Understand the Jurisdictions Setup Requirement Before Proceed Your Andorra Company Incorporation Services
Andorra is bordered by France and Spanish, and its official name is Principality of Andorra. They have a small population of just over 80,000. It is a popular destination for entrepreneurs who want to start a company. The good thing about opening a business in Andorra is that you have the benefits of what Europe offers without paying for high taxes.
Since it has a small population, doing business in Andorra has different company formation rules than other countries. You can read more about it now.
Register Your Company’s Name
The first thing you must do to set up your company in Andorra is to get a reservation of your company’s name.
Authorization to Incorporate
When you have reserved your company name, you can apply for the government’s authorization. This is a long process that asks for your business plan, shareholders and directors’ identification, criminal record from your country of birth and residence, and business development strategy description. You must complete all the forms with these documents:
- Corporate name authorization.
- Articles of incorporation draft.
- Criminal record of each shareholder with an apostille of The Hague.
- ID and passport copy for each shareholder.
Open a Corporate Bank Account
After you have received the government’s authorization for your business and the corporate name, the next thing to do is to open a corporate bank account. It must be with an Andorran bank and deposit at least €3,000 S.L. or €60,000 S.A. and this is the same minimum share capital. The proof of your payment could come from the bank and they should issue you a certificate, which you must give to the Andorran Notary.
Your Company Deed of Incorporation
You can now apply for your company’s deed of incorporation. This document states your company’s main details like its name, address, directors, shareholders, board members, and more. You would have to arrange a notary appointment so your deed of incorporation can be signed.
Registre De Societats
With the original copy of the deed of incorporation, the Notary will now register it to the Trade Register of Andorra.
This is the tax identification number that you must apply for so your company becomes legally incorporated under the law. You must obtain an NRT from the Tributs Andorra.
Andorra Business Taxes
Andorra is not part of the European Union, but it uses the euro as its official currency. Therefore, it has a special status in the EU. Andorra is treated as a member state for trading manufactured goods in the EU except for their agricultural goods.
That means some taxes are very low or non-existent. They have a business tax of 10% and an annual sales tax of 2%. The government intends to introduce more taxes in the future.
Best Businesses to Open in Andorra
It is Europe’s 6th smallest nation, with limited and expensive space. Only a small part of Andorra’s land is good for construction. To be exact only 8% is useful to businesses and they have limited natural resources. That is why their economy relies on the banking and tourism sector. The most profitable businesses in Andorra are:
- Marketing and online selling
- Call centre services that cater to different languages
- Intellectual property design and licensing
- Professional services
- Research and development
- International franchising
If you need help in setting up your business in Andorra, you can contact us to get you started with the process right away. You can launch your business sooner if you let us assist you.