From a well-guarded secret in the Pyrenees, Andorra has emerged as one of the most attractive destinations in Europe for entrepreneurs, investors, and business owners. With the corporate tax rate at 10%, a highly stable political environment, and full access to the European market, it is no surprise that more professionals are choosing to base their companies here.
In this guide, we’ll walk you through:
– The different types of companies you can create in Andorra
– The step-by-step process to register your business
– The costs and required documents
– And finally, how Andorra compares with the UAE, Monaco, and Switzerland
The SL is the most common legal form in Andorra.
– Minimum share capital: €3,000
– Shareholders: One or more
– Ideal for: Small and medium-sized businesses
– Liability: Limited to the amount invested
Similar to the SL, the SLU allows a single shareholder to own 100% of the company.
– Minimum share capital: €3,000
– Ideal for: Entrepreneurs, freelancers, and consultants
– Same tax treatment as the SL
The SA is designed for larger businesses or companies seeking external investors.
– Minimum share capital: €60,000
– Ideal for: Larger projects and companies with multiple shareholders
– Can issue shares and must have a board of directors
A holding company is used to manage assets, participations, or intellectual property.
– Main benefit: Exemption from taxation on foreign dividends and capital gains
– Purpose: Wealth management, asset holding, and international structuring
Step 1 – Company Name Reservation
Submit three proposed company names to the Govern d’Andorra for approval.
Processing time: 1–2 working days
Step 2 – Foreign Investment Authorization
If any shareholder is not an Andorran resident, this step is mandatory.
Processing time: 10–15 days
Step 3 – Prepare the Required Documentation
You’ll need:
– Valid passport(s) of shareholders and directors
– Criminal record certificate (issued within last 3 months)
– Business plan outlining activity and purpose
– Proof of residential address
– Bank certificate confirming deposit of the share capital (€3,000 for SL / €60,000 for SA)
Step 4 – Incorporation Before a Notary
Once approvals are granted, you’ll sign the company deed in front of an Andorran notary. The
company will then be officially registered with the Registre de Societats Mercantils.
Step 5 – Register for Taxes and Social Security (CASS)
You’ll receive your tax identification number (NRT) and can open your corporate bank account. If
you’re an active director or employee, registration with the Andorran Social Security (CASS) is
required.
Type | Minimum Capital | Government Fees | Approx. Setup Time
SL | €3,000 | €1,500–€2,000 | 3–4 weeks
SLU | €3,000 | €1,500–€2,000 | 3–4 weeks
SA | €60,000 | €2,000–€3,000 | 4–6 weeks
Holding | €3,000–€60,000 | Variable | 4–6 weeks
Corporate tax rate: 10% maximum
Dividend tax: 0% (if paid to non-resident shareholders)
VAT (IGI): 4.5% – one of the lowest in Europe
Country | Corporate Tax | Setup Complexity | Residency | Annual Costs | Key Advantage
Andorra | 10% | Simple | Easy | Low | EU proximity, legal stability
UAE | 9–15% | Medium | Requires visa | Medium | Free zones, trade benefits
Monaco | Up to 33% | Complex | Strict | High | Prestige
Switzerland | 12–21% | Complex | Moderate | High | Strong banking reputation
Andorra’s advantage:
It combines low taxation, accessible residency options, strong privacy protection, and political
stability within a European legal framework — offering the best balance between cost, compliance,
and quality of life.
At JH Corporate Services, we specialize in guiding entrepreneurs, investors, and companies
through every stage of the incorporation process in Andorra.
Our services include:
– Legal and administrative management
– Residency and foreign investment procedures
– Company formation and bank account setup
– Accounting and fiscal compliance
We handle the entire process so you can focus on what matters most — growing your business.
info@jhcorporateservices.com
+376 612400
