ANDORRA Law and Practice Contributed by: Elena Redondo, Albert Hinojosa and Marc Ambrós, Cases & Lacambra
with legal obligations and promote responsi - bility among all members; and • both the management company ( soci- etat gestora ) and custodian entity ( entitat dipositària ) must comply with local rules on the conduct of business. 5.6 Annual Entity Maintenance and Accounting Compliance Costs associated with maintenance and account - ing compliance may vary notably depending on the particulars of each entity, business decisions adopted by the governing body, and whether or not it is a regulated entity. In a non-exhaustive manner, costs may be determined as follows. • Limited liability companies ( societat limi - tada ) and public limited companies ( societat anònima ) are legally obliged to draw up finan - cial statements yearly, submit them to exter - nal audit (in certain cases, depending on the business volume and/or number of employ - ees) and deposit financial statements to the Companies Register ( Registre de Societats ). Moreover, the yearly maintenance fee for registering limited liability companies ( societat limitada ) and public limited companies ( soci- etat anònima ) with the Companies Register amounts to EUR851 and EUR935.50, respec - tively. • SICAV and real estate funds: due to their condition as regulated entities, the costs associated with maintenance and accounting are generally higher. Specifically, Andorran management companies ( societats gestores ) of collective investment schemes are subject to a yearly fee of EUR3,000 in the concept of supervision payable to the AFA. This fee increases by EUR2,000 if the specific man - agement company carries out the discretional and individualised management of invest - ment portfolios. The collective investment
scheme is subject to the same fee, ranging from EUR1,800 to EUR3,300, depending on the type of vehicle. Collective invest - ment schemes must comply with accounting requirements stated in Act 10/2008 governing the Andorran collective investment under - takings ( Llei de regulació dels organismes d’inversió col·lectiva de dret andorrà ), which essentially are: (a) confidential financial statements (to be issued quarterly); (b) public financial statements (yearly as a minimum and subject to audit); and (c) external audit process (permanent; it cannot be the same auditor for a period exceeding five years; such audit entity must be the same as the management’s company auditor). Moreover, distribution, management, subscrip - tion and reimbursement fees (for the manage - ment company) and depositary fees must also be considered and costs arising from the publi - cation of the collective investment scheme pro - spectus (simplified and complete form). 6. Commercial Leases 6.1 Types of Arrangements Allowing the Use of Real Estate for a Limited Period of Time The Andorran regulatory provisions recognise a lease agreement as commercial as long as it allows any natural or legal person to occupy and use a real estate for a limited period without the tenant having an obligation to purchase it. 6.2 Types of Commercial Leases The Andorran regulatory provisions do not establish any differentiation between commer - cial leases. In this vein, commercial leases have
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