Companies
With a corporate tax rate of 0-10%, Andorra is a highly tax-efficient jurisdiction for limited companies and holding companies, with few operational limitations
Limited liability company setup in Andorra
(SL - Societat de Responsabilitat Limitada)
An SL requires a minimum share capital of EUR 3,000 and can be incorporated by one or more partners, who are liable for company debts only to the extent of the contributed capital. An SL is suitable for small and medium-sized companies with few partners, family businesses or companies that do not require a large capital outlay.
Public limited company setup in Andorra
(SA - Societat Anonima)
The capital of an SA is divided into shares that can be freely transferred. Minimum share capital is EUR 60,000. Shareholders are not liable with their personal assets for the company’s debts, only up to the amount of capital they have contributed. This structure is normally used for larger companies with multiple shareholders.
Holding Companies in Andorra
Holding companies have the sole purpose of managing and owning shares in foreign companies. All dividends received by Andorran holding companies and the profits they generate are exempt from corporation tax, and dividends distributed to shareholders are also exempt from any personal taxation.
Foundations
Foundations are mostly used by institutions and companies for humanitarian work and social legacies. Minimum capital is EUR 100,000 and the foundation’s Board must include a director of Andorran nationality plus a secretary. There is no taxation on foundations in Andorra.
Andorran SICAV Funds
A SICAV fund is an investment entity where the fund enjoys full confidentiality as the participating partners do not appear in any public register. Minimum capital is EUR 1.25 million and there are generally no limitations to the asset classes the funds can invest in. Profits of these funds are tax-free, as well as any dividends to partners based in Andorra.