Three tips to incorporate a company: the obstacles you may find and how to overcome them
Senior tax consultant of Augé Grup, Albert Barroso answer:
“In order to successfully establish a company in Andorra, a complex procedure involving a number of parties – including the Government and banks – must be followed.
Among the different aspects that must be taken into account during this process, there are three principles that must be fulfilled to the maximum extent possible:
– The company must have enough substance in the country. The substance translates into a sufficiency of human (staff, resident partners) and material resources (work space) within the Andorran territory, always proportional to the activity that will be carried out. Independently of whether one or some of the partners are resident or not, the company must have the capacity to operate autonomously from Andorra.
– Project holders in Andorra must present their credentials. Elements such as curriculum vitae, criminal record checks or a proof of personal and business tax returns are elements that will be taken into account by the Government and especially by the Andorran banks when they analyse a new file.
– A well-structured business plan must be presented. As well as credentials, the presentation of a clear business plan is important to show how the activity will be structured at different levels: activity branches, target markets, necessary human resources, estimated business figures and profits, payment and other elements that may be of interest in order to define a profile and clear any doubts that the Government or the Andorran financial institutions may have.
By complying with these three points, the success probability of the project of incorporating a company in Andorra increases substantially”.
