Andorra: opening a business
Business in Andorra can be arranged through the various legal forms, among which are:
Societat Limitadad (SL) - closed company with limited liability
Societat Anonima (SA) - Open Joint Stock Company
Societat Colectiva - a company with unlimited liability of shareholders
Partnerships with unlimited liability
Private entrepreneur
Branch of a foreign company
Until recently, foreigners could not own more than one-third of businesses in Andorra. In March 2004, lawmakers began discussing the possibility of Andorra to facilitate such restrictions, and it is expected that the share of foreign companies in Andorra could rise to 40% of the shares. A number of activities such as manufacturing and marketing of audio and video products, technological research, research, production of medicines, radio and television, and electronic commerce are planned to fully resolve the ownership by foreigners.
Societat Limitadad (SL) - closed limited liability company has the following distinguishing features:
Share capital - Euro 6000, which is deposited at a local bank account after you receive the approval of the future company's name and which should be fully paid by the founders.
The founding documents of the company are issued to local notary and registered in Andorra Govern.
If the company intends to engage in commercial (not holding) activities, it must apply to the Commercial Register of Andorra for a license, which, upon receipt, annually extended for about 700 Euro.
The company may have one shareholder and one director.
The state duty for the annual renewal of registration of a company in Andorra - about 500 Euro.
Procedural formalities may take up to several months.
Societat Anonima (SA) - Open Joint Stock obschestvoobladaet following distinctive features:
The authorized capital - 30 000 Euro, which is deposited in a local bank account after you receive the approval of the future company's name and which should be fully paid by the founders.
The founding documents of the company are issued to local notary and registered in Andorra Govern.
If the company intends to engage in commercial (not holding) activities, it must apply to the Commercial Register of Andorra for a license, which, upon receipt, annually extended for about 700 Euro.
The company may have one shareholder and one director.
The state duty for the annual renewal of registration of a company in Andorra - approximately 1000 Euros.
Procedural formalities may take up to several months.
Societat Colectiva - a company with unlimited liability of shareholders has the same hallmarks as Societat Limitadad (SL) - closed company with limited liability, except for the fact that the company has no minimum stated capital, and that the company's shareholders equally and unreservedly responsible for the debts and liabilities of the company all its assets.
In Andorra, there is a limited liability partnership and a partnership with unlimited liability can be established by two or more parties that have an equal and indefinitely liable for the debts and obligations of the company all its assets. Partners themselves to manage their business and all their relations are governed by the memorandum of association which is registered with a notary in Andorra.
The partnership should contact the Commercial Register of Andorra for a license, which, upon receipt, annually extended for about 700 Euro.
Entrepreneur in Andorra may be a citizen of Andorra Libre, or resident of the country, lived there for at least 10 years.
Registration of branches of foreign companies only allowed insurance companies. Other foreign companies may be allowed to be present in Andorra only if it is officially deemed as a presence in the interests of Andorra.
For foreigners wishing to work in Andorra, necessarily require a work permit, which is normally issued only to citizens of the European Union.
Businesses in Andorra do not pay any corporate taxes.
Andorra has not entered into any agreements on avoidance of double taxation.
The capital of the Principality - Andorra la Vella. Languages: French, Spanish. The national language is Catalan.
Andorra does not have its own airport and has an open border with Spain and France, through which is carried from entering the country. For entry to get a visa of any EU member state.
Currency: Spanish peseta and French franc, 1 U.S. dollar equals about 170 pesetas and 6.8 francs.
The climate here is subtropical, mountainous. This is a very pleasant dry climate, moderated by the influence of a close Mediterranean. It is considered curative. In winter it's cold here, a lot of snow, and the bright mountain sun shines all day. The country has excellent ski resorts.
The climatic conditions of the mountainous region can deal with all kinds of skiing for six months a year. Mountains surround the country on three sides, leaving only the southern plains. That very well, because ski slopes are covered reliably from the northern winds. So skiers in Andorra always walk light - at night the temperature drops just below zero and daytime reaches +10 ° C. Ski Principality infrastructure consists of five ski resorts: Soldeu, Pas de la Casa - Grau Rouge, Arinsal, Pal, Ordino-Arcalis.
High-altitude resorts combine with the valleys, where summer temperatures can grow tobacco - the main crop of this country. Andorra is a member of the European Community Customs Union (EU Customs Union) and is regarded as an EU member for trade in manufactured goods and not as an EU member for trade in agricultural products. Thus, it applies the EU common external tariff for non-agricultural products. Country's natural resources are hydropower, mineral water, timber and iron ore.
