Establishing a branch office of your Serbian company in Andorra offers numerous business and tax advantages. It also provides a straightforward and legal path to obtaining residency in a country with some of the lowest corporate and personal tax rates in Western Europe.

Opening a branch in Andorra requires only a notification to the Serbian National Bank. Since the parent company is registered abroad, the application must be submitted on its behalf to obtain permission to operate in Andorra.

Key Considerations for a Foreign Branch Office:

  1. The branch cannot be declared bankrupt independently. The parent company bears full responsibility for all actions of the branch.

  2. The branch manager must be granted a power of attorney by the parent company to act on its behalf.

  3. The branch is not a separate legal entity. Its financial and legal activities are attributed directly to the parent company, which is responsible for meeting all related legal and tax obligations.

 

Steps to Open a Branch Office in Andorra:

  1. Obtain Foreign Investment Authorization:

    • Required if any non-resident shareholder owns 10% or more of the parent company.

    • The application includes a business plan and company structure details and is submitted to the Andorran government.

    • The approval process typically takes up to four weeks.

  2. Register the Branch:

    • Once authorization is granted, the branch must be registered with the Andorran authorities.

    • This includes reserving a business name, registering with the Commercial Register, and obtaining a Tax Registration Number (NRT).

  3. Open a Bank Account:

    • A bank account must be opened in the branch’s name to handle financial transactions and deposit share capital.

  4. Draft Corporate Statutes:

    • The statutes (bylaws) must outline the branch’s structure, operations, and governance.

  5. Fulfill Legal and Administrative Requirements:

    • Comply with local laws and tax regulations, including anti-money laundering obligations.

    • Submit all required documentation to relevant authorities and financial institutions.

  6. Choose a Business Domicile (Registered Office):

    • A valid address in Andorra is required. This may be a physical office or a registered office in a business center.

  7. Consider Hiring Professional Advisors:

    • A lawyer or accountant can help navigate the legal and administrative complexities of setting up in Andorra.

  8. Understand Work Permit Requirements:

    • Andorra enforces a strict quota system for hiring non-resident employees. Be sure to review applicable immigration rules.

  9. Understand Tax Implications:

    • Andorra has a flat 10% corporate tax rate, applicable to both residents and non-residents.

    • The country is no longer classified as a tax haven by the EU or OECD.

 

 

How We Can Help

We provide full-service support for establishing a branch of your Serbian company in Andorra through our offices in both Andorra and Serbia. Our services include legal, banking, and immigration assistance tailored to your specific needs.

After setting up your branch office, we can also manage the process of securing your residence permit and offer continued support with accounting and tax matters for both your parent company and Andorran branch.

Your initial consultation can be scheduled in our Belgrade office and conducted in either English or Russian, according to your preference.