How to Open an Andorra Business Bank Account: Steps and Documents

The blocked account for paying in share capital

Andorra business bank account means the account used to pay in the share capital of an Andorran SL or SA and then to collect and pay in euros. An SL needs minimum capital of 3,000 euros and an SA 60,000 euros, deposited in the name of the company in formation, and the bank certificate goes to the notary. The bank also checks the foreign investment authorisation, beneficial owners and the reality of local activity.

To open a business account in Andorra, an Andorran limited company requires minimum capital of 3,000 euros and a public limited company 60,000 euros. The capital is deposited into an account opened in the name of the company in formation, and the bank certificate goes to the notary for incorporation.

Foreign investment authorisation before the bank

A non-Andorran shareholder generally has to obtain authorisation for, or declare, the foreign investment with the government before incorporating. Banks ask for this document, together with the company name reservation, before activating the company's current account.

Identifying beneficial owners above 25%

Under Andorra's anti-money-laundering law, the bank identifies every individual who owns or controls more than 25% of the capital or voting rights. Each one provides a passport, proof of address and source of wealth, just like a personal client.

Showing genuine activity in the Principality

For a company account in Andorra, banks review the commercial lease, the registration in the parish trade register, staff enrolled with CASS and the business plan. A company with no office or employees in Andorra raises doubts about its effective tax residence.

Can a foreign company open an Andorran account

A French or Spanish company with no establishment in the Principality will struggle to obtain a business account, lacking any local economic link. Banks are more receptive to a branch registered in Andorra or an Andorran subsidiary with its own local customers.

IGI at 4.5% and corporate income tax at 10%

An Andorran business charges the general indirect tax, IGI, at the standard rate of 4.5%, and pays corporate income tax at the general rate of 10%. Account statements are used to reconcile these periodic tax returns.

Exporting to the EU from a non-EU country

Andorra has a customs union with the European Union for industrial products, but goods still cross a customs border. The account must therefore cover duties, French or Spanish import VAT and payments to freight forwarders.

Card terminals for shops and hotels

Shops, restaurants and hotels in the Principality take large volumes of tourist card payments. At Creand Crèdit Andorrà, as at other local banks, a payment terminal is linked to the business account and its fees are negotiated according to expected volume.

Bookkeeping, annual filings and the bank's role

Andorran companies keep accounts under the local chart of accounts and file annual financial statements. The bank may ask every year for the balance sheet, a tax compliance certificate and updated beneficial ownership details.

CRS reporting on a company account

If the company qualifies as a passive non-financial entity, the bank identifies its controlling persons and may report their data to their country of residence under the CRS. French-resident shareholders also declare their personal Andorran accounts.

Andorra business bank account: the process in practice

The order of the steps matters as much as the documents. In practice you first reserve the company name, settle the question of foreign investment authorisation if a shareholder is not Andorran, and then pay the capital into the account opened in the name of the company in formation. The bank then issues a certificate that the notary requires for the deed of incorporation. Skipping a step often blocks everything that follows.

Plan to meet the bank before you sign at the notary. A preliminary conversation tells you whether the institution accepts your profile as a shareholder, which documents it expects and which activity it finds credible. Timing depends on each bank and on how complex the structure is, so do not set a trading start date before you hold a written answer on the business account in Andorra.

Once the current account is active, check that the payment methods match your business: SEPA transfers, cards, a terminal for shops and online access for the bookkeeping. The statements then serve as supporting documents for IGI and corporate tax returns, which is why it pays to keep them regular and readable, together with the invoices explaining each major movement.

Documents to prepare for a business account in Andorra

The file generally includes the articles or draft articles, the register extract if the company already exists, the name reservation, the foreign investment authorisation where relevant and the ownership chart. Each significant shareholder supplies a passport, proof of address and evidence of the source of wealth. The commercial lease and the business plan complete the file to show genuine activity on the spot. Compare the answers in writing so that you can choose with full knowledge.

Describe the expected activity precisely: type of customers and suppliers, countries of counterparties, currencies, approximate monthly volumes and payment methods. An Andorran bank compares this information with the real movements on the account. Large gaps between the announced plan and reality lead to further questions, or even a restriction on the account if the explanations seem insufficient.

Depending on the institution, documents issued abroad may need to be translated, legalised or carry an apostille. Ask for the exact list at the first meeting and keep dated copies of everything you hand over. This simple precaution avoids redoing papers at the last minute, when the notary is already waiting for the bank certificate. This avoids needless back-and-forth. Keep copies of each page.

Andorra business bank account: questions to ask the bank

Ask the bank about the real cost of an account for an Andorran SL or SA: maintenance fees, SEPA transfers, foreign currency operations, online banking, handling of several signatories and the terms of the card terminal if you serve tourists. Request the written tariff and compare at least two institutions, because fees are negotiated according to the expected volume of your activity. Keep proof of each step.

Also ask which documents the bank will request every year: balance sheet, tax compliance certificate, updated beneficial ownership details. Find out how refusal or restriction decisions are communicated and whom to contact in case of difficulty. Finally, check with the AFA or the bank that the institution is properly authorised before paying in any capital. A written reply beats an oral promise.

Finally, ask the bank about its policy towards foreign shareholders: does it require a meeting in person in Andorra la Vella, does it accept certified copies, and which countries of origin for funds prompt further questions? These answers spare you from paying incorporation costs for a structure the institution ultimately does not wish to support. Keep the trail of each decision.

Common mistakes with a company account in Andorra

The most common mistake is to incorporate without sounding out the bank: the notary has been paid, the capital is blocked and the account has not yet been accepted. Another trap is to present a company with no office or employee in the Principality and to hope the bank will treat it as a genuine local entity. Build substance from the outset.

Do not neglect reporting duties either: shareholders resident in another country declare their accounts and holdings under local rules, and the bank may pass on information under the CRS. Have your structure reviewed by an independent tax adviser, and never treat an account opening as certain until the bank confirms it in writing. Check the dates of every certificate. An expired document can delay the file.

Lastly, keep your paperwork simple and organised: a single file with the articles, authorisation, certificates, contracts, major invoices and exchanges with the bank. When the institution asks for an update after several months, you can reply quickly and limit the risk of the account being restricted, which would hold up payments to staff and suppliers. Otherwise the bank may ask for explanations.