Andorra Company Formation & Entity Choice

Entity types, capital and incorporation

The two main Andorran corporate forms are the Societat Limitada (SL/SLU) and the Societat Anonima (SA). Since 2012 foreign investors may own 100% of an Andorran company, subject to prior foreign-investment authorisation.

• Societat Limitada (SL/SLU) — Limited-liability company; most common form for SMEs (SLU is the single-member variant) (Llei 20/2007 de societats anonimes i de responsabilitat limitada)
• Societat Anonima (SA) — Public limited / joint-stock company, used for larger ventures (Llei 20/2007 de societats anonimes i de responsabilitat limitada)
• Minimum share capital — SL/SLU — EUR 3,000, fully subscribed and paid up at incorporation EUR (Llei 20/2007 de societats anonimes i de responsabilitat limitada)
• Minimum share capital — SA — EUR 60,000, fully subscribed and paid up at incorporation EUR (Llei 20/2007 de societats anonimes i de responsabilitat limitada)
• Foreign ownership — Foreign investors may hold up to 100% of share capital (since 2012) (Llei 10/2012 d'inversio estrangera al Principat d'Andorra)
• Foreign-investment authorisation — Prior foreign-investment authorisation is required where non-resident ownership exceeds 10% (Llei 10/2012 d'inversio estrangera al Principat d'Andorra)
• Company-name reservation — Reserve and obtain approval of the company name (denominacio social) — typically 1-2 business days ((approx — confirm current timing)) (Registre de Societats Mercantils)
• Incorporation steps — Name approval, foreign-investment authorisation, deposit of share capital with bank certificate, notarised deed of incorporation, registration with the Registre de Societats and tax (NRT) registration (Llei 20/2007 / Llei 10/2012)
• Typical incorporation timeline — Approximately 8 to 14 weeks, largely driven by foreign-investment approval and bank account opening ((approx — confirm current processing times)) (Llei 10/2012 d'inversio estrangera)
• Director residency requirement — No residency requirement for company directors (Llei 20/2007 de societats anonimes i de responsabilitat limitada)
• Tax identification (NRT) — Companies must obtain a Numero de Registre Tributari (NRT) from the Departament de Tributs (Departament de Tributs i de Fronteres)
• Core annual compliance — Keep statutory accounts (Pla General de Comptabilitat), approve and file annual accounts, file the IS corporate tax return, and file periodic IGI and CASS returns (Llei 95/2010 IS / Llei 11/2012 IGI / Llei de la seguretat social)