Andorra at a glance
Andorra is one of the EU jurisdictions founders most often use today, especially while the EU-wide 28th Regime (EU Inc) is still a proposal. Below are the verified essentials: company types, tax, capital, timing and whether you can set up remotely.
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.
| 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 €100 to €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 handle each step with licensed local counsel, so the paperwork, registered address and filings are done correctly the first time.
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.
Form your Andorran company in days
Tell us where you live and what you are building. Our formation service starts from around €100 to €200 (estimated); we confirm the right structure for Andorra, give you a fixed quote, and form the company with licensed counsel.
Get your free planWho can form a company in Andorra
Founders from outside the EU can own and run an Andorran company, with the cross-border requirements handled for you. We flag any residency or local-agent rule for Andorra up front, so there are no surprises.
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.
Andorra and the 28th Regime (EU Inc)
EU Inc, the proposed 28th Regime, would let you register one company valid across all 27 EU member states. It is not law yet (expected around 2027-2028), so an Andorran company is one of the ready options you can use today. Forming an EU company now also positions you to adopt EU Inc later, as we cover in how to prepare an EU Inc company. To weigh Andorra against other countries, see company formation in Europe.