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Jurisdictions


Synopsis

Nestling high in the Pyrenees, between France and Spain, measuring no more than 465 km2, Andorra has preserved its neutrality and its identity through more than 700 years with an unique record of diplomatic Map non-involvement in European affairs. The elected local government consisting of Cap de Govern (President) and his ministers (28) directs government from la Casa de la Vall (the Houses of Parliament). In 1993, Andorra created its own constitution and is now a member of the United Nations. The French and Spanish governments, the two co-princepts retain responsibility over military defence and extreme foreign affairs. The Principality is a no tax jurisdiction with no direct taxation being levied on income, capital or corporations. Wealth and inheritance taxes do not exist. The population of Andorra is 60,000 from which 20,000 are native Andorran. The official language is Catalan, but Spanish and French are widely spoken and accepted. The economy of Andorra is split between farming, banking, financial services and tourism, with over 12 million tourists visiting the country every year. The Principality is an ideal location in which to site management and control of offshore companies. Banks offer a wide range of professional, discreet and confidential services with banking secrecy being upheld by law. Andorran companies can be established for local trade, asset and investment holding and cross-border commerce. There are two types of Andorran companies, both of which enjoy limited liability. The Societat Limitadad (S.L.) is a company often used for local trading and must have a paid up share capital of at least ESP1,000,000 (Spanish Pesetas). The Societat Anonima (S.A.) is usually established for businesses which enjoy a much higher turnover and must have a minimum paid up share capital of ESP5,000,000.