Business
Doing business in Andorra: setting up, running or relocating your business
Setting up a company, working for yourself or moving a French business to Andorra is subject to precise rules: foreign investment authorisation, notary, business licence, contributions and tax returns. These guides set out the framework in force at 11 October 2026, its timescales, its official costs and the risks on the French side.
- minimum capital for an SL
- €3,000
- corporate income tax
- 10%
- non-refundable, for self-employed residency
- €50,000
- of presence a year to renew it
- 183 days
The 10 guides to doing business in Andorra
Each guide is checked against the Andorran texts in force (Llei 20/2007 on companies, Llei 5/2025 on foreign investment, the tax laws and the qualified law on immigration), against the procedures published by the Govern and, for France, against Légifrance. No professional is recommended in them.
Starting your business
5 guides
Running and relocating
5 guides
Your project, the right guide
Start from what you want to do: each guide details the conditions, the procedures and the official costs of that project.
| Your project | The guide to read |
|---|---|
| Setting up an SL or an SA | Setting up a company in Andorra |
| Working alone, without a company | Self-employed or sole trader in Andorra |
| Selling online, publishing a SaaS product | E-commerce in Andorra |
| Holding equity interests | Holding company in Andorra |
| Moving a French company | Relocating your company to Andorra |
| Investing without settling there | Foreign investment in Andorra |
| Invoicing clients in France | Invoicing between France and Andorra |
What changed in 2025 and 2026
The recent reforms affecting the setting up of a company or an entrepreneur’s residency, each detailed in the relevant guide.
- 6 March 2025
Llei 5/2025
Prior authorisation to invest in an Andorran company, effective activity within 18 months; the 2012 law is repealed.
- 9 April 2025
Implementing regulation
Proof of effective activity: business licence, accounts filed, 75% of forecasts, account with an Andorran bank.
- 13 February 2026
Llei 2/2026
The €50,000 paid to the AFA for active (self-employed) residency is no longer refunded, except in the event of an initial refusal.
- 11 March 2026
Decrees 74/2026 and 75/2026
Quotas: 200 residence permits for self-employment (Decree 75/2026) and 10 for professionals with international reach (Decree 74/2026).
Sources: Llei 5/2025 and the regulation of 9 April 2025 (Portal jurídic d’Andorra), Llei 2/2026, Decrees 74/2026 and 75/2026 (BOPA), presented in the linked guides.
Frequently asked questions
Can a foreign national set up a company in Andorra?
Yes. A non-resident must first obtain a prior foreign investment authorisation, applied for after the company name has been reserved. The ministry has two months to respond, which can be extended by one month, and the absence of a response counts as a refusal. The company is then incorporated before an Andorran notary and entered in the Companies Register.
What budget should you plan for setting up a company in Andorra?
The fixed public fees come to €1,327.92 for an SL and €1,791.79 for an SA: company name, foreign investment authorisation, entry in the register and trade name. On top of these come the comú activity tax, the fees of the notary and advisers, and the capital to be contributed, at least €3,000 for an SL, which remains an asset of the company.
Read: Setting up a company › How much does it cost to set up a company in Andorra?
Can you have a company in Andorra while living in France?
Legally, yes: a non-resident can hold an Andorran company after obtaining a foreign investment authorisation. But if you remain domiciled in France, you are taxed there on your worldwide income, and a company managed from France may also be taxed there, by virtue of its place of effective management or of a permanent establishment. In Andorra, a foreign-owned company must also carry on an effective activity within 18 months.
Does setting up an Andorran company give you the right to residency?
No. Llei 5/2025 specifies that a foreign investment does not, in itself, give any right to residency, even if the investor runs the company. Self-employed residency requires, among other things, more than 34% of the capital of an Andorran company, an effective management role and a non-refundable payment of €50,000 to the AFA.
What taxes does an Andorran company pay?
It pays corporate income tax at a rate of 10%, with minimum taxation equal to 30% of gross tax since 2024. It also collects IGI, Andorra’s VAT, at the general rate of 4.5%, on its transactions located in Andorra, and pays comú taxes.
Can you be a micro-entrepreneur in Andorra?
Not under that status: the French micro-enterprise regime has no Andorran equivalent. For a person coming to settle, the immigration law provides for working in your own name only for regulated professions, those that require a degree and an authorisation to practise. In other cases, self-employed residency requires an Andorran company in which you hold more than 34%.
Read: Self-employed, sole trader › Does the micro-entrepreneur status exist in Andorra?
Which status suits you?
Four questions to identify the residency status to look into, and its conditions.
Take the test