Do I need to live in Andorra to set up a company there?

It is not mandatory to live in Andorra to set up a company there. However, if the founder is a foreign non-resident, prior foreign investment authorisation from the Govern d'Andorra must be obtained. This authorisation is generally granted without issue for legitimate business activities. However, to fully benefit from Andorran tax advantages — particularly regarding dividends and personal tax residency — it is also recommended to obtain personal residency in Andorra.

How long does it take to set up an SL company in Andorra?

The total timeframe to set up an SL in Andorra ranges from 6 to 12 weeks for non-resident founders (including obtaining foreign investment authorisation) and from 3 to 5 weeks for Andorran residents. Oryzon manages the entire process end-to-end, from the authorisation request to the bank account opening, ensuring compliance with all legal deadlines.

Can an Andorran company invoice clients in the UK, France or Spain?

Yes, an Andorran company can invoice clients in the UK, France, Spain or anywhere in the world. Andorra is not a member of the European Union, so transactions with European clients are treated as international operations. This means that Andorran IGI (4.5%) does not apply to exports, and European VAT may or may not apply depending on the nature of the service and the status of the client. Oryzon advises you on the optimal tax structure for your international business activities.

Starting a Business in Andorra

The Principality of Andorra offers a particularly attractive environment for setting up a company, combining competitive taxation, legal stability, and a secure economic environment.

Whether you are an entrepreneur, executive, or investor, Oryzon supports you every step of the way in setting up your business.
We take care of setting up your company and registering it with the Andorran authorities, and provide you with tailored tax advice in collaboration with trusted local partners (notaries, lawyers, accountants).

What types of Companies can be created in Andorra?

Company formation in Andorra is one of the most attractive options for entrepreneurs in Europe. With a corporate tax rate of just 10% and 0% on dividends, Andorra offers a competitive business environment backed by full legal stability.

The main types of companies in Andorra:

SL (Societat Limitada): Equivalent to a limited liability company, this is the most common structure for entrepreneurs and SMEs.
SA (Societat Anònima): Suitable for larger projects or those requiring a more institutional structure.
Holding company: Ideal for managing shareholdings, optimizing assets, or structuring groups.

Particularly promising sectors of activity:

Stores,
E-commerce,
New technologies,
Tourism.

Andorra offers a dynamic ecosystem for entrepreneurship, investment, and remote working, while maintaining a high quality of life. Less stress, more time for yourself, your family, and your projects.

What are the Advantages of an Andorran Company?

Creating and owning a company in Andorra means choosing to do business in a country that is small, modern, secure, and forward-looking.

Andorra’s tax system is one of the most attractive in Europe, while remaining clear, regulated, and compliant with international standards.

Some figures on Andorran corporate taxation:

Corporate tax: 10%
Capital gains tax: 0%
Dividend tax: 0%
I.G.I: 4.5% (equivalent to VAT)

These conditions enable entrepreneurs and investors to develop their businesses within a clear and stable tax framework.

Why Set Up your Andorran Company with Oryzon?

Are you an entrepreneur or investor looking to set up your company in Andorra with complete peace of mind?

Oryzon provides personalized support, taking into account your current situation, your objectives, and the specific features of your project.

The steps taken by Oryzon:

Creation, optimization,and registration of your file.
Rigorous follow-up: you are kept informed of progress at every stage.
Referrals to local experts (accountants, notaries, lawyers).

We provide comprehensive support for your case, from preparation to the actual creation of your company, working closely with the Andorran authorities and our local partners.

Complete Guide to Starting a Business in Andorra in 2026

Starting a business in Andorra is one of the most effective strategies for legally optimising the taxation of your business. With a 10% corporate tax rate, no wealth tax and a stable regulatory environment, Andorra has become a privileged destination for European entrepreneurs — particularly British, French and Spanish — who want to structure their business activities optimally.

Available Legal Structures in Andorra

Andorra offers several legal structures adapted to different business needs:

Societat de Responsabilitat Limitada (SL): equivalent to a UK Limited company, minimum capital of €3,000, the most common structure for SMEs and entrepreneurs. Limited liability, flexible management and reduced administrative costs.
Societat Anònima (SA): equivalent to a PLC, minimum capital of €60,000. Recommended for larger structures or those requiring multiple shareholders. Allows the issuance of tradeable shares.
Andorran Holding: a structure designed to hold stakes in other companies. Benefits from dividend and capital gains exemptions under specific conditions. Widely used for tax optimisation of business groups.
Branch: an extension of a foreign company in Andorra. Allows business activities in Andorra without creating an independent legal entity.

Favourable Taxation for Andorran Companies

The corporate tax rate in Andorra is 10% on taxable profits, with no minimum alternative tax. Newly created companies benefit from a full tax exemption during the first two financial years of activity. R&D expenses are deductible at 150% of the actual amount, and investments in new business equipment enjoy a 35% deduction.

Dividends distributed to shareholders resident in Andorra are exempt from tax when certain conditions are met (stake exceeding 25%, minimum holding period). Capital gains from the sale of shares in Andorran companies are exempt under the same conditions. IGI (Andorran VAT) is 4.5%, the lowest in Europe, which represents a real competitive advantage for companies billing in the local market.

Steps to Create Your Company in Andorra

The process of setting up a company in Andorra follows precise steps that Oryzon manages entirely on your behalf:

Foreign investment authorisation: if the founder is not an Andorran resident, prior authorisation from the Govern d’Andorra is required (processing time: 4-6 weeks)
Company name reservation: verification of name availability in the Registre de Societats Mercantils
Notarial incorporation: drafting and signing of the articles of association before an Andorran notary, deposit of share capital
Registration in the Registre de Societats: registration of the company in the Andorran commercial register
Obtaining the NRT: tax registration number with the Departament de Tributs i Fronteres (ATA)
CASS registration: registration with Andorran social security if the company has employees
Bank account opening: opening a current account with an Andorran bank

Frequently Asked Questions

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