ANDORRA Trends and Developments Contributed by: Oriol Giró, Laia Bertran, Yaumara Toledo and José Luis Andrés, Emindset Law Firm
Moving to Andorra through an active business Incorporating a company and obtaining residence are legally distinct processes. Ownership of an Andorran company does not automatically grant the sharehold - er the right to reside or work in the country; a separate immigration authorisation is required. Entrepreneurs who intend to manage and operate their own company commonly apply for residence and work as self-employed persons. This route generally requires the applicant to hold a qualifying ownership interest, form part of the management body and dem - onstrate that the company has a registered and active commercial establishment in Andorra. The applicant will normally need to provide identifica - tion documents, a criminal record certificate, evidence of accommodation, proof of the corporate investment and documentation concerning the company’s activ - ity. A medical examination, municipal registration and enrolment with the Andorran Social Security Fund are also typically required. In addition, a non-refundable payment of EUR50,000 must be made to the Andorran Financial Authority. The immigration process is subject to annual quotas. This is an important practical consideration, as satis - fying the substantive requirements does not necessar - ily guarantee that an authorisation will be immediately available. In 2026, the government reduced the quota for certain self-employed residence permits as part of its controlled-growth policy. Applicants must also meet continuing requirements after receiving authorisation. The company should remain operational, the applicant must retain the required corporate position and social security obli - gations must be fulfilled. Renewal applications may require evidence of actual commercial activity, income and contributions. A residence strategy should therefore be consistent with the underlying business. Creating a company that exists only on paper may create difficulties not only for tax purposes but also when renewing the immigration authorisation.
The authorities may also request information about the business plan, financing, intended premises, pro - jected employees and economic contribution of the project. The more complex or strategically sensitive the investment, the more important it becomes to pro - vide a coherent and properly documented application from the outset. Administrative process and practical timelines A straightforward incorporation may still require approximately three to four months, although tim - ing varies considerably. Foreign investment approval, banking compliance, the availability of documents and the nature of the business activity are the principal variables. The most time-consuming and complex step is often obtaining the criminal record certificate, as it is gen - erally required both from the applicant’s country of nationality and from their most recent country of resi - dence. In some jurisdictions, this process can be par - ticularly cumbersome and may require the applicant to complete the formalities in person. Documents issued abroad frequently require an apos - tille or legalisation and, depending on their language, a sworn translation. Corporate ownership chains may require several levels of supporting records. Appli - cants should therefore avoid beginning the process with incomplete or soon-to-expire documents. Andorra’s company formation process remains rel - atively documentation-intensive. Different stages involve the government, banks, notaries, the Compa - nies Registry, municipal authorities and, where appli - cable, professional or sectoral regulators. Effective coordination between these actors is crucial. The country is also progressively digitalising public administration. More procedures can now be initi - ated or managed electronically, and the stated policy direction is towards a more integrated online system. Nevertheless, investors should not yet assume that company formation can be completed entirely through a single digital platform.
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