Real Cost of Setting Up a Company in Andorra 2026

Setting up a company in Andorra is drawing growing interest from French and Spanish entrepreneurs attracted by moderate taxation and a stable framework. Yet the figures circulating online, often reduced to the minimum share capital alone, fail to reflect the full budget reality of forming a company. Between notary fees, administrative taxes, capital deposit, foreign investment authorisation and professional fees, the real cost of setting up a company in Andorra spans several items that must be anticipated before any commitment. This article breaks down each of these items to allow an honest comparison with France or Spain.

Share capital: a prerequisite often misunderstood

The minimum capital for an SL in Andorra applies to the Societat Limitada, the most common legal form for small and medium-sized structures. This capital must be fully paid up at the time of incorporation, unlike other jurisdictions that allow partial payment. In practice, the amount must be deposited into a bank account opened in the name of the company being formed, before the articles of association are signed before a notary.

For a Societat Anònima (SA), the minimum required capital is considerably higher, which naturally steers founders of smaller structures towards the SL. This capital is not a sunk cost: it remains the property of the company and can be used for its operations as soon as it is registered. It should therefore not be confused with actual incorporation fees, even though it represents cash that must be set aside from the outset.

Notary fees, often underestimated

Incorporating an Andorran company necessarily involves appearing before a notary for the drafting of the articles of association and the deed of incorporation. Notary fees vary depending on the complexity of the deed, the amount of share capital and the number of shareholders. It is reasonable to budget for notary costs that can represent a significant share of the total cost of incorporation, particularly for structures with several shareholders or bespoke articles.

On top of these fees come the steps needed to register with the commercial registry, which also generate specific administrative taxes. These amounts are set by the Andorran authorities and can change from one year to the next, which is why it is worth checking the rates in force at the exact time of incorporation rather than relying on outdated figures.

Foreign investment authorisation

For any non-resident entrepreneur wishing to hold a significant share of an Andorran company’s capital, foreign investment authorisation is required. This administrative procedure, handled by the Andorran government, involves its own filing fees, separate from notary fees. The processing time for this authorisation must also be factored into the incorporation schedule, as it conditions the whole process.

This step is often overlooked in quick online estimates, even though it is a mandatory stage for the majority of foreign project holders. The exact amount of this tax depends on the capital structure and the shareholders’ profile, which makes it difficult to give a general figure without a precise case study.

Professional fees: notary, advisory and management

Beyond official fees, incorporating an Andorran company generally requires the involvement of a local professional: a tax firm, a gestor or a company formation advisor. These fees cover drafting the articles of association, coordinating with the notary, filing applications with the relevant authorities and, often, support in opening the business bank account.

This spending item, which varies depending on the complexity of the project and the level of support required, is nonetheless decisive in avoiding costly mistakes. A company that is poorly structured from the outset can lead to later correction costs far exceeding the savings made by skipping professional support.

Company costs in Andorra: what comes after incorporation

Company costs in Andorra do not stop once the articles of association are signed. Once the company is registered, several recurring obligations generate annual costs that must be included in the forecast budget:

• Bookkeeping, mandatory for every Andorran company regardless of size.
• Filing annual accounts and the corporate tax return.
• Any social security contributions linked to employing staff or to the director’s status.
• The renewal, where applicable, of certain administrative authorisations.

These recurring costs, often absent from initial simulations, must be anticipated as early as the incorporation stage in order to build a realistic budget for the first years of activity.

Comparison with France and Spain

Comparing the cost of setting up a company in Andorra with what is observed in France or Spain requires comparing equivalent structures. In France, forming a SASU or a SARL involves registry fees, legal notices and, in some cases, fees for drafting the articles of association. In Spain, forming an SL follows a logic close to that of Andorra, with a notarial step and registration with the commercial registry.

