Andorra Holding Company Formation

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Andorra Holding Company

Andorra is a small sovereign principality situated between France and Spain in the Eastern Pyrenees and has in recent years repositioned itself as a modern, transparent, and attractive jurisdiction for international business formation. A standard Andorra company pays a corporate income tax rate of 10 percent, while passive holding income such as qualifying dividends and capital gains from foreign subsidiaries may be exempt or taxed at a reduced rate of two percent under the participation exemption regime, making Andorra one of the most competitive holding company locations in Europe outside of the classic EU member state structures.

Andorra requires that at least one director be locally resident or that the company have a locally registered administrator or representative to maintain substance in-country. The jurisdiction is OECD-compliant and has signed a growing number of double taxation agreements. Incorporation takes approximately four weeks due to government registration requirements. Neptune Fiduciaries assists clients through the Andorran incorporation process, handling all government filings, local director arrangements, and statutory compliance requirements.

Key Features

Key Component	Description
Directors	Minimum of one director required At least one locally resident or Andorran-registered director or administrator required Corporate directors permitted Director records are publicly accessible
Shareholders	Minimum of one shareholder required Foreign shareholders fully permitted Corporate shareholders allowed Shareholder records are publicly accessible
Public Accessible Records	Director and shareholder names are publicly accessible Accounts are filed but limited public access
Registered Office in Andorra	Yes, required
Taxation	Standard corporate income tax rate of 10 percent Participation exemption: qualifying dividends and capital gains taxed at 2 percent No inheritance tax or wealth tax Growing network of double taxation agreements No EU membership but OECD compliant
Share Capital	Minimum paid-up share capital of EUR 3,000 Standard currency is Euro Other currencies permitted
Duration for Incorporation	4 Weeks (includes government registration and approval)
Accounts and Returns	Annual accounts must be prepared and filed Audit required Annual corporate income tax return mandatory
Substance Requirements	Local director or administrator required Genuine operational presence expected for tax benefit qualification
Nominee Services	Available via locally registered administrator
Banking	Yes, can secure Andorran and international banking
Meetings	Annual general meeting required Can be held via remote means
Requirements for Incorporation	Proof of Address Passport Copy (Certified as True Copy of the Original) Business plan and description of activities required for government approval

For further details, please contact Neptune Fiduciaries via email info@neptunecorporate.com or sales@neptunecorporate.com or visit our contact page.

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