Set Up Business in Andorra Has Reliable Process
Andorra is in the Pyrenees between big European countries which are France and Spain. Andorra is mountainous, and an independent microstate with an area of 181 square miles. Among the European microstates, it is the most populous that offers a healthy and pristine environment. The official language of Andorra is Catalan, and they also speak Spanish, French, Castilian, Portuguese, and English as there are expats that live in Andorra.
Andorra is a practical country to start a business, which is essential to entrepreneurs and investors.
Find out here what you can do to set up a business in Andorra as a foreign investor and more.
What You Must Do
- Set up a Societat Limitada, which is a limited liability private company, and it is ideal for start-up and small businesses. To register, you need a start-up capital of €3000. The registration for a state single is €1104.77 and €5.36 for the business registration tax. The state taxes are generally around €850 a year.
- You must make a reservation request for your company’s name. It is vital to give your company a unique difference from other companies in local organisms.
- It would be best if you then created company statutes, deposit an initial share capital after you open a bank account in Andorra. Make sure to provide documentation that is needed by the entity you choose. Present the company constitution to a notary to formalize the statues. Once this is done, you can start your activity.
- Andorra gives you the option to form an unlimited partnership, which is a sole proprietorship. It is less popular, but the incorporating costs are low, which makes sense to gain liability limitations.
- Make sure to pay the right fees and meet other requirements for the documenting, your identity, and how your business will operate. Even if you are a non-Andorra resident, you can still create companies, invest, and open trades in all types of assets.
Non-residents of Andorra may acquire properties or substantive laws, obtain public concessions that represent property private use.
- Understand how the tax works. Andorra is not part of the European Union, but it uses Euro. Also, it has a special status because the EU treats it as a member state for the trading of manufactured goods, but not in agricultural products.
The Reasons Why Set up a Business in Andorra
- They have favourable banking policies – Since they do not have their national bank, they can offer private-numbered accounts, and its most significant advantage is banking privacy. Most of the Andorran banks do not need a minimum, but they might charge an annual fee. Safety deposit boxes are standard in Andorra, which is being compared to the Swiss model.
- Andorra has a higher GDP per capita than the US, France, Japan, Spain, and Germany. They are in 5th place, according to the World Bank.
- The stability of Andorra’s political and economic climate is another reason. Even if it adopted the Euro as the national currency, it is not part of the EU, Eurozone, or EFTA. It also does not experience economic pitfalls from them.
- The tax burden to business owners in Andorra is the world’s lowest, and in Europe. The corporate tax of companies is only 10%, which could even decrease to 2%. Andorra is in the top 20 countries to do business.
- Andorra has options for high-class residency. Even Andorra citizenship cannot be easily obtained, and they offer temporary residency in this microstate. When it is proven that you are not parasitic to their social security system, you will be given residencies that can last for up to 10 years. The residency options that require you to stay in Andorra is only three months in a year.
Business Ideas in Andorra
Distance Selling or eCommerce Sales
It takes place without any simultaneous or physical presence of the buyer and sellers. The transaction is done between distance communication. Also, you can make a Facebook page, website, and more. Also, Andorra has attractive taxation for B2B commerce, which is more beneficial for you. The VAT figure is only 4.5%, but it is not always applicable.
Andorra has a thriving sector in agriculture so you can start a farm for livestock, tobacco, and potatoes. It is also like being in the food industry because you are producing something that people can eat every day. There will always be a demand for local agriculture products because it is part of necessities.
If you want to set up a business in Andorra, you can contact 3E Accounting to help you in getting started successfully even as a foreign investor.