The Step-by-step Process for Company Registration in Colombia as Stipulated by the Company Act
Both foreigners and locals under the streamlined regulations can exclusively establish their company registration in Colombia. You have an option of setting up a Simplified Public Limited Company (SAS), a Limited Liability Company (Ltda) or a Public Limited Company (SA). If you are a foreigner, you have the option of setting up either a Branch office or a Representative Office. For a SAS, you’ll be required only to have one director and one shareholder. They can either be a legal entity or an individual. Both the director and the shareholder may be of any nationality who may reside in any country. The minimum paid-up capital required is US$1, and if your annual turnover is more than US$990,000, you should appoint at least one legal agent who’s a Colombian nationality.
Once you’ve identified the type of structure, your next step is to verify your proposed business name. You must state the purpose of the business, the name of the business, the initial capital, and the legal representatives. You must validate the copy of your constitution with an attorney before handing over a copy to the Chamber of Commerce.
Should you decide to go ahead with company registration in Colombia, you’ll need to pay an inscription fee of 0.7 percent of the capital and an additional fee of COP$40,000.
Getting around incorporation in Columbia may be mind-bubbling at times. This is where 3E Accounting comes in to assist you in incorporating your company in Colombia. Endowed by highly professional staffs, the service provider guides you through the process until its completion. Whether you’re an established enterprise or a newly launched business, you’ll get services from:
- Human resources services
- Business advisory services
- Legal services
- Taxation services
You need to get your legal documents ready. Visit their offices or visit the online services.
How We Can Help
Now, getting tax compliance in Colombia can be complicated as you must be well acquitted with the tax laws. The tax laws require you to fill a form referred to as Pre-RUT which is accessible online (DIAN). The moment you’ve filled in the form, your next step is to open a business bank account. It should be separate from your personal account. Some of the documents you’ll require to have are:
- A legal representative’s copy of ID
- An introductory letter explaining how and who will be managing the account
- Certificate of registration
- The Tax certificate (RUT)
Once you have done that, you must go back to the DIAN office with the bank account certificate alongside a copy of the representative ID. The tax compliance ends once you present the NIT to Camara de Comercio to update your registration and issuance of a definitive tax number.
Company registration in Colombia also entails the registration of your employees with employment laws such as the Family compensation Fund, the Colombian Family Institute, Administrator of Professional Risks and the Severance Fund.