Incorporating a Company in Andorra: Steps, Requirements and Key Advantages

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Incorporating a company in Andorra: beyond the formal process

Incorporating a company in Andorra is a technical process that requires planning, coordination, and legal knowledge.
It is not a quick or linear procedure: it involves commercial, banking, tax and administrative stages that must move forward in parallel with verified documentation.

When properly managed, the result is a solid and operational structure. If done hastily or using generic templates, the process can become lengthy, inefficient, and costly.

➤ To understand the legal and tax framework that makes Andorra compelling for company formation, we recommend reading Taxation in Andorra: structure, rates and real advantages.

1️⃣ Starting point: resident or non-resident

The first step depends on whether the future shareholder or director is a resident of Andorra.

👉 If you’re not yet familiar with active, passive and tax residency, see Types of residency in Andorra: active, passive and tax.

Non-residents must obtain an Administrative Identification Number (NIA), required for all interactions with the Andorran Administration.

This number is granted upon submission of legalized documentation (passport, criminal record, residence certificate, etc.).
Without the NIA, no formal process can begin.

Once incorporated, the company will receive its own Tax Registration Number (NRT), required for tax and administrative purposes.

🔹Foreign investment authorization

All non-resident shareholders must obtain a foreign investment authorization, a mandatory step to participate in an Andorran company.

This authorization, issued by the Government of Andorra, certifies foreign ownership of the capital and requires justification of the source of funds and the corporate structure.
Processing time usually ranges from 10 to 20 working days, provided the file is complete.

It is essential to prepare documentation carefully and ensure consistency between personal details, declared activity and company purpose, as any discrepancy can cause delays.

If you’d like to go deeper, you can read Foreign investment authorisation in Andorra: when it is required and how it works

🔹Andorran electronic certificate

Each shareholder or director who must sign documents or interact with the Administration needs an Andorran electronic certificate.
This certificate, issued by the Government, is mandatory for electronic signatures, filing tax declarations, and accessing official platforms.

It should be requested at the beginning of the incorporation process and is linked both to the individual and, later, to the company once registered.
Without this certificate, digital procedures or remote signatures are not possible.

2️⃣ Company name reservation

The name reservation is the first formal step before the Register of Companies.
The Registry ensures that no existing company or brand may be confused with the new one and prohibits the use of state-related terms without express authorization.

It is advisable to choose a neutral and flexible name that allows diversification of activities without requiring constant amendments to the bylaws.

3️⃣ Bylaws and corporate governance

This stage defines the company’s internal structure and rules.
The bylaws establish the corporate purpose, management system, transfer of shares, decision-making rules, and remuneration of directors.

Many service providers in Andorra use generic templates that do not reflect each company’s reality.
To ensure legal accuracy and operational flexibility, bylaws should always be drafted by a qualified professional familiar with Andorran corporate law.

👉 Tip: statutory changes have no retroactive effect. Planning ahead prevents unnecessary future amendments.

If you want to expand on this, you can read Company bylaws in Andorra: mandatory content and best practices

4️⃣ The director: role and requirements

The director does not need to be Andorran or a resident, although in certain cases it may be advisable to appoint a resident director, mainly for tax reasons — for instance, when the company’s activity or decision-making requires effective presence in Andorra.

However, physical presence is not mandatory, as powers of attorney can be granted for signing or representation purposes.

Possible structures include:

• Sole director.
• Joint or several directors.
• Board of directors.

The choice depends on the desired balance between control and agility.

Learn more in The board of directors in Andorran companies: composition, functions and liability.

5️⃣ Share capital and corporate structure

In Andorra, the two main legal forms are:

• Limited Liability Company (SL / SLU): minimum capital €3,000.
• Public Limited Company (SA): minimum capital €60,000.

In practice, most companies are incorporated as SL, while the SA form is reserved for specific cases (banks, insurers, or listed companies).
Foreign investors may hold 100% of the share capital, as no local participation is required.

For more detail, see Share capital in Andorra: minimums, contributions and how to structure it safely

6️⃣ Bank account and capital deposit

Before signing the deed of incorporation, the share capital must be deposited into an Andorran bank account opened in the name of the company under formation.
Banks carry out a strict KYC/AML procedure to verify identity, nationality, business activity, and source of funds.

