Andorra company creation procedures, Fiscal benefits
What are the procedures to create a Company in Andorra?
Throughout this article, we want to tell you everything you need to know to create a society in Andorra and what advantages and benefits you will get with this decision.
Why should you create a company in Andorra?
In recent years, Andorra has gone from being a tax haven to being a country with a modern jurisdiction and a very low and transparent tax burden.
Why is this happening?
Thanks to the legislation has been changing and now, by having companies in Andorra, foreign investors are more likely to get both new and existing companies a series of benefits and tax advantages.
So, in the eyes of investors around the world, it's a perfect place to start companies.
What are the procedures to create a Company in Andorra?
Creating a company always involves a series of paperwork that you cannot escape.
The same thing happens when you are going to found a society in the principality.
Write down what are the official and mandatory steps that you must follow for its creation.
Obtain authorization for foreign investment in Andorra
When you are going to create a company in Andorra, you must apply for a foreign investment authorization from the government.
This capital is detained at more than 10% by a person who does not reside in the principality.
Of course, keep in mind that the response can take between a month and a month and a half.
Request the corporate name of the Company in Andorra
As soon as you have this first step done, it is time to formulate a request for reservation of company name.
To do this, the name of the company must be established in Catalan, it must not be too generic and it must clearly define its activity.
A minimum share capital
In this case, to create a company in Andorra, you must have a minimum share capital of € 3,000.
An apostilled criminal record certificate from the country of nationality and residence of the company´s partners.
That is, proof that neither you as a director, nor your partners, have any criminal record in your country of origin.
If so, you can forget about creating your society in the principality.
An apostilled notarized photocopy of the valid Passport or ID
And it must be both the manager and his partners just as, of course, it must be in the period of validity.
The application for incorporation of the company
The last administrative formality involves defining the corporate purpose of the company, mentioning the address of the headquarters in Andorra and establishing and presenting the company's board of directors.
What are the advantages and benefits of creating a Company in Andorra?
Everything we've told you is great, right? But we are sure that what really interests you is to discover what you can gain by having a company located in Andorra.
Then aim, because you have a pretty interesting list.
Its strategic location
Being between France and Spain, you can plant yourself in both Toulouse and Barcelona in two scarce hours by car.
So, contrary to what many people think, you are very well connected with the rest of the world.
An excellent infrastructure
Not another thing, but you won't be able to complain about Andorran infrastructure.
They have one of the highest per capita incomes in Europe, high-speed internet throughout the territory, large health infrastructures and trilingual teaching in schools and universities
Few countries can say the same thing; don't you think?
Agreements with other countries
Right now it has seven double taxation agreements to avoid cases of international tax double taxation.
They carry out a series of measures and implications for the two contracting countries.
These seven countries are: Spain, France, Luxembourg, Liechtenstein, Portugal, Cyprus and the United Arab Emirates.
It is very easy to obtain residency in Andorra if you are an entrepreneur or director because they value foreign investment very much.
So, when your situation is to found a company, you will not have any problem about it.
Taxes in Andorra
Now comes one of the figures that most interests everyone.
- Personal income tax is at a maximum rate of 10%.
- Corporate tax at a rate of 10%.
- The contribution to social security is one of the lowest in Europe.
- The IGI (VAT/VAT) at a maximum rate of 4.5%.
- There is no inheritance tax
After this, we are sure that you have already made an important decision. learn more
Which are the labor costs and wages in Andorra for resident companies?
We have left this advantage aside because we know that it is something that interests you seriously.
How much does it cost you to have someone salaried in Andorra?
Well, you must take into account both Social Security and the minimum wage.
Companies with workers in Andorra must pay 15.5% of the gross salary as social security payments.
Of that percentage, 8.5% goes to the pension system and the remaining 7% to the rest of benefits.
Social Security has an average charge of 15% lower than in Spain or France, while salaries in Andorra have an average of € 1,950 per month.
The minimum wage in this case is € 1,121.47 per month. This is how you get a tax saving on profits of an average of 30% less compared to Spain and France.
So having a team working with you doesn't sound so bad, does it?
What do I do if I want to set up my Company in Andorra?
If after everything we've told you, you've decided that yes, this is going to be the next step in your working life, you're in luck.
We are specialized in organizing settlements in Andorra, both at business and family level.
To know more about our services, you can book a call with us and we will be happy to tell you everything we will do for you to make that new life in Andorra.