A: Andorra offers several business structures:

• SAU (Sociedad Anónima Unipersonal) - Single-shareholder limited company
• SL (Sociedad Limitada) - Private limited company (most popular)
• Partnership - General or limited partnerships
• Branch Office - Extension of foreign company
• Investment Funds - UCITS and alternative investment funds
• Trust Structures - Asset protection and wealth management

A: The typical timeline is:

• Name Reservation: 1-2 weeks
• Document Preparation: 2-3 weeks
• Registration Filing: 2-4 weeks
• Certificate Issuance: 1-2 weeks
• Total Timeline: 6-10 weeks
• With Banking: Add 2-4 weeks for account opening
• With Residency: Add 4-6 months for residency processing

A: The minimum share capital is €3,000 for Andorran limited companies (SAU/SL). This is significantly lower than many European jurisdictions and can be paid in cash or assets. The capital must be deposited in an Andorran bank account during the formation process.

A: Yes, 100% foreign ownership is permitted in Andorra. There are no requirements for local shareholders or directors. However, the company must have a registered office in Andorra and comply with local regulatory requirements.

A: Physical presence is not required for company formation. STRATTFORT™ can handle the entire process remotely using powers of attorney. However, you may need to visit Andorra for:

• Bank account opening (some banks require personal visits)
• Residency applications (if seeking Andorran residency)
• Business license applications (for regulated activities)

A: Total setup costs typically range from €15,000 to €25,000:

• Government Fees: €1,200 (registration)
• Professional Fees: €12,000-€20,000 (depending on complexity)
• Registered Office: €2,000-€5,000 annually
• Banking Deposit: €10,000-€50,000 (bank dependent)
• Notary Fees: €500-€1,000
• Translation Costs: €300-€800

A: Ongoing annual costs include:

• Corporate Tax: 10% on profits
• Annual Return Filing: €300-€500
• Registered Office: €2,000-€5,000
• Accounting & Audit: €3,000-€8,000
• Company Secretary: €2,000-€4,000
• Tax Advisory: €2,000-€5,000
• Total Annual Costs: €10,000-€25,000

A: Andorra is competitively priced:

• Setup Costs: Lower than Monaco, similar to Malta
• Annual Costs: Moderate compared to Switzerland
• Tax Rates: 10% corporate vs 25%+ in most EU countries
• Residency Investment: €400,000 vs €1M+ in Monaco
• Overall Value: Excellent for European tax optimization

A: Key tax benefits include:

• 10% Corporate Tax Rate - One of Europe's lowest
• 0% Capital Gains Tax - For Andorran residents
• 0% Inheritance Tax - Between spouses and direct descendants
• Maximum 10% Personal Tax - Capped personal income tax
• No Wealth Tax - No annual net worth taxation
• Territorial Taxation - Foreign income may be exempt
• EU Tax Treaties - Growing network with European countries

A: The 10% rate applies to:

• All Corporate Profits - Standard rate for most activities
• Reduced Rates Available - For certain activities (holding companies, intellectual property)
• No Minimum Tax - Only pay on actual profits
• Deductions Allowed - Standard business expense deductions
• Loss Carry-Forward - Losses can offset future profits
• Quarterly Payments - Tax paid in quarterly installments

A: Yes, Andorra offers excellent European tax optimization:

• EU Market Access - Strategic location between France and Spain
• Tax Treaty Network - Agreements with Spain, France, Portugal, Luxembourg
• Holding Company Benefits - Efficient structure for European investments
• Residency Planning - Personal tax optimization through Andorran residency
• Succession Planning - Favorable inheritance and gift tax treatment
• Professional Advice - STRATTFORT™ provides comprehensive tax planning

A: Andorra's indirect tax system:

• IGI (Indirect General Tax): 4.5% standard rate (similar to VAT)
• Reduced Rates: 1% and 2.5% for certain goods/services
• EU Customs Union: Special relationship with EU for trade
• Import Duties: Generally low or exempt for many goods
• Professional Services: Often exempt from IGI
• Export Activities: Generally zero-rated

A: Andorra offers several residency programs:

• Passive Residency: €400,000+ investment, minimal physical presence
• Active Residency: For entrepreneurs and business owners
• Self-Employed Residency: For professionals and freelancers
• Employee Residency: For employed individuals
• Temporary Residency: Short-term permits for specific purposes

A: The investment can be made through:

• Real Estate: Minimum €400,000 property purchase in Andorra
• Bank Deposit: €50,000 with Andorran Financial Authority (AFA)
• Business Investment: Investment in Andorran company or business
• Government Bonds: Investment in Andorran government securities
• Combination: Mix of above investment types to reach minimum

A: Residency processing timeline:

• Initial Application: 4-6 weeks
• Document Processing: 6-8 weeks
• Investment Completion: 2-4 weeks
• Background Checks: 4-6 weeks
• Approval & Issuance: 4-6 weeks
• Total Timeline: 4-6 months
• Renewal: Every 2 years initially, then longer periods

A: Physical presence requirements:

• Passive Residency: Minimum 90 days per year in Andorra
• Active Residency: Minimum 90 days per year
• Tax Residency: 183+ days for full tax benefits
• Flexibility: Can travel freely within Schengen area
• Monitoring: Andorran authorities track presence electronically

A: Major Andorran banks include:

• Andbank: Andorra's largest private bank with international presence
• Crèdit Andorrà: Leading commercial bank with comprehensive services
• Mora Banc: Specialized private banking and wealth management
• Banco Sabadell Andorra: Spanish banking expertise in Andorra
• Vall Banc: Commercial and investment banking services

