HOW TO CREATE A COMPANY IN ANDORRA
Create a company in Andorra: Andorra is a micro-state bordering France and Spain. It is not a Member of the EU but uses the euro and receives special status inside the EU. The Country has a great infrastructure, fibre-optic internet service in the entire country. Generally speaking, it is spoken through an extremely knowledgeable and educated staff that actually communicates in four languages (Catalan, Spanish, French and English).
Andorra : registration of legal entity
Andorra is a land-locked county bordered by France to the north and Spain to the southern. It is a co-principality parliamentary whose two princes share the title of ruler together without a citizen. In short the Euro is the official currency. Its capital is Andorra la Vella. The country is 6th and 16th smallest in the world by land area. The European Union is a member of the United Nations and the Council of Europe. In its core there is also a parliamentary democracy.
Establish business in Andorra Has Reliable Process
Andorra is a national mountainous microstate with an area of 181 sq. kilometres. The official language is Catalan. They also speak Spanish, French, Castilla, Portugal and English. The country is a practical country for launching a business which is crucial for both entrepreneurs and investors. Read on how to start a profitable business in a country as a foreign investor and much more. Find out what to do to set up your business in Andorran as an investor and what you have to do in the Pyrenees area of Spain and France to start your own business. Andorrans lie in the centre of the mountainous and remotest region of Spain.
Create a Company in Andorra and operate in Spain
People who wish to settle down in Andorra don’t know if it’s possible to start a company in Spain or operate in Spain. Professional advice should be essential in any country. However professional advice should be given to people interested in moving to the country or moving to Andorran and performing activities based in other European countries in their usual activities including billing clients or contracts with suppliers. These three actions also apply in other European countries and in the world.
Why create a company in Andorra?
Andorra is a country with modern jurisdiction and its taxation is very low and transparent. The legislation has been changing and currently company creation has become substantially more likely thanks to training within the country. This is also why it is one of Europe’s top attracting countries chosen by investors who wish to have their own businesses in Andorran. The country is known as a tax haven and have a largely low tax burden and it is one of Europe’s most attractive destinations for business establishments. Go to [link].
Other advantages of creating a company in Andorra
Andorra is known as being a very beautiful province thanks to its spectacular countryside with wonderful ski slopes for sports lovers. But it also has many other advantages: It is also an excellent place to live, because of the stunning beauty of this country.
Covenants
The Principality have bilateral agreements with many countries. They include 8 Pri Double Deprivation Agreements (CDI). It permits that creating companies in Andorra become a perfect scenario for entrepreneurs because they can benefit from tax benefits in Andorra.
Types of business entities in Andorra
To start any firm in Andorra you must have a fiscal domicile in the principality. There are two models for creating the companies: Sociedad Anónima (SA) or Public Ltd. whose minimum capital to start these companies is 60,000 euros and Sociedad Limitada (SL) or limited liability company whose minimum capital start at 3,000€. All companies formed have a tax system similar to Spain who file annual tax returns quarterly. But the corporate tax in Andorra is extremely interesting than the Spanish corporation tax. In addition to having its address the company established in Andorra requires a administrator regardless of the activity they do. A company must be assigned an administrator no matter what it does.
Application for Create a Company in Andorra
In order to start a business in Andorra you have to have a clean criminal record. There must be another authorisation by the government to incorporate the firm.
Procedures to create a company in Andorra
When the need arises to establish a company in Andorra then a plethora of necessary formal steps shall be taken during the formation procedure which entails. Create companies in Andorra is not easy, but you can follow these steps:
1 – Application for Reservation of a Corporate Name
The company name has to be related to the activity of the firm so that any confusion is avoided. You can use either the full name or the names of another company if it is not constituted in Andorra and the name is approved. To encrypt your corporate name you only require to present yourself with an identity card to Andorran administration. In addition to the language requirement you must have the ability to use the company’s proper names if you have approved that company.
2.- Encourage Foreign Direct Investment– Application for foreign investment approval
Foreign investment file
The customer is not resident before we start the company and we must ask the government for our investment as foreigners. For that it is required a conviction certificate to prevent the practice of money laundering. This step is not required when you reside there.
All the Andorra societies have foreign capital. The Ministry of State Economy of the Principality will approve the foreign investment after reviewing the submitted documentation. An identification report and an extract of each associates’s criminal history should only be required for this approval. The Minister of Trade and Industry approved this.
3.- Company bank account in an Andorran bank
At this time the personal documentation of the partner and the company will be submitted to the bank.
Once the bank studies the case, the minimum capital requirement stock will be disbursed. This will be the initial share capital that will be kept in this bank account. This will be your corporate bank account.
4.- Public deed and signature before a notary
The company name and corporate statutes are governed by characteristic. Once the deed has been prepared, including the names and certificates of deposited capital stock, you can do the earlier steps which involve the company opening up: visit the notary.
Once you have signed before the notary, you will need to wait 15 days until the company registration. Then your Andorran company will have been created.
How do I register a company in Andorra?
Law and Trust works with the client to obtain the Company name and activities license from the Companies Registry of Andorra step 4 is to complete the registration process with legal advice
5.- NRT and Registry of Commerce and Industry
All businesses performing industrial and service activity have to be logged in the regulated trade body. You must have the address of your organization in a secure manner by that time specified. It is demanded for this company.
Start working with your company
Andorra Lawyers offers tax planning firm-based firm advice as well as consulting and immigration services. Immigration process takes just over a week to finalise the process. If you are interested in starting a new company contact our tax professionals. Andorra Lawyers provides consulting services as well as firm law related to your companies in Andorra. For more information visit our web or get in touch direct trough our whatsapp.
Residency in Andorra – Deposit in the AFA
The deposit of € 15,000 will be paid to the Andorran financial authority fully following termination of permit processing. While all the services of the company is completed and to advance the self-employment residence permit.
Labor costs and wages in Andorra
When a company is established in Andorra they can charge less for services than in France or Spain. Social Security expenditures are generally around 15% lower. Thus tax savings on revenues are in average 30% less in both Spain and France. The wage for average people is estimated at € 1.950/month or a minimum wage of 1.157/month. In Andorran there is an additional charge for social security.
Estimated time and cost
The total cost in Andorra can be rounded up to include incorporation costs (which are undertaken only once) and maintenance costs. It is important to note before continuing that the costs are obviously dependent on the style of activity and the scale of the business. This is typical example for a digital business. Time of constitution: approximately 2-3 months.
Taxes
Andorra is treated as part of the EU in trade in industrial goods but not agriculture. In January 2012 the company introduced 10% tax. The government plans to introduce more taxes by the end of next year. This has a very good market value to compare to the others in Europe. The territory is not part of the European Union but has its own special status within the Union in relation in manufacturing products and farming goods trade with Andorra. It used the Euro.
Why do you want to create a company in Andorra?
Andorra has becoming one of the best investment destinations for foreign companies. Its low taxes and transparency facilitate corporation foundation. Low taxes and a high quality transparency.
