Setting up a company in Andorra: how our Gestoria really simplifies the process

These rates can make the Principality attractive, but they need to be considered in the real context of each business. The tax treatment that actually applies depends on the activity carried out, the company’s income, the situation of its shareholders, any international transactions, and the relevant tax treaties.

Setting up an Andorran company therefore does not automatically mean that all of your income will be taxed in Andorra.

This is particularly important for a French, Spanish, or other foreign-resident entrepreneur who continues to work primarily from abroad, keeps their main home there, or effectively manages their business from another country. The tax residence of the individual and that of the company are two separate matters that must be analyzed independently.

When a project involves several countries, a preliminary assessment with a tax specialist familiar with the jurisdictions concerned is preferable to simply comparing tax rates.

Beyond taxation, Andorra can be attractive for consulting, service-based businesses, e-commerce, and certain digital and international projects. However, the suitability of establishing a business there should always be assessed based on the actual nature of the activity.

Following changes to the framework governing foreign investment, the Andorran authorities are also placing greater emphasis on the economic substance of projects. The regulations adopted in 2025 (Law 5/2025 of March 6) notably provide for monitoring of authorized investments and require investors to be able to demonstrate that genuine economic activity is being carried out within the prescribed deadlines.

In other words, the principle is becoming increasingly clear: setting up a company in Andorra should correspond to a genuine business project.

Is Andorra still a tax haven?

The image of Andorra as a territory where simply registering a company was enough to avoid tax rules largely belongs to the past.

Today, the Principality has a genuine tax system for businesses and individuals and applies financial transparency rules as well as compliance requirements.

Andorran banks also conduct checks on prospective clients. When opening the account intended for a company in formation, the bank notably carries out customer due diligence and anti-money laundering checks. The Andorran Government explicitly states that each shareholder may be subject to these due diligence and KYC procedures.

You must therefore be able to clearly explain the company’s activity, the identity of its shareholders, the origin of the funds being invested, and, depending on the situation, the source of the assets being used.

For an entrepreneur whose project is genuine and well documented, this transparency is not an obstacle. It simply needs to be anticipated from the beginning of the process.

Which type of company should you choose in Andorra?

The two most common commercial structures are the Societat Limitada, or SL, and the Societat Anònima, or SA. They are also available in single-shareholder forms, respectively SLU and SAU.

The SL is generally the structure most naturally considered for a small or medium-sized business, a consultant, a service-based activity, or an entrepreneur wishing to operate alone or with a few shareholders. Its minimum share capital is currently €3,000.

The SA is more suited to projects requiring a larger capital structure. Its minimum share capital is €60,000. These amounts are currently stated on the official portal dedicated to company formation.

However, minimum share capital should not be the only decision-making criterion. The choice between SL, SLU, SA, or SAU depends in particular on the number of shareholders, the desired governance structure, the financing plan, the nature of the activity, and its potential regulatory framework.

For regulated activities, the requirements may also go far beyond those of a standard commercial company. A business operating in finance, insurance, or a regulated profession must comply with the rules specific to its sector and obtain the relevant authorizations when required. This is why we recommend defining the actual business activity first, before choosing the legal structure.

Can a foreigner set up a company in Andorra?

It is possible to establish an Andorran company with foreign shareholders or investors. However, the process falls within the framework governing foreign investment. It is therefore not simply a matter of choosing a company name and depositing capital with a bank.

To establish a commercial company such as an SL, SLU, SA, or SAU, the Andorran Government currently describes several successive steps, including obtaining the necessary administrative identification numbers, applying for a company name, completing the foreign investment formalities when applicable, determining the registered office, opening a bank account for the company in formation, drafting the articles of association, and signing the incorporation deed before a notary.

The foreign investment application currently includes information enabling the authorities to understand the project in detail. The Government notably mentions a recent criminal record certificate, a CV, a certified copy of an identity document, and a project presentation covering the target market, proposed activity, added value, and planned investment amounts. This part requires careful preparation.

A generic business plan or an extremely vague description of the activity may not be sufficient to properly present the project to the authorities, nor does it facilitate the subsequent checks carried out by the bank.

