Company creation – Statutes of Andorran companies
Choosing a legal status is part of the steps that an entrepreneur must follow to create a business. Andorra is no exception. There are different legal forms that can be chosen in the Principality for those who wish to make an investment there. What is meant by "company statutes"? What is their role? How does the constitution of the statutes of a company in Andorra proceed? Who can draft them?
To help you choose your company's legal status, you can call on a Gestoria. In our case, we can put you in touch with the professionals concerned thanks to our vast network of partners.
Articles of Incorporation: definition, usefulness and types
A fundamental document in a business creation file, the company's articles of association contain contents that are essential for the registration of the company in the Trade Register. It is defined as a legal framework that is imposed on any economic activity.
How to choose your legal status?
The choice of legal status should depend on several elements. To know this, it can be useful to ask yourself questions about the number of partners you will have, your responsibility as a manager, as well as the operating rules and characteristics of the company.
The role of company statutes
The choice of a legal status for your new company is essential in the sense that it will have consequences on the life of the company created. It can have impacts on several levels and determine :
- Taxes and social charges ;
- The place of the manager ;
- Rules governing the operating and decision-making process;
- Accounting obligations.
The different business statutes available to entrepreneurs in Andorra
Compared to other European countries, such as France or Spain, there are only three main types of company status in Andorra. Namely, the creation of companies in the Principality gives you access to the status of active resident.
The Limited Company or SL, and SLU or Single Person Limited Company
Among the different types of statutes, you can opt for the Limited Company if you plan to set up a small structure. It is similar to the SARL in France, or Société à Responsabilité Limitée. The required statutory capital for this legal form is at least 3000 euros. It also entails installation fees of about 5000 to 6000 euros where 1000 euros will be taken by the Andorran Government.
The Limited Company or SA
For larger companies, this status is recommended. The required capital will be a minimum of 60,000 euros and will be shared between shareholders. Its registration fee is approximately 1400 euros.
The Collective Society
It is a company with an unlimited liability structure. The conditions of incorporation are similar to those of the Société Anonyme and the Limited Company.
The tax rate on an Andorran company
Taxation is an essential condition for the establishment of any company, and it is only fair to devote a few lines to this subject in the case of Andorra. The Andorran tax situation is, let’s remember, one of the reasons that push more and more investors to establish themselves in the Principality. The country has a very low tax rate, whether for a resident who has come to live there or a foreign entrepreneur who wants to set up a business there.
In Andorra, corporate taxes are between 2 and 10% maximum depending on your activity. This remains affordable compared to other European countries such as Spain, for example, where the corporate tax rate is approximately 25%. Note that the average salary in the Principality is around 2 111, 91 euros.
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Creating the statutes of a company in Andorra
What are the advantages for Andorran companies? We already know that Andorra is one of the countries in Europe where the inhabitants’ income is particularly high. The infrastructure is also incomparable. The whole country is effectively covered by a high-speed internet connection. The Andorran government spares no effort to offer a favorable framework for foreign investment through various agreements.
The creation of Andorran companies eventually goes through several steps. Nevertheless, it would be fair to mention that the constitution of the statutes of a company in Andorra has been particularly facilitated.
Here are some of the ways that can be followed to create the social and legal status of a company in Andorra:
- Defining the corporate purpose of the company to be created,
- The address of the head office of the new company,
- Presentation of its board of directors.
An application for an investment permit and a company name must be made prior to this application for incorporation. The first one is to be done with the Government. The answer could be obtained after about 1 to 1.5 months. In the second procedure, the name of the company must be determined. This must be established in Catalan.
This being said, although the procedures for creating a company in Andorra are not complex, they should be left to a lawyer. Moreover, the documents to be completed will be in Catalan. All the more reason to be accompanied by a lawyer. Our Gestoria is able to put you in touch with the right expert, lawyer or notary.
Which professional can write the company’s articles of association?
Who can take charge of writing the company’s articles of association? If this is the question, it is known that several experts can take care of the matter. However, only a lawyer is able to deal with legal documents and company statutes. In the majority of cases, foreign investors coming to Andorra choose mainly the lawyers recommended by their gestorias.
In addition to the files related to your legal status and corporate form, a company founder must also think about opening a bank account. In the case of a foreign investment in Andorra, the accompaniment of a professional is strongly required to make the best choice.
The importance of using a gestoria in your company creation
From the choice of your Andorran residence to the constitution of your company, including the selection of the appropriate legal status, our team has proven knowledge on the subject. Our services do not stop at taking care of all the administrative aspects of your residence or putting you in contact with lawyers, tax specialists or real estate developers. We actively intervene with partners, institutions or organizations that take care of your file.
To get all the information you need to set up the statutes of your future company, do not hesitate to contact us. With our network of experts, we are available to advise you on the best legal status for your project.