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Company formation in Colombia
Comprehensive assistance in company formation, including banking services
How to form a company in Colombia
1
Document submission
You submit to us necessary documents of the future founders and directors for the purposes of company formation in Colombia and opening a bank account in Colombia
2
Payment of services
Payment of our services for company formation in Colombia and/or bank account assistance in Colombia
3
Company formation
We register a new company in Colombia for you. Upon completion of the registraion corporate documents are either delivered to you or submitted to a bank for the subsequent opening of a bank account
4
Bank account opening
In case you request an assistance with a bank account, we arrange an interview at the bank for you, inform you about the date of the visit and accompany you on your way to the bank. After the bank account is opened and active you receive corporate documents of the formed company as well as the access to the bank account
Key aspects to consider prior to incorporating a company in Colombia
You can incorporate a limited liability company in Colombia and open a corporate bank account remotely.
1. Founders that would like to register a company in Colombia can either be resident or non-resident in Colombia. Founders can be either individuals or legal entities.
2. A resident or a non-resident individual can be a company director in Colombia. It is not required to register a company in Colombia with a resident individual as one of its shareholders or directors. However, it is required to register a company in Colombia with a resident legal representative.
3. One individual can register a company in Colombia and simultaneously be a shareholder and a director in this company if such company is registered as a SAS (a simplified corporation).
4. There is no requirement for creating substance in Colombia - no need to hire local employees or rent an office in order to register a company in Colombia or to conduct business in Colombia.
5. Minimum share capital that is required to register a company in Colombia as a SAS (a simplified corporation) is not established.
6. Information about company founders, shareholders and directors after company registration in Colombia is complete is publicly available in the state corporate register.
7. We can help you register a company in Colombia, as well as open a corporate bank account remotely, on the basis of a power of attorney.
2. A resident or a non-resident individual can be a company director in Colombia. It is not required to register a company in Colombia with a resident individual as one of its shareholders or directors. However, it is required to register a company in Colombia with a resident legal representative.
3. One individual can register a company in Colombia and simultaneously be a shareholder and a director in this company if such company is registered as a SAS (a simplified corporation).
4. There is no requirement for creating substance in Colombia - no need to hire local employees or rent an office in order to register a company in Colombia or to conduct business in Colombia.
5. Minimum share capital that is required to register a company in Colombia as a SAS (a simplified corporation) is not established.
6. Information about company founders, shareholders and directors after company registration in Colombia is complete is publicly available in the state corporate register.
7. We can help you register a company in Colombia, as well as open a corporate bank account remotely, on the basis of a power of attorney.
Cost of services
Formation of a SRL
Timeline - 15 business days
Timeline - 15 business days
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Advantages of incorporating a company in Colombia
Attractive business-environment
- Multiple active free trade agreements: Associate Member of Mercosur, U.S.-Colombia Trade Promotion Agreement, CARICOM, CAN, Colombia-EFTA
- Geographic location of Colombia allows to establish maritime trade with North, Central and South American states, EU states, as well as with Asian states, Australia and New Zealand
- Foreign investment promotion
Tax benefits
- Multiple tax incentives
- Multiple free trade zones
- Multiple double tax treaties
Ease of establishing and doing business
- No minimum share capital requirement to register a company in Colombia as a SAS
- Remote company formation and remote banking assistance in Colombia is available for any foreign individuals
- 100% foreign ownership of a company in Colombia is available
More about Colombia
Republic of Colombia is located in the northwestern region of South America. Colombia has a territory of 1,141,748 square kilometers. Colombia borders Brazil, Ecuador, Panama, Peru and Venezuela and has access to the Caribbean Sea, as well as Atlantic Ocean and Pacific Ocean. The capital city of Colombia is Bogotá, the largest city and the location of key government institutions.
Population of Colombia amounts to around 50,38 million people.
Population of Colombia amounts to around 50,38 million people.
Official currency of Colombia is Colombian peso (COP).
Colombia has the fourh largest economy in Latin America. Petroleum is the main export of Colombia representing nearly 50% of total exports. Manufacturing makes up 12% of the county's exports. Colombia also has a rapidly growing IT industry. Shipbuilding industry is also one of the largest in the world. Colombia is the 2nd largest producer of electronics and appliances in Latin America. Electricity production comes primarily from renewable energy sources. Nearly 70% is obtained from hydroelectric generation.