Although air traffic and no, but the roads in France and Spain, are in excellent condition. Barcelona is only 3 hours away.
Over the last thirty years, the influx of tourists to Andorra rose sharply. Andorra annually plays host to quite unthinkable for a country of tourists - 13 million people. Tourist boom gave jobs to neighbors the Spaniards, who now make up nearly two-thirds of the population (even a third - the indigenous Andorra).
But what attracts tourists to Andorra?
This is a surprisingly interesting historical site. In the Middle Ages on the ownership of Andorra debated Foie graphs (Foix) from France and the bishops of Spain Urhelya. And in 1278, they agreed, deciding to become co-rulers of Andorra. But the right graph ended with the fall of the French monarchy and moved to France, and the rights of bishops kept still. Although the actual Andorra became independent from 1278.
The state of equilibrium and peace was maintained for 700 years. The country has not chosen any particular form of government. In 1993, there have been significant events: Andorra adopted a constitution and became a member of the UN. Although, still, the two co-ruler - France and the Bishop Urhelsky responsible for defense and Mission of the Principality in foreign affairs. The Principality of, among other things, so far, according to the contract in 1278, pays tribute to the (admittedly symbolic) of France and Spain. Of course, the historical data strongly unwound replicated and used in the tourism business.
In Andorra, the beautiful well-preserved architectural heritage. Everywhere you can see fine examples of Romanesque art, scattered across the country are small churches and medieval bridges. Most festivals and national holidays coincide with religious events and natural cycles. And, of course, the main visitors are French and Spaniards, though hospitable and welcoming Andorra welcome guests from all over the world.
Being a duty free zone, Andorra became a paradise for shoppers. As a free economic zone, it opens the doors of hundreds of world-class shopping. Even seasoned French come here specifically to shop. In many shops of Andorra can be advantageous to buy a variety of goods. Particularly attractive prices - they stand out from the Spanish and French.
But most importantly - a country considered tax jurisdiction, as in Andorra, not a tax on income, capital and corporate income. Completely absent in the Principality, and taxes on property and inheritance. The basis of the economy, of course, tourism. He in some way makes up 80% of the economy.
There are also some local production (eg, tobacco), but structurally the economy depends solely on imports. There is no unemployment, and economic growth is around 5% per year inflation, in fact, reflects similar developments in France and Spain. Andorra does not have its own currency, taking payments for major world currencies, but all government expenditures are estimated at Spanish pesetas.
The country has a budget surplus, the national debt is quite low. In terms of population per unit of the national GDP of $ 20 000, which is an average figure for the European countries, but given the almost complete absence of taxes, this figure looks much more attractive. Andorra is protecting its domestic business, with some restrictions on property rights.
Specialization Andorra - low taxes. In the country there is no taxation of companies or individuals, except for a modest annual fee for registration of certain municipal taxes and taxes on property transactions.
There is no specific legislation relating to offshore companies, there are also trusts (Andorra exclusively civil law!). The legal system is based on French and Spanish civil codes and the independent judicial law in the constitution of 1993. The country is quite privileged territory in terms of legislation, but the legal processes at the level of the higher courts can be quite complex.
The only serious problem for offshore companies: there are two-thirds of companies must be owned by citizens of this country (or at least long enough for the residents living there). But for everyday use it is rated to help get around this requirement. Thus, the offshore business is limited to Andorra quite rich individuals.
Business and terms of reference in Andorra is very liberal. In the country there is no tax on corporate profits, but provides modest annual payments and fees. Legislation rather loosely - there were no exchange controls or capital controls. Well-developed telecommunications network, the Internet is possible hosting.
Despite the existence of certain types of industrial and commercial activities, particularly with regard to tourism, the most developed banking sector may be called. Especially the private banking sector, which enjoys all the advantages given him strict legislation on banking secrecy. As with other types of financial services, they are not as well developed, although the government is trying to revive the sector and insurance.
Administration of Andorra has no formal investment incentive schemes with the exception of some financial support for development of tourist business. Foreign investments in the financial area are severely restricted, and foreign participation in domestic business (as opposed to offshore activities) is limited to the minimum number of shares in the companies of most industries.
