Companies, subsidiaries and groups across France and Andorra
Accounting in Andorra: accounts that reflect your decisions
An initial confidential discussion to identify the companies, financial flows, existing tools and upcoming deadlines.
Accounting should record what happened and help you understand financial flows, trace decisions, anticipate deadlines and prepare accounts that reflect the actual business activity.
For an Andorran company, a subsidiary of a French parent or a family group, that continuity is essential. Contracts, invoices, bank transactions, financing, remuneration and intragroup transactions all need to tell the same story. SOL Fiscal organises the follow-up with management, accounting teams and, depending on the case, the group’s accountants, statutory auditors, lawyers and existing advisers.
Member of the ViaExperts network
Accounts and decisions
Carry your decisions through into the accounts
A legal or financial decision goes beyond signing minutes or a contract. It must be reflected in invoicing, payments, accounting records, returns and annual accounts. Otherwise, the file becomes fragmented: the lawyers have a document, the bank sees a transaction, accounting receives a record late and management loses sight of the whole picture.
Before the transaction
We identify the expected treatment, supporting documents, approvals, accounts affected, deadlines and people involved. For financing, a distribution, an acquisition, a licence or a reorganisation, this establishes the accounting or tax treatment before the transaction goes ahead.
During implementation
Invoices, contracts, corporate resolutions, proof of payment, bank statements and calculation inputs are collected through an established process. Discrepancies are flagged while they can still be explained or corrected.
At year-end close
Balances are reconciled against contracts, banks, fixed assets, financing, taxes and related companies. The close verifies and formalises the work done throughout the year.
Setting up
Set up accounting from incorporation
Good organisation begins before the first invoice. The company’s legal form, activity, shareholders, payment methods, employees, cross-border transactions and any group membership determine what information and processes it needs.
The permanent file
It includes articles of association, registrations, beneficial ownership, powers of attorney, minutes, key contracts, financing, bank details, permits and tax information. Update it when governance, capital or business activity changes.
The chart of accounts and reporting dimensions
The chart of accounts should support local accounts and management reporting by activity, site, project, revenue type, expenses, investment and related-company transactions. For an Andorran subsidiary, a mapping to the French group’s accounting framework and chart of accounts can be set up from the outset.
The schedule for collecting records
The frequency of document submission, responsible people, tools, approvals and review dates are agreed in writing. A company with little activity can keep the process simple, provided it is clearly defined and maintained.
In practice, setting up a company generally takes at least two and a half to three months to organise decisions, paperwork and dealings with the bank, authorities and professionals. A full departure, relocation and restructuring project between France and Andorra often takes a good year to prepare, carry out and settle. These practical estimates carry no statutory force or guarantee. Distinguish third-party timelines, mandatory deadlines and the project schedule.
Ongoing monitoring
Monitor the business throughout the year
The frequency depends on the activity and risks. The aim is to get the information you need to make decisions early enough and keep reporting focused on what is useful.
Cash and banking
Bank reconciliations, cash forecasts, debt maturities and unusual movements help anticipate financing needs and document where funds came from or went. Company bank accounts are kept separate from management’s personal expenses.
Customers, suppliers and fixed assets
Tracking sales invoices, receipts, supplier balances, advances, fixed assets and depreciation or amortisation helps measure activity and identify missing records. Property transactions, works and intangible assets must be classified consistently with the contracts and actual use.
Remuneration, distributions and shareholder current accounts
Remuneration, dividends, expense reimbursements and movements on a shareholder current account are treated differently. Check the decision, financial capacity, documents, returns and tax implications before or at the time of payment.
A useful management dashboard
Revenue, margin, cash, short-term needs, investments, debts, receivables and commitments can be monitored in a format proportionate to the business. A good dashboard helps you decide and act.
The group
Andorran subsidiary and French group:
aligning the two sets of requirements
An Andorran subsidiary must keep accounts and meet local obligations. Its French parent may also need reporting aligned with its own timetable, chart of accounts, valuation methods and control procedures. Plan for both sets of requirements while keeping their rules distinct.
