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1.1.1. Main Forms of Doing Business

The common forms of doing business in Andorra are:

  • Company (Limited Liability (LLC) or Public Limited)
  • Foreign Business (Branch or Representative Office or subsidiary)
  • Holding Companies

Company

Companies can be formed either as Limited liability companies or as Public limited companies.

The key aspects of a Limited liability company include:

  • 100% foreign ownership is allowed
  • Can be formed by a minimum of two shareholders and one director
  • Minimum capital requirement is EUR 3,000

The key aspects of a Public limited company include:

  • Can be formed by a minimum of two shareholders and one director
  • Shares can be issued to the public
  • Minimum capital requirement is EUR 60,000

Foreign Business

Foreign business can conduct their operations in Andorra through the constitution of a Branch office or a Representative Office or a Subsidiary. The subsidiary can be LLC or Public Limited Company.

A Representative office is not regarded as a separate legal entity from its parent. It is only allowed to conduct market research and promote the activity of its foreign parent. It is not allowed to carry out any independent commercial activity in Andorra.

Similar to the Representative office, a Branch office also does not have a legal personality separate from its principal. However, a branch office can conduct commercial activities in Andorra.

Holding Companies

Holding companies are companies formed with the exclusive purpose of holding and managing shares/ participation in other non-resident entities. The key aspects of holding companies are:

  • 100% foreign ownership is allowed
  • Can be formed by a minimum of one shareholder and one director
  • Minimum capital requirement is EUR 3,000

Further, information on the general investment, tax and regulatory regime about the country is available at the following external references: