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FAQ
Q: What types of companies can be formed in Andorra?
A: Companies in Andorra can take the form of a public limited company (SA), a limited liability company (SL), or a sole proprietorship.
Q: What are the requirements to form a company in Andorra?
A: To form a company in Andorra, you must have at least two shareholders and a minimum share capital of 60,000 EUR for an SA and 3,000 EUR for an SL. You will also need to register your company with the Andorran Companies Registry.
Q: How long does it take to register a company in Andorra?
A: The registration process can take up to two months, depending on the completeness of the required documentation.
Q: What are the documents required to register a company in Andorra?
A: The specific documents required depend on the type of company being formed, but generally include articles of association, a memorandum of association, and a business license.
Q: Can foreigners own a company in Andorra?
A: Yes, foreigners can own a company in Andorra, but they must comply with certain regulations and obtain the necessary permits and approvals from the government.
Q: What are the tax implications of forming a company in Andorra?
A: Andorra has a favorable tax regime, with a corporate income tax rate of 10%. However, companies may be subject to taxes in other jurisdictions where they do business.
Q: What are the ongoing compliance requirements for a company in Andorra?
A: The specific compliance requirements depend on the type of company, but generally include filing annual financial statements and tax returns with the government.
Q: Can I use my Andorran company to do business outside of Andorra?
A: Yes, you can use your Andorran company to conduct business anywhere in the world, as long as you comply with the relevant laws and regulations in those jurisdictions. However, you may need to obtain additional licenses and permits to operate in certain countries.
Economy
"Andorra is a small country located in the Pyrenees mountains between France and Spain. It has a population of approximately 77,000 people and a GDP of $4.7 billion. The economy of Andorra is largely based on tourism, which accounts for 80% of its GDP. The country also has a strong banking sector, which contributes 10% of its GDP. Additionally, the retail sector contributes 5% of the GDP, while the remaining 5% comes from other sources.
Andorra has a low unemployment rate of 2.2%, which is one of the lowest in Europe. The country also has a low inflation rate of 0.7%, which is well below the European average. Andorra has a strong fiscal policy, with a budget surplus of 1.2% of GDP in 2019.
The country has a strong trade balance, with exports of $1.2 billion and imports of $1.3 billion in 2019. The main exports of Andorra are tobacco, alcoholic beverages, and pharmaceuticals. The main imports are food, machinery, and vehicles.
Overall, Andorra has a strong and stable economy, with a low unemployment rate, low inflation, and a budget surplus. The country is heavily reliant on tourism, but also has a strong banking sector and retail sector. The country has a strong trade balance, with exports and imports roughly equal."
Taxation
Andorra is a small European country with a unique tax system. Here is an overview of the tax system in Andorra:
Corporate taxation:
- Andorra has a flat corporate income tax rate of 10% on profits.
- There is also a minimum annual tax of €1,850, regardless of whether the company makes a profit or not.
- The tax year in Andorra runs from January 1st to December 31st.
- Corporate tax returns must be filed by the end of the 6th month following the end of the tax year, and taxes must be paid by the same deadline.
Personal taxation:
- Andorra has no personal income tax for residents.
- However, non-residents who receive income from Andorra may be subject to taxation.
Other taxes:
- There is a value-added tax (VAT) in Andorra, with a standard rate of 4.5% and reduced rates for certain goods and services.
- There are also taxes on certain activities, such as real estate transactions and inheritance.
It is important to note that Andorra's tax system is subject to change, and individuals and companies should seek professional advice to ensure compliance with current tax requirements. Additionally, there may be penalties for late or incorrect filing of tax returns and payments, so it is important to adhere to the tax calendar and deadlines.
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