To start the company formation it is best to arrange a short visit during which you can notarise in Andorra the documents you have obtained and the copy of the passport, instruct the lawyer or Accountants and look to open a bnak account.
A company name will then be agreed upon and applied for along with foreign investment approval. Government are required to respond within 30 days and may do so to request further information or clarification. In general a simple application will receive approval within the 30 days. The applicant is then required to return to Andorra to go before the Notary to complete the company registration. The company stautes and registration are the available within 5 to 7 days from the date of the Notary signing.
At this stage and if residency Category D is to be requested we can then apply to Immigration.
The final stage of company formation is the local trading license called the "Obertura de Comerç". This involves an inspection of the registered premises, health and safety due diligence and an approval at Parish level to operate the company at that address. Please note that the address can be your residential address subject to some basic minimum requirements and the agreement fo the landlord.
Once that is completed you will need to apply for CASS ( Local social security) which is obligatory for all shareholders. The monthly contribution is fixed at 400 euros per shareholder but in the first 2 years this is reduced by 50% to 200 euros monthly.
Residency need not be an option and a non resident can operate the company. If however the company actively trades in Andorra then he will need to appoint a local administrator, again the lawyer or accountants can advise on that.
Company profits tax is 10% but the distribution of profits from an Andorran company is not then taxed at the personal level. IGI ( or IVA, VAT etc is 4.5%). Annual returns are required for accounts, tax calculation, IGI ( twice per year or more) and the accountants will be able to complete all of that for you.
Please also read www.andorrancampanies.com for a general overview and contact me for more detailed advice if you would like to explore further.