Options for registering companies in Andorra
The Principality of Andorra serves as a financial hub between France and Spain, under a regulatory framework aligned with OECD and European Union standards. Although not an EU member, its Customs Union agreement provides a stable corridor for the movement of manufactured goods within the European single market.
Corporate registration is governed by the Law on Business Companies. Following the 2026 Omnibus Law and Sustainable Growth reforms, the jurisdiction enforces strict economic substance requirements, mandating that all new entities demonstrate active business operations and local physical presence.
Andorra offers international investors the following legal structures for establishing a local presence:
Limited liability company (Societat Limitada - S.L.)
- The S.L. is the standard vehicle for small and medium-sized enterprises. It requires a minimum share capital of €3,000, which must be deposited in an Andorran bank prior to incorporation.
- Shareholders benefit from limited liability. The structure allows for a single shareholder (S.L.U.) and requires at least one managing director.
- New 2026 regulations for foreign-owned S.L. entities require a non-refundable contribution of €50,000 to the Andorran Financial Authority (AFA) if the owner applies for active residency.
Public corporation (Societat Anònima - S.A.)
- The S.A. is designed for large-scale enterprises and entities seeking to raise public capital. It requires a minimum share capital of €60,000.
- This structure mandates a formal governance framework, including a Board of Directors. It is the required form for businesses in the banking, insurance, and highly regulated financial sectors.
- Statutory audits are mandatory for an S.A. to ensure compliance with the Andorran accounting framework and international transparency standards.
Private foundation (Fundació Privada)
- The Private foundation is a non-profit legal entity used primarily for wealth management, succession planning or charitable purposes. It has no shareholders, only founders and beneficiaries.
- While the statutory minimum endowment is €30,000, current regulatory practices and banking compliance standards typically necessitate an initial endowment of €100,000 to demonstrate sufficient economic substance.
- The entity is governed by a Board of Trustees and overseen by the State Protectorate. It can hold shares in commercial companies (S.L. or S.A.) as part of a broader asset-holding strategy.
To help you choose the right structure, we have created an ‘at a glance’ summary table for the common company types that outlines key differences in formation processes, requirements and timelines. It serves as a valuable resource for foreign companies looking to set up or expand a business in Andorra.
Comparison of the common types of companies in Andorra
Information verified against Official Portal of the Government of Andorra
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