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There are basically two types of Andorran companies:

1) Societat Anonima (S.A.) - Companies with a minimum capital of EUR30,000 and 3 shareholders. Shares are registered in the actas (minutes book) of the company.

2) Societat Limitada (S.L.) - Companies with no fixed minimum capital but normally a minimum capital of EUR3,600 and 2 shareholders. Shares are registered in the actas of the company.

To form a company the first step is to find a pret nom (president) for the company. The president must be an Andorran or a privileged resident of more than 20 years standing. This person nominally owns two thirds of the equity of the company but normally transfers the rights to these shares under a fiduciary document signed in front of the Notary Public.

The next step is to find an Andorran lawyer to draw up the company statutes (articles of association). The statutes include a clause defining the object of the company. This is short and concise. Present day companies do not permit a wide scope of activities.

The company statutes must be approved by the Andorran Govern and are then Notarised along with the official Libro de Actas (Minutes Book). The statutes not only state the object of the company's operations but also list the original shareholders, who are usually the Gerents (Executive Directors) of the company.