Company formation in brief
Business in Andorra can be organized through various organizational and legal forms of enterprises, the most popular of which include:
Private limited company
Joint stock company
Unlimited liability company
Andorra's Foreign Investment Law allows foreigners to engage in various sectors of the local economy and they can hold up to 100% in local enterprises working in certain areas of business, such as production and marketing of audio and video products, technological and scientific developments, production of medicines, e-commerce, radio and television broadcasting.
Societat Limitadad (a private limited company) and Societat Anonima (a joint stock company) both have very similar features:
• a company can have one shareholder and one director;
• a minimal authorized capital must be fully paid by the founders and deposited into an account in one of the local banks after the approval of the future company name is obtained
• incorporation documents are drawn up by a local notary and registered at the state office (Andorra Govern);
• if the company intends to engage in trading (not holding) activities it must apply to the Commercial Register of Andorra for a license;
• registration formalities can take up to several months.
Societat Colectiva (an unlimited company) have similar corporate features to Societat Limitadad (a private limited company), except that:
• this type of company can be incorporated without paying any minimum capital;
• all shareholders of the company are equally and indefinitely liable for debts and obligations of the company.
In Andorra, there are no limited partnerships and a partnership can be established only in the form of a partnership with unlimited liability, in which there can be two or more members who are equally and unlimitedly responsible for the debts and obligations of the enterprise.
The partners themselves manage their business and all their relations are governed by the partnership agreement, which shall be notarized in Andorra.
Registration of branches of foreign companies in Andorra is allowed for insurance companies only. The right to be present in Andorra for other foreign companies can only be granted if such presence is officially deemed to be in Andorra's interests.
Businesses in Andorra do not pay any corporate taxes.
Andorra does not have any double taxation treaties.
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