Andorra

Main » Jurisdictions » Andorra

Andorra

GENERAL INFORMATION ABOUT THE JURISDICTION

 

ANDORRA’s official form of government is the Principality of Andorra, but de facto Andorra is the republic, located in the West of Europe, covering the southern slope of the eastern Pyrenees Mountains between France and Spain. In addition to the state Catalan language, citizens of the Principality also speak Spanish, French and Portuguese languages.

The present economic model in the country is stable attractive by its investment climate for international business due to the rates in financial, trade, tourist and real estate spheres.

1. LEGISLATION

Foreign Investment Law 2008 has defined more than 200 fields of activities allowing 100% of foreign capital participation (in other cases – to 50%). This list includes such types of business activities: on-line commercial, multi-languages call-centers, international consulting, design development, scientific research and technological development etc.

2. REGISTRATION OF COMPANIES

2.1. Types of companies

The most common types of companies are the following:

  • Societat Limitata (S.L.) – similar to LLC. Minimum statutory capital – Euro 3000. This company could be attractive for small family business.  
  • Societat Anonima (S.A.) – similar to JSC. Minimum statutory capital – Euro 60000. This type of company is used by large entities with significant quantity of shareholders.

2.2. Main law requirements

Minimum quantity of shareholders – at least 1 natural person or 1 legal entity. No residency requirement.

Minimum quantity of directors – at least 1 natural person or 1 legal entity. No residency requirement.

Nominal service is allowed, however the director has access to the local bank account with the right of signature.  Therefore it is highly recommended to appoint a director only a person who you can trust.

Charter capital shall be paid fully at the beginning of the registration so the bank account needs to be opened in the Andorra bank.

3. TAXATION

As of April, 2011 legal persons pay corporate tax at the rate of:  

  • Local income  of non-resident company – 10%
  • Local income of resident company as of January 1, 2013 – 10%.

Purchase of real estate in Andorra – 4%.

4. CURRENCY CONTROL

Not applicable

5. DOUBLE TAX AVOIDANCE AGREEMENTS

Andorra concluded the double tax avoidance agreement with France. Further conclusion of such agreements stands on the agenda also with Spain and some other countries.