This week we are going to discuss the requirements to set up a company in Andorra and the needs for having a proper domicile. As we discussed in previous articles such as the substance requirements in Andorra or offshore companies in Andorra there is no options to register a company without a proper office or domicile. A virtual office may offer you a commercial business address however it cannot substitute the need for physical space. Obviously you will wonder why you need a physical space if your business does not require a physical office or employees. Nevertheless Andorra does require precisely this in order to prevent abuse from companies simply using it as a fake domicile for tax purposes only.

So what is exactly required in terms of company domicile ?

A company must have a physical address, an individual electricity connection certificate and a maintenance contract for a fire extinguisher. This basically means you need to have a space dedicated to your company that has an electricity counter under the company’s name as well as a fire extinguisher in place.

Can I domicile my company in my personal home in Andorra ?

You can domicile your Andorran company in your home, however, you must separate strictly your living area from your company activity. This means your “office” may not have a sleeping or kitchen or general living area. Ideally, you should have a dedicated space for your business activities. It can be one of those pre fabricated sheds in your backyard, or an office garden set-up, or even an office room inside the house. Note there is inspections by the Department of Commerce to check if you are complying. During inspections they may question the possibility of you being able to receive clients or providers in your personal home. So ideally the spaces are separate. Wherever you put your office, one thing you will want to make sure that you have is a fast, reliable internet connection from somewhere like Xfinity internet to ensure that you will be able to operate your business without having to worry about whether or not your internet will be able to handle the demands of it.

When it comes to decorating your home office space, we have to freedom to design it as if it were a space within an office – you can experiment with removable wallpaper, lamp lighting, photographs, and even artwork. You might have to find ways to hang without having to make holes in the walls, but thanks to people like Command, who have a variety of hanging solutions, which you can check out here https://serp.co/best/command-hooks/, suitable for all sorts of hangings and fixtures.

What are my options for domiciling a company ?

Apart from renting a traditional office space or domiciling your company at your home you may also rent shared office space in a business center in Andorra. Affordable spaces starting at 390 EUR are available from Smart Executive Centers for example.

A virtual office can serve only as complimentary if for example you have your company registered at home but use a business center for receiving formal visitors or to organize meetings. A virtual office is therefore typically used only as a commercial address in Andorra rather than your official company domicile.

For further questions contact our consultants.