Our Gestoria can assist you from this stage by structuring the information and checking the consistency between the project presented, the proposed corporate purpose, and the procedures that will follow.

What documents need to be prepared?

The exact documents required depend on the circumstances of each shareholder and the project. Nevertheless, certain documents are regularly required as part of company formation and foreign investment procedures.

A passport or identity document, criminal record certificate, information regarding the shareholders’ professional situation, and a precise description of the business activity are among the documents that may be requested.

For company formation, documents submitted to the notary and the authorities must also comply with the applicable formal requirements in Andorra.

The Government specifies, in particular, that documents required for incorporation may need to be apostilled and, where necessary, translated.

It is therefore preferable to check the required format before ordering a translation or legalization. Having a document translated only to discover that it must then be replaced because it is too old or insufficiently authenticated wastes time and unnecessarily increases the cost of the application.

Documents in Catalan

Catalan is the country’s official language and naturally plays an important role in administrative and legal procedures. For a French-speaking entrepreneur who does not speak the language, local support is primarily about understanding what they are signing and what is being requested at each stage.

How does the company formation process actually work?

In practice, the project begins by precisely defining the business activity and the people who will be involved in the company.

The next step is to choose a company name that is compatible with the project. The Government currently requires several options to be proposed and the activities that will form the purpose of the future company to be described with sufficient detail.

When foreign investment regulations apply, the corresponding application must then be prepared with the necessary information about the investors and the project.

The company must also have a registered office located in Andorra. The government portal states that, depending on the situation, this may be a property owned by the company or its shareholders, a rented office, or certain coworking spaces. The chosen address is then included in the company’s articles of association.

The banking stage comes next. An account in the name of the company in formation must be opened so that the share capital can be deposited. At the same time, the bank carries out its compliance and source-of-funds checks. Once the capital has been deposited, the bank issues the bank certificate required for incorporation.

This stage is sometimes underestimated by foreign entrepreneurs. Having the money required for the share capital does not mean that the account will automatically be opened. The bank must understand the proposed business activity, identify the shareholders and beneficial owners, and ensure that the business relationship complies with applicable regulations. Preparing supporting documents relating to your income, professional activity, assets, or source of funds in advance can therefore make the process considerably smoother.

Once the administrative and banking documentation is sufficiently advanced, the articles of association are finalized and the incorporation is formalized before an Andorran notary.

The share capital, ownership distribution, governance structure, and corporate purpose must be consistent with the procedures completed previously.

After signing, the company must still complete the formalities required for registration and effective commencement of business. The official process notably includes tax procedures, approval of the commercial name, opening of the business when required, and formalities with CASS.

This is why it is important not to confuse a “company being incorporated” with the “business being fully operational.”

How long does it take to set up a company in Andorra?

It would be misleading to promise that an Andorran company will be operational within a fixed number of days.

The timeframe depends on several factors, including the shareholders’ profiles, the complexity of the business activity, foreign investment procedures, the time required for the bank to complete its checks, and the quality of the documents submitted.

Some stages have indicative or administrative deadlines, but the entire process cannot be reduced to a single universal timeframe.

For example, the Government indicates that once the incorporation deed has been signed, a period of thirty calendar days is required before certain company registration documents can be obtained. For certain commercial opening procedures, the official portal also indicates that the process can typically take two to three weeks. This does not mean, however, that every company formation can be completed within this timeframe.

As part of our support, we prefer to establish a timeline based on your actual application rather than provide a theoretical completion date before assessing the project’s specific requirements.

Does setting up a company allow you to obtain residency in Andorra?

Setting up or owning an Andorran company and obtaining a residence permit are two separate procedures. This is one of the points that causes the most confusion among entrepreneurs discovering the Principality.

For someone seeking a self-employed residence and work permit based on their participation in an Andorran company, the current requirements are more specific than simply being a shareholder.

The Government notably states that the applicant must have obtained the required foreign investment authorization, hold a position within the company’s management body, and demonstrate that the company has a registered and effectively active business in Andorra within the prescribed timeframe.

