NEW CORPORATIONS IN ANDORRA
NEW CORPORATIONS IN ANDORRA
Andorra is a country that has experienced many changes with regard to the creation of corporations and the internal structure of its capital. Studies and statistics demonstrate that during an earlier period in Andorra, in terms of acquisitions of new corporations by different types of foreign investors, the rate of investment and likelihood of receiving capital was only 49%.
2012 marked a watershed in the history of Andorra, as various new reforms were established which, along with opening up international trade, gave rise to significant changes to the old legislation that had been established in the country with regard to the creation of new corporations.
From an international perspective, foreign people have benefited from the opportunity to create new corporations in Andorra. This significant reform also benefited the native inhabitants of the country. Since 2012, the country known as “the principality” has fully opened its doors to foreigners to allow them to create companies with capital investments outside the nation, this measure was also applied to companies already established in Andorra providing major taxationbenefits.
ENTITY MODELS FOR CREATING NEW CORPORATIONS IN ANDORRA
Creating a new corporation in Andorra can be accomplished through two types of entities: the “S L. or SOCIETAT LIMITADA” model, which means that the entity will be limited liability with a minimum share capital of€3,000, or the “S.A. or SOCIETAT ANÒNIMA” model, which requires a minimum share capital of €60,000.
REQUIREMENTS FOR THE CREATION OF A NEW CORPORATION IN ANDORRA
When opening a corporation in Andorrait is essential to have a corporate address – in other words, a physical space for the company – and an administrator (minimum).
The model that a corporation adopts must conform to the parameters of the two previously proposed models, without being an offshore entity, that is, a corporation registered in a country where it does not conduct economic activity. It is important that the newly created corporation or company submits quarterly and annual statements regarding its corporate activity.
THE ADVANTAGE OF CREATING A NEW CORPORATION IN ANDORRA
Anyone who intends to launch or create a new corporation in Andorracan enjoy certain benefits and features that are offered by the economy in this country, which is considered to be one of the most attractive places in the world to start a new corporation.
Statistically speaking, the maximum tax rate to pay would be 10% depending on the profits of the corporation, as well as another 2% for companies that stand out in the areas of international trade, international investment or financing, or international tariff management.