We answered to some of the most common questions related to starting of a company associated with obtaining a residence permit.
Did not find answer in our FAQ? Please email us and we will respond as soon as possible:
We answered to some of the most common questions related to starting of a company associated with obtaining a residence permit.
Did not find answer in our FAQ? Please email us and we will respond as soon as possible:
Starting companies in Andorra
Residence in the Principality of Andorra
Can you create a company in Andorra if you are not a resident?
Yes, but in this case, you must obtain prior permission from the government to create a company with foreign participation. The application requires a brief business plan, covering the first 5 years of the company activity.
Can an Andorran company conduct business worldwide?
Oh sure. To start trading activities inside or outside Andorra, it is necessary, however, to register in the municipality where the company is located.
How long does it take to create a company in Andorra?
Around 45 days. Within 30 days, you can obtain the government authorisation for the creation of a company by a non-resident. Approximately 5 days are needed to open a company bank account and pay the required corporate capital, provided that the bank already has an idea about the client and the proposed business, and is interested in opening the account. Notarial proceedings for the creation of a company are completed within one day, and certificate of company registration from the Companies Register can be obtained within another week.
Do I need special permissions or licenses to open a company?
No. If we are not talking about financial services companies.

Some activities must be registered in the local municipality where the company office is located, particularly those relating to trading activities. For successful registration, you may be required to provide documents confirming:

 — the legality of the company, the availability of relevant certificates and other permits (for example relating to trade or manufacture of pharmaceutical, bio-additives, food products, agricultural products, etc.);

 — the relevant experience of the shareholder or director of the company.
What are the costs of opening a company?
Once the decision to register is made, we draw up an individual roadmap, indicating the costs at each stage of the creation of the company. A typical map might look like this:

  • Obtaining an identification number, a certificate of company name approval and filing of an application for the creation of a company by a non-resident — the cost of this service includes the payment of fees — € 750;
  • Opening an account with a local bank — € 750;
  • Preparation and approval of the company's funding acts € 1750;
  • Notarial deed up to € 1000;
  • Annual company tax of € 851 for SL (limited liability company) — first-year tax is charged through notary at the moment of the company constitution
  • Obtaining a tax number — € 150;
  • Registration of commercial activities in the municipality. The cost of services depends on the number of declared types of economic activity and the complexity of application process (whether or not coordination with industry departments is needed) — from € 550 + payment of state duties in the amount of € 201.56 + € 214.21 annual tax for companies with trading, industrial or service activities.
Complicate businesses or business structures may trigger higher fees.
What address can a company be registered at?
Although it is recommended that the company has its own office space, the company can be registered at an office or home address of one of the company participants or directors.

Temporary registration is possible at the address provided by your consultant in Andorra, but if the company will conduct trading activities it will need an individual address to obtain registration.
What are the costs associated with maintaining the company and office?
Here is a sample list of expenses:

  • Office rental € 400
  • Electricity € 20−30
  • Communication € 50
  • Apartment/office insurance, € 100 per year
  • Accounting € 150 per month
  • Back Office Services € 150 per month
  • The annual company tax is € 851 for SL and € 935.50 for SA or € 214.21 for companies that have registered trading activities
  • The municipality services annual charge, it varies depending on the type of activity and the administrative district
What documents do I need to provide to create a company?
  • Notarized copy of passport
  • Certificate of no criminal record
All documents need to be apostilled and translated into Catalan, Spanish or French. The validity period of the document (and the apostilles!) is 3 months, so we recommend obtaining them only upon our request.
What actions do I need to take to organize a company?
We will recommend the optimal procedure for you based on your personal tasks and preferences. For example, in the case when the client's time is limited, and there is already a readiness to create a company, we can issue a notarized power of attorney to perform ALL necessary actions for opening a company, including notarial ones. In this case, the client can come to Andorra just once, visit a notary, a bank (we recommend it!), and later come when the company is ready for the next steps — organizing an office, selecting employees, obtaining a residence permit (undergoing a medical examination), and so on.
Is it possible to purchase a ready-made company?
Yes. But this is not always the best option. In case of transfer of shares to a non-resident, it is still necessary to obtain permission for foreign investment from the authorities. In addition, there are no shelf companies here, and the business that the company ran before the change of ownership may not necessarily meet the requirements of the law.
Can a non-resident be a director or shareholder of a company?
Can I get a residence permit in Andorra based on the location of my business there?
How many days in a year do I need to live in Andorra to maintain my residency status?
90 days in the case of a "passive residence" that is not related to working in Andorra and obtained on the basis of the investment.