The system also provides, where applicable, for a non-interest-bearing deposit of €50,000 with the Andorran Financial Authority.

The applicant must also establish permanent residence in Andorra and provide various documents relating to their identity, background, accommodation, civil status, and qualifications. A medical examination is also part of the procedure described by the authorities.

The immigration quota system must also be taken into account. The Government further amended certain quotas in 2026 as part of its policy to manage population growth.

For this reason, a strategy consisting of setting up a company first and assuming that residency will automatically follow can lead to unpleasant surprises. When a project combines business creation and personal relocation, both aspects should be assessed together from the outset.

How long is self-employed residency granted for?

According to the information currently published by the Government, the first self-employed residence and work permit is granted for a period of one year.

It can then be renewed three times for periods of two years. After seven years, subsequent renewals may be granted for periods of ten years, subject to specific provisions applicable to certain nationalities benefiting from agreements with Andorra.

Maintaining the permit naturally requires continued compliance with the conditions applicable to the resident’s situation.

As immigration rules may change, it is preferable to verify the requirements in force at the time of the application and each renewal rather than relying on rules that applied when the company was established several years earlier.

What is the practical role of a Gestoria in Andorra?

A Gestoria is primarily an administrative intermediary familiar with local procedures who helps entrepreneurs manage them in the right order.

In practical terms, our support begins with understanding your project. We first seek to determine what business activity you actually intend to carry out, who the shareholders will be, where your clients will be located, whether you plan to hire employees, and whether setting up the company is also part of a plan to move to Andorra. This information helps avoid a common mistake: setting up a structure before even verifying that it matches the business and personal plans of the company director.

We can then assist you with preparing documents, procedures relating to the company name and foreign investment, coordination with the professionals involved in the incorporation, administrative communications, and follow-up of the formalities after registration.

A Gestoria can also become a regular point of contact for the company’s accounting, tax, social security, and administrative management. However, it does not replace the company director, the notary, the bank, or the authorities.

A bank remains free to accept or refuse to establish a business relationship with a client. The authorities remain solely responsible for approving any transaction subject to their authorization. A legal or tax professional should also be involved when a matter requires expertise specifically within their field.

Reliable support therefore begins by clearly explaining what we can do and what depends on other parties.

Why is banking preparation so important?

Opening a bank account is often one of the stages that raises the most questions for international entrepreneurs.

Banks do not simply check that the share capital has been deposited. They must know their customers and understand the proposed transaction. The Government itself states that prospective shareholders must provide the information and documents required for due diligence and anti-money laundering procedures.

In practice, the more clearly the business activity is documented, the easier it is to respond to the bank’s requests. A consulting company should be able to explain what it sells, what types of clients it targets, and how it generates revenue. An e-commerce business should be able to present its business model, suppliers, and markets. A holding company, meanwhile, requires a clear understanding of the assets held and their origin.

It is generally preferable to prepare this information before the bank interview rather than waiting for one additional request after another. Our role includes helping the project owner organize their application and identify the information that will need to be substantiated. However, we can never guarantee that a bank account will be approved, as the decision rests with the banking institution.

What happens after the company is established?

Signing before the notary is not the end of the process.

An Andorran company must then comply with its tax, accounting, social security, and administrative obligations throughout its existence. Its accounts must be maintained in accordance with the Andorran framework, and tax returns must be filed according to the company’s activity.

When a company employs staff, it must comply with its obligations as an employer and complete the corresponding social security formalities with CASS.

The requirements are not the same for every company. A company with no employees, a commercial company operating from dedicated premises, a regulated business, or a structure primarily holding investments will not necessarily face the same obligations.

This is why post-incorporation support should be tailored to the actual business activity rather than sold as a standard administrative package supposedly suitable for every company.

Foreign investment is now subject to greater monitoring

This point deserves particular attention for recent projects.

Andorra’s foreign investment framework has undergone significant changes. The new regulations adopted in 2025 notably strengthen the mechanisms allowing the authorities to monitor projects financed with foreign capital. The new rules aim in particular to verify that approved projects genuinely correspond to an economic activity and deliver the value stated in the application. For certain new investments, monitoring may therefore continue after authorization has been granted.