For non-residents, this step may take longer but is perfectly feasible when the documentation is complete and properly coordinated.

👉 For the specifics of Andorra’s banking system and compliance process, see Andorra’s banking system: stability, regulation and account opening.

7️⃣ Public deed and company registration

With the reserved name, foreign investment authorization, bank certificate and bylaws, the company is formally incorporated before a notary.
Once registered in the Register of Companies, it obtains full legal personality.

8️⃣ Declaration of beneficial owners

All Andorran companies must declare their Ultimate Beneficial Owners (UBOs) and keep this information up to date.
Any change (such as transfer of shares or appointment of a new director) must be reported within the legal deadlines.

9️⃣ Tax registration and accounting obligations

After registration, the company must:

• File for tax registration with the Department of Taxes and Borders (DTF).
• Register for IGI (Andorran VAT), if applicable.
• Maintain proper accounting records from day one.
• File annual accounts with the Registry.

Compliance with these obligations ensures the company’s full operational capacity and avoids penalties.

➤ Further details in Tax and accounting obligations for Andorran companies.

🔟 Business license

Once the company is operational, it must obtain a business license (“autorització de comerç”), allowing it to conduct its activities legally.
This process includes:

• Approval of the trade name.
• Definition of the economic activity.
• Verification of the premises (authorized use, floor plans, fire safety, etc.).
• Compliance with sector-specific requirements (health, finance, education, etc.).

This is one of the slowest and most delicate stages, requiring coordination between the local Comú (municipality) and the Government.

Learn more in Opening a business and obtaining the commercial authorisation in Andorra: requirements and essential rules

1️⃣1️⃣ Timeline, costs and best practices

Average duration: between 8 and 12 weeks with proper coordination.
For cases involving foreign investment or complex banking processes, it may extend up to 6 months.

🔹Estimated external costs

Administrative and registration expenses include:

• Notary fees (around €500).
• Company Registry fees.
• Municipal taxes (for premises use or business registration).
• IRAE or IRAC trade license fees, depending on the activity.
• Foreign investment fee, where applicable.
• Name reservation and other registry charges.

In total, external incorporation costs typically amount to around €2,000, depending on the business type and the municipality.
This figure does not include professional advisory fees.

🔹Professional fees

Fees depend on the scope of services, number of shareholders, residency status, and complexity.
As a reference, they usually range between €3,000 and €10,000, depending on the activity, structure, and urgency.

If you want a detailed view of how much it costs to incorporate a company in Andorra, you can read How much does it cost to incorporate a company in Andorra: real expenses and an indicative budget

🔹Best practices

• Manage the NIA, investment authorization and bank account in parallel.
• Avoid deadlocked ownership (50/50 shareholders).
• Plan for growth and governance in advance.
• Draft tailored bylaws instead of using templates.
• Keep tax and accounting obligations consistently updated.

🔹Future obligations

Once the company is incorporated, recurring obligations come into play, such as corporate tax and ongoing accounting compliance. If you want to understand the ongoing cost, you can consult How much does it cost to maintain a company in Andorra? Fees, taxes and real costs.

Proper planning from the outset makes all the differencen

Incorporating a company in Andorra requires precision, coordination, and legal expertise.
The country offers an attractive tax environment and strong legal security, but the process is demanding and must be carefully planned.

The most common mistakes stem from poor advice or the use of standard documentation not suited to Andorran law.
Success lies in working with qualified professionals who understand administrative requirements, banking procedures, and corporate regulations.

Only then can a company be established efficiently, compliantly, and ready for long-term growth.

Now that you have the key concepts, if you want detailed and exhaustive information about the incorporation process, we recommend The definitive guide to incorporating a company in Andorra

📞 Considering incorporating an Andorran company?

At ELYSIUM, we are used to working with a wide range of profiles, businesses and circumstances. If you’d like us to help you structure yours with rigour and foresight, you can reach out via the contact form, or book your personalised and confidential meeting just below.

Last revision date: January 2026