Starting a Business - Andorra

Non-residents may hold up to 100% of an Andorran company's capital across more than 200 economic sectors. Prior government authorization is mandatory when a single foreign investor's direct or indirect stake exceeds 10%, or when total collective foreign ownership reaches 25% or more.

Law 5/2025 (Llei Òmnibus), published in the BOPA on 26 March 2025 and in force from April 2025, fully repealed Law 10/2012 and introduced stricter controls on beneficial-ownership disclosure, source-of-funds verification, and real-estate investment limits. It is the current primary instrument regulating foreign investment.

The most common vehicle for foreign investors is the Societat Limitada (SL / LLC), requiring a minimum share capital of €3,000, fully paid on incorporation. A Societat Anònima (SA / joint-stock company) requires €60,000 minimum capital.

The process involves six main steps: (1) company name reservation via e-tramits.ad (~5–10 business days); (2) foreign investment authorization from the government registry (~20–30 business days, requiring passport, criminal-record certificate, source-of-funds proof, and business plan); (3) bank account opening and capital deposit in an Andorran bank; (4) notarial deed of incorporation; (5) registration with the Registre de Societats Mercantils (Commercial Registry) and receipt of NRT tax ID; (6) commercial licence from the local Comú and registration with the social-security fund (CASS).

End-to-end incorporation typically takes 2–4 months; the bank compliance and comú commercial-opening stages are usually the slowest. Professional service costs commonly range from €6,000–€11,000, excluding the mandatory share capital deposit.

Since 2021, both the foreign investment authorization application and the company-name reservation can be submitted electronically through the official government portal (e-tramits.ad), with resolutions also notified digitally, reducing in-person requirements for preliminary steps.