When you decide to set up your business in the Principality of Andorra, one of the key steps is to register it there. This involves more than just choosing a postal address; it also requires you to comply with a series of legal and technical requirements that are essential for operating correctly.
Table of contents:
- Why is it mandatory to register your company in Andorra?
Why can’t one set up a company without a valid registered address in Andorra?
Minimum requirements for registering a company in Andorra
Fiscal domicile and registered office: are they the same thing?
What happens if a business is not correctly registered?
Can one change a company’s registered address at a later date?
Types of business addresses that exist in Andorra
Can a company’s registered address be a ‘co-working’ area in Andorra?
The advantages of setting up a company in Andorra
Register your business correctly to avoid surprises
Why is it mandatory to register your company in Andorra?
To register a company in Andorra, one must establish its legal and administrative headquarters within Andorran territory. This means that the company must have a valid physical address where the business is actually controlled and managed. A P.O. box or fictitious address is not sufficient, as the Andorran administration requires clear evidence of the company’s presence and activity in the country.
This requirement applies both to newly created companies and to those relocated from abroad. Article 4 of Law 20/2007 concerning public limited companies and limited liability companies states: ‘The company’s registered office must be in the Principality of Andorra‘.
Why can’t one set up a company without a valid registered address in Andorra?
To operate in Andorra, all companies must have a registered office there. This requirement is directly linked to the obtention of an NRT (Fiscal Registration Number) and to registration in the Registry of Companies. Without a valid address in the Principality, the administration will not authorise commercial activity or the issue of invoices.
This also affects compliance with fiscal and employment obligations, including the recruitment of employees and the submission of annual balance sheets.
Minimum requirements for registering a company in Andorra
In order to correctly formalise a company’s registered address in Andorra, the following documents must be provided:
- A rental contract or property deed in the name of the company or one of the partners.
- The certificate of habitability or the licence to use the premises.
- Municipal permits, if the activity is open to the public. These are issued by the ‘Comú’, the local council in Andorra.
- Registration at the relevant Comú.
- A minimum real and operational presence, which may include furniture, internet access and staff.
All documentation must be complete and correct before proceeding to registration with the relevant authorities.
Fiscal domicile and registered office: are they the same thing?
Although the terms are often used interchangeably, in Andorra the registered office and fiscal address do not necessarily have to be the same. The registered office is a company’s legal address, whereas the fiscal address is the place where, from the fiscal point of view, its business activity is actually managed
According to Law 95/2010 governing Corporation Tax, a company will only be regarded as fiscally resident in Andorra if its registered office and real place of management are both located within the Principality. In other words, simply registering an address is not enough; there must be a physical location from which business decisions are made.
Consequently, correctly establishing a company in Andorra involves having both the legal address and the fiscal address there, as well as demonstrating actual operations.
What happens if a business is not correctly registered?
The consequences of incorrect establishment can be serious:
- Rejection of registration in the Registry of Companies.
- Impossibility of obtaining the NRT.
- Fines from the fiscal authorities.
- Impossibility of opening a bank account.
So it is essential to register your company in Andorra with guarantees to protect your investment and operations from the first day.
Can one change a company’s registered address at a later date?
The process involves notifying all the relevant authorities again: the Registry, the Council, and Social Security. If the new address is in a different parish, you must also comply with the new municipality’s specific regulations.
We therefore recommend choosing a registered address that can be adapted to your company’s medium-term needs. Good planning from the outset will help you avoid unnecessary paperwork later on.
Types of business addresses that exist in Andorra
In Andorra, there are several ways to register a company:
- At a business address in commercial premises: for activities that require customer service or storage.
- At a private office address: for digital, consulting or financial companies.
- In a ‘co-working’ area: this is accepted if the conditions of exclusivity and physical presence are fulfilled.
The Government reviews each case to prevent fraud. The registered address must be consistent with the declared activity.
Can a company’s registered address be a ‘co-working’ area in Andorra?
Yes, but only if certain legal and operational conditions are fulfilled. It’s not just a matter of providing an address; you must also demonstrate an effective and verifiable presence in that space. The ‘co-working’ area must comply with the conditions required by the Companies Registry, the Comú and the Administration. If these conditions are not fulfilled, registration may be refused.
The advantages of setting up a company in Andorra
One of the reasons why many people choose to set up a company in Andorra is its attractive fiscal system. With corporation tax at 10% and VAT at 4.5%, Andorra’s fiscal conditions are among the most competitive in Europe.
However, to benefit from these advantages, the registered office must be genuine and operational.
Moreover, Andorran legislation provides a stable legal environment. When one sets up a company in Andorra, one also gains easier access to double taxation agreements and to the local banking system. The latter requires the company to be established in Andorra before opening business accounts.
Register your business correctly to avoid surprises
To benefit from the reduced taxation offered by Andorra, registering your company or partnership is a mandatory but also strategic step. It affects the entire legal, fiscal and operational structure of your business. It is therefore essential to do this with accurate information and the support of local professional people who understand the local requirements.
At Advantia Assessors, we accompany you through every stage of the process of setting up your company in Andorra, and we ensure that your registered office complies with all legal and practical requirements. If you have just moved to Andorra to work or start a business, we can help you get off to a good start. Have you any questions about how to register your company in Andorra? Contact us and we will advise you