REGISTRATION OF THE COMPANY IN ANDORRA
Andorra associated with excellent reputation and attractive business conditions. Over the past decades, legislation in Andorra has changed.
The tax model in Andorra is similar to the Spanish model.
TYPES OF COMPANIES
There are 2 entity models in Andorra:
- the SL “Societat Limitada”, which is a typically limited liability company. The minimall acceptable capital is 3000 EUR.
- the SA “Societat Anonima”, which is a corporate company model. The minimal obligatory capital is 60.000 EUR.
It is worth noticing, that law does not prescribe the offshore entity model. So all the companies are consider as residents.
In addition to the capital requirements, the company should have a registered office in Andorra with at least one employee – administrator of the office. Besides, each company has to submit annual financial reports and tax declarations.
ADVANTAGES REGISTRATION OF THE COMPANY IN ANDORRA
Here you will meet one of the most attractive tax system, which provides
- 10% max corporate tax on profits. It is possible to get an 80% discount via CashPooling mode;
- 2% corporate tax on profits for the companies, which stated the international management of intangibles as their main business activity;
- a value-added tax is up to 4,5%, which is recognized as the lowest in Europe.
The annual government fees are also quite low. For example, the municipal fee for the commerce registration and state support of your company is about 800 EUR per year.
If the holding company has a minimum participation capital in any foreign companies, they are exempt from taxes. Dividend payments are not tax at all, so you get a net profit after paying corporate tax.
The inputs for social security are about 15,5%.
All these reasons make Andorra one of the most attractive countries for business in Europe and the world.
PROCEDURE REGISTRATION OF THE COMPANY
- At first, you should choose a name for the company and apply for it. The term of name consideration is 10 days. It is possible to specify 3 several names and to state their preference in case the first name is already in use.
- After that, you have to request for foreign investment authorization. Each shareholder and non-resident partner apply separate requests. This procedure usually takes 4 weeks.
- Opening a bank account, which requires submitting of your profile documents and your explanation of the company’s future activity and sources of income. The bank may consider your request for 3-4 weeks.
- Entering the company into a commercial register. For this procedure, you should prepare constituent documents and certify them with a notary public in Andorra.
- The opening of the commerce. For this time, you must prepare an electric bulletin/certificate of your office with the official address of the company.
Eternity Law International will gladly help you with registration of the copmany in Andorra, and our specialists will answer all your questions. Take advantage of our many years of practical experience – save your time and your money.
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