Group reporting
A reporting timetable, account mapping, conversion rules, a document list and a standard format for supporting information help prepare group accounts. Intercompany transactions are reconciled, including invoices, advances, interest, dividends, services, purchases, sales and current account balances.
Accounting consolidation
Accounting consolidation presents an overall view of the companies in scope when required by applicable rules or chosen by the group for management purposes. It involves aligning certain methods, reconciling intragroup transactions and eliminating intercompany transactions from the consolidated accounts.
French tax grouping
French tax grouping is a separate tax regime with its own conditions and a specific scope. French ownership of an Andorran subsidiary does not, by itself, bring it into the regime. Eliminating a transaction from consolidated accounts therefore does not remove its tax consequences. The French and Andorran consequences must be assessed separately.
Consolidating accounts and grouping profits for tax are separate processes.
The first serves a financial reporting purpose. The second is a tax regime subject to conditions.
Financing
Equity, shareholder current accounts and intragroup financing
An Andorran subsidiary can be funded through equity, a shareholder current account, a bank loan or a combination of sources. The choice depends on how long funding is needed, risk, repayment capacity, governance and the legal, accounting and tax implications.
Equity
An equity contribution strengthens the company’s own funds and serves a different purpose from repayable financing. Corporate resolutions, the source of funds, bank movements and accounting entries must agree.
Shareholder current account or loan
Document the amount, term, any interest or other remuneration, repayment terms, security and use of funds. A lack of written terms, or terms that independent businesses would not have agreed to, may create accounting and tax difficulties.
Group treasury
Occasional advances should be managed so they do not turn into informal cash management. We track powers, limits, agreements, interest, flows, balances and each company’s liquidity needs. Tax treatment, any withholding and documentation requirements are checked with the appropriate specialists.
Intragroup transactions
Document intragroup transactions and
intangible assets
An invoice between related companies must reflect a service, goods, financing or a right actually provided. Accounting alone cannot fix a poorly defined transaction.
Services and recharges
The contract, service actually provided, calculation method, supporting evidence and benefit to the paying company must be consistent. Keep the allocation keys on record and review them when business activity changes.
Intellectual property, licences and royalties
Before recording a royalty, identify who actually owns the brand, software, content, patent or know-how, and who develops, protects and exploits it. Licences, the substance of the functions performed, remuneration and financial flows must reflect that reality.
Transfer pricing
Related-party transactions are identified and documented proportionately. SOL Fiscal coordinates accounting, legal and tax information and brings in transfer pricing specialists when the analysis calls for it.
Year-end close
Close the books, submit returns and file accounts
with a clear record of the year
The annual accounts must present a coherent picture of the company’s assets and liabilities, financial position and results in line with applicable rules. They are prepared using the reconciliations and supporting records gathered during the financial year.
Year-end review
The review covers banks, customers, suppliers, fixed assets, inventory where applicable, debts, receivables, accrued expenses and income, related-party transactions, equity and commitments. Events after the reporting date are also flagged if they affect the information to be reported.
Annual accounts and filing
Accounts are drawn up, approved and filed according to the company’s legal form, circumstances and the rules in force. Use the new accounting plan and applicable official templates for the relevant financial years. Record deadlines on a shared calendar, along with responsibility for preparation, review, signing and filing.
Tax and returns
The accounting result is the starting point for the tax calculation. Adjustments, taxes, withholding, cross-border transactions and activity-specific obligations are examined separately. A correct accounting entry still requires a separate check of the tax treatment.
Audit and controls
When a statutory, contractual, bank-required or group audit is needed, we plan ahead for the timetable and document requests. The statutory auditor or other auditor retains independence and responsibility. The firm prepares the information and coordinates responses within the agreed scope.
Our method
Clear working arrangements with the
group’s advisers
SOL Fiscal works in an open-architecture model with internal teams, accountants, statutory auditors, lawyers, notaries, banks and existing advisers. Responsibilities, sign-offs, access to information and confidentiality rules are defined in writing, with particular attention to professional secrecy and each party’s conflicts of interest.
