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Andorra: Types of Company

Partnership

There are no limited partnerships in Andorra. Civil companies can be created by two or more persons to incorporate a partnership with unlimited liability by private contract or deed. In order to trade, it will need a Registre de Comerc permission from its local commune, at a cost of EUR670 annually.

This is a form that can be used by a foreigner wanting to set up in business locally, say as a restaurant; the usual rules about 51% local ownership will apply, and the Andorran titular will need to sign contracts giving the foreigner day-to-day management rights, and control over finances. It suffers from the obvious difficulty that the unlimited liability of a partner under the law cannot be signed away so easily. Since the change to the Foreign Investment Law, certain business sectors now allow 100% foreign ownership.

 

 

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