Doing Business in Andorra
What are the advantages of doing business in Andorra? Andorra is a small country offering a beneficial tax system, which favors foreign investment. Concerning the language, Andorra’s business options have no limitation. Learn how to start a business in Andorra from scratch!
Set up Business in Andorra
Andorra is a perfect place for entrepreneurs to set up companies. With the new reforms and opening of international investment, Andorra company formation has become open to funding from abroad.
There are two types of companies:
- Sociedad Anónima; S.A. (corporation) – the size of the cash contribution from €60,000.
- Sociedad de Responsibilidad Limitada; S.L (limited liability company) – €3,000.
The whole process of registration of a company can take about 3 months, however is quite transparent. Andorra’s residence permit gives you the right to work in your own firm almost without fail. Business in Andorra is often quite specific, as in any country.
Your company must have a unique legal address, which is registered on the rented (purchased) office premises. The tax on dividends for Andorran resident shareholders is 0%.
That type of economy stands out for being a very attractive market and above all demonstrates all the advantages of investing in Andorra. If you are looking for an attractive foreign market with exponential growth potential, Andorra is one of the most suitable.
Registration of the Business in Andorra: Procedures
- Business name registration
- Obtaining a certificate of criminal record from the place of residence (+copy of the passport with the apostille)
- Application for permission to open a business
- Bank account opening
- Signing and certifying all registration documents
- Business registration with the municipality (Comú)
- Registration of tax identification number (Número de Registre Tributari)
Costs of business maintenance in Andorra
- Office rent
- Annual municipal tax
- Electricity / Internet
- Insurance – 20% of one employee’s salary (CASS)
Andorra Partner provides all services for business registration, including assistance in finding suitable premises, closing contracts, and personnel search in recruitment agencies and the labor exchange in Andorra.
Andorra Business: Advantages
Andorra stands out among the rest of the countries of the European Union and the world when it comes to technology. Principality offers an excellent broadband connection, with fiber-optic Internet throughout its territory, which undoubtedly makes a remarkable difference in the scope of a successful business. The most outstanding businesses for entrepreneurs in Andorra are related to technological goods, digital services, food, construction, and telecommunications.
Andorra, strategically placed between France and Spain is recognized by the world as an excellent place to live and a great place to communicate due to several languages in daily use. Andorra’s official language is Catalan, followed by Spanish, Portuguese with less common French and English.
Most of the new business opportunities may be related to international services, representative offices, property licensing, Internet services. Andorra is also open to any initiative from potential investors, which was not possible until now.
Foreign Investment in Andorra
Andorra is open to receive and collaborate with foreign investors. Obtain Andorra tax residency in order to optimize your business by applying for an active or passive residency visa.
Other attractions, such as its high-speed internet, excellent educational system, and efficient health system, make creating lucrative business in Andorra an unbeatable option. Set up a business in Andorra and take your family with you knowing the above benefits.
Tax Advantages when Doing Business in Andorra
Andorra characteristics, topped up with tax attractiveness, are surely the most desired by individuals and companies seeking to expand commercial frontiers. Andorra’s corporate tax rate is only 10%, the same as IRPF – income tax for individuals.
Value Added Tax (VAT Andorra – IGI) rate is lower than in the rest of Europe, on average 4,5%. Andorra is where you will find all the key elements to start a successful business. Bearing in mind that Andorra has a very active trade in consumer goods, especially imported manufactured goods, which being duty-free are cheaper.
Andorra is not a tax haven as before, however, a country can be useful for setting up a wealth management company or holding company. Andorra banks have a good reputation and there is no banking secrecy.
Don’t wait to be a part of the global community. Let us help you create the company in Andorra, contact one of our tax advisors, and get started on creating the business with international opportunities!