Company Formation Andorra

Incorporating a company in Andorra offers a range of compelling advantages for entrepreneurs and investors seeking an efficient and business-friendly jurisdiction. One of the principal attractions is Andorra’s highly competitive tax framework: corporate income tax is capped at approximately 10%, with reduced rates available for certain qualifying activities, while the General Indirect Tax (IGI) Andorra’s equivalent of VAT is set at just 4.5%. These low tax rates enable businesses to optimize profitability and manage operating costs effectively.

In addition, Andorra has entered into double taxation agreements with several countries and does not impose wealth, inheritance, or gift taxes, simplifying international tax planning and cross-border operations. 

Andorra permits full foreign ownership of companies without local residency requirements, and the incorporation process is streamlined and transparent, involving significantly less bureaucracy than many EU jurisdictions. Its strategic location between France and Spain provides direct access to major European markets, while participation in the EU customs union facilitates smooth cross-border trade. Competitive operating costs including lower labor and social security contributions, attractive wage structures, and affordable commercial rents further support business efficiency. Beyond its financial and operational benefits, Andorra offers a stable political and economic environment, modern infrastructure, a multilingual workforce, and a high quality of life, all of which contribute to talent attraction and long-term, sustainable business growth. 

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Isavella Evripidou

Founder and Chief Executive Officer

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Andorra LLC Overview & Key Requirements

There few of types of companies to register in Andorra, where the most common type of company is SL “Societat Limitada.

The following are the features of Limited Liability Company (LLC) formation in Andorra:

Service Company registration
Type of company Limited Liability Companies (SL)
Corporate Tax 2-10% maximum
Director Required 1 minimum, preferable to have a resident director
Local employee If no resident director, then an employee should be appointed
Secretary No
Shareholders Number of shareholders can be from 1 until 50 natural persons or legal entities
Share Capital 3,000 EUR – paid up
Registered office / Registered address Yes, in Andorra
Local office Yes
Bookkeeping Required
Audit of Financial Statements Required
Registration Timeframe 3-4 weeks
Company Formation Andorra_f

FAQson Registering a Company in Andorra

To register a company in Andorra you must have a registered physical address in Andorra (a real office or suitable commercial premises) — a P.O. box is not sufficient — and complete the company registration procedures with the Companies Registry.

GFSC will handle the registration process on your behalf to ensure it is completed in accordance with the applicable requirements, from A to Z.

Yes — foreign citizens can incorporate a company in Andorra. However, if foreign investors hold more than 10 % of the capital, a foreign investment authorization from the government is typically required.

GFSC will guide and assist the above-mentioned process.

The name reservation, investment authorization, notarial deed and full incorporation usually take several weeks to a few months. On average, the entire process may take around 8–14 weeks, depending on document readiness and administrative processing.

Different legal forms have different capital requirements:

  • A Limited Liability Company (SL / SLU) requires a minimum capital of approximately €3,000.
  • A Public Limited Company (SA) usually requires €60 000 minimum share capital.

The required capital must be deposited into an Andorran corporate bank account as part of the incorporation process.

Andorran companies must register for taxation and social security. Key points include:

  • Corporate tax (IS) is typically 10 % on profits.
  • IGI, similar to VAT, is around 4.5 %.
  • Annual accounting, tax filings and compliance with social security (CASS) are mandatory.

GFSC will guide and assist the above-mentioned process on your behalf to ensure it is completed in accordance with the applicable requirements.

Andorra FAQ

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