For those considering self-employment in Andorra, the country’s business registration regime and the availability of simplified sole proprietorship status are distinctly defined. This article provides a clear overview of how individual business status operates in Andorra in 2025, based solely on the most recent official information.
Self-Employed Status Options in Andorra
Andorra does not offer a sole proprietorship status equivalent to simple, low-threshold regimes found in some other countries. Instead, individuals aiming to do business under their own name must apply for the formal status of ‘autònom’ (self-employed worker).
The table below details what is—and is not—available to individuals seeking to operate as a business in Andorra:
| Status | Availability in 2025 | Notes |
|---|---|---|
| Sole Proprietorship (simplified, micro-entrepreneur) | No | No simplified or automatic regime. All self-employed must register as ‘autònom’. |
| ‘Autònom’ (Self-Employed Worker) | Yes | Requires formal registration, social security, and compliance with regulations. |
No Simplified or Micro-Entrepreneur Regime
Andorra’s regulatory framework does not include a micro-entrepreneur or simplified sole proprietorship model. All individuals wishing to carry out business activities under their own name are required to:
- Formally register as a self-employed worker (autònom) with the government
- Register and make contributions to the Andorran social security system
- Comply with all applicable business and tax regulations
Without this full registration, individuals cannot invoice clients or conduct commercial activity legally. This means there is no entry-level or “low-red tape” alternative for occasional freelancers or micro-entrepreneurs.
Conditions for Registering as ‘Autònom’ in 2025
The autònom status is open exclusively to residents of Andorra. Here are the principal registration conditions to be aware of:
- Residency: The applicant must already have legal residency in Andorra.
- Registration Process: There is a formal process involving government agencies and the Andorran social security fund (CASS).
- Social Security Contributions: Payment into the public system is obligatory, with rates and calculation methods set by the authorities. (For current rates, refer to the official CASS web portal.)
- Business Regulation Compliance: All applicable registration, taxation, and reporting obligations apply from the start of the activity.
Key Points About Sole Proprietorship Availability
- There is no streamlined registration for micro-businesses or freelancers.
- The only individual business status available is full “autònom” registration, with all related requirements and costs.
- There are no exemptions or simplified compliance pathways for lower income or part-time self-employment activity.
Official Resources for Andorra in 2025
Up-to-date information should be cross-checked with the following official resources:
- Andorran Ministry of Economy (Empreses i Autònoms)
- Andorran Social Security Fund (CASS)
- Andorra Business (Business Establishment Information)
Pro Tips for Self-Employment Registration in Andorra
- Begin the residency application process early if you plan to register as an autònom; this is a mandatory prerequisite.
- Factor social security contributions into your business model, as these are payable from the first day of activity.
- Be aware that there is no “testing the waters” as a freelancer—formal registration is required for any commercial activity.
- Consult official sources directly to stay informed of any regulatory changes or updates to rate tables for 2025.
In summary, sole proprietorship in Andorra is only available through the formal autònom status, with no streamlined alternative for micro-entrepreneurs or occasional freelancers. The system requires prior residency, government registration, and mandatory social security contributions, reflecting Andorra’s approach to self-employment regulation. As always, anyone planning to operate as an individual business owner should ensure full compliance with these requirements and monitor official government channels for any regulatory revisions.