Types of companies in Andorra
- Limited liability company (Societad Limitada – SL)
- Responsibility
- Minimum capital
- Min. number of shareholders
- Generally, recommended for
- Limited liability company (Societad Limitada – SL)
- Limited
- 3,000 €
- 1
- SMEs
- Public Limited Company (Sociedad Anonima – SA)
- Limited
- 60,000 €
- 1
- Big companies
- Partnership (Sociedad Regular Colectiva)
- Unlimited
- No
- 1
- SMEs
Corporate tax rate in Andorra
In Andorra the highest corporate tax rate is 10%. But there are some reductions:
- For new entrepreneurs, the rate is 10% for the first 50 000 € of profit, only if the turnover is lower than 100 000 € for 3 years. Above 50 000 € the rate is the highest rate of 10%,
- Some lines of business, such as international exploitation of intangible assets can have the lowest rate of 2%,
- Holdings with market shares in other companies registered outside of Andorra are not taxable.
Questions
Why should I incorporate my company in Andorra?
- The taxation is very favourable.
- The VAT is the lowest in Europe at the rate of 4.5%.
- Infrastructures are effective.
- Andorra supports foreign investments and entrepreneurship.
Which difficulties can be encountered in Andorra?
- There are not sufficient transport infrastructures in Andorra. There is no airport or railway.
- Economy depends on tourism.
- Demography decreases.
Which are the cultural specificities of the world of work in Andorra?
- Official language is Catalan.
- Wearing formal dress is appreciated.
- Important business is done in the morning.
