The
country is open for business and offers 100% foreign ownership of
local companies.
Benefits
of opening a company in Andorra
Andorra
is one of the most attractive locations in Europe to create a
company. Located between France and Spain, Andorra has established an
open framework for foreign investments and a very attractive tax
jurisdiction. It welcomes foreign non-residents to create companies,
open businesses and invest in all kind of assets.
International
business environment
In the
past decades, Andorra has gone through many changes to open its
economy to foreign direct investment and move away from a tax haven
status to a transparent and low tax jurisdiction. It is committed to
the OCDE’s International Financial Transparency standards and has
signed Double Taxation Conventions with France, Spain, Luxemburg,
Liechtenstein, Portugal, UAE and Malta. Furthermore, it has recently
filed an application for membership in the International Monetary
Fund. Andorra is not a member of the European Union, although it uses
the euro and enjoys a special status within the EU.
Tax
advantages
The
country welcomes 100% foreign investment and ownership of local
companies with a very competitive fiscal framework based on a 10%
maximum Corporate Tax on profits, 10% Personal Income Tax and one of
the lowest Value-Added or Indirect Taxes at 4.5%.
Setting
up a company in Andorra
There
are several ways of doing business in Andorra; the most commonly used
are the following:
1.
Andorran Limited Liability Company (Societat
Limitada - SL): with the appointment of
one director and two shareholders of any nationality that are
required to invest a minimum of €3.000.
2.
Andorran Public Limited Company (Societat
Anonima – SA): recommended for larger
companies, this setup requires at least two shareholders of any
nationality and a minimum capital of €60.000.
Steps
to create a company in Andorra
1.
Apply for corporate name registration.
2.
Request an authorization for foreign investment.
3.
Capital share deposit in an Andorran banking entity.
4.
Formalize the statutes of the company with a Notary.
5.
Company registration before the Andorran Chamber of Commerce.
6.
Apply for a Company Tax Identification Number (N.R.T).
Setting
up a business may require professional assistance. Make sure you have
the best and most trusted advice. At IS21 we offer all the support
you need to take your first steps in Andorra. Visit www.is21.ad
for more information.
