Andorra is a country with less than 80000 inhabitants, so at first sight should not be a too attractive market. What many people forget is that receives about 8 million tourists per year, which cause the large amount of consumption and movement here. These tourists are those who invite lot of entrepreneurs to expand their business in the country.
In our experience, potential businesses range from distribution through shops and restaurants to software developers. In Andorra there are many possibilities of doing business, either with direct services to tourists as oriented to the local population (serving or not these tourists) services. That's why in many cases it is profitable to open a business in Andorra to service this entire population.
The procedure is not unlike hte one performed to reside in Andorra, in fact, is slightly simpler. A society is created and from it is made the operational issues, with all the advantages that brings Andorra. Yields tend to be somewhat higher than the average because the absence of taxes and that today there are still many areas without serving (specific applications, certain medical services...). More than one client has here an amount of more than respectable business, which blends well with the businesses that have outside. It is also usual to maximize the tax advantages that the country offers. When you already are in the country, you can do profit a lot of oportunities that you haven't seen before.
In the end, what is most often noticed is the extra profit margin that gives power to sell more expensive (4.5% of IGI compared with 21% VAT o Spain) and have a less taxed benefits (10% maximum of corporation tax). As we always say, the most profitable way is always the residence, but this does not mean that there are no chances of winning very respectable money with foreign direct investment in the country.