For those seeking straightforward information on the typical costs of establishing and maintaining a standard private limited company (Societat Limitada, SL) in Andorra, this guide presents a detailed breakdown based on the latest available figures for 2025. Given Andorra’s reputation as a favorable jurisdiction for business and assets, understanding the concrete costs involved is crucial for sound decision-making.
Average Company Formation Costs in Andorra (2025)
The following table presents the key expenses to expect when forming a standard SL (Societat Limitada) in Andorra. All values are in euros (EUR) and include the most relevant requirements such as minimum capital, legal, government and registry fees.
| Cost Item | Amount (EUR) | USD Equivalent* |
|---|---|---|
| Minimum capital requirement | €3,000 | $3,270 |
| Notary fees (constitution deed) | €600 | $654 |
| Commercial Registry fees | €250 | $273 |
| Legal/lawyer fees (company formation, avg.) | €1,500 | $1,635 |
| Government administrative fees | €150 | $163 |
*USD conversion calculated at €1 = $1.09 (based on recent ECB rates)
While the minimum required capital is €3,000, average out-of-pocket setup expenses (excluding the re-usable share capital itself) typically total approximately €2,500 ($2,725). The minimum capital must be deposited at formation but remains property of the company and usable for its activities post-registration.
Typical Annual Maintenance Costs
Maintaining a compliant SL in Andorra comes with ongoing obligations, including accounting, regulatory filing, and suggested insurance. The table below summarizes typical annual costs for 2025:
| Annual Expense Category | Amount (EUR) | USD Equivalent* |
|---|---|---|
| Mandatory accounting services | €1,000 | $1,090 |
| Annual tax declaration and filing fees | €200 | $218 |
| Commercial Registry annual renewal | €100 | $109 |
| Legal/lawyer fees (annual compliance, avg.) | €500 | $545 |
| Optional: Insurance premiums (recommended) | €1,700 | $1,853 |
*USD conversion at €1 = $1.09
The required recurring annual costs range from €1,200 to €3,500 ($1,308 to $3,815), depending on the complexity of the business and the extent of optional services chosen (such as insurance).
Summary Table: Company Costs (2025)
| EUR | USD* | |
|---|---|---|
| Initial Company Formation (excluding share capital) | €2,500 | $2,725 |
| Minimum Capital Deposit (re-usable) | €3,000 | $3,270 |
| Annual Maintenance (min-max) | €1,200 – €3,500 | $1,308 – $3,815 |
*Approximate, for context; actual rates may vary.
Key Details for 2025 Business Establishment
- The share capital requirement of €3,000 must be paid up at formation and remains available for the company’s use.
- Professional legal/lawyer support is highly recommended to ensure compliance during both setup and ongoing operations.
- Annual maintenance costs reflect mandatory accounting services and regulatory filings; higher figures include insurance and ongoing legal support.
Pro Tips: Efficient Company Start & Compliance in Andorra
- Plan for liquidity: While you must deposit €3,000 to meet the capital requirement, this amount can be used in operations after incorporation—so budget accordingly.
- Bundle annual services: Many providers offer reduced rates for packages combining accounting, registry, and legal services, so seek bundled deals for annual maintenance.
- Don’t overlook insurance: While optional, business insurance is recommended and should be factored into financial planning for added operational security.
- File on time: Ensure all annual filings with the Commercial Registry and tax authorities are completed promptly to avoid fines and preserve corporate good standing.
Official Resources
Setting up and maintaining a company in Andorra in 2025 involves clear, well-defined costs. The initial outlay is competitive for the region, considering share capital is not an expense but rather a working asset once the company is operational. Ongoing annual requirements are predictable and allow for straightforward budgeting, with optional extras like insurance providing enhanced stability. Careful attention to mandatory filings and bundling required services can keep both startup and maintenance costs efficient throughout the business lifecycle.