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 have a dedicated space for your business activities. 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.
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.