Company formation in Andorra is, today more than ever, one of the most attractive business decisions for entrepreneurs and investors from all over the world. Andorra offers a competitive tax framework, legal stability, and an agile business environment for those who wish to establish themselves in the Principality.

In this guide, you will find everything you need to know: from the types of companies available to the specific steps, costs, and deadlines for opening a company in Andorra in 2026. And if you want to do it without wasting time or making mistakes, at the end we explain how OCPS can accompany you throughout the process.

Why create a company in Andorra in 2026?

Andorra is one of the few European territories that combines low tax pressure, excellent quality of life, and access to international markets. Some of the main advantages for companies are:

• Corporate Income Tax of 10% (one of the lowest in Europe).
• Personal Income Tax (IRPF) with a maximum tax rate of 10%.
• Equivalent VAT (IGI) of 4.5%.
• Absence of inheritance, wealth, or capital gains taxes in many cases.
• Stable economy, Euro currency, and access to international agreements.

Furthermore, sectors such as construction, trade, hospitality, and digital technologies are in full expansion, making Andorra an especially attractive territory for entrepreneurs in 2026.

Who can create a company in Andorra?

Both residents and non-residents can incorporate a company in Andorra, although the applicable regime varies according to the investor’s situation:

Non-resident foreign investors

In accordance with the Omnibus Law (Law for Sustainable Growth, 2025), foreign investors who wish to have a stake of more than 10% in an Andorran company must previously obtain a foreign investment authorization from the competent ministry. From a 25% joint foreign participation, authorization is mandatory for any subsequent modification.

The incorporated company must start effective economic activity within a maximum period of 18 months from its incorporation, and must demonstrate this through the registration of a business or industry, the filing of annual accounts, and compliance with minimum turnover amounts.

Foreigners who wish to reside and work as self-employed

If, in addition to creating the company, you wish to obtain a residence and self-employment work permit, the new regulations (amended by the Omnibus Law on February 2, 2026) establish that it is necessary to:

1. Reserve the immigration authorization.
2. Within a period of 6 months, provide proof of: a) the foreign investment authorization and the incorporation of the company with a stake of more than 34%; b) holding a position in the administrative body and an effective management role.
3. Deposit the amount of €50,000 non-remunerated with the Andorran Financial Authority (AFA) (a non-refundable amount that remains for the benefit of the State, except in the case of denial of the initial authorization). Exceptions apply to digital economy, entrepreneurship, or innovation projects recognized by the Government.
4. Provide proof, within an additional period of 3 months, that the company is the owner of a registered and active business or industry.

Types of companies in Andorra: which one to choose?

In Andorra, the most common legal forms for the creation of a company are the companies regulated by Law 20/2007, on public limited companies and limited liability companies, amended by Omnibus Law I (2025):

Limited Liability Company (SRL)

It is the most common form for SMEs and new entrepreneurs. It offers limited liability to the capital contributed and flexible management. The corporate purpose and name must be approved by the Registry of Commercial Companies, which, with the 2025 reform, issues a binding name reservation certificate for all registration procedures.

Public Limited Company (SA)

Suitable for larger-scale projects or those planning to attract external investors. It requires a higher minimum share capital and a more formal governance structure.

Branch or permanent establishment

An option for foreign companies that want to operate in Andorra without incorporating a local company. Also subject to the foreign investment authorization regime if there is foreign participation.

Steps to incorporate a company in Andorra in 2026

This is the standard process for a foreigner who wants to create a company in Andorra and obtain self-employed residence:

• Apply for foreign investment authorization from the competent ministry.
• Reserve the corporate name at the Registry of Commercial Companies.
• Draft and sign the articles of association before a notary.
• Register the company in the Registry of Commercial Companies.
• Obtain the business or industry registration number.
• Complete the labor and Andorran Social Security (CASS) registrations.
• Submit the immigration authorization reservation and, within 6 months, provide proof of all requirements, including the final and non-refundable deposit of €50,000 to the AFA if applicable (except in case of denial of the initial authorization).
• Open a corporate bank account at an Andorran entity.

With all documentation in order, it takes an average of 4 to 5 months to have a fully operational company. This period does not include the business authorization.

Having an expert management team significantly reduces deadlines and avoids costly errors.

How much does it cost to create a company in Andorra?

The main costs of incorporating a company in Andorra include:

• Foreign investment authorization fees.
• Notary fees (incorporation deeds).
• Registry of Commercial Companies fees.
• Registration in the business or industry registry.
• Deposit of €50,000 to the AFA (for self-employed residence of non-qualified foreign professionals, except for digital/innovative projects).
• Management and legal advisory fees.

At OCPS, we offer fees adapted to each type of client, so you have no economic surprises during the process. Contact us to receive a personalized quote.

Company in Andorra and residence: how does the 360° service work?

One of the main advantages of OCPS Gestors is that we offer a complete service for company formation and establishment in Andorra, without the need to go to multiple providers:

• Prior advice and feasibility analysis.
• Management of the foreign investment authorization.
• Incorporation of the company (notary and registry included).
• Processing of the residence and self-employment work permit.
• Labor registrations and payroll management.
• Accounting, taxation, and tax filing.
• Prevention of money laundering

Our philosophy is clear: trust unites us. We accompany each client from the first contact until their company is operational and complies with all Andorran legal obligations.

Start your company in Andorra today with OCPS Gestors

If you are thinking about company formation in Andorra, do not wait any longer. The 2026 regulatory framework is the clearest and most favorable in recent years, and the demand for specialized management services continues to grow.

At OCPS, we have the experience, updated legal knowledge, and the multidisciplinary team to guide you in every step.

Contact us and tell us about your project. We will give you an answer in less than 24 hours.