Andorra has become an attractive destination for entrepreneurs, business owners and international professionals looking to develop their activities in a stable business environment with international opportunities.
However, starting a business in Andorra involves much more than choosing a company name, opening a bank account and signing incorporation documents before a notary.
The process requires careful planning, particularly when foreign shareholders, international investments or plans to establish residency in the Principality are involved.
How much does it cost to establish a company in Andorra? What documents are required? Do you need to live in the country? How long does the incorporation process take?
In this guide, we explain the main steps involved in setting up a company in Andorra in 2026, together with the essential considerations to address before beginning the process.
1. Can foreigners start a business in Andorra?
Yes. Foreign investors can establish companies in Andorra, provided they comply with the applicable legal requirements and obtain any necessary authorisations.
Andorran citizenship is not required to own shares in an Andorran company.
However, foreign participation may be subject to a foreign investment authorisation procedure, depending on the investor's circumstances and the nature of the proposed transaction.
The authorities may also request information about the intended business activities, ownership structure, ultimate beneficial owners and source of funds.
Before starting the incorporation process, it is therefore important to establish who the shareholders will be, how the company's capital will be distributed and what economic purpose the business will serve.
2. What types of companies can be established in Andorra?
Several legal structures are available. The most common include the following.
Private Limited Liability Company (SL)
The Societat de Responsabilitat Limitada is one of the most widely used structures for small and medium-sized businesses, consulting firms, professional services and commercial activities.
The minimum share capital is €3,000.
Single-Member Private Limited Liability Company (SLU)
An SLU is a limited liability company owned by a single shareholder.
It may be suitable for entrepreneurs who wish to operate through their own corporate structure without involving additional shareholders.
The minimum share capital is also €3,000.
Public Limited Company (SA)
The Societat Anònima may be appropriate for larger business projects or more complex investment structures.
The minimum share capital is €60,000.
Choosing the appropriate legal structure should depend on the nature of the business, its organisation and its future development plans, rather than solely on the amount of initial capital available.
3. What are the steps to incorporate a company in Andorra?
Although every case has its own characteristics, the incorporation process generally involves several stages.
Step 1. Obtain an Administrative Identification Number (NIA)
Foreign investors who do not already have an Andorran Administrative Identification Number, known as the NIA, may need to obtain one before completing certain administrative procedures.
This is generally one of the first steps in preparing the incorporation file.
Step 2. Reserve the company name
The proposed company name must be approved through the relevant registration procedure.
Applicants generally submit three proposed names in order of preference, together with information about the company's intended activities.
The proposed names must comply with the applicable company registration requirements.
Practical advice: choose distinctive company names to reduce the risk of rejection and avoid unnecessary delays.
Step 3. Apply for foreign investment authorisation
Where the proposed investment requires prior authorisation, the investor must submit the relevant application to the Government of Andorra.
Depending on the circumstances, the application may include:
Identification of shareholders and ultimate beneficial owners.
The proposed ownership structure.
Evidence of the origin and availability of funds.
A description of the intended economic activity.
Information about the business project and its planned development in Andorra.
Where required by law, the authorisation must be obtained before the investment is formally completed.
Step 4. Prepare the share capital and banking documentation
Establishing a private limited liability company requires a minimum share capital of €3,000.
Under the usual incorporation procedure, this capital is deposited with an Andorran banking institution, which issues the corresponding certificate.
The bank may request additional documentation to comply with its customer due diligence and anti-money laundering obligations.
It is important to distinguish between share capital and incorporation expenses.
Share capital represents a contribution to the company, whereas administrative fees, notarial expenses and professional fees are costs associated with establishing the business.
Step 5. Sign the deed of incorporation before a notary
Once the necessary authorisations have been obtained and the required documents prepared, the company is formally incorporated through a public deed executed before an Andorran notary.
The deed generally includes the articles of association, shareholder details, share capital and management arrangements.
The company is then registered with the Andorran Commercial Companies Registry.
Step 6. Complete the Commercial Registry procedures
Where the intended activity requires a commercial authorisation, the relevant procedures must be completed with the Andorran Trade and Industry Registry.
Depending on the business, additional requirements may apply to the registered office, premises, operating licences or sector-specific authorisations.
Not all companies are subject to identical obligations.
For example, a company established exclusively to manage its own assets may be subject to different requirements from a business operating commercial premises open to the public.
Step 7. Organise tax, accounting and employment obligations
Once the company has been incorporated, its administrative and financial operations must be properly organised.
Depending on the circumstances, this may include bookkeeping, tax filings, annual accounts, registrations with the relevant authorities and obligations towards the Andorran Social Security Fund (CASS) where social security contributions apply.
Company incorporation is therefore only the first stage of running a business in Andorra.