The regulations notably provide that the investments concerned must be able to demonstrate that effective economic activity is being carried out within eighteen months of authorization, including through the existence of a registered business, a minimum level of activity, and compliance with accounting and tax obligations. This development makes the work carried out beforehand even more important.

The business plan should not be viewed as an administrative document prepared solely to obtain authorization. It should remain consistent with the project that will actually be implemented once the company has been established.

How much does it cost to set up a company in Andorra?

It is difficult to provide a single cost without knowing the specifics of the project. The share capital is first and foremost a required amount to be committed for incorporation. It is currently at least €3,000 for an SL and €60,000 for an SA.

Additional costs include fees and taxes associated with the various procedures, notary fees, any translation or apostille costs, fees charged by professionals handling the drafting or support, and costs related to setting up the business.

A company with employees and dedicated premises will not have the same expenses as a consultant working alone. Accounting fees, social security contributions, insurance, rent, licences, and any sector-specific obligations should all be included in the financial forecast.

We therefore recommend preparing separate incorporation and operating budgets. This makes it possible to determine not only how much registration will cost, but above all how much the company will need to generate to operate sustainably.

Can you run an Andorran company while living in France or Spain?

This is a common question and one that deserves a cautious answer.

Owning a company in Andorra does not necessarily mean that you must become an Andorran resident. However, the location from which the company is actually managed can have significant tax implications.

If the director lives in another country, makes the key decisions there, works there on a daily basis, and has most of their professional organization there, the situation must be carefully assessed.

The mere fact that the company is legally registered in Andorra is not enough to resolve questions regarding tax residence, effective management, or international taxation. For a French or Spanish entrepreneur considering this arrangement, it is preferable to have the project assessed before incorporating the company.

An Andorran Gestoria can explain the company’s obligations in Andorra. When the question also concerns tax implications in France, Spain, or another country, consulting a tax specialist qualified in the relevant jurisdiction is recommended.

This coordination helps avoid creating a structure that is legally sound in Andorra but poorly suited to the director’s personal tax situation.

Professional support is better recognized by the quality of the explanations provided, transparent fees, and the service provider’s ability to identify a problem before it blocks the application.

Before committing, ask exactly what is included in the service, which procedures will be handled directly by the Gestoria, which formalities will require your presence, and what additional costs may arise. This will give you a clear understanding of what you are paying for.

Our approach to supporting your company formation in Andorra

We always start with your project, not with a form. Before initiating any procedure, we seek to understand your business activity, your clients, your shareholders, your financing needs, and any plans you may have to personally relocate to Andorra. This initial assessment helps identify the procedures that need to be anticipated and the professionals who may need to be involved.

We then work with you to prepare the information required for the application and coordinate the various local steps within our area of expertise.

When your situation requires the involvement of a notary, lawyer, tax specialist, bank, or another authority, we help you understand everyone’s role and prepare the requested information. This approach does not eliminate administrative requirements. However, it allows you to move forward with a better-prepared application and a clear understanding of what remains to be completed.

Setting up a company in Andorra: a project to prepare, not simply a tax structure

Andorra continues to offer an attractive tax environment for many entrepreneurs, with a nominal corporate income tax rate of 10% and a standard IGI rate of 4.5%. However, these figures alone are not enough to determine whether the Principality is the right choice for your business.

The nature of the activity, where it will actually be carried out, the director’s residence, banking requirements, foreign investment obligations, and the entrepreneur’s personal plans all need to be considered together. The recent strengthening of foreign investment monitoring also confirms this shift toward projects with genuine economic substance.

A well-prepared company formation begins with a very practical question: how will the business actually operate once established in Andorra?

If your project is consistent with the country, our Gestoria can support you in structuring the procedures, preparing the documents, and providing the necessary administrative follow-up at every stage.

As tax, administrative, and immigration rules may change, each application should be checked against the regulations applicable at the time it is submitted. This information is intended to explain the general process of setting up a company and does not in any way replace legal or tax advice tailored to your specific situation.