In terms of foreign trade, the largest goods contributing to the country's export are mineral fuels, oils, gold, coal, distillation products, fruit, agricultural products, coffee, sugars, confectionery, food produts, palm oil, plastics, precious stones, metals, forest products, chemical goods, pharmaceuticals, perfumery and cosmetics, machinery, textile and fabrics, clothing and footwear, glass and glassware, furniture, construction equipment.
Imports of Colombia consist of electrical machinery and equipment, cars and vehicles, electric conductors, consumer goods, medicaments.
Primary trading partners of Colombia are Brazil, Ecuador, Panama, Mexico, Peru, the USA, China, India, Italy, Turkey, Spain, France, Japan, Germany.
The GDP of Colombia grew by 10.6% in 2021 and amounted to USD 314.27 billion. Tertiary sector makes up 59% of the GDP of the country, followed by industry sector at 25% and agriculture at 7.4%.
Colombia has the fourh largest economy in Latin America. Petroleum is the main export of Colombia representing nearly 50% of total exports. Manufacturing makes up 12% of the county's exports. Colombia also has a rapidly growing IT industry. Shipbuilding industry is also one of the largest in the world. Colombia is the 2nd largest producer of electronics and appliances in Latin America. Electricity production comes primarily from renewable energy sources. Nearly 70% is obtained from hydroelectric generation.
In terms of foreign trade, the largest goods contributing to the country's export are mineral fuels, oils, gold, coal, distillation products, fruit, agricultural products, coffee, sugars, confectionery, food produts, palm oil, plastics, precious stones, metals, forest products, chemical goods, pharmaceuticals, perfumery and cosmetics, machinery, textile and fabrics, clothing and footwear, glass and glassware, furniture, construction equipment.
Imports of Colombia consist of electrical machinery and equipment, cars and vehicles, electric conductors, consumer goods, medicaments.
Primary trading partners of Colombia are Brazil, Ecuador, Panama, Mexico, Peru, the USA, China, India, Italy, Turkey, Spain, France, Japan, Germany.
The GDP of Colombia grew by 10.6% in 2021 and amounted to USD 314.27 billion. Tertiary sector makes up 59% of the GDP of the country, followed by industry sector at 25% and agriculture at 7.4%.
International business expands to Colombia and incorporates a company in Colombia primarily in agribusiness, manufacturing sector, services sector, IT, food production, healthcare services and life sciences, energy sector, infrastructure projects.
Restricted for foreign entrepreneurs are the following sectors:
Restricted for foreign entrepreneurs are the following sectors:
- national defense
- television
- accounting, auditing and data processing
- banking
- fishing
- private security and surveillance
- transportation
- telecommuncation and radio
- air transport
- postal services.
- Corporate income tax - 35%. Tax returns are filed on an annual basis. Advance income tax payments are made twice a year for most commercial enterprises
- Dividend withholding tax - 10% for payments to non-residents, 0%, 7.5% and 10% for payments to residents
- Interest withholding tax - Standard tax rate 20% or reduced rate of 5% and 15% or tax exempt
- Royalties withholding tax - 20%
- Capital gains tax - 10%
- VAT - Standard tax rate 19% or reduced rate of 0% and 5% or tax exempt. Tax returns are filed on a bimonthly basis for commercial enterprises with gross revenue exceeding USD 870,000 (UVT 92,000) and on a quarterly basis for the rest of commercial enterprises
- Personal income tax - from 0% up to 39%.
Apart from such traditional business entity types as a limited liability company (Sociedad de Responsabilidad Limitada - SRL) and a public limited company (Sociedad Anónima - S.A.), corporate law in Colombia offers to incorporate a company in Colombia as:
1. General partnership (Sociedad Colectiva - S.C.)
2. Limited partnership (Sociedad en Comandita Simple - S. en C.S.)
3. Partnership limited by shares (Sociedad en Comandita por Acciones - S. en C. por A.)
4. Simplified corporation (Sociedad por Acciones Simplificada - S.A.S.)
5. Branch of a foreign company (Sucursal)
To receive a detailed description of the company formation procedure in Colombia and information about documents necessary for company formation in Colombia please contact our experts.
1. General partnership (Sociedad Colectiva - S.C.)
2. Limited partnership (Sociedad en Comandita Simple - S. en C.S.)
3. Partnership limited by shares (Sociedad en Comandita por Acciones - S. en C. por A.)
4. Simplified corporation (Sociedad por Acciones Simplificada - S.A.S.)
5. Branch of a foreign company (Sucursal)
To receive a detailed description of the company formation procedure in Colombia and information about documents necessary for company formation in Colombia please contact our experts.
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London, EC1V 2NX
Phone: +44 20 8157 4037
Email: request@pil-services.com
