Steps to create a company in Andorra
Following the result of the survey that we launched last week on our Instagram, in which we asked what topic the audience preferred to read about in this blog, what was promised is what was promised and here we bring you the most voted article 'Steps to create a Society in Andorra'.
Creating a company in the Principality of Andorra involves following certain steps and meeting specific requirements. From RS Thomas Real Estate we indicate the basic steps to follow.
There are two models of entities to create companies or companies in Andorra:
- The S.L. (‘Sociedad Limitada’ or a Private Limited Company). This type of company is the best option for those who want to create small companies or businesses. In the case of being a single shareholder, an S.L.U. (SL unipersonal).
- The S.A. (‘Sociedad Anónima’ or a Public Limited Company). This type of company is the one you should create in the case of companies with a higher turnover and normally with various shareholders who contribute capital. As in the previous case, if it were constituted by a single shareholder, the company could be created as a Unipersonal Limited Company (S.A.U.).
1. Define the type of company: Decide what type of company you want to create in Andorra. Common options include the Private Limited Company (SA) and the Limited Liability Company (SL).
2. Choose a company name: Choose a unique name for your company. You should verify that the name is available and complies with local regulations. It is important to differentiate, if necessary, the company name from the brand name.
It is important to differentiate, if necessary, the company name or trade name from the brand name. The company name is the legal signature by which the company will be known and must appear on the invoices. The brand is a name and can also include graphic material.
3. Constitution and statutes: Prepare the company's statutes. These documents should include details about the company's structure, purpose, share capital, management and other important aspects.
4. Share capital: Deposit the required share capital in an Andorran banking entity in the name of the company being formed. The amount of share capital varies depending on the type of company.
5. Appoint administrators: Appoint the administrators of the company. They must be natural or legal persons who meet the legal requirements and can represent and manage the company.
6 Application for authorization: Submit an application to the Andorran Commerce Registry (Registre de Comerç, i.e. “Commerce Registry”) to obtain authorization to establish the company. You must provide the required documents, such as the bylaws and information about the directors.
7. Obtaining authorization: Once the authorization is granted, proceed to sign the statutes and other required documents before an Andorran notary.
8. Registration in the Commercial Registry: After signing the documents, the company will be officially registered in the Commercial Registry. This will give legal personality to the company.
9. Compliance with tax requirements: Complies with the company's tax obligations. This includes registering the company with the Andorran Tax Agency and complying with tax reporting requirements.
10. Bank account opening: Open a bank account in the name of the company in an Andorran bank.
11. Comply with current obligations: Once the corporation is created, it must comply with current legal and tax obligations, such as the presentation of financial reports and the payment of taxes.
The decision to establish a business in Andorra should be based on a thorough assessment of your business objectives, financial needs and personal circumstances. I recommend that you consult with legal, tax and financial advisors before making any decision.
We recommend a good prior market study and, if you want to start a business in the principality and do not yet have a well-defined idea about what type of business to create, we recommend taking a look at the booming premises and businesses of the last 3 years until now.
Would you like to read an article on our blog about booming businesses in Andorra from 2021 to the current year (2023)?
If so, stay tuned for our upcoming articles and on our social media!