SL, SA, holding, asset-holding company: which one to choose?
Andorran law offers four main answers depending on your goal. To run a trading business (retail, e-commerce, services, consulting): the SL, €3,000 capital, simple governance — see our SL company set-up page. For a larger-scale project with several investors or more elaborate governance: the SA, €60,000 capital — detailed on setting up an SA in Andorra. To centralise shareholdings and channel dividends upward: the Andorran holding company. To hold and pass on wealth, whether real estate or financial: the asset-holding company.
The comparison in practice
The SL covers 90% of needs: liability limited to contributions, a sole shareholder is possible, lighter formalities. The SA becomes necessary when capital needs to be opened up, split into shares, or prepared for a more complex succession. A holding company isn't a distinct legal form but a corporate purpose: an SL or SA whose purpose is holding shares — bringing, in turn, favourable treatment of dividends and gains on shareholdings. The asset-holding company follows the same logic applied to private real estate and financial assets.
The right choice depends on your starting tax situation, your cash flows and your succession plans. That's the purpose of our first consultation — see also the Andorran taxation applicable to each structure.