Laura and Raúl are two entrepreneurs with an online marketing project that is starting to pay off. Thinking long term, they decide to move the business to Andorra. Their first question is everyone's: where do I start, and in what order?
First the scenario, then the paperwork
Before moving a single document, you need to decide the best way to establish yourself: which structure suits you, whether residence is involved, and what tax implications the move has both at home and in Andorra. Choosing well here saves months later.
The steps, in order
Obtain the administrative identification number for each partner. It is the first procedure with the Govern, and everything else depends on it.
Choose the company type. As in Spain, the two usual options are the public limited company (SA) — designed for larger businesses — and the private limited company (SL), the natural route for most projects.
Reserve the company name. You propose three names to the Govern, and the decision confirming the name arrives in around a week.
Apply for foreign investment authorisation. If the partners are not resident in Andorra and hold more than 10%, the Govern must authorise the investment: business model, projections and personal documentation for each partner.
Open the bank account and deposit the capital. After the bank's compliance checks, each partner contributes their share and the bank issues the capital certificate for the notary.
Draft the articles of association and sign before a notary. Corporate purpose, registered office, management and allocation of share capital. With the name reservation, the investment authorisation and the bank certificate, the incorporation is signed and the company is entered in the Registre de Societats Mercantils.
Register the company with Tributs and the CASS, and complete the business registration with the Comú of the chosen parish. Once the permit to start trading is granted, the company can operate and invoice.
Order matters more than speed
A well-planned set-up is completed in two or three months. The same set-up, handled without rigour, can drag on for more than six months because of one requirement not properly met. It is the difference between knowing the way and discovering it as you go.
At IdeAnd we study your situation, assess the tax implications and carry out the set-up from start to finish: from foreign investment to day-to-day accounting. You focus on the business.