You should know that you can start an offshore business in Andorra if you do not live there. This is not a problem.
In particular, you enjoy the same rights as other citizens of the country. It is only necessary that your company is approved by the “Foreign Investment Department”.
If you want to start a company, why not opt for an offshore company? Perhaps you have probably heard about the term “offshore” without knowing what it means.
Tax haven, tax optimization are terms that come up regularly when we talk about the creation of offshore companies.
In this article, we invite you to discover why it is interesting to embark on the creation of offshore company in Andorra.
Ce que vous allez découvrir
Definition of an offshore company
Offshore simply means “extraterritorial”. Thus, an offshore company is a company domiciled abroad certainly, but whose owner does not reside on the territory.
The only difference with a traditional company lies in the fact that this offshore company does not carry out any economic activity in its country.
Creating an offshore company can be very simple as it can also be very complex.
The creation can be done directly online in a few clicks and with only a few euros, but it can also be done by calling a specialized firm and the cost is then more consequent.
Is the offshore company legal?
The law does not prohibit having an offshore company or having a bank account abroad. The most important is the fact of knowing if a real activity is present behind all that.
It must be taken into account that everyone is entitled to create an offshore company if the profits generated by it are declared.
Why created an offshore company?
The creation of an offshore company has several objectives. The very first advantage of creating this company lies in tax optimization.
The goal is to achieve the most profit possible and not be overwhelmed by taxes simply.
This is why it is advantageous to start a business in Andorra because taxation is interesting.
This is also why these places are called “tax havens”. In a second step, the offshore company facilitates transactions, even if they are not illegal.
These transactions include those that must be carried out in a discreet manner. Andorra is a place where discretion is assured.
Companies can benefit from advantageous regulations that can enable them to do things they can not do in their own country.
In particular, we can mention the case of all companies specializing in insurance where certain contracts are possible in tax havens thanks to a much more flexible legislation.
The creation of offshore company in Andorra
1- I do not live in Andorra
You should know that you can start an offshore business in Andorra if you do not live there. This is not a problem.
In particular, you enjoy the same rights as other citizens of the country. It is only necessary that your company is approved by the “Foreign Investment Department”.
The purpose of this department is to encourage international investment in Andorra.
Certain criteria of requirement are in particular necessary for each activity to which you must obligatorily answer.
2- The different denominations of possible companies
Different corporate names are possible to create your offshore company in Andorra.
The very first possibility is the limited society. This structure is particularly recommended for all small-scale activities in commerce or services.
However, you must have a capital of at least € 3,000 to register your business.
The public limited company is the second option available to you and is particularly recommended for large companies.
The minimum capital required is then 60 000 €.
3- How to register your offshore company in Andorra?
If you want to register your offshore company in Andorra, know that you must follow certain steps.
Some documents are needed including:
- An extract from your criminal record of your country of origin and you must make the request;
- The passport of your current country of residence;
- A business plan of your strategy indicating investments and where your projected budget is clearly indicated.
- Know that you must obtain the Apostille of The Hague on the whole of your documents.
This Apostille is particularly valid for 3 months. We recommend you visit a lawyer in Andorra to validate your documents with all organizations.
4- The time required for the creation of your offshore company in Andorra
Once you have gathered all the necessary documents and you will be in possession of your installation permit, you will then have to send the whole to the Andorran Government.
Your file will be studied within 4 weeks.
If your file is accepted and validated by the Government, you will have to open a temporary bank account in a bank in Andorra.
In this account, you will have to deposit your statutory capital, ie € 3000 or € 60,000. The capital will then be blocked until you are officially registered in the Register of Legal Persons.
You will only get your official deed 1 week after receiving your permit from the Government via a notarial deed.
Your final creation will be official when registration with the Andorran Tax Directorate will be done and you will get a number.
You will then have to register your offshore company in one of the 7 municipalities of the Principality.
5- Andorra: an ideal location
Know that you are totally entitled to create an offshore business without living in it.
However, adopting Andorran resident status has many advantages over many points.
Andorra is a beautiful city where many activities are possible and this for the whole family.
Fun activities or shopping for adults, you can also enjoy sports activities.
Living in Andorra is simply very enjoyable.
6- 11% are largely sufficient
If you want to settle in Andorra and apply for a residence in the heart of this principality, it’s very simple.
You simply need to own 11% of the shares of the company. Of course, you still remain free to manage your company outside the principality while residing abroad.
This allows you to fully retain the status of offshore company in Andorra.
7- Only 2% of taxes on the profit
This may seem incredible, but know that the offshore company in Andorra only imposes a tax of 2% on your profits.
It is therefore very advantageous for you to opt for a company creation in Andorra. It’s very attractive!
8- The other advantages of the offshore company in Andorra
As a French entrepreneur, the advantages are still many to create your offshore business in the heart of Andorra.
Its strategic location in the heart of Europe is particularly perfect for setting up a new activity.
Do not forget that Andorra is contiguous to France, which is rather very advantageous.
As an individual, you should also know that there is no income tax and no corporation tax, as a matter of fact.
At the level of the permit, you will also be able to benefit from a license without point which is not negligible.
Regarding company cars, you will have the opportunity to buy them without any tax and you are also not obliged to publish your annual accounts.
Social charges are less than 20% and no VAT is present. Many important advantages when you are looking for a destination to implement your offshore company.
Moreover, most of the staff in this principality are quadrilingual.
This means that they speak English, Spanish, French, but also Portuguese.
9- A real tax haven
Andorra is a principality with its political regime. The principality has around 80 000 inhabitants.
The economy of Andorra is particularly supported by tourism and especially by the ski slopes.
Of course, we can say that this place is a tax haven in European countries. We recommend you to master perfectly the Catalan language to install yourself.
Most of the administrative documents are written in this language.
Be careful though to keep you informed of the news, because the laws change very quickly in Andorra.
It is therefore strongly recommended to use a company specializing in the creation of offshore company because the steps are still complex, especially if you do not have specific knowledge.
To conclude, it can be clearly stated that the creation of an offshore company in Andorra is an excellent idea.
You will enjoy a very attractive and interesting tax system. Know that different firms are specialized in the creation of offshore company in Andorra.
Take your time to weigh the pros and cons before embarking on this great adventure.
