Nowadays it is possible for foreign individuals to set up a company in Andorra, following the legally established procedure, which is detailed below. We also explain the requirements to be met in order to set up a company in Andorra, the costs involved and the documentation you will need to provide throughout the process.
Steps to set up a company in Andorra
1. Application for the company’s company name
In order to create a company in Andorra, it is essential to validate the company name in order to ensure its exclusivity. To do this, it is necessary to fill in a form which is available at the telematic headquarters of the Andorran Government’s procedures department.
2. Presentation of the Foreign Investment Application Form
The foreign investment application form is provided by the Government of Andorra and must be completed by all non-residents of Andorra who will have a shareholding of more than 10% in the share capital of the company to be incorporated.
However, this form is not only required when incorporating a company, but must also be completed in cases where the company is already operating in Andorra and non-residents wish to become shareholders. For this purpose, the interested parties must provide, among other things, an apostilled copy of the criminal record of their country of origin.
3. Opening a bank account
In order to set up a company in Andorra, or in any other country, it is essential to have a working bank account.
To do so, you must go to one of the country’s banks and deposit the company’s share capital, the minimum amount of which will vary depending on the legal form chosen, being 3,000 euros for limited companies and 60,000 euros for public limited companies.
It is also likely that the bank in question will request accreditation of compliance with various compliance and anti-money laundering requirements. This process will vary depending on the bank, the type of company, its corporate purpose and the identity of its ultimate beneficial owners.
4. Drafting the Articles of Association
Once the aforementioned points have been fulfilled, it is time to draw up all the corporate documentation that will govern the operation of our company. In this regard, the Articles of Association must include, among other things, the legal form of the company, the company name, the corporate purpose and the share capital.
5. Signing before a Notary Public and Registration in the Companies Register
Once the requirements described in the previous steps have been met, it is time to execute the public deed of incorporation. To do so, all the founders or, alternatively, the persons duly empowered by them, must go before a Notary Public in the Principality of
Andorra and provide the negative certificate of the company name, the foreign investment authorisation (if applicable), the share capital deposit certificate and the text of the Articles of Association.
Once the deed of incorporation has been executed, the Notary Public will be responsible for registering the company in the Companies Register within a maximum period of 20 days. The registration fee associated with this registration varies between 1,000 and 1,5000 euros, depending on the company form chosen.
6. Submission of the Identification Form
The beneficial owner identification form provided by the Government of Andorra must be completed in order to accredit the beneficial owners of the company incorporated, in order to prevent tax fraud and money laundering.
This procedure is free of charge and the deadline for its presentation is 15 days from the incorporation of the company.
7. Tax and Commercial Register
Once the company has been incorporated, it is necessary to obtain a tax registration number (NRT) from the Tax and Border Department. For this purpose, a census declaration form, an address declaration form, the deed of incorporation and the company’s direct debit card, among others, must be submitted.
In addition, the application for the reservation of a business name must be completed and submitted to the municipality where the company’s registered office is located, and the application to open a business must also be completed and submitted to the municipality. The cost of the procedure is approximately 200 euros, although this may vary depending on the activities to be carried out by the company.
8. Registration with Social Security
The last step in setting up a company in Andorra and getting it up and running is to apply for registration with the Andorran Social Security Fund (CASS). This is a free procedure for which you must provide a copy of the NRT, the certificate of registration with the Trade Register and the Companies Register, a copy of the identity documents of the company’s administrators and a copy of the company’s Articles of Association.
Tips for setting up a company in Andorra
Incorporating a company in Andorra offers numerous benefits related to the country’s tax regulations. Corporate tax is a maximum of 10% of the company’s profits and IGI (equivalent to VAT in Spain) is 4.5%.
Therefore, although it is true that the process of incorporating a company may seem more extensive and complicated than in other countries such as Spain, it all comes down to a protectionist vision of the country that seeks to avoid the creation of illicit businesses and tax fraud.
At Delvy we can help you speed up this process so that your company is up and running in the shortest possible time. We have been working for years for entrepreneurs who want to start their business in Andorra, both by carrying out the necessary procedures and advice to set up companies and by finding the best sources of financing for their companies.
If you need help to start or manage a company in Andorra, Delvy can help you. Do not hesitate to contact us through our contact form, by email [email protected], or by calling us on (+34) 93 518 53 85. We will be delighted to help you.