Legal Forms of Business in Andorra

Legal Forms of Business in Andorra

Business Forms and Independent Professional Statuses in Andorra

Andorra, nestled in the Pyrenees mountains, offers a favorable business environment with a range of legal forms for companies and independent professional statuses. Understanding these structures is crucial for entrepreneurs and professionals seeking to establish their presence in the country.

1. Private Limited Liability Company (SL)

An SL is a popular choice for small and medium-sized businesses. It offers limited liability to its shareholders, meaning their personal assets are protected from business debts. An SL requires a minimum of one shareholder and one director, who can be the same person.

2. Public Limited Liability Company (SA)

An SA is similar to an SL but with shares that can be freely traded on the stock exchange. This structure is suitable for larger companies seeking access to public capital. It requires a minimum of two shareholders and a board of directors.

3. Partnership

A partnership is a business structure involving two or more individuals who share ownership and management responsibilities. Partners have unlimited liability, meaning they are personally responsible for business debts.

Independent Professional Statuses

1. Freelancer

Freelancers are self-employed individuals who provide services to clients on a contractual basis. They have the flexibility to choose their clients and projects but are responsible for managing their own business operations, including marketing, invoicing, and tax compliance.

2. Independent Contractor

Independent contractors are similar to freelancers but typically work on a more long-term basis with a specific client. They have more control over their work than employees but are not entitled to employee benefits.

Registration Process and Costs

Private Limited Liability Company (SL)

To register an SL, you must submit incorporation documents to the Andorran Trade Registry. The registration fee is approximately €245, with additional fees for name reservation and other optional services. The incorporation process typically takes 1-2 weeks.

Freelancer

To register as a freelancer, you must register with the Andorran Tax and Customs Administration. There is no registration fee, but you may incur costs for professional advice or accounting services. Registration is immediate, but ongoing compliance requirements apply.

The establishment and operation of business forms and independent professional statuses in Andorra are governed by various laws and regulations, including:

  • Law on Commercial Companies (Llei de Societats Mercantils)
  • Law on Economic Activities (Llei d'Activitats Econòmiques)
  • Law on the Tax on Economic Activities (Llei de l'Impost sobre Activitats Econòmiques)

These laws provide a comprehensive framework for business formation, registration, and operation, ensuring transparency and compliance with applicable regulations.

Navigating the complexities of business structures and independent professional statuses can be daunting. If you're seeking expert guidance, Heavnn is here to help. Our team of tax and legal professionals can simplify your journey and ensure your business is set up for success in Andorra.

Access Heavnn's blend of professional expertise and cutting-edge technology by clicking the button below.

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