ANDORRA. AN EUROPEAN COUNTRY

JURIDICAL SYSTEM

Andorran merchant companies may choose to take one of the following juridical forms:
Collective company (SRC)
Joint stock company (SA)
Limited liability company (SL)

Specifications:
At least two thirds of the capital of companies not defined as being of public or social interest must be Andorran. By Andorran capital is understood capital of individuals or companies of Andorran nationality or of foreign individuals who have continuously resided in the Principality for at least 20 years.*

Andorran companies must have registered offices in Andorra.

The Law regulating the basic administrative system of banks of 30 June 1998 lays down that the capital of Andorran law banks may contain up to 51% of capital from foreign credit establishments.

The exercise of commerce and industry is restricted to Andorran individuals or companies. Foreign individuals with more than 20 years of residence may hold a commercial or industrial establishment in their own name.**

With regard to the purchase of real estate by foreigners , it should be noted that non-resident individuals and resident individuals with less than 20 years' residence require the prior granting of a permit to purchase by the government and that there is a limit of one such permit per family unit. The purchase is authorized for a dwelling in acondominium plus parking space without regard to the surface area. If it is a question of land or a plot to build a chalet or single family dwelling, the surface area of the land or plot may not exceed 1,000 square metres. Foreign individuals with less than 20 years’ residence may not purchase a block intended for commercial premises or offices. Foreign companies may not purchase real estate in the Principality.

The exercise of a liberal profession in the Principality is reserved for Andorrans and residents of more than 20 years' standing in the Principality with diplomas issued by the Andorran authorities, France or Spain or recognized by these states.

The exercise of any liberal profession by other foreigners is at the government's discretion and permit will be granted bearing in mind the Principality's needs and the personal condition of the applicant. Such a permit is granted for a maximum period of 10 years and a cash deposit is required according to a price scale fixed by the government.