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Andorra at a glance
Andorra is outside the European Union. Its companies follow the jurisdiction's own incorporation rules. Compare company types, capital, tax, timing and signing requirements before you choose. The proposed 28th Regime (EU Inc) is a separate option that is not available yet.
Company types in Andorra
- Societat Limitada (SL) The standard limited liability company for founders and SMEs. Minimum capital EUR 3,000, fully paid at incorporation, capital split into participations.
- Societat Anonima (SA) A public limited company for larger ventures or regulated activities. Minimum capital EUR 60,000.
Company formation in Andorra: key facts (last reviewed July 2026)
- Corporate tax
- Corporate profit pays a flat 10% (Impost sobre Societats), one of Europe's lowest rates, and there is no municipal surtax on top. Newly created companies can even qualify for a reduced 2% in their first period. Corporate wealth tax does not exist here.
- VAT rate
- The IGI (Impost General Indirecte) is Andorra's VAT equivalent, with a 4.5% standard rate, the lowest in Europe, plus reduced rates of 1% and 2.5% and a 9.5% rate on financial services.
- Dividends & payroll taxes
- Dividends from an Andorran company reach resident individuals with no further tax, and personal income tax is capped at 10%. Employer social security (CASS) adds about 15.5%, and the 4.5% IGI stays Europe's lightest consumption tax.
- Minimum share capital
- SL: EUR 3,000, fully paid up at incorporation. SA: EUR 60,000. Capital must be deposited in an Andorran bank before the notarial deed. Up to 100% foreign ownership is allowed.
- Setup time
- Plan for about 2 to 3 months, or 8 to 12 weeks. Non-residents start with a foreign-investment authorisation (around 10 to 20 working days), then come registration and an operating licence. When the banking side gets complicated, the whole thing can drift toward 6 months.
- Remote setup
- Only partly remote. Foreigners can own 100% and a power of attorney can cover signing, but non-residents must obtain an identification number (NIA) and a foreign-investment authorisation, and Andorran banks run strict checks, so at least one in-person visit is usually needed for bank onboarding.
- Director / residency
- No residency or nationality requirement for directors; a non-resident can serve as director via power of attorney. Non-resident shareholders must first secure a foreign-investment authorisation.
- Banking options
- A local corporate account is mandatory (the capital must be deposited before incorporation). Main banks are Andbank, MoraBanc and Creand; onboarding is rigorous and slower for non-residents, often needing an in-person meeting.
- Our formation service
- from around ā¬100 to ā¬200 (estimated). You get a fixed quote in your free plan before you commit.
Andorra is an independent microstate in the Pyrenees and NOT an EU member; its customs union with the EU covers industrial goods only. It nevertheless uses the euro under a monetary agreement, and it initialled an EU Association Agreement in 2024. Why founders look at it anyway: no wealth or inheritance tax, income tax capped at 10%, and the 4.5% IGI.
How to register a company in Andorra
Step by step, this is how a Andorra formation actually runs:
- Apply for foreign-investment authorisation. Non-resident founders need government approval first, typically 10 to 20 working days.
- Obtain the NIA and reserve the name. The founder's identification number and company-name reservation precede the deed.
- Deposit capital and notarise. The EUR 3,000 SL capital is deposited in an Andorran bank, then the public deed is signed before a notary, with power of attorney possible for parts.
- Register and get the licence. The company enters the Companies Register and obtains its commercial licence, including proof of a physical registered office.
- Banking finalisation. Andorran banks run rigorous compliance; at least one in-person meeting is the realistic expectation.
We can help coordinate documents, address requirements and filings with licensed local counsel. The steps and timing depend on your company and circumstances.
What company formation in Andorra costs
All-in professional setups commonly total EUR 1,500 to 3,000 covering the authorisation, notary, registry and licence steps, on top of the EUR 3,000 capital. A physical office or approved address adds recurring cost. Accounting and administration typically run EUR 1,500 to 3,000 a year for a small SL.
Plan your Andorran company formation
Tell us where you live and what you are building. Our formation service fee is from around ā¬100 to ā¬200 (estimated). We help you compare structures and prepare a quote with the scope, costs and expected timing. Government charges, capital and ongoing services are separate unless included in that quote.
Get your free planWho can form a company in Andorra
Check ownership eligibility separately from director, local-address and licensing requirements. Permission to own shares does not automatically give you permission to live or work in Andorra. The director and residency information above identifies the main formation conditions to review.
Andorra fits founders who relocate personally for the 10% cap on income tax and mountain lifestyle, and businesses genuinely operating there. As a remote-only vehicle it is slow and bank-heavy; the value unlocks with residence.
After registration: what Andorra expects each year
Annual accounts are filed with the government registry and the corporate tax return follows the 10% regime (2% in qualifying first periods). The commercial licence and office requirements stay live, and banks periodically refresh KYC. The IGI (4.5%) has its own periodic settlements for trading companies.
Plan beyond the registration fee
Use these guides alongside the national rules for your company. The cost and filing examples cover Estonia, Ireland and Portugal.
Andorra and the 28th Regime (EU Inc)
EU Inc, the proposed 28th Regime, would add a harmonised company form in EU member states. Registration is not open and no launch date is confirmed. Andorra is outside the EU, so forming a company there does not make it an EU company or guarantee access to the proposed regime. Read how to prepare an EU Inc company, or compare current options in company formation in Europe.
Sources and review scope
Use the linked registries, authorities and specialist references to check the requirements for your company. A review of formation costs and filings does not replace a review of your tax position.
No separate topic-level check date is recorded for this profile. Confirm the current requirements with the linked authority before proceeding.
Reference links
Frequently asked questions
Can a foreigner open a company in Andorra?
No residency or nationality requirement for directors; a non-resident can serve as director via power of attorney. Non-resident shareholders must first secure a foreign-investment authorisation.
How long does company formation in Andorra take?
Plan for about 2 to 3 months, or 8 to 12 weeks. Non-residents start with a foreign-investment authorisation (around 10 to 20 working days), then come registration and an operating licence. When the banking side gets complicated, the whole thing can drift toward 6 months.
What corporate tax does a company in Andorra pay?
The headline summary is 10% flat, with standard VAT of IGI 4.5%. Company form, activity, size and where the business operates can change the treatment. Read the detailed tax information and confirm the rules for your case.
Can I form a company in Andorra remotely?
Only partly remote. Foreigners can own 100% and a power of attorney can cover signing, but non-residents must obtain an identification number (NIA) and a foreign-investment authorisation, and Andorran banks run strict checks, so at least one in-person visit is usually needed for bank onboarding.
What does it cost to form a company in Andorra?
All-in professional setups commonly total EUR 1,500 to 3,000 covering the authorisation, notary, registry and licence steps, on top of the EUR 3,000 capital. Our formation service fee is from around ā¬100 to ā¬200 (estimated). Government charges, capital and ongoing services must be budgeted separately unless the written quote includes them.