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AUREA
Business en Andorre

Setting Up a Company in Andorra

An open legal framework, competitive taxation, tailored support

Why set up a company in Andorra?

Since June 2012, foreign nationals can incorporate a company in Andorra and hold 100% of the share capital. The governing body may consist of a sole director, multiple directors, or a board of directors. Directors may be residents or non-residents.

The advantages

Strategic geographic location

  • Between France and Spain, with direct links to Toulouse and Catalonia
  • 300+ days of sunshine per year
  • Among the safest countries in Europe, surrounded by nature, with modern infrastructure

Competitive and transparent taxation

  • Income tax: 5% to 10%
  • Corporate tax: 10%
  • Holding regime: dividend exemption
  • No withholding tax on dividends paid to foreign shareholders
  • No wealth tax, property tax, inheritance tax or capital gains tax
  • IGI (VAT): 4.5%
  • Tax treaties with: France, Spain, Portugal, Liechtenstein, UAE
  • Adherence to international automatic exchange of information agreements

Manageable social charges

Flat-rate social security contribution: approximately €450 to €750/month for directors and self-employed.

Modern infrastructure

Fibre optic across 100% of the territory. A favourable environment for digital and international business.

Available legal structures

SL (Societat Limitada)

Equivalent to a UK Ltd or French SARL

Minimum share capital: €3,000

SMEs, entrepreneurs, family/wealth activities

Limited liability, simple and flexible structure, fewer formalities

Sole trader, service provision, simple family holding

SA (Societat Anònima)

Equivalent to a UK PLC or French SA

Minimum share capital: €60,000

Large-scale projects, multiple investors

Limited liability, more regulated legal framework, institutional profile

Fundraising, real estate/finance, growth ambitions

Steps to incorporation

Obtaining the Andorran NIF

First mandatory administrative step.

Company name reservation

3 names in order of preference, availability check, certificate.

Foreign investment authorisation

Issued by the Ministry of Economy.

Share capital deposit

Into an Andorran bank account, released after registration.

Signing the articles before a notary

Incorporation deed + registration with the Commercial Registry. The company acquires legal personality.

Tax registration

Obtaining the tax registry number.

Business activity authorisation

Application to the relevant municipality.

Required documents

Official incorporation form (drafted in Catalan)
Criminal record with apostille, less than 3 months old
Passport copy with apostille, less than 3 months old
Information: country of birth, nationality, last country of residence
Proof of establishment in Andorra (office, coworking space or registered address)

Focus — Vehicle registration in Andorra

Advantages: 4.5% VAT, no CO2 penalty, no horsepower tax, fixed fees, competitive insurance.

Caution: setting up a company in Andorra solely to purchase a vehicle may be considered abusive optimisation if you remain a French tax resident. Risks: reclassification as a shell company, tax abuse penalties (up to 80%), customs and VAT exposure. The company must demonstrate genuine substance (activity, offices, staff, accounting).

Aurea supports you in the creation and structuring of your Andorran company

An open legal framework, competitive taxation, tailored support