The Principality of Andorra is a small country located in the west of Europe, has a stable economy and a favorable investment climate. Its laws were updated in 2012 and have greatly simplified the process of company incorporation, allowing non-residents to own 100% of their company, to own real estate in Andorra for the company needs, and enjoy tax advantages. These steps were taken by the country’s government in order to attract foreign capital. Free advice on opening a company in Andorra from our experts will help you establish a business in one of the most promising jurisdictions in a competent and proper way.
Why Open a Company in Andorra?
Andorra’s well thought-out and business-oriented corporate laws are one of the main advantages of this jurisdiction. The country’s government diligently complies with European directives and does its best to make the conduct of international business here as transparent as possible. But at the same time, the country demonstrates the best possible balance between the transparency of business and the benefits of doing business in the jurisdiction for foreign investors.
The advantages of Andorra are as follows:
- Low corporate income tax of 10%;
- Companies participating in the international intangible asset management operations have the right to pay income tax at a reduced rate of 2%;
- Low business infrastructure costs;
- Possibility to establish a company with 100% foreign capital;
- VAT is 4.5%;
- No inheritance tax;
- No stamp duty and currency exchange control;
- Special agreements with the Schengen area and the EU.
In addition, the country has signed more than a dozen double taxation agreements. The Principality is part of the Customs Union, which makes it an attractive place for international retail trade. 100% fiber-optic coverage provides excellent Internet connection, which is very important for today’s business. Annual tariffs and business maintenance costs on average amount to 800 EUR. Should you wish to register a company in Andorra swiftly and smoothly, please feel free to consult the experts of our portal.
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Taxes in Andorra
As it was mentioned above, the maximum tax a non-resident will pay here is 10%. Resident companies doing business in the country or in the European Union are required to register for VAT. The standard VAT rate is 4.5%. Preferential rates vary from 2.5% to 0%. Only banks and financial companies pay 9.5% VAT. Social taxes for employees are 15.5%.
Legal Forms of Organizations in Andorra
Before opening a company in this jurisdiction, it is necessary to choose the appropriate legal form of your business. The options vary depending on the company size and the level of responsibility that the founders are ready to bear. In Andorra, there are three main legal forms of organizations:
SA, Societat Anonima. It is a corporate institution with an authorized capital of at least 60,000 EUR.
SLU, Societat Limitada Unipersonal. Its authorized capital must be 3,000 EUR at the time of incorporation.
SL, Societat Limitada (similar to LLC) with an authorized capital of at least 3,000 EUR.
In Andorra, you can also establish an unlimited partnership or become a sole proprietor. But these forms of organizations are not very popular here. As part of their advice, our experts will help you choose the most appropriate legal form of company based on the goals and objectives of your business.
Register a Company in Andorra: Steps to Take
After the initial discussion on the opening of your company in Andorra, we will begin the process of registering your company which consists of the following several stages:
The name of the organization will be checked and reserved. The name you choose must be unique. Usually this procedure (Reserva al Comú, del nom comercial) takes up to one week. Upon completion, a paper will be issued confirming the right of your future company to use the name in the registration process. The fee in this case is slightly more than 5 EUR.
After that, one should file an application to open a company in Andorra. You need a thought-through business plan, incorporation documents, passports of shareholders and directors, certificates of criminal record, and a proof from your banker that the amount of the required share capital has been deposited in the account.
A request for foreign investment is to be submitted then. The response is usually received within 31 days.
Next, your company will be registered with the Commercial Register of Andorra.
And finally, you will obtain certified documents of your newly-established company and will be able to start your commercial operations.
It is worth mentioning that a company in Andorra must keep detailed accounting books and records of all expenses and income for the annual submission of statements to the fiscal authorities. Companies whose turnover exceeds 250,000 EUR must file a report once every six months. If you are interested in the possibility of registering an offshore company in Andorra remotely, please do not hesitate to contact us for detailed advice and assistance in this matter.
Open a company in Andorra: what does the consultation include?
Our experts will provide their professional opinion and answer your questions regarding starting a company in Andorra. They will help with choosing the legal form of your company, tell you about the rules of making the authorized capital the paid-up one, the peculiarities of opening a bank account, the set of necessary documents. You will learn about the cost of company registration, taxes to be paid and other corporate and organizational details.
What are the advantages of initial consultations?
- Use an opportunity of saving your resources and time needed for searching for the information of interest;
- Obtain only reliable and up-to-date data from legal sources;
- Obtain an opinion on the main aspects of company registration;
- Use an opportunity to ask our experts clarification-seeking questions during the consultation.
This service will be of interest to those who are looking for a jurisdiction suitable for establishing an international business taking into account tax planning, capital protection, and access to the European market. If you would like to make an appointment for a consultation on opening a company in Andorra right now, please email us at info@offshore-pro.info.