December 27, 2024
INCORPORATION OF LIMITED LIABILITY COMPANY IN ANDORRA
INTRODUCTION
Andorra’s most popular company structure is the Limited Liability Company(“LLC”), or Societat Limitada (“SL”) as it is known locally. This type of business requires a number of stages and particular requirements. Incorporating an LLC in Andorra offers several advantages, including a stable legal system, competitive corporation taxes, and a business-friendly environment. Along with registration and obtaining a permission, the procedure requires a minimum of €3,000 in funding. The well-regulated financial system and high level of living in Andorra make it an appealing alternative for entrepreneurs.
STEPS TO INCORPORATE LLC IN ANDORRA
- Reserve a Company Name: Choose a unique company name and reserve it with the Andorran government.
- Approval of Foreign Investment: If the shareholders are non-residents, an application for foreign investment approval must be submitted to the Andorran Ministry of Economy.
- Set up a Bank Account: Open a corporate bank account in an Andorran bank and deposit the minimum share capital (€3,000). The bank will provide a certificate confirming the deposit.
- Draft Legal Documents: Prepare company’s Articles of Association and other foundational documents with the help of a local notary or legal advisor.
- Notarization: Sign the incorporation documents in front of an Andorran notary.
- Register Your Company: Submit the notarized documents to the Andorran Company Registry to formally register your LLC. (Registre de Societats Mercantils).
- Complete Tax and Social Security Registration: Register for corporate taxes with the Andorran Tax Department and Enroll in the Andorran Social Security system (CASS) for any employees.
KEY REQUIREMENTS:
- Shareholders: SL may have one or more shareholders, who may be either people or businesses.
- Minimum Share Capital: At the time of incorporation, the minimum capital of €3,000 must be paid in full.
- Directors: A minimum of one director is required. They may be independent persons or shareholders.
- Registered Office: A physical address in Andorra is mandatory for the company.
- Nationality Restrictions: There must be at least one director. They could be shareholders or independent individuals.
CONCLUSION
In Conclusion, setting up a Limited Liability Company (SL) in Andorra is straightforward and requires a €3,000 minimum capital, a director, at least one shareholder, and a local office. With its low taxes, stable legal system, and supportive business environment, Andorra is preferable choice for entrepreneurs looking to grow their ventures in a secure and welcoming setting.
HOW WE CAN HELP?
- Our firm assist with the drafting and preparation of crucial legal papers. We also provide filing documents for company registration.
- Our team offers expert guidance on federal, regional, and local tax obligations to ensure your LLC complies with Andorra’s tax regulations.
- We assist in maximizing the benefits of tax exemptions provided by the Andorran government for LLCs.
For more information or queries, please email us at
[email protected]
Key Contact
Surendra Singh Chandrawat
Managing Partner
