How to start a business in Andorra as a foreigner (2026)

Legal framework

Law 5/2025 (Llei Òmnibus, in force April 2025), which repealed and replaced Law 10/2012 on foreign investment; administered by the Department of Legal and Economic Registers, Ministry of Presidency, Economy and Enterprise (Govern d'Andorra)

Key points: starting a business in Andorra

1. 01Foreign ownership ceiling

   Non-residents may hold up to 100% of an Andorran company's capital across more than 200 economic sectors. Prior government authorization is mandatory when a single foreign investor's direct or indirect stake exceeds 10%, or when total collective foreign ownership reaches 25% or more.

   state.gov e-tramits.ad

2. 02Governing law (2025 update)

   Law 5/2025 (Llei Òmnibus), published in the BOPA on 26 March 2025 and in force from April 2025, fully repealed Law 10/2012 and introduced stricter controls on beneficial-ownership disclosure, source-of-funds verification, and real-estate investment limits. It is the current primary instrument regulating foreign investment.

   bopa.ad andorra-solutions.com

3. 03Minimum share capital

   The most common vehicle for foreign investors is the Societat Limitada (SL / LLC), requiring a minimum share capital of €3,000, fully paid on incorporation. A Societat Anònima (SA / joint-stock company) requires €60,000 minimum capital.

   ccis.ad state.gov

4. 04Formation steps

   The process involves six main steps: (1) company name reservation via e-tramits.ad (~5-10 business days); (2) foreign investment authorization from the government registry (~20-30 business days, requiring passport, criminal-record certificate, source-of-funds proof, and business plan); (3) bank account opening and capital deposit in an Andorran bank; (4) notarial deed of incorporation; (5) registration with the Registre de Societats Mercantils (Commercial Registry) and receipt of NRT tax ID; (6) commercial licence from the local Comú and registration with the social-security fund (CASS).

   e-tramits.ad govern.ad

5. 05Typical timeline and cost

   End-to-end incorporation typically takes 2-4 months; the bank compliance and comú commercial-opening stages are usually the slowest. Professional service costs commonly range from €6,000, €11,000, excluding the mandatory share capital deposit.

   state.gov ccis.ad

6. 06Digital submission

   Since 2021, both the foreign investment authorization application and the company-name reservation can be submitted electronically through the official government portal (e-tramits.ad), with resolutions also notified digitally, reducing in-person requirements for preliminary steps.

   govern.ad e-tramits.ad

Timeline of decisions

1. 6 Mar 2025Law
   Llei Òmnibus: 18-Month Activity Rule and Foreign RE Cap Imposed

   Parliament enacted the Omnibus Law requiring foreign-invested Andorran companies to commence genuine economic activity within 18 months of formation, capping non-resident residential property acquisition at two units, and raising the minimum investment-residency threshold to €1,000,000, the most significant tightening of the business-entry framework since 2012.

   Cases Lacambra Legal Flash (Andorran law firm)

2. 26 Apr 2024Decision · official
   European Commission Formally Proposes EU-Andorra Association Agreement to Council

   The Commission submitted a formal proposal to the EU Council to sign and conclude the Association Agreement with Andorra (and San Marino), initiating ratification across member states and opening a path for Andorran firms to access the EU single market's four freedoms.

   European Commission

3. 1 Feb 2024Law
   Law 3/2024: Progressive Tax on Foreign Real Estate Investment (3-10%)

   Andorra introduced a progressive tax of 3-10% on real estate acquisitions by non-residents, replaced the prior moratorium with a permanent regime, and shifted authorisation to negative administrative silence (denial if no reply within two months), materially raising the cost and complexity of foreign property-linked business entry.

   Ramentol Pujol (Andorran law firm)

4. 1 Dec 2023Decision · official
   EU Commission Announces Conclusion of Association Agreement Negotiations

   The European Commission declared the successful conclusion of negotiations on an Association Agreement granting Andorra access to the EU single market, marking the most consequential structural shift in Andorra's business environment in decades.

   European Commission

5. 23 Dec 2022Law
   Law 42/2022: Digital Economy, Entrepreneurship and Innovation Act

   Parliament enacted a landmark law introducing dedicated startup legal forms (SLS/SAS), special economic zones, regulatory sandboxes, stock-option frameworks, digital nomad visas, accelerators, and regulated crowdfunding, opening Andorra to technology-driven business models for the first time.

   Andorra Business (official trade promotion agency)

6. 1 Jul 2022Law
   Foreign Investment Law Amended to Streamline Company Establishment

   The government approved modifications to Law 10/2012 to reduce administrative friction for foreign-invested companies entering Andorra and to strengthen post-authorisation oversight mechanisms, reflecting growing interest from international entrepreneurs.

   Andorra Business (official trade promotion agency)

7. 21 Jun 2012Law · official
   Law 10/2012: Full Liberalisation of Foreign Investment, 100% Ownership Allowed

   Parliament replaced the 2008 restrictive law with Law 10/2012, permitting non-residents to own up to 100% of any Andorran company for the first time; prior authorisation is retained for direct investments above 10% but must be resolved within one month, with positive administrative silence.

   Consell General d'Andorra

8. 1 Apr 2008Law
   First Foreign Investment Law: Non-Resident Ownership Capped at 49%

   Andorra's first foreign investment law required government authorisation for all foreign direct investment and capped non-resident equity in Andorran companies at 49%, making it effectively impossible for foreigners to found or control a company without an Andorran majority partner.

   U.S. Department of State — 2024 Investment Climate Statement: Andorra

9. 20 Feb 2008Law · official
   Commercial Registry Regulation: Registre de Societats Mercantils Established

   The government adopted the implementing regulation creating the Registre de Societats Mercantils under the Ministry of Economy, requiring newly incorporated companies to register within 15-20 days of notarial deed and establishing the public record against which all company acts are measured.

   Portal Jurídic d'Andorra (official legal portal)

10. 18 Oct 2007Law · official
    Law 20/2007: Andorra's First Modern Companies Act (SA and SL)

    Parliament enacted the Companies Act governing anonymous societies (SA, min. capital €60,000) and limited liability companies (SL, min. capital €3,000), replacing a 1983 regulation and providing the foundational legal framework for all business formation in Andorra to this day.

    Consell General d'Andorra

Sources

1. 1.state.gov/reports/2025-investment-climate-statements/andorra
2. 2.e-tramits.ad/tramits/ca/inversio-estrangera/p/GV001612
3. 3.bopa.ad/
4. 4.govern.ad/presidencia-economia-i-empresa/item/12969-els-tramits-per-sol-licitar
5. 5.ccis.ad/en/creation-of-companies-and-societies-2/
6. 6.andorra-solutions.com/blog/2025/03/21/foreign-investment-andorra-llei-omnibus/
7. 7.carlotapastora.com/en/main-measures-omnibus-law-6-mar-2025-foreign-investment-real-estat