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 | Flat 10% corporate income tax (Impost sobre Societats), one of the lowest in Europe, with no municipal surtax. A reduced 2% can apply to newly created companies in their first period. No corporate wealth tax. |
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| 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. |
| 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 | Typically about 2 to 3 months (8 to 12 weeks): non-residents first need a foreign-investment authorisation (around 10 to 20 working days), then registration and an operating licence. Complex banking can push it 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, NOT an EU member (it has only a partial customs union with the EU for industrial goods). It uses the euro under a monetary agreement and initialled an EU Association Agreement in 2024. Draws include no wealth or inheritance tax, a 10% income-tax cap and the very low 4.5% IGI.
How to register a company in Andorra
The process is straightforward and, in Andorra, largely digital. In outline:
- Choose your company type and name. Most founders pick the SL (limited); we confirm the name is available.
- Verify your identity. 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.
- File the incorporation. Once documents are signed, registration usually completes in around 8-12 weeks.
- Open a business account and register for tax/VAT. 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.
We handle each step with licensed local counsel, so the paperwork, registered address and filings are done correctly the first time.
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 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.