More than 180 days if the basis of the investment was the creation of a business and commitment to work in Andorra. You need to understand that this is the state's expectation with respect to the so-called "active" residents, who obtained their residence permits stating that they will conduct business here and predominantly live in Andorra, establishing their centre of vital interests here.
How soon can my family get a residence permit with me?
As a rule, after one year. There may be individual exceptions.
How can I get a residence permit in Andorra?
You can get the right to reside in Andorra in various ways. The two main ones are starting a business and investing.

If you intend to change your place of residence and are ready to spend more than 180 days a year in the Principality, you should consider opening a company here and reallocate all or part of your existing business, or establish a new one. In this case, you receive the status of an "active" resident of Andorra — an entrepreneur. Please read our FAQs on starting companies in Andorra.

If you are accustomed to greater freedom, then the option of residence for investors, giving you the status of "passive resident", is more suitable for you.
What are the investment options for permanent residence?
This may be a purchase of a real estate, placement of funds in a deposit account with a local bank, or purchase of bonds issued by local issuers and approved for immigration purposes. Your Bank will be able to offer you various options, taking into account your goals. It can be a mix of 2 or more types of investments, it is important that they amount to a minimum of 350,000 euros.

In addition to such an investment, the resident deposits € 50,000 with a dedicated account of the local financial regulator.

Both parts of the investment should be maintained all the time during the residency period, however, they will be fully refundable in the event of termination of the residence.
At what point do you need to choose one or another option?
You can decide on the choice of such an investment within 6 months after you receive permanent residence documents.
Do I need to live in Andorra at the time of application?
At the time of filing the immigration dossier, the applicant should already have an address in the territory of the Principality. It can be rented or owned property.
How much time in a year do I need to live in Andorra to maintain my residency status?
90 days in the case of a "passive residence" that is not related to working in Andorra and obtained on the basis of the investment, and more than 180 days if the basis of the investment was the creation of a business in Andorra, the so-called "active residence".

You need to understand that this is the state’s expectation with respect to the so-called "active" residents of Andorra, who stated when receiving permanent residence permits that they will conduct business here — predominantly live in Andorra, establish their centre of vital interests here.
What documents do I need to collect?
Documents include a passport copy, a certificate confirming marital status, a certificate of tax deductions for the last five years, a certificate of absence of a criminal record in the country/s of residence, documents proving participation in the capital of companies or employment. In addition, you need to obtain a medical insurance policy at any of the insurance companies of the Principality, as well as obtain a certificate from your bank confirming the adequacy of funds in your account. Sufficiency is defined by law as 300% of the minimum annual wage which amounts to approximately 40,000 euros for the main applicant and another 100% for each family member that is coming with you.

Documents must be apostilled, translated into Spanish, Catalan, or French. Due to the chronic congestion of the local migration service, we recommend that you book your appointment at least one month in advance of your planned visit.

In any case, we will create an individual list for you, with a full description of the residence application procedure for and the method of certification at the very beginning of our work with you.
Do children need permanent residence documents to enrol in school?
Strictly speaking, yes. But in fact — schools accept children when the documents of the parents are still at the stage of registration. Mandatory, however, are vaccinations in accordance with the approved list.
How soon can my family get a residence permit with me?c
You can immediately get permission for all members of your family by adding 10,000 euros, for each person included in the general dossier, to the deposit of 50,000 euros.
Do I need to come to Andorra personally to start the process?
We offer our clients fully remote service until their visit to the Immigration Service, which is associated with the need to undergo a medical examination. Children don’t need to attend this visit.
How long does the process take from the moment of application for a residence permit?
The deadline for making a decision is not formally established. From our experience — within 30−45 days.
Is it possible to change the residence status from "passive" to "active", and vice versa?
How long will it take to receive a return of placed investment deposits in the case of termination of residence?
It takes about 2 weeks to collect the necessary documents, and another 3−4 weeks to return the funds to the applicant’s account.
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