Andorra Targets 2,777 Inactive Firms for Administrative Dissolution

The Andorran government has initiated administrative dissolution proceedings against 2,777 commercial companies deemed inactive, aiming to update the Companies Register and bolster transparency in the business sector.

This action follows Law 17/2026, enacted on 14 July and driven by the Ministry of Economy under Conxita Marsol. It targets entities that failed, over at least two consecutive fiscal years, to deposit annual accounts, submit required tax declarations, or declare ultimate beneficial owners. After the law took effect, companies in breach had one month to regularize their status. Once that grace period ended, the Department of Legal and Economic Registers identified these 2,777 cases based on consistent evidence of non-compliance.

The list of affected companies appears in Wednesday's Official Bulletin of the Principality of Andorra (BOPA). From the day after publication, administrators have 10 working days to file objections, provide documentation, or offer justifications. The process seeks to separate genuinely active firms from those that have effectively stopped operating without meeting legal obligations.

Unless inactivity is disproved, dissolution will proceed without liquidation. Administrators held responsible for the breaches face a one-year ban from administrative or managerial roles in any Andorran-registered commercial company. The procedure fully upholds rights to defense, enabling those involved to submit evidence of non-responsibility.

The Companies Register currently holds 18,415 entities. Officials describe the effort as aligning the register with international standards for transparency and good governance, while improving the quality of economic and commercial data. No details have emerged yet on objection outcomes.