The main difference lies not so much in the cost of incorporation itself, which is broadly comparable across these three jurisdictions, but in the taxation applicable once the company is operating. It is this dimension that explains Andorra’s appeal for certain profiles, more than the amount of initial fees alone.

Cost item	Andorra	France	Spain
Minimum share capital	Required, fully paid up (SL)	Free for SASU/SARL	Required, fully paid up (SL)
Notary fees	Mandatory	Not systematic	Mandatory
Foreign investment authorisation	Yes, for non-residents	No	No, except regulated sectors
Mandatory annual accounting	Yes	Yes	Yes
Corporate taxation	Moderate	Higher	Intermediate

This table remains indicative: exact amounts vary depending on the structure chosen and should be checked case by case with a professional.

The weight of accounting in the overall budget

Contrary to popular belief, Andorran accounting is not a light formality. Companies must keep accounts in line with local standards, file annual accounts and comply with precise reporting obligations to the tax administration. This is a recurring cost, generally billed monthly or annually depending on the invoicing method used by the firm handling the file.

The level of this cost depends directly on the volume of activity, the number of transactions and the complexity of the structure (presence of a holding company, foreign shareholders, international flows). It is therefore difficult to put forward a single figure valid for every situation.

Common mistakes in budget estimates

Some project holders limit their estimate to the minimum share capital alone, overlooking notary fees, foreign investment authorisation and recurring management costs. This approach frequently leads to underestimating the real budget needed to start operating in Andorra under comfortable conditions.

Another common mistake is to compare only the official rates published by the authorities, without factoring in the professional fees that almost always accompany setting up a company abroad. A non-resident entrepreneur unfamiliar with local procedures rarely benefits from handling the whole process alone.

Planning the budget according to company type

The choice between SL and SA directly affects the incorporation budget. The SL, more accessible, suits most small structures and asset holding companies. The SA, with a higher minimum capital and stricter formalities, is better suited to larger-scale projects or those requiring a particular institutional image.

The choice of structure should be guided by the nature of the project, the expected number of shareholders and growth prospects, rather than by the sole aim of minimising initial fees. A structure poorly suited from the start can generate later conversion costs higher than the initial gap between the two forms.

The role of professional support in controlling costs

Support from a specialised firm helps establish a realistic forecast budget, covering all the items mentioned above. This approach reduces the risk of unpleasant surprises during incorporation and secures the timeline, particularly for obtaining foreign investment authorisation, a step that can slow down a poorly prepared project.

Such support generally includes coordination with the notary, the bank and the relevant authorities, as well as advice on choosing the legal structure best suited to the project. This coordination role has value in its own right, distinct from mere compliance with legal obligations.

Frequently asked questions

Must an SL’s share capital be fully paid up at incorporation? Yes, in Andorra the share capital of a Societat Limitada must be fully paid up and deposited into the company’s bank account before the deed of incorporation is signed before a notary.

Are notary fees fixed or variable? They vary depending on the complexity of the deed, the number of shareholders and the amount of share capital. It is advisable to request a precise quote before starting the procedure.

Is foreign investment authorisation mandatory for all founders? It mainly concerns non-residents holding a significant share of the capital. The exact terms depend on the shareholding structure and must be checked case by case.

Is the cost of incorporation really lower than in France or Spain? The incorporation fees themselves are broadly comparable. The difference lies mainly in the taxation applicable once the company is operating, rather than at the time of incorporation.

Does annual accounting represent a significant cost over time? Yes, it is a recurring obligation for every Andorran company. Its cost depends on the volume of activity and the complexity of the structure, and must be included from the forecast budget stage.

Can an overall budget be estimated before launching the project? A reliable estimate requires including all items: share capital, notary fees, administrative taxes, foreign investment authorisation, professional fees and recurring accounting costs. A specialised firm can produce this projection on a case-by-case basis.

To find out more: Setting up a company in Andorra, Setting up an SL in Andorra, Accounting in Andorra, Andorra vs France, Andorra vs Spain.