FC Penya d'Andorra, formerly known as Associació Club Penya Encarnada d'Andorra, was founded in 2009 as a cultural association for the promotion of football and sport in the parish of Andorra la Vella in defense of the name and honor of the House of Benfica.[1] The team was for the first time promoted to Primera Divisió after finishing first in the 2014–15 season of Segona Divisió.[2]
The original colors and badge invoked its Portuguese identity and were related, along with the local club Casa Estrella del Benfica, with the Portuguese club Benfica. The traditional club colors were red and black, thus given the club's nickname encarnados (the red ones), and the badge was a minor variation of the Benfica's sports club.