Legal forms in Andorra: SL, SLU, SA and minimum capital
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The short answer
The SL is the most common form for small and medium-sized businesses, the SLU is its single-partner version, and the SA suits larger projects. Each form has its own minimum capital and governance rules.
Comparison
| Criterion | SL | SLU | SA |
|---|---|---|---|
| Partners | Several | One only | Several shareholders |
| Minimum capital | 3,000 €verified on 09/10/2026 | 3,000 €verified on 09/10/2026 | 60,000 €verified on 09/10/2026 |
| Typical use | Small and medium-sized businesses, service activities | Lone entrepreneur | Larger projects |
| Governance | General meeting, director | Sole partner | Board, general meeting |
How to choose
- A single founder: the SLU simplifies governance.
- Several partners: the SL allows for a shareholders' agreement.
- Fundraising or a large-scale project: the SA is more flexible but heavier.
What the SL and the SA have in common
Under the companies law and the Chamber of Commerce, both forms have their own legal personality from the moment they are entered in the companies register, may have one partner or several, and must have their registered office within Andorran territory. Shares are registered and each share must be fully paid up by an actual contribution. The minimum capital is 3,000 €verified on 09/10/2026 for an SL and 60,000 €verified on 09/10/2026 for an SA.
Governance
The general meeting is the sovereign body: amendment of the articles of association, approval of the accounts, allocation of profit, appointment and removal of directors, merger or dissolution. Its decisions are taken by a majority of the capital, which must represent at least one third of the share capital.
The meeting chooses the form of administration:
| Mode | How it works |
|---|---|
| Sole director | One person decides and binds the company |
| Joint directors | The directors act together |
| Joint and several directors | Each may act alone |
| Board of directors | Collective decisions |
In a single-member company, the sole partner exercises the powers of the general meeting.
The sole trader, for comparison
A sole trader answers for their business debts with all of their assets, present and future: there is no separation between business and personal assets. A foreigner acquires the economic rights to carry on an activity only by obtaining residency. This is the main reason why the company is the usual route for founders.
Choosing according to your situation
- You are starting alone: the SLU, with no shareholders' agreement to draft.
- Several partners: the SL, with an agreement governing entry, exit and decisions.
- A heavier project, with a board and shares that circulate more easily: the SA.
- You want to hold shareholdings: see the holding company in Andorra.
The accounting and filing obligations are the same for both forms: see accounting and gestoria.
Work out your own case
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Frequently asked questions
What is an SLU?
A single-member limited liability company, that is, one with a sole partner.
What capital is needed for an SL?
See the table: dated and verified value.
Is liability limited?
In an SL or an SA, the partners' liability is in principle limited to their contributions, except in cases of management misconduct or personal guarantees.
Which form for a freelancer?
Depending on the activity, operating as a sole trader or an SLU may be suitable. The choice depends on taxation, risk and the residency status sought.
Can an SL have a single partner?
Yes. A limited liability or public limited company may be formed by a sole partner: it is a single-member company.
Where must the registered office of an Andorran company be located?
The registered office must be within the territory of the Principality of Andorra.
Going further
Official sources
This information is general and is not personalised legal, tax or financial advice. It is verified as of the date shown and may change.