Company Formation Andorra.com is an agent specialized in company formation across Andorra and it’s handling all the procedures related to this: drafting the company incorporation documents, offers a registered office for the company, hires a specialized accountant. The registration process of a company in Andorra is time consuming (takes up to 3 months) so it is advisable to contact an agency with experience in this field.
TYPES OF BUSINESS IN ANDORRA
Andorran companies can take the form of public limited company (SA) or limited company (SL).
Societat Limitada: has a minimum capital of 3,000 euros and must be fully paid up. The minimum number of shareholders is two and it is considered a suitable vehicle for small and medium businesses.
Societat Anónima:Minimum Capital subscribed and paid 60,000 euros. It can be formed from three shareholders this is the reason is elected by major businesses.
As long as the companies are registered in the Register of Companies it has legal personality distinct from that of its members.
The general meeting is the supreme body of companies and makes all the necessary decisions regarding the company such as the amendment of bylaws, approval of the annual accounts, appointment and removal of directors, transformation, merger, liquidation. The General Meeting also appoints and establishes a system of ordinary administration of the company: Sole administrator, Joint administrators (joint action), Joint and several administrators (individual action) or a Board of Directors (collegiate action).
Besides the companies, the entrepreneurs can establish partnerships or organize their business as individual entrepreneurships. In a sole proprietorship the powers of the general meeting are kept by the unique partner while in the partnerships are governed by the general partners.
Because the country is not an EU member and is still regarded as a tax haven, the limited partnerships or limited companies established in the Principality are usually not a suitable vehicle for trade within the EU, due to the restrictions that apply to them.
Also incorporating holding companies is complicated by the reduced number of double taxation conventions. So far Andorra has signed double tax treaties with Austria, France, Monaco, Liechtenstein and San Marino.
COMPANY INCORPORATION ANDORRA
Any Andorran company must perform business from a registered office within Andorra. When the company has been registered, it has to apply for authorization of its activities in the region where its registered office is located.
The registration process in Andorra requires the following documents: an application on the name reservation (the names of legal entities opened in Andorra must be written in Catalan), a request of incorporation (including the entity’s performed activities, objectives, the amounts for the planned investment, the expansion plans, details regarding its strategic partners, resources planning, form of adopted business, an application for permit to incorporate company.
After receiving the permission to incorporate the company, a Public Deed is made by an Andorran notary and as a result the company is entered in the Register of Commerce and Company Register.
ECONOMIC OVERVIEW ANDORRA
The base of the Andorran economy is represented by the tourism sector. There is an average of 11 million visitors a year in Andorra attracted by the spectacular surroundings and the excellent service industry.
Other minor activities such as agriculture, especially the cultivation of snuff, and some small livestock processing industries (cigarettes and furniture), complete the balance of payments.
The advantages of opening a company in Andorra are due mostly to the fact that the corporate are very small(10%) and can even be exmpt in case of certian activities, the reduced tax on royalties paid to non residents and the absence of the taxes on dividends and interests paid to non residents.
Other advantage is that the absence of a central bank and its own currency makes no exchange controls exist whatsoever.
The economic situation in the principality has traditionally been excellent, but the financial and housing crisis have put the country in a more complicated situation. The two main sources of revenue, stamp duty and tax on consumer products were drastically reduced, due to a significant drop in demand.
Companyformationandorra.com is a part of Bridgewest.eu, an international network which has affiliated partners throughout the world, including Dutch lawyers which can provide local legal assistance to foreign investors. For professional company formation services in other countries, you may conatact our partners from: Serbia, Slovakia or Slovenia.