Attracts high secrecy of bank accounts of Andorra. This is probably the best place in the world for money offering. Banks - more than reliable, while there were no exchange controls or capital controls. Numbered bank accounts are known only to you, your banker, and to God. Stringent legislation on the possibilities of preventing money laundering of criminal activity. But there is the possibility of successful tax evasion. But Andorra is not considered a crime.
Control over immigration is accomplished by the issuance of residence permits and work. In order to encourage immigration of individuals who have a large enough private capital (retired), the Government grants permission for passive residence, the fee for which is not small. "Money is everything and love you!" Act for permission to passive accommodation of 1996 permits annually produce 200 new permits. Passive residents do not work or conduct any professional activities at their place of residence.
New citizens must:
- Have a minimum annual income of $ 4 million pesetas (24,000 euros) for a head of household, and 1 million pesetas for each family member;
- To confirm a prosperous reputation in a place of previous residence;
- To provide health insurance and retirement plan savings;
- Have their own or rented house or apartment in the district;
- To introduce interest-free bank deposit of $ 4 million pesetas (plus 1 million pesetas for each family member) in favor of the government, which in case of non-residence in Andorra, is paid back.
Long-term residence permit shall be issued only to those who have work permits and the number of which is controlled by certain quotas. It is possible to work around this by having got themselves rated the company (although it is quite expensive). In addition, the government is strict control over the activities of such companies, and the slightest hint of suspicious transactions (or the appearance of competition with the citizens) will lead to rapid removal from the country.
Principality - a fantastic country, it's a different world. If you are rich and tired of the whirl of daily business in our imperfect world - go into a little Andorra, tobacco growers are paying tribute to the Spanish bishop and France, to ski and improve my health. You will live a long time.
Knowledgeable people, travel around the world in the interests of the business and looking for places where it is best to open a bank account, establish a company to invest in real estate, save the proceeds of ruinous taxes, hide from criminal gangs, have a registered legal address, wait their country's political upheavals and relax, have fun and just live, came to the sad conclusion that absolutely ideal places in the world is, like, never was.
However, on the ground there are innumerable places, little known to the public where there are not comparable with anything possible to do something alone. Therefore, the best option for a wealthy man who wants not only to ensure maximum security, but also qualitative changes in their lives - to establish a company in one country to do business in the other, to open numbered bank account in the third, to register the car in the fourth, the fifth play, and live in the sixth. A bit much? But it is possible, although the majority still operates on several short program.
Between Spain and France in the Pyrenees in the entire 468 square miles was lost a little alpine principality - Andorra. Once the name of the country's only been associated with smuggling and the illegal transfer of people across the border. Now the situation has changed radically. The once-poor Adorra surpassed the per capita income affluent United States and Great Britain. Of the approximately 85 000 people living in Andorra, 84% - are foreign nationals with permanent residence. Since the last census in 1992, the number of inhabitants has increased by almost 5000 people, on the scale of the Principality, is essential.
So who are these Spaniards, Frenchmen and Englishmen, and why they could not sit at home? The answer is simple. By Western European standards - a "middling", those with a stable income source outside the Principality, which, however, can not afford to live in Monaco, prosazhivaya roulette for a few thousand dollars every night. Main incentive for them to move into a cozy Principality, is that the word "tax" is not used there. The state of Andorra will never be charged, and does not charge any direct taxes at all - no personal income or corporate income, no inheritance, no matter what else. Budget of the Principality is more than is replenished by large gross revenues from import duties, extremely low (win-win for the state and suppliers) rates which turned the country into an international trading center and the cheapest market for consumer goods in Europe. The essence of these duties, which, after the conclusion of an agreement Andorra customs union with the EU called "indirect commodity tax" has not changed. This tax, mainly relating to imports, but also charged with local produce, has flexible rates. Under the reduced rate of 1% levied agricultural products. The usual rate of 4% applies to most manufactured goods. Increased rate of 7% is used for electronic devices. Finally, according to a special rate of 12% tax is levied on luxury items - furs, jewelry, etc. Some products, particularly products from local raw materials, works of art, newspapers and magazines, as well as goods to be delivered to the authorities of Andorra (as and paid services rendered to them by private firms) are generally exempt from tax.
