Company Formation Colombia
Updated on Wednesday 25th April 2018
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Due to the fact that Colombia’s economy is constantly developing at a rapid speed and also due to the highly qualified workforce and good geographic position, many foreign entrepreneurs choose to set up a company in Colombia. Our team of company formation specialists can assist you with the process, so do not hesitate to contact us for more information.
As a foreign investor it is important to make the right decision when it comes to what kind of legal entity is suitable for your plans. Some of the business forms available in Colombia are: the sole proprietorship companies, the simplified limited liability companies (sociedades por acciones simplificadas), the public limited companies (sociedades anonimas), partnerships, joint ventures.
These are the demands that need to be met when talking about the simplified limited liability company, which is the most popular amongst the choices of investors:
- minimum one director and shareholder (the nationality has no importance, he/she does not have to be a Colombian resident);
- minimum paid-up share capital of 1$;
- appointing at least one legal representative who needs to be a resident of Colombia.
1) First step of the process is registering with the Registry of Commerce and acquiring a pre RUT or pre-taxpayer ID at the Chamber of Commerce.
2) The next step of the company registration procedure in Colombia is to open a bank account and deposit the initial capital; for this phase some documents need to be submitted. Our company incorporation agents can assist you with all of the procedures.
3) Then you have to obtain an ID number for tax payers. This will be completed at the Tax authority agency.
4) Next step is registering the company with the Family Compensation Fund, the Colombian Family Institute and the Governmental Learning Service. Then you also need to register your employees for health coverage at the EPS (which is a kind of health promoter).
5) Finally, you need to register your employees with a severance fund where you first need to present a form stating the severance fund's affiliation to the employee. The employees have the right to choose the preferred severance fund.
Our company formation experts can be contacted to help you with all these procedures, but also with further information on how to open a company in Colombia or in other countries.
Types of legal entities in Colombia
As a foreign investor it is important to make the right decision when it comes to what kind of legal entity is suitable for your plans. Some of the business forms available in Colombia are: the sole proprietorship companies, the simplified limited liability companies (sociedades por acciones simplificadas), the public limited companies (sociedades anonimas), partnerships, joint ventures.
Requirements for opening a company in Colombia
These are the demands that need to be met when talking about the simplified limited liability company, which is the most popular amongst the choices of investors:
- minimum one director and shareholder (the nationality has no importance, he/she does not have to be a Colombian resident);
- minimum paid-up share capital of 1$;
- appointing at least one legal representative who needs to be a resident of Colombia.
Steps for registering a company in Colombia
1) First step of the process is registering with the Registry of Commerce and acquiring a pre RUT or pre-taxpayer ID at the Chamber of Commerce.
2) The next step of the company registration procedure in Colombia is to open a bank account and deposit the initial capital; for this phase some documents need to be submitted. Our company incorporation agents can assist you with all of the procedures.
3) Then you have to obtain an ID number for tax payers. This will be completed at the Tax authority agency.
4) Next step is registering the company with the Family Compensation Fund, the Colombian Family Institute and the Governmental Learning Service. Then you also need to register your employees for health coverage at the EPS (which is a kind of health promoter).
5) Finally, you need to register your employees with a severance fund where you first need to present a form stating the severance fund's affiliation to the employee. The employees have the right to choose the preferred severance fund.
Our company formation experts can be contacted to help you with all these procedures, but also with further information on how to open a company in Colombia or in other countries.