profit, not turnover), 4.5% IGI (the local VAT-equivalent). But these rates should never be considered in isolation: a sound set-up rests on the reality of the activity, where decisions are made, the human and material resources involved, the tax residency of the directors, where clients are based, and applicable tax treaties — detailed on our taxation in Andorra page.

The goal: a genuinely operational company, bankable and compliant — not just an administrative address.

The Principality is home to a wide range of activities: consulting and intellectual services, digital services and software development, marketing, trade and distribution, tourism and nautical activities, administrative management, real estate, innovation — and more broadly, services aimed at an international clientele.

Note: some regulated professions require an authorisation, a recognised qualification, professional registration or a specific premises. These conditions must be checked before starting the process, so as not to incorporate an entity that would be unable to operate.

The economic activity — target clientele, countries involved, sales approach, forecasts: a corporate purpose that is too vague complicates administrative review, bank account opening and trading authorisation. Effective management — the registered office should not be confused with where decisions are actually made. Resources — office or coworking space, tools, directors, employees: credible in relation to the services provided and expected turnover, without artificially heavy structure. Financial flows — origin of capital, shareholders' assets, clients, suppliers, countries and expected volumes: bank preparation begins at the same time as legal structuring.

The SL — or SLU for a sole shareholder is the most widely used form: €3,000 capital, suited to consultants, services, retail, digital businesses and family projects — full details on the operation and incorporation of an SL are available on its dedicated page. The SA — or SAU suits projects with significant capital, multiple investors or more elaborate governance: €60,000 minimum. The holding company holds shareholdings and organises a group or a succession plan. The asset-holding company holds and manages investments, financial assets or real estate — a different logic from an operating company. Full comparison: company types in Andorra.

Yes — a foreign individual or legal entity can hold up to 100% of an Andorran company, subject to direct investment authorisation. Each future foreign shareholder or director submits a file including: certified proof of identity, a criminal record certificate less than three months old, a CV, a presentation of the activity and target market, the project's added value, planned investment, financial forecasts and the origin of funds. Foreign documents may require an apostille, legalisation or translation.

Since 16 April 2025, regulations provide for enhanced monitoring of foreign-capital projects: authorisation is no longer an end in itself — the operation must demonstrate the exercise of a genuine economic activity within 18 months. Checks may cover the commercial opening, the actual start of operations, bookkeeping, compliance with tax obligations, and consistency between the announced project and the activity actually carried out. Direct consequence: the business plan, financial forecasts and operational preparation matter more than ever.

Individuals: passport, proof of address, required criminal record certificates, CV, professional references, family situation, proof of income and assets, evidence of the origin of funds, business plan and financial forecasts.

Foreign legal entities: parent company's articles of association, commercial registry extract, organisation chart, list of directors, annual accounts, the resolution authorising the investment, and identification of beneficial owners. Banks, notaries and authorities may request further documentation depending on the sector and origin of the capital.

Share capital — €3,000 (SL/SLU) or €60,000 (SA/SAU) — is not a fee: it belongs to the company and remains available for its own use after registration.

Administrative fees (official rates checked in August 2026): name reservation €5.69, foreign investment authorisation €300, SL/SLU registration €1,016.67, SA/SAU registration €1,480.54 — amounts subject to change, to be verified at the time of filing.

Other costs: notary, drafting of articles of association, business plan, translations and apostilles, bank account support, registered office or rent, municipal fees, trade registration, accounting. A proper quote always separates share capital, official fees, incorporation fees and annual running costs.

Administrative approval does not guarantee bank acceptance: each institution applies its own KYC and anti-money-laundering procedures. Your file must set out with complete clarity the beneficial owners, the origin of the wealth and the source of the capital, the activity, the main clients, the countries of origin and destination of the flows, and the expected volumes.

Any inconsistency between the business plan, the articles of association and your explanations leads to further requests — or even a refusal. ProGestió prepares this stage in advance, working with partner banks on the ground, in order to present a file that is clear, complete and well documented.

Finally, bear in mind that setting up in Andorra doesn't automatically remove existing tax obligations in France, Spain or elsewhere: see our Andorra vs France and Andorra vs Spain comparisons, and run the numbers with our tax simulator.