Andorra is particularly well known as a market for cheap cigarettes and alcohol, as a tax on them is negligible compared to the excise and other taxes to which these commodities are subject to other European countries, particularly in neighboring France and Spain, "shuttle" from which, under conditions open borders - are frequent visitors to the mountain principality. However, to bring in Andorra trailer, say, "Marlborough", you need to buy in Andorra the same amount of low-grade tobacco grown here, and at prices much higher than the world to such a "dowry." Later, outside the country, the tobacco is destroyed just as useless. But the import of cigarettes in Andorra and in such outrageous terms remains very profitable.
Since 1993, any enterprise engaged in profit-making on the territory of Andorra pays an annual registration fee within 25 000 - 75 000 pesetas. (In Andorra, as an official means of payment used by Spanish peseta and French franc.'s Own currency - Diner - available only in the form of commemorative coins that are bought by collectors. Prices are usually expressed in pesetas. During the preparation of this material peseta exchange rate against the dollar stood at 124,43 Ptas. = a US $.) small fee charged for the issuance of permits of all kinds (for example, to change the name or legal address of the firm). Municipal taxes in each of the seven administrative parishes of Andorra established themselves and are reduced mainly to utilities, repairs to roads, etc., as well as a small local property tax. They are not onerous and is not levied on interest rates and payments in the form common to all the parishioners of specific amounts, that is, regardless of income and property value.
As permanent residents, and visitors of Andorra (except French nationals and nationals of Spain, not owning real estate in the Principality, as well as having a residence of foreigners in these countries under their tax laws) may use the services of confidential reliable local banks, including the opening secret numbered accounts and fiduciary accounts in banks in other jurisdictions and management. Andorran bankers value their reputation and do not wish to be involved in the laundering of "dirty money". They may require the suspect seemed to them new-found investor with a suitcase full of cash of any advice that you can get, particularly from local consulting and service companies or by foreign firms with partners in Andorra. However, tax evasion, which in Andorra simply does not exist, there is not a crime is considered. After opening the account you are guaranteed banking secrecy, and even if the court order to recover from you in favor of the plaintiff a large sum of Andorran banks have not provided any information about the amount lying in your account, nor of his room, nor any of its stock. In contrast, for example, from Switzerland, the demands for the bank information on the true account holders do not exist, and as the owner of your account may appear Cyprus or Bahamian offshore company with nominee directors or shareholders, Liechtenstein or Panama Foundation or any shill .
The geopolitical position of Andorra determines the near-zero crime rate. Bandits robbed a local bank, it would simply have nowhere to hide - in the mountains, escape routes are limited and easily controlled. Andorra is not accepted lock the doors and be equipped with anti-theft car ingenious means. The state, on the one hand, does not interfere in the affairs of law-abiding citizens, on the other, mercilessly punish all violators of public order, without trial, simply expelled from the country's foreign troublemakers. Andorra more than anything to fear any sudden change in their measured and stable life. Therefore, the country is prohibited not only all political, but also any trade union activities.
All subjects of the Principality and working foreigners permanently residing in the country, use an effective system of state social insurance scheme providing free medical care (including the cost of medical treatment abroad at the required readings), and retired with 65 years of age with a minimum of fifteen years of experience. In the country - free secondary education and free internal mail. The price level at 30 - 40% lower than in neighboring Spain, which is considered an inexpensive country. Meal in a decent restaurant can cost 5 - 10 U.S. dollars, ridiculous by European standards, even lunch in a third-eatery.
More than 12 million tourists annually visit Andorra. It attracts many fans and admirers of nature mountain skiing. Development of infrastructures for the reception (an established system of travel agencies, hotels, restaurants, cafes, shops, ski stations, etc.), different environment (here implemented effective measures for the protection of nature, there are no hazardous industries, nor, especially, nuclear power plants), as well as affordable rates, a much more moderate than, for example, in the high resorts of Switzerland and Austria, the Principality has acquired a reputation as a first-class place to relax. Yes, and for life in general.
However, it should be borne in mind that Andorra is a personal tax haven, but not international offshore business and financial center. However, there are predictions that this situation may change over time, if not radical, at least in part. Meanwhile, indigenous people believe that turning the country into such a center would bring unwanted confusion in their usual life, what they are, by virtue of national character, feared the most. With higher incomes, they invariably dismiss all the tempting offers on this, just saying that does not need the money rich. Generally, because of fears of displacement of small businesses Andorrans of opening of foreign companies in the Principality is not encouraged and investment of foreign capital into the Andorran economy at present can only be achieved at very unattractive terms.