4. How much does it cost to start a business in Andorra in 2026?
The overall budget depends on the legal structure, foreign ownership, the intended activity and the specific characteristics of the project.
The following amounts provide an initial reference.
ItemIndicative amountMinimum share capital for an SL or SLU€3,000Minimum share capital for an SA€60,000Company name reservation€5.69Foreign investment authorisation application, where applicable€300Notarial and registration expensesDepending on the case and applicable feesCommercial authorisations and additional proceduresDepending on the activity and municipalityProfessional advisory servicesDepending on the scope of services
Share capital should not be treated as an administrative expense. It is a financial contribution to the company.
It is equally important to distinguish company incorporation costs from any financial conditions associated with obtaining a residence permit.
A realistic budget should therefore take into account the entire business project, rather than the incorporation procedure alone.
5. How long does it take to incorporate a company in Andorra?
There is no single timeframe applicable to every incorporation.
The duration depends on factors such as document preparation, company name approval, foreign investment authorisation, banking compliance reviews and notarial availability.
The foreign direct investment authorisation procedure provides for an ordinary maximum decision period of two months, with the possibility of a one-month extension.
This does not mean that every application will take that long or that the company will automatically be incorporated once the authorisation has been granted.
Preparing complete and accurate documentation in advance can help make the process more efficient.
6. Do you need to live in Andorra to own a company?
Not necessarily.
Foreign individuals may hold shares in an Andorran company without automatically being required or entitled to reside in the country.
However, entrepreneurs who intend to relocate to Andorra to manage their business personally must examine the requirements for the appropriate residence and work authorisation.
Establishing a company in Andorra does not automatically grant Andorran residency.
Foreign investment authorisation, company incorporation and immigration authorisation are separate legal procedures.
This distinction is particularly important for business owners who intend to relocate with their families or change their tax residency.
7. What has changed for foreign-owned companies?
Andorran legislation has strengthened the monitoring of foreign investments and the requirements relating to genuine economic activity.
As a general rule, companies established through foreign direct investment and subject to the relevant regime must develop effective economic activity within 18 months of incorporation.
Compliance may require evidence of registered business activity, fulfilment of accounting obligations and certain economic indicators, depending on the applicable conditions.
Establishing a company without a genuine business plan may therefore create difficulties at a later stage.
The legal structure should reflect a real economic project with clearly defined business objectives.
8. Five common mistakes when starting a business in Andorra
1. Incorporating a company without clearly defining its activities
An imprecise description of the company's corporate purpose may complicate the process of obtaining authorisations or carrying out additional activities.
2. Confusing company incorporation with residency
These are separate procedures. Where the project involves relocating to Andorra, they should be planned and coordinated from the beginning.
3. Underestimating banking documentation requirements
Identifying shareholders and ultimate beneficial owners, together with documenting the source of funds, may require specific supporting evidence and additional preparation time.
4. Overlooking ongoing operating expenses
Beyond initial incorporation costs, entrepreneurs should consider accounting, taxation, potential social security contributions, registered office expenses and general operating costs.
5. Choosing a corporate structure that does not suit the project
Different business activities may require different legal structures, authorisations and management arrangements.
Choosing an appropriate structure from the outset can help avoid unnecessary changes and additional expenses later.
9. What documents should you prepare?
Although the final documentation requirements depend on the specific case, it is generally helpful to prepare:
Passports or identity documents for all shareholders.
Information about the investors' addresses and countries of residence.
Three proposed company names.
A detailed description of the intended business activities.
The proposed shareholding structure and management arrangements.
Documentation supporting the source of funds.
Professional and business records, where applicable.
Information identifying ultimate beneficial owners.
Additional corporate documents where foreign companies are participating in the investment.
Foreign documents may require legalisation, an apostille or translation, depending on the circumstances.
10. Starting a business in Andorra: why planning matters
Andorra offers interesting opportunities for entrepreneurs and international investors, but every business project requires an individual assessment.
Establishing an international consulting company is not the same as opening a retail business, carrying out a regulated activity or creating a company dedicated to managing its own assets.
Banking, tax, administrative and immigration requirements may differ considerably.
At NEXORY GROUP, we assist entrepreneurs, investors and international professionals with the planning and administrative procedures involved in establishing companies in Andorra.
Our role is to coordinate the necessary formalities, anticipate documentation requirements and help ensure that each project is developed through a corporate structure aligned with its objectives.
Thinking about starting a business in Andorra?
Before beginning the incorporation process, it is important to define your business project, identify the necessary authorisations and understand the associated costs.
Contact NEXORY GROUP to discuss your plans to establish a company in Andorra and explore the administrative steps involved.
NEXORY GROUP — Your Vision. Our Expertise.
Informational article updated in October 2026. Requirements, administrative fees and procedures may vary depending on the transaction and applicable legislation. Each business project should be assessed individually.