Andorra is truly a great bustling business place for entrepreneurs who would like to embark on the journey of beginning their own business. It is highly beneficial to incorporate your business in Andorra due to the fact that you will have access to the wide span of advantages of Europe, but you will not have the high levels of taxes.
Andorra is also a preferred place for the registration of a business that is classified as off-shore if you do not reside in the region of Andorra. Due to the fact that stock exchanges do not exist in Andorra, the registries that are run by the government do not take a highly engaging role in terms of tracking the manner in which the ownership of a business tends to be traded.
As a result of Andorra being fairly small, this indicates that the rules pertaining to the forming of a business in the region of Andorra may deviate from your initial anticipated perception. Based on each of these premises, it is necessary to possess a plan prior to commencing the process of incorporating your company in the region of Andorra.
The government of Andorra also stipulates that the businesses must provide memorandum and articles of association in great detail for registration as well. These documents must clearly indicate how the business will conduct all its affairs. It can take up much time to make changes to such documents.
That means that it is not convenient to engage in purchasing a shelf company that already exists for the sake of practicing company formation.
Since the time of October 2012, it is within the parameters of the law for a company of Andorra to be under whole ownership or partial ownership by someone who does not reside in the region of Andorra. If the complete stake of ownership of the owners who do not reside in Andorra exceeds the amount of ten percent of the particular business, there will be the need for additional levels of approval by the government. Those who are not residents of Andorra who desire to engage in the formation of a business within Andora must obtain the approval of the Department of Foreign Investments.
Types of Companies
While the norm in other parts of the world is that they have a designated structure that applies to the formation of businesses, this is also true of the region of Andorra. As a result, this necessitates the implementation of decisions in relation to the formation of a business in Andorra. It is vital to be careful to decide on the best kind of corporate structure in regard to your business when it is time to register. There are diverse options that are available,which are based on the amount of liability the owners are willing to take and how large the business is. The government of Andorra permits the following types of registrations for businesses.
Societat Limitada (S.L.)
The Societat Limitada is the formation that you should decide upon for the majority of businesses that tend to be small. This is equal to a business with limited liability. It is necessary to have three thousand euros in order to qualify for Societat Limitada when it is time to form the business.
Societat Anonima (S.A)
Businesses that are larger in size which desire to establish ownership that involves multiple shareholders for the structure of the business will decide to use the Societat Anonima registration. The minimum amount of funds required for this type of registration is 60 000 euros, which are higher than the other types of registration.
More option selections available
Andorra does provide others options, such as the possibility of a registration to form a partnership of unlimited liability, which is referred to Societat Colectiva, or even a sole proprietorship. However, such types of registration are not all that popular. The rate of funds that are needed for incorporating a business are rather reasonable, so it usually is worthwhile to do this with the result of obtaining access to limitations of liability.
After you have decided on the type of business, the process is relatively easy. There are indeed some steps that must be followed, which are mentioned here for your further comprehension.
1. The name of the business must be registered
It is necessary to be careful that the name of your business will not be readily mixed up as being considered the name of another business that has already undergone registration. Any type of language that applies the usage of characters that are Latin may be utilized in the name of the business. The name no longer must be provided in the Catalan language.
2. Filing an application
It is necessary to make an application in regard to the incorporation of your business in Andorra. During this process, you will need the identification documents of all directors of the business, which will also include criminal record checks from the nation of your birth and the nation where you reside at the present time. Moreover, it will be required for you to show proof from your bank in Andorra that you possess an account that truly has the right amount of money in it that is required for the payment of the registration.
3. Contact a notary
Then you will need to seek the services of a notary in order to complete the registration of your business. The notary will add your business to the Registre de Societats Mercantils.
4. The government registration
Finally, it will be important to complete the government registration. This will entail granting a copy of the lease of your business to the government at the local level as well as putting in a request to the tax administration in order to obtain a tax identification number.
The full cost of registering a business in the region of Andorra will be dependent partially on if you decide to use the services of a consultant to aid you through the process of the registration of the company. When you go through the process by yourself, in order to conduct the formation of a business in Andorra if you choose to make the business a Societat Limita, the cost will be about 1800 euros.
This takes into account the fees for the notary as well as the fees for the name registration. If you opt for the full service package, then the complete cost will equate to a base amount of four thousand euros. However, the truth is there are some consultants whose fees can reach as high as twenty-five thousand euros.
Would you like to set up your business in Andorra, please contact our specialists.
If company formation in Andorra seems complicated for you, as alternative, we can offer 1 day registration in Latvia.