How to Set Up a Company in Andorra Step by Step: A Guide for New Residents

Setting up a company in Andorra is not just an administrative procedure: it’s a strategic decision that combines institutional stability, legal security, and direct access to an increasingly globalized economy. However, to take full advantage of these benefits, you must follow a rigorous process with specific steps that need to be well understood and planned.

1. Choosing the Legal Structure and Minimum Share Capital

The first thing to decide is the type of company you want to set up. The two most common forms are:

• Limited Liability Company (SL): minimum share capital of €3,000

• Public Limited Company (SA): minimum share capital of €60,000

Most small and medium-sized entrepreneurs choose an SL, as it is simpler and sufficient for most businesses.

2. Reserving the Company Name

You must request a reservation of the company name from the Government of Andorra. This certification is valid for six months and ensures that the chosen name cannot be used by any other company during this period.

3. Foreign Investment Authorization (if applicable)

If you are a foreigner and plan to hold more than 10% of the company’s share capital, you will need foreign investment authorization. This step is essential to obtain the government’s approval before proceeding with company formation.

4. Opening a Bank Account

With the company name approved and foreign investment authorization obtained (if necessary), you must open a bank account in Andorra in the name of the future company and deposit the minimum share capital. The bank will issue a deposit certificate required to move forward.

5. Public Deed Before a Notary

With all documentation prepared, you must appear before a notary in Andorra to execute the public deed of incorporation. This document will include the company bylaws, the capital contribution, and the identification of shareholders and administrators.

6. Registration in the Companies Register

Once the deed is signed, the company must be registered with the Register of Commercial Companies. From this point on, the company acquires legal personality and can operate legally.

7. Tax Registration and NRT Number

Finally, you must register with the tax authorities to obtain the NRT (Tax Registration Number), which is essential for starting business activity and issuing invoices.

Creating a company in Andorra is a clear and structured process, but it requires careful attention to each step. Having the right guidance can speed up the process significantly and help avoid mistakes that could delay your business launch.

If you’re thinking of relocating to Andorra and need assistance with residency, company formation, or tax planning, don’t hesitate to contact us. We’re here to help you every step of the way.