How to Register a Company in Andorra

Steps to Register a Company in Andorra:

1. Choose the Type of Company In Andorra, the most common company structures are:
   • Sociedad Limitada (SL): equivalent to a limited liability company (LLC), requiring a minimum capital of €3,000.
   • Sociedad Anónima (SA): similar to a corporation, requiring a minimum capital of €60,000. Most foreign entrepreneurs opt for an SL due to its simpler structure and lower capital requirements.
2. Register the Company Name: first, you need to select and reserve a company name. The name must be unique and meet Andorran business naming regulations.
3. Draft the Company’s Articles of Association: the Articles of Association outline the company’s structure, operational rules, and the rights and responsibilities of shareholders.
4. Register with the Andorran Trade Register: once the company documents are in order, they must be registered with the Registre de Comerç d’Andorra (Andorra’s Commercial Registry).
5. Obtain a Tax Identification Number (NRT): your business will need a tax identification number, which is essential for tax and administrative purposes.
6. Open a Corporate Bank Account: to comply with capital deposit requirements, you will need to open a corporate bank account in Andorra and deposit the minimum required capital.
7. Set Up the Company’s Office: your business must have a physical address in Andorra, whether it’s an office, coworking space, or virtual office.
8. Register for Social Security: all employees, including company directors, need to be registered with the Andorran social security system for healthcare and pension purposes.
9. Comply with Business Licenses: depending on your business type, you may need to apply for additional licenses or permits to operate legally in Andorra.

Requirements to Register a Company in Andorra

• Residency Requirement: at least one of the company’s directors must be a resident of Andorra. Foreigners are allowed to apply for Andorran residency as part of the company setup process.
• Minimum Capital
  • For a Sociedad Limitada (SL), the minimum capital required is €3,000, which must be fully paid up.
  • For a Sociedad Anónima (SA), the minimum capital is higher, typically around €60,000.
• Office Address: your business must have a registered office in Andorra.
• Business Plan: the Andorran authorities may ask for a detailed business plan, especially for certain business sectors like finance, insurance, or consulting.
• Financial Guarantees: in some cases, you may need to demonstrate your financial capacity to fund and sustain the business.
• Clean Criminal Record: you must present a clean criminal record both in Andorra and your home country.

Corporate Taxation in Andorra

Can I Own a Company in Andorra While Living Abroad?

Owning a Company While Living in Spain

• If you reside in Spain for more than 183 days per year, you will be considered a Spanish tax resident and must pay personal income tax in Spain.
• If you manage your Andorran company from Spain, Spanish tax authorities may classify your business as having tax residency in Spain, leading to additional tax obligations.
• Cross-border compliance is necessary for VAT, invoicing, and business operations between both countries.

Owning a Company While Living in the UK

• If you are a UK tax resident, your worldwide income, including earnings from your Andorran company, may be subject to UK taxation.
• If HMRC determines that you control a Controlled Foreign Company (CFC) in Andorra, additional UK tax obligations may arise.
• The UK and Andorra have a double taxation treaty, which can help avoid being taxed twice on the same income.

 How Axior Global Can Help

• Company Formation Assistance: We streamline the registration process, ensuring compliance with Andorran regulations.
• Residency & Business Setup: If you plan to move to Andorra, we handle both residency and corporate setup requirements.
• Cross-Border Tax Planning: We assist with international tax compliance to help you optimize your Andorran business while residing in another country.
• Banking & Compliance: We facilitate corporate bank account setup and ensure compliance with financial regulations.
• Legal & Notary Services: We help draft the necessary legal documents and provide full support for your company registration.

Conclusion