All decisions of the general meetings of shareholders and boards of directors, accounting and other internal documents of Andorran companies forcibly drawn to the little-known Catalan. Foreign legal and natural persons, except for residents residing in Andorra over 20 years, can not own more than one third of the share capital Andorran company. They also have the right to occupy any position in the company's management. Provided, however, that are of interest to the state and society to companies can be done in this respect an exception, but in practice this provision has never been applied.
Enterprises established prior to the adoption by the General Council decision on the companies in 1983 and did not correspond to its requirements, given the right to make change now banned bearer shares to registered shares, during a transitional period of 21 years. All operations on the transfer of shares controlled by the government, and if a foreign shareholder or shareholders of the company in the Andorran due to various circumstances, was more than a third of its capital, then that provision shall be liquidated within a year or through the sale of surplus Andorran shareholders or individuals and legal entities, or by reduction of the share capital of the company.
At the same time, trying to put all the operating companies under the control of the nation's capital, Andorra has to reckon with its powerful neighbors, Spain and France, departing in some areas from the usual practice in relation to them. So, not wanting to complicate relations with the Spanish financial community, she considers it possible that one of the seven banks operating in its territory ("La Caixa") is completely under Spanish control, being a branch of the eponymous Spanish major international bank.
As for citizenship in the Principality of eligibility for tax-free and seamless business in its jurisdiction, a foreigner can get it on the basis of marriage to the Andorran and the foreigner only if the wife Andorran nationals, is an only child, that is the sole heir. Children of foreign citizens with permanent resident status who were born in Andorra without a break and live there with their parents may also qualify for Andorran citizenship upon reaching the age of eighteen. Other official ways to get there.
Residence permit in Andorra issued to having an independent source of income outside the Principality, or condition, received or accrued during its borders. The residence permit is not associated with obtaining a work permit, which is very difficult. The foreigner, as already stated, can not lead in Andorra independent business activity, and is entitled to only work for hire, and the employer must prove before the authorities of your choice (such as a unique profession or professionalism) and prove that as a result of recruitment the alien is not deprived of fundamental earnings andorrets. However, living in a cozy Andorra, you can have a business abroad. For example, an offshore company in far less adapted to life Gibraltar, on the other side of Spain.
So, Andorra - this is an absolute tax haven with a reliable and "impenetrable" banking system is stable politically, eco-friendly country resort with almost the lowest cost of living in Europe and zero crime rate. Here, any well-behaved (ie, not being in the international search, not having been convicted of a criminal offense, which is such, and under the laws of the Principality, not known as a fighter for workers' rights advocate of world revolution, or the adherent of Satanism or nudism, etc.) and wealthy (ie, who is, by Western standards, not lower than "middle class"), a foreigner can find a quiet and comfortable shelter, but not the field for their business. Thus, the main motives for moving to Andorra - the following:
• Fear for their own fate and the fate of their capital in the form of possible political upheaval.
• Indications for the healthy alpine climate and a love of the picturesque mountain species, and skiing.
• A business or professional activities on an international scale and the ability to maintain revenues, without subjecting them to a reduction in the jurisdiction with confiscatory taxation, in which you have the misfortune to live. In addition to entrepreneurs, it refers to stars of sports and movies, successful writers, artists and the liberal professions.
• Willingness to invest in real estate, where charges for its maintenance (utilities, etc.) are charged at very low rates, and the ability to extract profits from the resale of the light steadily rising prices - high.
The main condition for obtaining a residence permit in Andorra for a foreigner is the ownership of real estate there, although the latter itself is not determined by the residence. An alien or a foreign family (husband, wife, minor children) can get a plot for building a total area of not more than 1000 square meters. m (it should be borne in mind that the architecture of houses built in each parish are put forward their own, very strict requirements) or a "home" (house, villa or apartment), built under a contract of state procurement. Children over 18 are entitled to independent housing. To own property, acquired by private contract, no limits.
All transactions with the property shall be made by a notary. When buying a home will be charged a fee of 2.5% of its value. In the future, the real estate shall be paid annually a small municipal tax. (In the various parishes and its magnitude varies on average 25 000 pesetas to the apartments and 45,000 pesetas from a single home, regardless of square footage.)
To buy a property can be on different terms to get a mortgage. We know, for example, a bank, which acquired the security issues of housing loan of up to 50% of its value in 20 years, charging a 10% per annum.
Property prices vary greatly depending on the category of the house, its location, scenic beauty of the surrounding landscape, the type of windows, etc. To give an overview of just some of the latest proposals.