Company formation in Andorra

At a glance

Entity

Societat Limitada (SL) — private limited liability company; capital divided into participacions, 1+ shareholder

Corporate tax

10% headline corporate income tax (Impost sobre Societats). A minimum effective rate of 3% applies to profitable companies; qualifying new companies may access a reduced 2% rate in the first tax period. As of 2026.

Incorporation time

~6-10 weeks end-to-end for foreign founders. The foreign-investment authorisation (mandatory for non-resident holders of >10%) alone runs ~10-15 business days; name clearance, notary deed and registry entry add the rest.

Minimum capital

EUR 3,000, fully paid up before incorporation

Resident director

No resident-director requirement in law; a non-resident foreigner can be sole shareholder and administrator. In practice substance (local office, tax residence of management) matters for the reduced tax rates and for banking.

Audit

Statutory audit is triggered when a company exceeds 2 of 3 thresholds — total assets >EUR 3.6m, annual turnover >EUR 6m, or >50 employees — for two consecutive years; also mandatory if turnover exceeds EUR 10m for two consecutive years. Most SMEs are exempt.

Remote set-up

Yes — incorporation can be completed remotely via a notarised power of attorney; the foreign-investment authorisation can be filed at the Govern d'Andorra electronic seat (e-tramits). The public deed must be executed before an Andorran notary, and KYC/apostilled and translated identity documents are required from every foreign shareholder.

Government fee

Registre de Societats Mercantils incorporation fee ~EUR 1,016.67 for an SL/SLU, plus a company-name reservation fee of ~EUR 5.69; commercial activity adds a Trade & Industry Register fee of ~EUR 214.21. An annual company maintenance fee of ~EUR 851 applies thereafter. Notary fees are separate. As of 2026.

Best for

This suits founders who want a low-tax European base that sits close to the EU without being in it, and who can accept a slow, authorisation-gated setup process and commit to building genuine local substance.

The process

1. Reserve the company name (denominació social) with the Govern d'Andorra and obtain the favourable resolution.
2. File the direct foreign-investment authorisation for each non-resident holder >10% (in person or via e-tramits) and await approval (~10-15 business days).
3. Execute the public deed of incorporation and articles before an Andorran notary (in person or by power of attorney) and deposit the EUR 3,000 capital.
4. Notary submits the deed to the Registre de Societats Mercantils for registration; then obtain the tax number (NRT) and, for trading companies, the Trade & Industry Register / comerç authorisation.