-
1. Map the situation
Companies, activities, bank accounts, tools, contracts, obligations, intragroup transactions, timelines and contacts.
-
2. Organise
Permanent file, collection of records, chart of accounts, reporting dimensions, access rights, approvals and reporting formats.
-
3. Prepare and check
Bookkeeping, reconciliations, periodic reviews, follow-up on discrepancies, preparation of accounts and coordination of returns.
-
4. Explain and decide
Clear reporting of results, matters to watch, decisions to make, cash needs and an action schedule.
-
5. Follow up over time
The arrangements evolve with the business, financing, hiring, acquisitions and applicable rules. Developments in legislation, regulation and administrative guidance are applied to the cases they affect. Once a France–Andorra project has settled, the French matters covered by the agreed scope are revisited.
FAQ
Frequently asked questions about accounting
in Andorra
When should I set up the accounting process?
Before the first transactions. The bank account, invoicing, incorporation expenses, contributions, loans and contracts already generate records and decisions that must be traceable. A simple process may suffice at first, provided it is clearly defined.
Which documents should I provide?
Bank statements, sales and purchase invoices, proof of payment, expense claims, contracts, corporate resolutions, payroll information, tax documents and information about fixed assets, financing and related-party transactions. At the start of the engagement, we agree on a list suited to the business and how often to submit the documents.
In what order should I set up an Andorran subsidiary?
First define the activity, governance, funding needs and expected flows. Then establish banking and document processes and configure the chart of accounts and reporting. Finally, set controls, filing requirements and year-end deadlines. The exact order depends on permits, the bank and the group’s timetable.
Does a company with no turnover still have obligations?
Yes. Even without sales, depending on the circumstances, a company may need to keep records, comply with corporate formalities, prepare and file annual accounts or submit returns. Track expenses, contributions, debts, bank accounts and decisions. The scope of support can be proportionate to actual activity.
Our analysis sets out the obligations to track for an Andorran company with no turnover.
Do I need a holding company to organise the group’s accounts?
No. A holding company is useful if it serves a clear purpose in governance, financing, asset ownership, succession or centralisation. Good accounting arrangements may mean retaining the existing structure, simplifying the group or creating just one subsidiary.
How can I fund an Andorran subsidiary?
Equity, a shareholder current account, a bank loan and intragroup financing serve different purposes. Before transferring funds, compare how long they are needed, repayment capacity, remuneration, security, powers and the legal, accounting and tax implications.
How is the work divided between SOL Fiscal and the French advisers?
The scope is defined case by case. SOL Fiscal organises local and cross-border follow-up, information sharing and the agreed reporting. Accountants, statutory auditors, lawyers, notaries and specialists approve and carry out work within their remit. Existing advisers can remain fully involved.
Does accounting consolidation remove the tax consequences of intragroup transactions?
No. Eliminating an intercompany transaction from consolidated accounts serves a financial reporting purpose. The invoice, contract, documentation obligations and tax consequences in France or Andorra still require separate treatment.
How are follow-up and fees arranged?
The scope, companies involved, tasks, frequency, deliverables, deadlines and fees are set out in writing. An engagement can be one-off, recurring or coordinated with a wider project. Exceptional work is identified in advance whenever possible.
Initial discussion
Make the accounts work for your project
Clear accounting makes the business easier to manage. It shows what happened, what needs a decision and which records should be kept.
We can start with a confidential review of the companies, financial flows, tools and deadlines, then propose arrangements that fit the business: keep what is in place, improve some processes or set up more structured monitoring.
A confidential discussion to clarify the scope, relevant documents and next steps.
Matthieu Bech is a legal specialist in French tax law and cross-border procedures and an economist registered in his own name with the Col·legi Oficial d’Economistes d’Andorra under number 297. SOL Fiscal coordinates tax, accounting and wealth analyses within the agreed scope and, where the case requires it, works with accountants, statutory auditors, lawyers, notaries, financial institutions and other qualified professionals. This page sets out a general method. Each company or group requires an assessment of its own circumstances.