A: Standard banking requirements:

• Company Documentation: Certificate of incorporation, articles
• Director Information: Passports, proof of address, CVs
• Business Plan: Detailed activities and financial projections
• Source of Funds: Documentation of initial capital sources
• Minimum Deposits: €10,000-€50,000 depending on bank
• Reference Letters: Professional and banking references
• Due Diligence: KYC and AML compliance documentation

A: Yes, Andorran banks offer:

• EUR Accounts: Primary currency (Euro)
• USD Accounts: US Dollar operations
• GBP Accounts: British Pound services
• CHF Accounts: Swiss Franc banking
• Other Currencies: Available upon request
• Investment Services: Portfolio management in multiple currencies
• Trade Finance: International trade financing facilities

A: Andorran banks provide:

• Private Banking: High-net-worth wealth management
• Portfolio Management: Professional investment advisory
• Family Office Services: Ultra-high-net-worth family services
• Trust Services: Asset protection and succession planning
• Real Estate Investment: Property investment opportunities
• Alternative Investments: Private equity, hedge funds, commodities

A: Andorra allows most business activities:

• Trading & Commerce: Import/export, distribution, retail
• Financial Services: Investment advisory, wealth management
• Technology: Software development, IT services, e-commerce
• Real Estate: Property investment, development, management
• Tourism: Hotels, restaurants, entertainment, ski resorts
• Professional Services: Consulting, legal, accounting, advisory
• Manufacturing: Light manufacturing and assembly

A: Some activities require special licenses:

• Banking: Requires banking license from AFA
• Insurance: Insurance license required
• Investment Services: Financial services authorization needed
• Gaming: Online gaming licenses available
• Telecommunications: Special permits required
• Pharmaceuticals: Health authority approvals needed

A: Office requirements:

• Registered Office: Required for all companies (can be virtual)
• Physical Presence: Not required for all business types
• Regulated Activities: May require physical office and local staff
• Residency Applications: Physical office may strengthen application
• Flexible Options: Serviced offices, co-working spaces available
• Costs: €2,000-€8,000 annually depending on location and services

A: Employment in Andorra:

• Local Hiring: Can hire Andorran and EU citizens freely
• Work Permits: Required for non-EU employees
• Social Security: Mandatory contributions for all employees
• Employment Law: Protective labor laws similar to EU standards
• Minimum Wage: Approximately €1,200 per month
• Skilled Workers: Good availability of multilingual professionals

A: Annual obligations include:

• Annual Accounts: Audited financial statements (companies >€600k revenue)
• Corporate Tax Return: Filed by September 30
• Annual Return: Company registry filing
• Social Security: Employee contributions and filings
• Statistical Surveys: Economic activity reporting to government
• Board Meetings: Regular governance meetings and resolutions

A: Yes, Andorra maintains high standards:

• OECD Compliance: White list jurisdiction since 2009
• Automatic Exchange: CRS and FATCA reporting implemented
• AML/CFT: Strong anti-money laundering framework
• EU Cooperation: Tax information exchange agreements
• Professional Standards: Licensed service providers required
• Transparency: Beneficial ownership registers maintained

A: Non-compliance consequences:

• Penalties: Fines for late filings or non-compliance
• Company Dissolution: Possible for serious violations
• Residency Revocation: For residency requirement breaches
• Banking Issues: Account closure for compliance failures
• Professional Support: STRATTFORT™ ensures ongoing compliance

A: Andorra vs Monaco comparison:

• Corporate Tax: 10% vs 33.33%
• Personal Tax: 0-10% vs 0%
• Setup Costs: €15-25k vs €30-50k
• Residency Investment: €400k vs €1M+
• Lifestyle: Mountain vs Mediterranean
• Privacy: Similar high levels
• EU Access: Both have special relationships

A: Andorra vs Switzerland:

• Corporate Tax: 10% vs 8.5-21%
• Setup Complexity: Simpler vs more complex
• Banking: Excellent in both
• Residency Costs: €400k vs CHF 250k+
• EU Relations: Andorra closer to EU
• Languages: Spanish/French vs German/French
• Lifestyle: Both offer mountain living

A: Andorra advantages:

• Tax Rates: 10% vs 35% (5% effective in Malta)
• Privacy: Stronger banking secrecy
• Lifestyle: Mountain vs Mediterranean
• EU Membership: Malta/Cyprus are EU members
• Complexity: Andorra simpler structure
• Costs: Competitive with both jurisdictions

A: Excellent for holding structures:

• 10% Corporate Tax: On dividend income
• Participation Exemption: Potential exemptions for qualifying holdings
• Treaty Network: Growing double taxation agreements
• EU Access: Strategic location for European investments
• Flexible Structure: Adaptable to various holding arrangements
• Professional Services: Experienced advisors available

A: Yes, e-commerce is well-supported:

• Digital Infrastructure: Excellent internet and telecommunications
• EU Market Access: Easy access to European customers
• Low Tax Rate: 10% corporate tax on profits
• IGI (VAT) System: 4.5% on digital services
• Logistics: Good connections to Spain and France
• Professional Support: IT and digital marketing services available

A: Andorra is crypto-friendly:

• Regulatory Clarity: Clear framework for crypto activities
• Banking Support: Some banks work with crypto businesses
• Tax Treatment: 10% corporate tax on crypto profits
• Innovation Hub: Growing blockchain and fintech sector
• Professional Services: Crypto-experienced advisors available
• Compliance: Strong AML/CFT framework for legitimacy